Tag Archives: online-store

How Your Online Store Can Reach Millennial Shoppers By Reviewing Your Pricing

The post How Your Online Store Can Reach Millennial Shoppers By Reviewing Your Pricing appeared first on HostGator Blog . Why Now Is a Good Time to Review Your Online Store’s Product Mix and Pricing Millennials are upgrading their lifestyles. Is your store ready to help them do it? Shoppers age 20-36, as we mentioned in our future of e-commerce post, are driving growth in luxury online retail sales . In the US, Europe, and China , young consumers are spending more freely than before on luxe items—and are expected to do so for years to come. This means that if you’ve been holding off on adding more expensive products to your shop, this could be the time to go for it, to keep your customers from leaving you and to see better profit margins. But before you invest in new products, you’ll want to do a market analysis, find your break-even point for those products, come up with a plan to market your luxury items to young adult shoppers, and create an online shopping experience they’ll enjoy and want to experience again. How Can You Analyze the Market for Your Luxury Items? In general, interest in luxury goods is high among young adults. Consultancy Deloitte found that 55% of US Millennials are “very interested” in “high-end fashion or luxury items .” The percentage is even higher in Italy, the UK, and China. But you’ll want more details before you decide whether to invest in high-end products for retail or develop your own brand of luxe goods. Let’s say you sell handmade leather wallets but you’d like to add handmade shoes, which are a much costlier product. Through a combination of surveying your existing customers, studying demographic data, and online marketing research tools , you’ll want to answer these questions: Who are the target customers for your product? Do they need and/or want what you’re planning to offer? Do you have (or expect to attract) enough of these customers to make your investment in the new product profitable? How is the competition presenting these products or similar ones? How can you set your shop apart from competitors selling the same product? (Remember, competing on price is usually a losing proposition .)   What’s Your Break-Even Point? Once you know that there are customers who will buy your handmade shoes, you’ll need to fine-tune how to price them and figure out how many you’ll have to sell before you break even and start turning a profit. To find your break-even point for different retail prices, you can use this clever break-even analysis tool from Harvard Business Review . You’ll need to know, or have a good estimate of, your: Fixed costs , which are the expenses you’ll rack up in developing your shoes, like design software, shoemaking equipment, and the money you’re budgeting for general promotions. (If you’re buying finished products from a supplier, you can substitute the wholesale cost of your initial goods purchase for product development costs). Let’s say setting up your workshop costs you $10,000. Variable costs per product unit , which include the cost of materials and your time to make each pair. Variable costs can also include pay-per-impression digital marketing campaigns. Let’s put your materials, labor, and digital marketing costs at $200 per pair. Revenue per unit , which is your retail price. Small-brand handmade shoes are typically priced around $300 per pair. Unit margin , or how much money you’ll get to keep after each pair sells.  In this case, it’s $100 per pair. Plugging these numbers into HBR’s calculator (or using their equation) yields a break-even point of 100 pairs of shoes sold at $300 per pair. Raise your retail price to $350, and your unit margin rises to $150 while your break-even point drops to 67 pairs, although it may take you longer to reach your break-even point at the higher retail price.   How Can You Market Your Luxury Items to Millennials? With your shoes ready to go, your price set, and your break-even point calculated, it’s time to let luxury shoppers know you’ve got the goods. How can you do that? Start with your email list and social media followers. (If your shop doesn’t have an Instagram , know that it’s a popular channel for major luxury brands trying to reach Millennials. ) In your messaging, you’ll want to include great, share-worthy photos and text that emphasize the “quality and uniqueness” of your items. That’s because Deloitte found those two things matter more to the under-35 luxury shopper than legacy brand names do. Promote your company’s ethics and sustainable practices, too—89% of US Millennial luxury shoppers in Deloitte’s study said they always or sometimes make sure a luxury brand is ethical and sustainable before buying.   How Can You Create a Luxury Customer Experience? There are two basic elements that can take a basic online shopping experience to luxurious new heights: product details and excellent customer service. Deloitte found that a slight majority of young luxury shoppers in the US prefer shopping online to buying in-store. However, these Millennials also said that being able to try products and get a sense of how they feel are important benefits to in-store shopping. If you’re selling your handmade shoes online only, how can you give customers a clear sense of what your goods are like? Invest in high quality product photography , add product videos, and write brief but detailed descriptions of each luxury item you sell. To further encourage new customers to try your products, you’ll want to highlight your fair and reasonable return policies, free shipping and expedited shipping options, and guarantees on what you sell. If you’re doing double duty as chief shoemaker and customer service rep, remember to make each interaction with your customers as positive as possible. Answer questions about products as quickly as you can, and when people do buy from you, make sure the packaging is impressive, too. If your first foray into upscale products goes well, you may want to expand your offerings to include more high-end, high-margin items. In each case, remember to do your market research first so you can get the most return on your luxury-goods efforts. Find the post on the HostGator Blog Continue reading

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Launch Your Online Store with This 5-Step Plan

The post Launch Your Online Store with This 5-Step Plan appeared first on HostGator Blog . 5 Steps to a Successful Online Store Launch Ready to open your online store? With all the excitement for the official launch, it’s important that you take time to map out your plan. You want to be ready to serve customers on day 1 (with little or no issues). Everything won’t be perfect, but the key is to keep pushing forward. Listen to Entrepreneur contributor Jonathan Long ’s advice: “Do not wait until you think it is perfect to launch. You are going to need to constantly split-test and make changes—it’s never going to be perfect…Don’t let excuses or fear get in your way—you are never going to know if you have a viable online business unless you launch.” A strategy can help remove fear and doubt before launch day. Here’s our 5-step plan to assist you. 1. Optimize Your Product Descriptions In the e-commerce business, the website is the foundation for your brand. And similar to a house, a weak foundation can result in problems in the future. That’s why it’s vital for you to optimize your website from the start. This process includes everything from web hosting to branding to technical search engine optimization. There’s a lot to consider. Think about how easily a potential customer can access your navigation bar or what keyword phrases will help you rank on page one of Google. With the growing number of mobile consumers, you’ll also want to configure your site for smartphones and tablets. A few small changes can make the shopping experience better. Product descriptions are often overlooked when launching online stores. The content should provide all the product details with an image. Here’s an example below from TJ Maxx . From a price to social share buttons, shoppers receive all the necessary information to make their purchasing decisions. Before you dazzle up your store, figure how you can enhance the site for your consumers. Every tweak gets you closer to a sale.   2. Know Your Shipping Strategy Most e-commerce stores sell physical products. If that’s your business, you need to ponder how you will deliver those products to your customers. Shipping is a big deal in business. From a brand’s perspective, you want the lowest costs to get items from point A to point B. Customers want their products to arrive at their doorsteps as soon as possible. These dilemmas leave very few options for e-commerce brands. For instance, you might have to offer free shipping to your shoppers. “Most customers not only want free shipping, they expect it. For this reason it can be difficult to sell a product with a hefty shipping fee. Many online retailers combat this by including the cost of shipping into the price tag while raising the price and offering ‘free shipping’,” writes Forbes contributor Brent Gleeson . Build a shipping strategy that ensures everyone involved gets what they desire. Answer the following questions: What courier will ship your products? What are the rates for your selected courier? Will you fulfill international orders? Will you purchase shipping insurance? How will you keep track of your shipping costs? What’s your shipping policy for refunds? The more details you provide upfront, the better your strategy. You don’t want to be guessing what to do next when customers start buying your products.   3. Build Your Email List While many industry leaders may declare that email marketing holds no significance, it’s still one of the best ways to communicate with potential buyers and longtime customers. Communication is essential in the customer relationship. Email offers you the chance to inform consumers about your latest products and confirm shipments of their most recent orders. Plus, on-the-go consumers can use their smart devices to check their emails. This access can help you become part of your buyer’s everyday tasks. But before you jump into all the complexities of email marketing, like segmentation and user profiling, your brand can start with the basic content—the welcome email. This email is the first greeting a consumer will receive for signing up for your newsletter. It’s the friendly introduction to your brand. Take a few tips from Urbanears below. Their welcome email gives the purpose of their newsletter  and what consumers can expect to receive. The 10% coupon code doesn’t hurt either! When creating your welcome email, you may want to include a small incentive, too. And don’t forget to add your branding to the message, like your logo or brand colors. Email marketing isn’t dead. You can take advantage of the benefits with a simple newsletter.   4. Gain Pre-Launch Feedback Like anything in life, you benefit when people lend you their expertise. Listening to others can provide insight on how to iron out launch issues. If possible, join a community of e-commerce store owners. You can learn from their mistakes and pick up a few pointers to improve your store. Think outside the box when finding communities. You may have to join multiple Slack groups or sit down face-to-face with folks in your local area. Prepare to ask specific questions and offer your skill set to others. Initiating a beta consumer group also is an effective way to get feedback before your launch. That way, you get real-life scenarios of what’s working (and not working) in your store. “E-commerce companies should aim to create quick and cost-effective prototypes which they can share with potential customers. Beta users can then offer feedback that will help reinvent your product so that it better meets their needs,” states Danny Wong , entrepreneur, marketer, and writer. Ask your beta users to navigate through your website and report any challenges that arise. You’ll also want to know if the products resonate with them. Of course, you want to give an incentive to your beta testers. Their honest feedback will only improve your launch. From communities to beta consumers, find ways to get feedback about your store. Then, make the changes quickly.   5. Develop Your Promotion Strategy Brand-new e-commerce stores face a heavy burden when it comes to promoting their businesses. While you’re offering an amazing product, people must know you exist. Promotion starts with knowing your audience. By learning who they are, you gain knowledge on where and how they consume information. For example, if you’re selling puppy accessories, you may find out they read a unique magazine tailored to dog owners. Then, you may want to purchase ads on the magazine’s site to connect with the audience. There’s a wide variety of promotional channels. You can begin with Facebook ads, strategic partnerships, or social media posts. Old Navy promotes their products with the help of influencers on Twitter. This tweet sets the tone of the brand with a call to action. Focus your promotional strategy on the consumer. It’s the time to show them why your brand deserves their attention. What separates you from the competition? How do your products solve their problems? Learn more about your customers to succeed with promotion. You’ll have the intel to attract and maintain their loyalty.   Launch Your Store Today Preparing for your launch day will help you move past any fears holding you back. With a strategy, you can make the customer experience better. Remember to optimize your product pages to convert visitors into buyers. Place email opt-ins around your site to capture window shoppers. And consider doing a beta launch to gain feedback. Plan. Then, launch! Learn how HostGator’s web hosting can support your e-commerce store. Find the post on the HostGator Blog Continue reading

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9 Habits of Successful Online Stores

The post 9 Habits of Successful Online Stores appeared first on HostGator Blog . 9 Tips for Enjoying Success With Your E-commerce Site Starting an online store is a business decision and a bit of a leap of faith. Will your carefully researched target audience respond to your offers? Will customers buy what you think they’ll buy, as often as you expect they will? Will your order, checkout, and […] Find the post on the HostGator Blog Continue reading

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How Your Online Store Can Personalize Your Customers’ Experience

The post How Your Online Store Can Personalize Your Customers’ Experience appeared first on HostGator Blog . Personalize Your Online Store’s Customer Experience with Magento Extensions Online shoppers expect a customized experience now, with stores showing them the types of products they like before they have to spend a lot of time searching. But an eMarketer report from earlier this year found that only slightly more than half of retailers offer any […] Find the post on the HostGator Blog Continue reading

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How and Why You Should Use WooCommerce for Your Online Store

The post How and Why You Should Use WooCommerce for Your Online Store appeared first on HostGator Blog . How To Create an Online Store with WooCommerce Can we be honest about one thing? It would be really cool to run a great online store. It doesn’t have to be the next Amazon, Wayfair, Target or NextFab. Just the kind of store where people actually buy your jewelry, accessories, coaching packages or eBooks every […] Find the post on the HostGator Blog Continue reading

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