In 2022, 14.8% of retail sales in the United States were online, a 12% increase from 2021. This is still a decrease from the height of the pandemic in Q2 of 2020 when 15.7% of U.S. retail sales were online.
According to an FTI Consulting report, U.S. online retail sales are predicted to reach $1.14 trillion in 2023, up 10% year over year. The report also projects that e-commerce will capture 42% of total retail sales growth in 2023.
E-commerce sales growth is expected to moderate to 10% or less in the coming years. Annual online sales growth through 2025 is expected to double the rate of store-based sales growth.
5 Strategies to Increase eCommerce Revenue
Here are five strategies to enhance your e-commerce revenue and make the most of this exciting trend.
Nurture Repeat Customers
While acquiring new customers is important, retaining existing customers can be even more profitable.
- Spend Wisely: Repeat customers spend more per purchase. One repeat customer’s revenue can equate to five new customers. Additionally, repeat customers spend 25% more during key times like the holiday season.
- Build Emotional Connections: Stay in touch with customers, and send personalized messages or greetings on special occasions. Emotional connections can lead to more repeat business.
- Customer Loyalty Matters: Customers have a 54% chance of returning after two or three purchases. Cultivate loyalty and build long-term relationships for a sustainable revenue stream.
Minimize Product Returns
Online product returns can be a revenue drain, accounting for 30% of all sales in 2018.
- Use Packing Videos: Record your packing process and send videos to customers. It builds trust and can decrease returns by 40-50%.
- Consider Fulfillment Solutions: Companies like MARQ provide video recording services for free.
Embrace Mobile-Friendly Shopping
Mobile shopping is fast becoming a preferred method for online purchasing.
- Speed Up Page Loading: A 1-second delay could result in millions in lost sales.
- Personalize the Experience: Millennials, especially, appreciate personalized offers.
- Simplify Navigation: Easy navigation keeps customers engaged. Use clear fonts, intuitive search options, and streamlined design.
Leverage Social Media to Connect with Customers
With 75% of customers buying something online after discovering it on social media, this platform can’t be ignored.
- Create Relevant Content: Speak to your customers’ needs and interests.
- Have Clear Calls-to-Action: Direct instructions like “order yours now” can boost conversion rates.
Reduce Cart Abandonment
Losses from cart abandonment account for over 75% of potential sales. Two strategies can make a significant difference:
- Disclose All Costs Early: Transparency is key to keeping customers committed.
- Offer Guest Checkout: About 28% of shoppers in 2018 abandoned carts due to registration requirements. Simplify the process.
Thriving in the dynamic e-commerce landscape requires targeted strategies that align with modern consumer behavior. By focusing on repeat customers, minimizing product returns, optimizing mobile shopping experiences, leveraging social media, and reducing cart abandonment, you can position your e-commerce business for significant revenue growth. With these essential tactics, the opportunity to excel in this bustling market is within reach.