If you have been browsing around, you have realized that some of the most profitable ecommerce companies that are up for sale are quite pricey. While some of them are riding on trends and fads, most of them have fool-proof backing of accurate statistics. When the business’ statistics are consistently favorable over time and despite industry changes, you know that you are on to a good thing. But what makes these online companies so expensive to acquire? Well, they are established and profitable.
We examined loads of profitable businesses and discovered that they are consistent in their marketing and customer acquisition strategies. After all, what is a successful business without a good number of paying customers? Well, some of the efforts that were common across the board are as follows.
• Customer retention strategies
We learnt that in every business, acquiring a new customer is harder and more expensive that retaining existing customers. This is because an existing customer has already proven willingness and ability to buy. However, a potential customer may not always convert. Therefore, these successful businesses focus the better part of their efforts on turning one time customers into loyal customers.
• Trust messages and icons
The online shopping world can be tricky. As such, it is very vital that these ecommerce companies communicate the measures they have put in place to ensure that the clients’ information is secured. For starters, an SSL certified domain signals security to the customer. The second step is having a reputable antivirus/anti malware security installed to protect the information submitted and the appropriate icon prominently displayed.
• Visual demonstrations
We discovered that most of these successful online companies go all out to demonstrate their products using clear visuals. We found that there are high definition photos of the products from all angles. Additionally, there are countless high definition videos that demonstrate how the products are used. This gives the customer a sense of confidence in using the products, which results to less cases of malfunction due to incorrect use.
• User reviews and customer testimonials
Customers like to hear how good a product or service is from neutral witnesses who have used the product. Therefore, we noted that these sites have a rating system that allows only verified buyers to talk about the product. We realized that the rating systems show the photos and the names of those posting reviews.
• Their sites are responsive
This means that these websites are accessible through any device, including mobile phones. These successful ecommerce companies ensure that customers who want to shop via their mobile phones have an easy time; from browsing the product to check out. According to surveys, most shoppers prefer to use the company’s website on their phones as opposed to an app as it more convenient, faster and easier to navigate.
• Discounts and more discounts
We all love good bargains, even more so if you can always have them! Successful online businesses have mastered the act of giving discounts on different product at the right time. Some companies have periodic offers on all items, which drive up sales and helps release equity from slow moving products.
• Variety of payment options
This is one of the major reasons why successful online businesses have increasing sales over time. We learnt that while smaller online businesses were focused on only two or three types of credit and debit card payment options, bigger companies allowed other online payment options as well. Some of the companies had up to 7 different types of cards accepted on their site, as well as online accounts such as PayPal, Payoneer and even cryptocurrency.
The aforementioned marketing strategies are used in conjunction with sound operation structures, professional business management as well as consistent website management efforts. These efforts are the extra mile that the big companies go to acquire and retain customers
Recognizing Established Website Business for Sale at a Glance
Some of the things we learnt about successful ecommerce businesses may not be apparent at first glance. However, we learnt that you can easily tell a business that is on its growth trajectory without much scrutiny. Here are some of the aspects that we thought were telling of a success story.
• Strong presence of the business across all major platforms
• Businesses had branded links
• Smooth navigation and easy check out
• Strong presence on search engine results pages
• Highly responsive and helpful customer support
• Clear product or service differentiation
• Strong outreach system of traditional media and online influencers
In this internet age, it is important to keep learning the tricks of the trade. We learnt that most of these successful companies experiment with several ideas and pick those that perform the best. As such, it is important to explore different ideas to get what works for the business. When planning to make a purchase, however, be sure to scrutinize all the business information, structures and systems before you spend the money.
While we were looking around for a venture to invest in, we realized that buying inventory requires special attention. If you are looking to buy an ecommerce company whose inventory is sizeable, we recommend that you take the following tips into consideration.
• Understanding the inventory is paramount. Knowing the current levels, seasonal peaks, sales rates, reorder levels, product affinity, gross margins as well as cash flow is very important
• Having a good relationship with manufacturers as well their representatives makes the business successful and gives a competitive advantage
• Knowing your customers helps in marketing to them in a language they understand, with incentives they find valuable at prices they find appealing
• Keeping track of the inventory to know the fast movers, slow movers and remedial measures to keep the products moving is important
• Always keeping an eye on the competition is imperative. Adjusting marketing strategies, prices, service delivery, quality and operational effectiveness accordingly keeps the business on top in the industry
Granted, every business has its ups and downs. While you can opt to build your own ecommerce company from the start, purchasing an already profitable one is a lot easier. Buying a business that comes with established systems and profitable returns is a lot more fulfilling.
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