Selling online is already a reality for many small businesses.According to Statista, worldwide e-retail revenue is expected to grow $5.4 trillion in 2022, news as such encourages many others to give online sales a shot, but it is important to plan your actions to not get frustrated in the process.
Unfortunately, in general, the market is not well prepared. In Brazil, for example, a Sebrae research shows that 55% of entrepreneurs do not have a business plan, for instance.
The most common issue among those who do not succeed in the online market is precisely being too ambitious and detailing a strategy that would only work if more resources were available. This mistake is usually made due to the lack of reliable information on optimizing reach and sales conversion.
Here, you will get an overview of what is truly necessary to be successful online. Keep reading to understand how to get good performance investing on strategies that work and relying on a free sales platform!
How to increase reach through Google Ads…
“Reach” is the term used to describe the number of people who visualize your service/product online. It is crucial to know this number and work on a monthly basis to ensure your ads are seen by a larger audience. Here is where many people make mistakes by believing that they will attract customers without putting in the effort.
Truth is, without an advertising strategy, chances of getting a relevant reach are low. So it is much more common to invest in tools such as Google Ads. The only issue is investing too much money and not getting any return. See an example below:
According to a Google Ads quote, the minimum bid per click for an ad relating to the keyword “leather bracelet” is US$ 0.57. It may be a small amount, but on average Brazilian websites, for example, get one paying customer per 100 site visits. That means that to sell one leather bracelet, the business would spend US$ 57. In many situations the actual product price point is lower than what is spent on advertising, which is not advantageous for businesses.
There are many ways, however, to optimize this process. An experienced professional could, for instance, create cheaper campaigns using different keywords or even apply other techniques to improve performance. But when the business does not have someone on the team with that knowledge, they need outsource the service, which may result in high extra expenses.
… what about marketplaces?
Creating product ads on marketplaces instead of in their own site is a way that many businesses use to gain reach while spending less. This is a sales channel with interesting potential, but tricky to gain visibility among so many different sellers. For example, searching for “leather bracelet” within a platform like Amazon gives thousands of results. Among all of these, the ones on the first page will get the most hits.
Right off the bat it is hard to compete against seasoned sellers, so many new ones invest in ads for products with less competition, for example.
The power of social
“What can I do to reach customers when I am just starting out and do not have many resources available?”
Many newbies ignore their own network when starting out, especially the power of social platforms. WhatsApp is a great ally: you can share your virtual store link with friends and clients and create incentives that encourage them to share with their own networks.
Creating social profiles and advertising through them is the cheapest and easiest way to begin your online endeavour. Within a few months, the company will have a relevant number of orders and plenty of experience in the market, creating a strong foundation for bigger, bolder investments.
Something to remember: this process will only work properly if the sales process occurs on a website that is adapted for mobile. Ideally, you want to use an actual sales platform, free of charge, that does not require any kind of specific setting so you can save time and see results without spending a penny.
Strategies to increase conversion rates
Conversion rate is basically the number of sales by the number of visits a site gets. In Brazil, as mentioned above, the average is 1%, but with a strong strategy it is possible to get better results. The factors who play important roles in conversion rates are price, shipping costs, customer service and product information.
In regards to the product information, it is mandatory to have clear shots from different angles, to ensure the buyer has a perfect understanding of all features, almost as if they had them in their hands. See examples below:
Another important aspect is to have a title and description that are understandable and contain all information pertinent to the product. That avoids confusion and questions from the buyer, increasing the chances of purchase. See the difference between a clear, complete description and an average one:
It might seem obvious, but there are many sellers out there that are not prepared to offer a competitive price, which also leads to lower conversion rates. Another factor that can get in the way is more expensive shipping or slower delivery times than competitors offer. It is important to keep up with the competition and perform daily adjustments, if necessary.
The importance of excellent customer service
Once again the path to success seems too complex to small businesses. Creating ads that perform well and have high conversion rates demands time, and ideally every company would have a person dedicated to it. Good news is that there are simpler ways to start!
The best way is to stay close to clients who have viewed the ads but not bought the product - excellent customer service comes in to work in favor of the business. When the product information is incomplete or the prices are not the best in the market, having a strong and dedicated customer care process can be the difference.
That is why we suggest using WhatsApp and social media to keep in touch with clients and potential customers, too. From consumer feedback it is possible to understand their needs and which products are more attractive to them. With that information it is possible to optimize the ads, increase conversions and generate more sales.
Invest in the right channels and increase sales!
Before making huge investments of both time and money online, you want to realistically analyze what are your business’ resources. Throughout the initial phase, maybe it makes sense to build a simple online store on a free platform. Then, to share your portfolio with your contact network and gather feedback to make necessary improvements.
When applying optimization, most likely conversation rates will increase. Then, it will be time to invest in both strategies and tools that will draw more people to the ads.
olist shops is a solution that was developed especially for business owners starting to sell online. With this platform, any business can have its free online store and manage it from their mobile phone. Click here and see how it can help you advertise your products online in 5 minutes!
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