How to Scale Your E-Commerce Store the Right Way
By Shane Stark
04 Feb 2023
There are fundamental differences in how an e-commerce store should be scaled, ensuring you can maintain a healthy ROI and not end up in the red. This article will explore tips and best practices when scaling your e-commerce store.
Top 2 Things to focus on:
The basic premise of selling online is pretty simple; if you're selling more than you can make, you're successful. If not, you're short on profit and might be in serious trouble.
1. Implement Automation
Becoming successful online comes down to implementing automation. By automating some of your processes, you can arrive at numbers you never thought possible and make more money than ever.
Automation is never an easy task, but with the proper planning and implementation, it's possible to improve your store's performance hugely.
2. Select a Business Model and Stick to It
There are three good ways to sell digital products: subscriptions, direct sales, and auctions. If you're selling items through your online store, then you can set a subscription model as your primary way of making money. This will ensure you always have a consistent revenue stream. The drawback is that you'll need to make a lot of sales to see significant profits. If your e-commerce store is based on selling individual items, then directly setting out to make one-off purchases might be your best bet. This will net you more profit per sale, but you'll need to make a lot of sales to reach significant totals.
Setting up your store as an auction site might be the way to go if you're focusing on a specific niche. However, this option comes with a warning: almost every product is an auction. This means that a lot of your traffic will be driven by smaller amounts of people who are more interested in purchasing one item than they are in browsing through the store.
The Ultimate Tip for growing sales
3. Offer Free Shipping
Shipping is difficult to do online, and finding the right balance between profit margins, shipping time, and shipping cost can be challenging.
One of the best things you can do for your e-commerce store is free shipping. The more orders you get and the higher your average order value, the more you'll have to offset shipping costs. If you offer free shipping on orders worth over $50, then much of your profit margin can be kept instead of paying for shipping services.