Monogo E-commerce News - How Online Retailers Are Preserving Their Profit Margins, #33
With increasing sales, we should not forget about the profitability of an e-commerce business. It cannot be fully achieved just by bending to what the competition is doing, or by succumbing to pressure from consumers. A good strategy and observing the market (and the competition) is the key to success.
With increasing sales, we should not forget about the profitability of an e-commerce business. It cannot be fully achieved just by bending to what the competition is doing, or by succumbing to pressure from consumers. A good strategy and observing the market (and the competition) is the key to success.
1. How Online Retailers Are Preserving Their Profit Margins
There is constant pressure in e-commerce. Pressure from competitors, pressure for a better customer experience price pressure and finally pressure for free shipping. Sales in the online shop and the e-commerce industry as a whole, despite growing rapidly, are not the easiest from the perspective of maintaining profitability. How are companies coping with maintaining profitability? As we can read in the article below, depending on the case, it could be raising the price slightly on the marketplace to make money on each order, even if shipping is free. It could be giving extra value in side products and services. But it could also be keeping a close eye on the competition and adapting your pricing and promotional policies to the behaviour of your competitors and anticipating their movements. For any business, a good understanding of customer expectations results in a better strategy for sales increases, combined with profit increases. And this is the fuel we need to grow the business.
2. Europe’s Top 6 Ecommerce Markets Generate 72% Online Spend
The situation of the e-commerce market in Europe is stabilising after the pandemic. Only in the Netherlands, compared to before the pandemic, there is no growth in e-commerce. On the other hand, from the list of the 6 largest markets, all the rest have recorded increases. And overall, these six markets account for 72% of online sales turnover on the old continent. Strong e-commerce in these countries, on the one hand, means good direction for cross-border sales, but it also means high saturation of these markets. Particularly growth markets are worth considering. Italy and Spain are in this mix. The rest of Europe, where there is less saturation and e-commerce is also growing, will be a better direction for local companies, for a cross border sales start-up project.
3. AI Background Generators for Product Photos
And finally, something practical. Product photos in an online shop are very important. The obvious. You probably have them on a solid background in your shop. However, for social media campaigns, or other creations, the background attracts attention and can be a good lure of customer attention. Producing such creatives can be time-consuming and creatively challenging. With a lot of content, we can have bottlenecks on the creative departments' side. That's why it's worth using tools such as Adobe Express or those from the linked article.
Read more about: AI Background Generators for Product Photos
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