Hey there – here is an answer I just spotted from one of the experts – Travis O’Keefe in another forum.
In ecommerce there are some important elements you need to create predictable revenues. Many people believe that if they put a website then they will make money. This is not true.
In summary, you need an ecommerce system which consists of 3 things working together 1) Traffic – your ads + 2) a store that converts traffic into sales + 3) An autoresponder that automates email marketing.
I created a 5 part free podcast that explains this system. Its called 👉 THE SECRETS OF 24 ECOMMERCE GURUS
This system enables you to generate enough profits to scale.
RE: your store: – A metric that you should be measuring, is your ecommerce store conversion rate (The number of people entering your store (via your ads) that turn into a sale).
What is a good ecommerce conversion rate for Shopify stores? The benchmark is 1.75%. This means that for every 100 customers your Facebook ads generate and that come into your store 1.75 will convert into a sale.
Larger stores have pushed this to 1.85%, and if you are more than 2.8% you are in the top quartile. The highest conversion rate we’ve seen on Shopify is 8%.
When you understand this % then I would work on improving your ecommerce system so it grows e.g. if your conversion percentage is 1% and you work on tactics to improve it to 2%, then you have just doubled your sales revenue.
It’s important that you identify the key metrics that grow your ecommerce revenues.
If you just have a store and send traffic to it, it is highly likely that your ecommerce business will only grow incrementally.
On average the 3rd element (Autoresponder) generate approx 30 – 40% of an ecommerce stores revenues + it improves the store conversion percentage by adding ‘abandon cart email sequence’ + ‘abandon checkout sequence’. So its very important to get this element right.
If I was your ecommerce coach I would suggest these steps in this sequence
1) Listen to the podcasts – they will give you a high level over view of the system and this will be important context for your decision making to grow your business.
2) stop spending $ on traffic (ads) until you have optimised the store conversion rate + increase the average order value + set up the autoresponder. You need a popup with an offer to collect potential customers’ emails for the autoresponder on your home page. If you don’t know how to do these search for advice on ‘Youtube university’ – use the key words “How to …” .
We always recommend optimising the store first (before optimising traffic) because our strategic recommendation to our clients is to master paid advertising, if you are serious about scaling. If its a side hustle then organic fine but it will take longer to generate $$.
3) When these are optimised then start paid traffic. Ensure that you have a FB pixel added into your store, so that you can run look-a-like FB ads from your ideal customer avatar that has converted.
Don’t believe the hype SEO is important but it takes 3 to 6 months to generate organic traffic. Consider Google shopping (its free until the end of the year) if you do this then remember the traffic is going to go directly to your product page not to your home page. So you need to have your product pages optimised.
With regards to your long shipping times this will have an impact on your store conversions and abandon check out %. You will need to leverage an autoresponder to build deeper relationships with your customers and communicate why the long wait time – try positioning it as handmade + are you able to personalise it in some way e.g. Embroidered name? Add this as an order bump to grow your average order value.
Or if you are serious about creating a business online then I recommend one of my expert ecommerce coaches to work with you one on one for a month to get your strategy and plan to improve your store, they will show you what to do, there is funding to cover at least 50% of the cost or if you fit a COVID criteria with your Regional Business Provider (Govt) then our service will be 100% funded.
Keep pushing its only a few more tweaks and you will get traction.
Mā te wā (see you again)