If you're stressed or worried about your e-commerce business during economic slowdowns, you don't have to be. Here are tips on adapting to economic fluctuations so that your multichannel e-commerce business operates consistently and effectively throughout.
Diversify by Opening Up More Channels of Revenue
You might only sell on one revenue channel, for example, Amazon. However, you may consider other online platforms besides Amazon to sell your product to increase sales. Although online platforms, like Amazon, have seen little to no growth in 2022, they are expected to have slightly more from 2023 to 2024.
For example, Macy's and Wayfair's e-commerce businesses are expected to grow by about 6.5%. Target and Amazon will see slightly less growth at about 2%, while Walmart will grow up to about .5% from 2023 to 2024. By having multiple sources of revenue, you could take advantage of substantial growth on some platforms if others are lagging.
Intensely Focus on Product Data Quality
Amazon accounts for 37.8% of e-commerce sales domestically and internationally, followed closely by Walmart, Apple, eBay, and Target. If you select any of these platforms for your sources of revenue, then there are some things that you must pay close attention to when adapting to economic downturns.
Making sure your product images make it easy to see and bring notice to your product, incorporating detailed descriptions, and ensuring accurate pricing information are ways to make your e-commerce business attractive to selective customers. However, too many products on or across these platforms can make this endeavor difficult. So having a focused product catalog will help improve your product data quality.
High-Quality Product Images
Customers need to see what they are purchasing, and they can do this by viewing a particular product image they may be interested in buying. When there are clear, appealing pictures of the product, this gets the customer more motivated and excited about purchasing it. In addition, when the customer can zoom in and look at the product from all sides, this gives them more information about how that product will suit their needs.
The apparent reason to have detailed descriptions of your products is that it provides information about the features and uses that may suit the customer. However, it also shows transparency when describing your products and promotes a level of trust between the customer and your business.
Accurate and Consistent Pricing Information
In addition to detailed descriptions building trust with your customers, accurate and consistent pricing over the long term provides the same purpose. However, when pricing constantly fluctuates, this can turn customers away, signifying a business providing inferior products.
Increase Multichannel Sales With Excellent Customer Service
Don't spread yourself thin when it comes to customer service. In a time when customers are spending less and being more discerning in what they buy, excellent customer service will retain your customers and attract new ones.
Build Good Relationships With Customers
Building relationships with customers is the key to making interactions positive and memorable. Knowing the customers will help them see you as personable rather than just a business entity. Other ways you can build relationships with customers include:
- Actively listen to customers
- Rephrase what customers say and repeat it back to clarify
- Don't have a conversation with them filled with technical jargon or explanations that they may not understand
- Resolve disputes quickly
The more comfortable and trusting customers are with your customer service process, the more sales this will generate. In addition, more sales and trust will also be generated from them telling others about your product and excellent customer service.
Responsive and Timely Communication with Customers
Consistently and promptly answering customer complaints and questions will grow rapport with your customers and build customer loyalty. The longer you wait to respond to customers, this may inadvertently lead to a missed sale because of the lack of patience or diminished interest in the product. In addition, keeping customers constantly updated on their orders' status will reduce the number of complaints and questions you must respond to.
Impress Customers by Exceeding Their Expectations
To keep loyal customers, you may have to exceed their expectations to make them feel valued and persuade them to keep buying your products. Offering loyal customers personalized recommendations, discounts, or bonuses will help encourage the customer to use these for future purchases.
Multichannel Inventory Management
Getting proficient at inventory prediction is another way to adapt to reduced consumer spending and increased discernment. However, you'll also have to know how to apply strategies to reduce overstocking and stock-outs, leading to increased costs, less profitability, lost sales, and diminished customer satisfaction.
Managing Inventory from Channel to Channel
Predicting inventory levels on any of your revenue channels will keep your inventory levels on an even keel. You can accomplish this with data analytics tools to help you analyze customer behavior, sales trends, and historical data. Other ways you can manage your inventory effectively across multiple channels are:
- Use a centralized inventory management system
- Set up inventory safeguards
- Prioritize channels
- Use automated inventory management tools
- Constantly monitor and analyze sales and inventory levels
The centralized inventory management system and the automated inventory management tools will help you analyze and automate your ordering process. If you follow these inventory management tips, your multichannel e-commerce business will stay relevant in worsening economic times.
Reduce Excess Inventory
If you have excess inventory due to reduced sales, learn your sales patterns. It helps to know which product sells more than others so that you can adjust your ordering process lead times and trim the SKUs that are barely relevant to your revenue.
Another way to reduce excess inventory is to adjust your price according to demand. For example, you can lower prices for excessive products to encourage sales. In addition, offer promotions and discounts for underperforming products to facilitate purchases.
Count on Zentail to Help Your Multichannel E-Commerce Business Weather Market Slowdowns
If you follow these tips, your e-commerce business will not only survive but thrive during market slowdowns. Paying close attention to sales patterns and adjusting your product catalog, customer service practices, and inventory management applications according to sales patterns will help you through the tough times.
Zentail wants your multichannel e-commerce business to be successful in any economic condition. Learn how a condensed product catalog can contribute to higher quality product data, reduce excess inventory, and earn more revenue in the long run by visiting Revenue Per SKU, Marketplace Catalogs That Outperform.
Schedule time with a Zentail expert to see how we can transform your Ecommerce business.