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- Ecommerce vs. brick-and-mortar stores: pros and cons
S tart selling with Wix eCommerce → Get started with Dropshipping today → Retail as an industry has seen a remarkable transformation over the years and while it's always been about connecting people with products, there's been a noticeable a shift in how people shop and sell. This change has been primarily driven by the growth of eCommerce . Ecommerce, or electronic commerce, refers to the buying and selling of goods or services online. Brick-and-mortar stores are physical retail outlets which are visited in person to purchase products. Whether you're an entrepreneur starting a new business or an industry observer keen on market trends, understanding the eCommerce vs. brick-and-mortar debate is crucial for navigating the evolving landscape of retail , both as a seller or consumer. Ready to start your eCommerce journey? Now’s the perfect time to bring your vision to life. With Wix eCommerce, you have the tools to build a professional online store and create a website that captivates your audience, drives traffic and boosts sales. Take the first step and explore Wix eCommerce today. Make your mark online and turn your ideas into success. Ecommerce vs. brick and mortar: pros and cons Each retail model has their own unique characteristics that shape the way they operate. Ecommerce allows businesses to sell goods and services online—reaching a global audience without geographical limitations. It's also defined by the following: Accessibility : Customers can shop anytime, anywhere as long as they have internet access. Convenience : With just a few clicks, shoppers can complete a purchase and have items delivered to their doorstep within days, if an option. Wide selection : Online stores often offer a broader range of products than physical stores due to fewer space constraints in terms of storage and warehousing. Personalization : Ecommerce platforms can provide personalized recommendations based on customer data and shopping habits. This makes for a more engaging customer experience and often higher sales. Brick-and-mortar stores are traditional retail outlets that have been around for centuries, where customers can visit to see, touch and purchase products in person. Their key characteristics include: Tangible experiences : Shoppers can physically interact with products before making a purchase. Immediate gratification : Customers can take home their purchases immediately, without waiting for delivery. Customer service : Face-to-face interactions with staff can improve customer service and build relationships. Local presence : Physical stores contribute to the local economy and community. Origins and growth of eCommerce The story of eCommerce began in the late 20th century, and it has quickly become a dominant force in the retail world. Here's a brief timeline highlighting its emergence and growth: 1970s : The concept of eCommerce was born with the advent of the Electronic Data Interchange (EDI) and teleshopping. 1980s : The introduction of online marketplaces like eBay and Amazon in the mid-1990s revolutionized the way people shop. 1990s : Secure online transactions became possible, leading to an increase in consumer trust and online sales. 2000s : Broadband internet became more accessible and smartphones began to change shopping habits. 2010s : Social media platforms started integrating shopping features, further expanding eCommerce reach. 2020s : Advancements in technology continue to push the boundaries of eCommerce with innovations like AI, AR and personalized shopping experiences. Ecommerce and brick-and-mortar: the main differences When comparing eCommerce and brick-and-mortar, several key factors highlight their differences. Understanding these can help you decide which retail model aligns with your business goals or shopping preferences. Convenience : Ecommerce wins on convenience, offering shopping from the comfort of your home. Brick-and-mortar requires a physical trip to the store. Reach : Online stores have a global reach, while physical stores are limited to their very specific, set geographical location. Customer experience : Brick-and-mortar stores provide a sensory experience and personal interaction, which eCommerce tries to replicate with detailed product descriptions and customer reviews. Overhead costs : ECommerce generally has lower overhead costs than brick-and-mortar, which must contend with expenses like rent and utilities. Read more: Best eCommerce platforms Squarespace alternatives Wix vs Squarespace Is eCommerce killing brick and mortar? The question of whether eCommerce is killing brick-and-mortar stores is a hot topic. To address this, let's look at a few current trends and ecommerce statistics . Adaptation : Many brick-and-mortar stores are integrating eCommerce elements to stay competitive. Many businesses are choosing to have both an eCommerce website and physical store—it's common amongst large brands, for example, Zara and H&M. Coexistence : Statistics show that while eCommerce is growing, there's still a significant demand for in-store experiences. A CX trends survey , for example, found that 70% of US shoppers still visit a physical retail store once a week. Digital transformation : Traditional stores are undergoing digital transformation, using technology to enhance the in-store experience. So maybe it's not so much a case of eCommerce killing brick-and-mortar but rather an evolution of retail where both can coexist and complement each other. The key for traditional stores is to adapt and find ways to leverage the strengths of both models. Hybrid retail models: successes and how they work Here are some examples of businesses that have thrived by integrating both eCommerce and brick-and-mortar elements into their business models: Click-and-collect services : Retailers like Target and Walmart have successfully implemented click-and-collect services, allowing customers to order online and pick up in-store. This means consumers don't have to make it into a store and line up to pay — they can order only what they want and pick it up quickly. Show-rooming : Companies like Warby Parker offer physical showrooms for customers to try products before ordering them online. Local pop-up shops : Online-first brands occasionally open pop-up shops in high-traffic areas to increase brand visibility and offer a tangible shopping experience. This helps drum up demand for their online stores. The rise of omnichannel retail Omnichannel retail is the seamless integration of online and offline shopping experiences. It's a strategy that acknowledges the value of both eCommerce and brick and mortar, aiming to give you the best of both worlds. Here's how it benefits businesses and customers: Enhanced customer experience : Provide a consistent shopping experience across all platforms, whether in-store, online or through mobile apps. Increased sales opportunities : Reach customers through multiple channels, increasing the likelihood of purchases. Better data collection : Gather insights from various sales touchpoints to understand customer behavior and preferences. How businesses can adapt to an evolving retail environment The retail landscape is constantly shifting and businesses must adapt to stay ahead. Here are strategies for brick-and-mortar stores to incorporate eCommerce elements and vice versa: Brick-and-mortar stores Learn how to create a website : Create a user-friendly website with a website builder or join online marketplaces to reach more customers. "I built our website in less than a week. Prior to Strathcona Spirits, I worked in eCommerce and online communications, so I knew what I wanted. I didn’t want an eCommerce site that was clunky and difficult to update, where the smallest change required a developer. This was a lean startup so we wanted to have a website that we could easily update ourselves, or delegate to an employee to update, in a really simple and time-efficient way. So that's how I decided on Wix." - Andrea Shubert, co-founder of Strathcona Spirits Use social media : Engage with customers on social media platforms to drive traffic to both your physical and online stores. Offer online ordering with in-store pickup : Combine the convenience of online shopping with the immediacy of in-store pickup. Ecommerce businesses Optimize for mobile shopping : Ensure your online store is mobile-friendly, as many consumers shop on their smartphones. Consider physical touchpoints : Explore pop-up shops or partnerships with physical stores to create a tangible brand presence. Leverage local delivery services : Provide fast, local delivery options to compete with the instant gratification of in-store shopping. Read more: Shopify alternatives Wix vs Shopify WordPress alternatives
- 10 best eCommerce website builders to get your online business up and running
Turn your ideas into sales and start selling with Wix eCommerce → With so many options on the market, choosing the best eCommerce website builder can be overwhelming. You need a tool that not only offers flexibility and scalability but also integrates with various payment gateways, provides robust security and delivers an impeccable user experience. It may be tempting to pick the first option that comes up in your Google search. Yet, what works for one person might not be the most suitable website builder for your business. To save you time, money and headaches in your search, we've rounded up a list of the best eCommerce website builders that cover a range of budgets and use cases. Ready to start your eCommerce journey? Now’s the perfect time to bring your vision to life. With Wix eCommerce, you have the tools to build a professional online store and create a website that captivates your audience, drives traffic and boosts sales. Take the first step and explore Wix eCommerce today. Make your mark online and turn your ideas into success. 10 best eCommerce website builders Navigating the world of website builders requires more than just a quick glance, especially if you’re looking for a tool that can support your eCommerce business at all stages of its growth. Each option in our carefully curated list of the best eCommerce platforms brings reliable solutions to the table. From specialized features catering to specific industries to versatile builders that suit any type of business , we've got you covered. Wix: Best all-in-one eCommerce platform with AI tools Squarespace : Offers a diverse selection of templates BigCommerce : Advanced features for businesses of all sizes Big Cartel : Affordable pricing plans for small businesses Shopify : Extensive app store with free and paid apps WooCommerce : Designed for seamless WordPress integration Ecwid : Ideal for quickly launching an online store Weebly : Provides easy-to-use templates for beginners Shift4Shop : Free domain name registration and renewal Volusion : Built-in tools for sales and marketing 01. Wix With Wix, learning how to make a website for eCommerce is straightforward. You can browse a library of free, professionally designed online store templates that match your brand's identity. You can then customize your site with the help of our drag-and-drop website builder and all of its built-in editing tools or AI—no coding required. If you do have coding experience, however, Wix’s open platform does allow you to create your own customized website with code. Wix is designed as a comprehensive, end-to-end eCommerce platform with eCommerce tools and others, to help you market, manage and grow your business—from sourcing products to accepting payments, fulfilling orders, developing into B2B eCommerce and more. Learn more about what is Wix Payments. For example, from Wix, you can manage product listings across multiple sales channels , including native mobile apps, third-party eCommerce marketplaces and social media There’s even an integrated physical point-of-sale (POS) system for accepting in-person sales. “Wix is not only an eCommerce website builder,” explains Oren Inditzky, vice president and general manager of online stores at Wix. “It covers all types of business, and as such, it can allow you to further grow and expand your business. In addition to selling products, you can also offer services to book , events to attend , blogs to read and so on.” Once your site is live, you can refine your content to drive more sales, convert more customers and show up higher in search results. Wix’s SEO Assistant automatically recommends ways to improve your content, structure and SEO attributes across Wix Bookings pages, Wix Stores product pages and Wix Blog posts. And, Wix is at the forefront of AI in eCommerce : with built-in AI text creation tools, you can instantly refine FAQ pages, About sections and more. Most notably, the AI tool can create hundreds of optimized product descriptions for your store in minutes, saving you countless hours of work. Or supercharge your eCommerce business with Wix's AI Custom Agent an intuitive no-code toll that lets you build powerful AI agents tailored to your specific needs. Your custom agent can work around the clock to drive results by automatically reconnecting with inactive customers through personalized coupon campaigns, preventing inventory shortages by monitoring stock and contacting suppliers, optimizing sales with smart discount strategies for underperforming products and delivering actionable business insights through AI-generated reports sent directly to your inbox. Key Wix features Custom website templates for various industries Built-in AI tools for website creation, product descriptions, product recommendations and more Wide range of built-in eCommerce tools, plus hundreds of third-party integrations (free and paid) through the Wix App Market Versatile payment solution, Wix Payments, offers a seamless checkout experience Easy integration with social media channels (Instagram, Facebook and TikTok) and advertising channels (Google Ads, Facebook Ads and Instagram Ads) Support for selling across multiple channels, including native apps, POS systems, external marketplaces and social media Pricing Ecommerce plans start at $27 per month See more : Read our handy guide on how to start an online store . Ready to start selling online and explore eCommerce hosting ? Try Wix on for size. 02. Squarespace Squarespace can help all kinds of businesses get online. The website builder offers an assortment of visually appealing templates, making it a good choice for photographers, local stores, restaurants and more. Squarespace combines good looks with versatility and ease of use. Its drag-and-drop site editor is fairly simple to use, allowing you to set up your site in a short amount of time. You don't need any coding know-how to make a great-looking and functional website. Additionally, the platform has many helpful features that will help your online business scale. For example, it has built-in blogging features for SEO visibility as well as merchandising tools like low stock alerts, product waitlists and more. Key features of Squarespace Simplified site-building tools, allowing easy customization without technical expertise Diverse selection of templates for a wide range of stylistic preferences Combines aesthetic appeal with practical features, ideal for creative industries and user-friendly online stores Pricing Range of plans available, with their Business plan starting at $33 per month; advanced merchandising tools are available under the eCommerce plan at $36 per month Looking for the best Squarespace alternatives ? Try Wix for free and see how it compares in this Wix vs Squarespace guide. 03. BigCommerce BigCommerce is another popular platform for online stores of all sizes, especially enterprise businesses. As its name implies, this is largely thanks to the eCommerce-specific features available across all of its plans. You can start building your site from one of 12 free designs, or browse through the library of more than 200 paid templates. If you have technical experience, you can further customize your website down to the CSS and HTML code. One of the nicest features of BigCommerce is that it offers unlimited products and staff accounts across all of its plan tiers. Each tier also offers multichannel sales features, built-in blogs, professional reporting tools, product ratings and more. More advanced features are available in higher-tier plans. Key features of BigCommerce Well-suited to businesses looking to scale, offering solutions for small and enterprise businesses; enterprise features include multi-storefront capabilities, leading omnichannel integrations, extensive partner ecosystem and more No transaction fees across any of its plans Integration with WordPress to modify an existing website Pricing Plans start from $39 per month 04. Big Cartel If you’re a creative professional, showcasing your work in the best light can be hard. Fortunately, Big Cartel offers a good solution if you're looking for an eCommerce website builder aimed at independent artists and creators. Big Cartel takes a simple approach to website creation, which is ideal for smaller stores or those just getting started with their business. It is not intended to handle robust eCommerce or enterprise needs like those offered by platforms like Wix, Shopify or BigCommerce. All of Big Cartel’s 15+ templates are stylish, unique and free across all pricing plans. You can customize each design to your liking, and the platform’s site editor lets you see changes made to your Big Cartel site right away. As for your store offerings, you can list five products for sale through the free forever plan, or upgrade to a paid plan to list between 50 and 500 products. All plans come with an assortment of basic eCommerce tools, though more advanced features like analytics, inventory management and shipping tracking are available through paid plans. Key features of Big Cartel Ideal for independent artists and small creators Simple, stylish and customizable templates Affordable pricing plans with a free forever option for eCommerce sellers Pricing Paid plans start from $9.99 per month; free forever plan also available 05. Shopify Shopify’s website builder is designed specifically for eCommerce businesses. The platform offers a wide range of features and customizability options for merchants, making it a popular choice for online selling. To build your online store with Shopify, you can browse more than 170 professionally designed templates from the platform’s theme library. Of this assortment, around a dozen themes are free while more than 160 are paid. Shopify's templates provide the basic framework you need to get started building your online store; you can then add additional functionality and customization to your site via Shopify’s diverse app store, which features more than 8,000 free and paid apps as of this writing. Key features of Shopify “Shopify Magic” offers a suite of AI tools to write product descriptions, emails, blog posts and more Extensive app market to customize the design, functionality and content of your online store Supports omnichannel selling across online and offline platforms Pricing Plans start from $39 per month Learn more: Shopify alternatives Wix vs Shopify 06. WooCommerce WooCommerce is an open-source plugin that's built for WordPress, giving you tight control over your eCommerce site. Building a store with WooCommerce is a budget-friendly option because the plugin is free. The only caveat is you'll need your own server, domain name and SSL certificate to receive payments. Since the onus is on you, the user, to sort out your website, that also means you'll need to handle your website's upkeep and safety. Since you have full control and autonomy over WooCommerce, you can really make your online store your own. There are hundreds of free and paid extensions you can add to include features like different ways to pay or tools for email marketing. However, bear in mind that you have to keep these plugins and your WordPress up to date to keep your site safe and working right. Other eCommerce website builders on this list manage everything for you (usually at a cost). With you completely at the helm, you’ll want to double-check your site’s functionality after something like a plugin update. If you’re looking instead for a turnkey solution, Woo, the creator of WooCommerce, also offers Woo Express. These paid plans are designed for folks who want to spend less time building and more time selling. Key features of WooCommerce Plugin is free to download and built for WordPress integration Ideal for business owners who want full control over all elements of their website Hundreds of free and paid extensions to round out your online store functionality Pricing Free to install (must pay for your own hosting provider and domain name) See more: Ready to get your venture off of the ground? Read our guide on how to start a business . 07. Ecwid Ecwid is a unique option among the best eCommerce website builders. Instead of needing to build or redesign an entire site, Ecwid can simply be added to your existing website—including your Wix website—instantly turning it into an online store. The platform proclaims that it can help you “sell anywhere,” offering additional eCommerce integrations for social media, online marketplaces like Esty or Amazon, and even in-person sales via POS and mobile. If you don’t yet have a website, you can use Ecwid’s “Instant Site” feature to put one together in about 30 minutes. The platform offers hundreds of customizable templates designed to get your store launched as quickly and effortlessly as possible. Ecwid offers a free forever plan with limited functionality. Advanced and even basic eCommerce features—like live chat support, discounts and access to Ecwid’s App Market—are only available through paid plans. Key features of Ecwid “Instant Site” feature for quickly launching an online store; ideal for beginners Allows you add eCommerce functionality to your existing website, blog, social media channels and more Free-forever plan, which allows you to sell up to five products from your online store Pricing Paid plans start from $19 per month; free forever plan also available 08. Weebly Weebly is another good choice for independent contractors or small businesses that want to set up a website, especially if you don't want anything too technical. Weebly is owned by Square, meaning you’ll need a Square Online account to access the site builder. Weebly offers a range of customizable templates—including free options—that enable you to craft a professional-looking store. Its user-friendly interface makes designing your site straightforward, though it’s a bit more limited in design options than other platforms on this list. Weebly also integrates seamlessly with various payment gateways, providing a smooth transaction experience for both the store owner and the customers. This simplicity does not come at the cost of functionality, as Weebly includes essential features like inventory management, shipping tools and basic marketing capabilities within its platform. Key features of Weebly Offers beginner-friendly templates with simple and practical editing tools Offers a robust free plan (though you cannot connect a domain name) Premium plans are fairly budget-friendly Pricing Plans start from $13 per month 09. Shift4Shop Shift4Shop, formerly known as 3dcart, is a strong contender in the eCommerce website builder space, particularly for businesses looking for an all-inclusive platform with extensive customization capabilities. One of Shift4Shop’s most significant advantages is that it offers an “unlimited, enterprise-grade” plan with a full suite of eCommerce tools for the potential cost of $0. If your online store processes at least $500 per month, your end-to-end eCommerce plan is free. If you process less than $500 per month, you’ll still have access to the same tools, but may be charged a monthly software as a service (SaaS) fee. All of Shift4Shop’s 100 website themes are free, too. Key features of Shift4Shop Feature-rich plans are suitable for beginners and small-scale online businesses Offers free domain name registration and renewal Stores processing over $500 per month pay $0 for the platform Pricing Free for businesses that process at least $500 per month; monthly SaaS fee may apply otherwise 10. Volusion Volusion is a solid out-of-the-box solution for small- to medium-sized online stores, with a focus on making website creation simple and easily customizable. The platform offers an assortment of free themes expertly designed with “conversions in mind.” The simple page-building tool allows you to customize each theme with click-to-add functionality for pre-coded content blocks—like blogs, featured products, testimonials and more. Volusion also offers an assortment of sales and marketing tools, but it’s worth noting that they’re only available starting at the second-tier paid plan. This includes useful features like abandoned cart reports, a customer relationship management (CRM) system, ratings, reviews and more. Key features of Volusion Simple and effective eCommerce platform for small- and medium-sized online stores No coding required to customize any of the templates or website features Offers an assortment of eCommerce sales and marketing tools Pricing Plans start from $35 per month Non-negotiable features of an eCommerce website builder The best eCommerce website builders should offer a range of features to enable you to create, manage and optimize your online store. Some of the key non-negotiable features you should expect from an eCommerce website builder are: Ease of use Any platform you use should have an intuitive interface that allows users with varying levels of technical expertise to build and customize their online stores without extensive coding knowledge. Look for features such as drag and drop and low code no code capabilities. Templates and customization Access to a variety of professionally designed ecommerce templates should be paramount, catering to different industries and design styles. Additionally, the ability to customize these templates with branding elements, colors, fonts and layouts is essential for creating a unique online store. Popular ecommerce template categories include: Fashion and clothing templates Jewelry templates Beauty and wellness templates Food and drinks templates Arts and crafts templates Mobile friendly The builder should ensure that websites created on the builder are mobile friendly, allowing you to design your site for mobile. Mobile friendly ecommerce website builders prioritize site reliability and performance . Learn more: eCommerce UX Product management Robust product ecommerce management features are crucial, including the ability to add, edit, and categorize products easily. Users should be able to upload product images, set prices, manage inventory and create product variations (such as sizesm or colors) efficiently. Checkout and payment processing Your ecommerce platform should offer a secure and streamlined checkout process, allowing customers to easily add products to their cart, enter shipping and payment details and complete purchases. Integration with popular payment gateways and support for multiple payment methods for credit card processing online (credit cards, PayPal) is essential. Shipping and tax options Your ecommerce builder should provide flexible shipping and tax configuration options, allowing users to set shipping rates based on factors like weight, location or order value. It should also support automatic tax calculations based on the customer's location and applicable tax laws. Marketing tools Built-in search engine optimization (SEO) features are essential to help you optimize their online stores for better visibility in search engine results. Additionally, marketing tools such as email marketing integration, discount codes, social media sharing and gift cards can help drive traffic and increase sales. Analytics and reporting A good ecommerce website builder should offer built-in analytics tools that provide insights into website traffic, sales performance, customer behavior and other key metrics. Access to detailed reports and data visualization tools can help you make informed decisions to optimize their online stores. Security and compliance Security features such as SSL encryption, PCI compliance and regular software updates are essential to protect customer data and ensure a secure shopping experience. Also look for features like automatic backups and fraud detection/prevention mechanisms, all of which are standard with a Wix ecommerce site. Customer support and community Look for responsive customer support channels (such as live chat, email or phone support) and comprehensive documentation/resources to help you troubleshoot issues and get the most out of your builder. An active user community or forum can encourage knowledge sharing and collaboration among all users. Learn more: WordPress alternatives Small business website statistics Editor’s note: all prices and features are current as of January 11, 2024. Best eCommerce website builders FAQ What is an eCommerce website? An eCommerce website is an online platform where businesses sell goods and services directly to consumers. It acts as a digital storefront, offering a convenient, accessible way for users to browse, select and buy products or services at any time. These websites are equipped with features like shopping carts , product catalogs and secure payment systems. For businesses, they provide a vital channel to reach a wider audience, track consumer behavior and enhance sales. Learn more: eCommerce advantages and disadvantages What is the best eCommerce website builder? Determining the best eCommerce website builder depends on your business needs, technical skills and budget. For ease of use and versatility, Wix stands out as a top choice, offering a wide range of customizable templates, eCommerce functionality and an intuitive drag-and-drop interface with AI tools built in. How much does it cost to build an online store? The cost of building an online store can vary widely depending on several factors, including your paid subscription plan (if applicable), necessary apps and other essential eCommerce features. Additional costs may include purchasing a domain name, which typically costs around $10 to $20 annually, and any premium themes or plugins, which can cost as much as $400. For a more customized, professional store, costs can escalate significantly, especially if you hire web designers or developers, potentially reaching thousands of dollars. Remember, ongoing expenses for maintenance, marketing and platform updates also contribute to how much an eCommerce website costs . Can I build an eCommerce website for free? There are several eCommerce website builders that will let you get started with building an ecommerce website for free. However, you may quickly discover that you need to factor in other costs in order to grow or market your store. For example, you may need to pay for hosting, a domain name and potentially a subscription fee if you’d like to upgrade your account with your platform of choice.
- High-ticket dropshipping products: an easy guide (no, it's not all hype)
Get started Dropshipping today High-ticket dropshipping has its pros and cons. In one sense, it’s an attractive option for entrepreneurs who are inspired by the Guccis and Pradas of the world but don’t want to invest heavily into inventory. In another, it’s a form of dropshipping that has inherent risks. It goes without saying that before you take the plunge, you should know exactly what you’re getting yourself into - the same way you need to do your research before starting a business in general. Crack open this guide to learn what high-ticket dropshipping is, why it’s popular, and tips for making this dropshipping business idea work for you. What is high-ticket dropshipping? High-ticket dropshipping is the practice of selling high-priced items online using the standard dropshipping model. In other words, you source your products from a supplier who ships products directly to your customer on your behalf. This model extends to businesses in B2B dropshipping , allowing retailers or wholesalers to specialize in offering premium products without the need for extensive inventory, catering to a niche market of consumers seeking high-value and exclusive items. The “high-ticket” part refers to the pricepoint of the items that you sell. For our purposes, we’re talking about products that cost anywhere from $200 to $5,000. There are three main characteristics of high-ticket items that separate them from traditional (or “low-ticket”) dropshipping products: They garner a higher profit: While you may sell fewer items overall, each sale of a high-ticket item brings in a significant profit compared to lower-cost items, like cell phone cases and yoga mats. They’re not impulse buys : High-ticket items are products that your customers research and mull over before making a purchase. They can be big or bulky items like furniture, or smaller items that fall into a luxury or premium niche (e.g., a wool throw blanket for $199). They're high-quality : Since you're selling items at a higher price point, your customers largely expect a higher level of quality. This means that you'll need to source your products from vendors and wholesalers who are reliable and can meet your standards both in terms of customer service and product quality. Challenges of high-ticket dropshipping While high-ticket dropshipping and traditional dropshipping may sound identical except for the types of products that are handled, there are other things to keep in mind: High-ticket dropshipping generally requires more upfront capital: You’ll have to budget more money for every item you sell, including the cost of shipping, packaging, and marketing. Not to mention that if an item is lost, damaged or returned you’ll have to stomach higher costs for replacing it. You need strong branding and marketing to survive: While every dropshipper needs a strong marketing plan, high-ticket dropshippers are especially under fire for developing a strong brand to justify the higher costs of their products. Customer expectations are higher: The stakes are higher when you’re selling a $4,000 coffee table as opposed to a $15 tote bag. Customers will have the highest expectations in terms of on-time delivery, shipping condition, product quality, and customer support. Smaller customer pool: By nature of selling more high-end products, you’ll be engaging a narrower pool of customers that need to be strategically targeted, nurtured, and re-engaged. You can’t bank on having as wide a reach as with low-ticket dropshipping, and may see less returning customers in a given period because each product you sell is an investment piece. For these reasons and more, high-ticket dropshipping may not be the best option for first-time sellers. The strategy for selling and branding pricier items is far different from selling budget-friendly products. Benefits of high-ticket dropshipping However, if you’re a more seasoned seller, high-ticket dropshipping can offer several big advantages. The most obvious: you can earn the same amount of money by selling less units. In addition to this, you don’t have to juggle as many orders or customers (read: fewer customer service reps) in a given day. You can instead focus your energy in fostering a strong, niche audience through brilliant branding. If you’re able to achieve this, you’ve got a much more sustainable business in your hands. How to find the right high ticket dropshipping products to sell If high-ticket dropshipping intrigues you, you’d benefit from first studying the most popular dropshipping niches and products to sell. Make sure that when choosing your niche, you align it with your own interests and expertise, so you can create authentic messaging and choose products that resonate with shoppers that you understand. Research products by: Giving Google Trends a whirl: Simply plug in product names or categories to see if an item or niche is trending over a specified time frame. Reviewing Amazon's Best Sellers product lists: Get a feel for what’s hot on Amazon and isolate premium products by category. Investigating popular search terms via SEO tools: Like Google keyword planner Semrush or Ahrefs. Each of these can provide insight into the most-searched products online. Taking inspiration from luxury brands: Get a feel for the types of products, messaging, and price points that resonate with your target audience by studying the brands they already shop from. Use a variety of these research methods to validate product ideas, keeping in mind that you don’t want to be selling products that face declining or violent fluctuations in demand. Rather, you’ll want to sell products that have a strong, consistent following. As examples, here are some popular high-ticket dropshipping niches to explore: Personal transportation - Electric bicycles, scooters, and skateboards Outdoor gear and apparel - Camping gear, hiking boots, and outdoor furniture Home improvement - Power tools, solar panels, and security systems Luxury items - Designer handbags, watches, and sunglasses Small-batch, speciality, and rare items - Baby carriers, artisan goods/crafts, organic clothing How to source your high ticket dropshipping products Once you've identified a product or products that you’re interested in selling, you can begin to source suppliers. Sourcing involves some legwork, but there are tools that help to simplify the process. Modalyst, for instance, connects you with some of the best dropshipping suppliers . Through a strict vetting process, Modalyst makes it easier for you to find a reliable supplier who shares your standards for product quality, shipping speed, and overall workflow. Bonus : Through Modalyst or print on demand companies like it, you can start selling print on demand products as well. This means that you can sell items that are both high-end and customized to your brand, while still outsourcing fulfillment. Alternatively, you could research suppliers on your own by googling “wholesale [your product name]” or reaching out to local artisans and makers. The latter can help you to lower costs and/or speed up delivery, but can require more hands-on management, especially if your supplier has little experience with eCommerce (see our guide on what is eCommerce ). Creating and selling custom products has never been easier. With Wix’s on demand printing , powered by Printful, you can design and launch personalized apparel, accessories, home goods and more—made to suit any style, niche or need. No extra tools, no complex setup. Just pick a product, upload your design and start selling—all from your Wix dashboard. With seamless Printful integration, you get a streamlined way to build, brand and sell—without ever leaving Wix. 5 tips for succeeding as a high-ticket dropshipper There are several key ingredients to running a successful dropshipping business for high-ticket products. Here are five pointers to keep in mind. Source suppliers carefully Watch your branding Incentivize and reassure customers Offer financing Prioritize customer service 01. Source suppliers carefully High-ticket dropshipping is, in essence, all about quality over quantity. Take extra care in vetting your suppliers, ensuring that they have a good track record and that products meet your quality standards. Ask for samples. Verify shipping speed, costs and packaging. Compare ongoing fees—like any platform fees or pre-order fees—and double-check that suppliers manufacture your items year-round, not seasonally. 02. Watch your branding Indian Summer, a Wix merchant, uses its About Us page to describe its commitment to sustainable fashion. Premium products demand premium branding and marketing strategies. Your eCommerce branding should be rooted in a strong mission and clear values. This should then be reinforced with unique and consistent messaging, powerful web design, high-quality imagery—or even a memorable unboxing experience. To get your eCommerce site up and running quickly, use one of Wix’s online store templates , alongside our free logo maker . Or, search the Wix Marketplace for a graphic designer or eCommerce specialist who can help. All of these efforts will help to build trust with potential customers and create an impression that lasts. 03. Incentivize and reassure customers Since you’re selling expensive items, customers will likely need more convincing than they would to purchase a budget-friendly piece. Product pages and policies need to be thoughtfully planned out and positioned differently than for low-ticket items. For starters, include social proof like product reviews and customer testimonials on your product pages. You can even pull in user-generated content (think: Instagram posts showing your customers enjoying their products) to your site, further building confidence in your brand. A thoughtful About Us page that shares your story and values can also increase brand affinity. Similarly, a generous return policy can give customers the extra push they need to pull the trigger on a purchase (though make sure your supplier can accommodate). And, offering free and fast shipping can be a major motivator, given how much customers are already paying for your product. 04. Offer financing Because high-ticket items are more expensive, you'll want to offer various payment options that make your products accessible to more people. Options like buy now pay later (aka BNPL) allow you to get paid upfront, while offering some relief to your customers. You can easily add BNPL to your site using a solution like Wix Payments . Wix Payments includes other popular forms of payment, including credit card, debit card, Apple Pay, and more. All in all, you’ll want your checkout process to be seamless so that customers aren’t given a reason to doubt their purchases, especially at the last minute. 05. Prioritize customer service Finally, don't forget about customer service at your online store . Offer an experience to shoppers that mirrors the (high) quality of your products. This will help you create repeat customers and build a strong reputation. Some ways to do this include: Have expanded business hours and address customer questions quickly Offer live chat on your website and include a prominent toll-free phone number Provide detailed tracking information for orders and proactively send shipping updates to your customers Offer a white-glove service for assembling and installing large products like furniture Make sure your return policy is clear, transparent, and easy to find So, is high-ticket dropshipping right for you? You may still be wondering " Is dropshipping worth it "? One thing’s for certain: high-ticket dropshipping isn’t for the faint-hearted. While this type of business model can be a great way to boost your income and differentiate your store, it requires careful research and close management. But if you’re up for the challenge, read up on how to start a dropshipping business today. Plus, leverage Wix’s dropshipping features to get your store up and running with the right products, storefront, and backoffice toolbox. High-ticket dropshipping FAQ Is high-ticket dropshipping profitable? Is dropshipping worth it? High-ticket dropshipping can be profitable if you do it right. However, it is important to remember that there is no guarantee of success. You will need to be willing to put in the time and effort to find the right products, market your store effectively, and provide excellent customer service. What products are high ticket sales? High-ticket sales can include a variety of products, such as: Electronics: Laptops, tablets, smartphones, and other electronic devices can sell for hundreds or even thousands of dollars. Appliances: Refrigerators, stoves, washing machines, and other appliances can also be high-ticket items. Furniture: High-quality furniture can be expensive, especially if it is made from natural materials. Jewelry: Diamonds, gold, and other precious metals can be used to make jewelry that sells for a high price. Travel: Vacation packages, cruises, and other travel experiences can also be high-ticket items. Eco-friendly products : Products that are environmentally friendly and made from sustainable materials often come at a higher cost. What is considered high ticket when it comes to dropshipping? There is no official definition of what is considered high ticket. However, most experts agree that any product that sells for $200 or more can be considered high ticket. Other dropshipping ideas and products to consider T-shirt dropshipping Coffee dropshipping Tea dropshipping Branded dropshipping Automated dropshipping Sticker dropshipping Pet dropshipping Allison Lee Editor, Wix eCommerce Allison is the editor for the Wix eCommerce blog, with several years of experience reporting on eCommerce news, strategies, and founder stories.
- 10 most profitable dropshipping niches (and 5 to avoid)
Get started with Dropshipping today It’s a common dilemma: you’re ready to start a dropshipping business , but you’re still not sure what kind of products you want to sell. Finding the right niche is crucial for success, as is targeting a specific audience and dialing in your marketing efforts . But with so many options, how do you pick the most profitable dropshipping niche? We’ve lined up the top 10 most profitable niches to pick from and product ideas that can set you up for success. But it's not just about the winners; we're also spotlighting the five niches you might want to steer clear of. Whether you’re looking to find the best dropshipping options or avoid the common pitfalls, keep reading to learn all about the insights that will help you sell online effectively. Ready to start selling? Take our dropshipping website builder for a spin. How to find the most profitable dropshipping niches Selecting the right dropshipping niche is more than a guessing game; it relies on making informed decisions. Choosing a specific niche to work in is essential. So, conduct research to understand the needs and interests of your target audience. – Rafael Carvalho, Co-founder and Chief Operating Officer at HeroSpark. When looking for the best dropshipping products to sell, don't rely on hunches. Instead, arm yourself with data. Instead of firing in the dark and hoping your shot lands, use the marketing tools at your disposal to zoom in on search demand. Here’s a quick rundown of a few helpful tools: Google Trends : Consider this your trend-thermometer. It’s free to use and perfect for watching interest levels dance over time. It's also ideal for spotting upward trends in different regions, which can be golden for dropshipping niches gaining momentum. Google Keyword Planner : This is your keyword detective, uncovering which products your audience is curious about. It serves up search volumes, cost estimates for pay-per-click (PPC) campaigns and the lowdown on competition—invaluable for crafting a strategy to sell online effectively. Ahrefs and Semrush : Got room in the budget for a full SEO toolkit? Tools like Ahrefs or Semrush are your deep-dive allies. From unearthing in-depth keyword analysis to spying on competitors' strengths, these platforms are a powerhouse for those considering whether they should start a business or not. If you’re a Wix user, you can use the built-in Semrush integration to conduct keyword research from within your Wix toolkit. After poring over the analytics from tools like Google Trends and Ahrefs, you might ask, “ Is dropshipping still worth it ?” It's a valid question, as some niches can appear oversaturated. However, these tools don't just offer a peek into current trends; they help forecast the viability of this type of business . Think of them as your digital crystal ball, giving you the specifics needed to carve out a profitable niche in the bustling dropshipping marketplace. From that point, you can align yourself with a trusted dropshipping partner—like Modalyst —to start selling. To give you some more inspiration, let’s dive into a list of some of the best dropshipping niches you can explore right now. See more : Learn how to make a website today with Wix. 10 most profitable dropshipping niches Let’s dive into the top dropshipping niches that are currently shaping the market. While these niches can vary in appeal and market dynamics, they share a common potential for profitability and growth. Note that they are listed in no particular order, reflecting the diverse range of opportunities available for small business owners looking to launch their dropshipping venture. Home décor and accessories Kitchen tools and accessories Fitness and exercise equipment Pet supplies and accessories Car accessories Gaming accessories Eco-friendly products Arts and crafts supplies Office supplies and products Baby and maternity products 01. Home décor and accessories The home décor market is a tried-and-true evergreen niche. Statista shows that revenue has been steadily growing over the past five years, and is projected to keep on growing. That's not all—the home décor market is expected to soar to a whopping $1.1 billion by 2032 . As for your dropshipping aspirations, you have plenty of options to carve out a space for your own brand. Many types of products do so much more than just fill a room. Choose specific types of products to start with, such as charming ceramics or plush bedding. You can niche down further by selling products in certain styles, such as minimalist, sleek contemporary or modern architecture. Some home décor ideas to get you started could include: Minimalist wall art and prints Handmade ceramic vases Bohemian throw pillows and blankets Industrial-style light fixtures Modern geometric shelving units Eco-friendly bamboo kitchen accessories Aromatherapy candles and diffusers Vintage-inspired mirrors Planters and indoor gardening kits Scandinavian-style furniture pieces Rustic wooden clocks Artisanal soap and bathroom accessories Macramé wall hangings and plant holders Digital smart home gadgets Seasonal table decorations and runners 02. Kitchen tools and accessories A quick check on Google Trends shows that "kitchen tools" is a fairly unique niche; there's consistent demand throughout the year, but searches tend to spike around November when folks are shopping for Christmas gifts. It makes sense, considering these items are essentials and will need replacing eventually. You could also explore products that make cooking more convenient. For example, you might not get far selling microwaves, but you could offer microwave covers or cleaners to keep them mess-free. Beyond cooking tools, think about selling kitchen gadgets or accessories that meet the evolving needs of your customers’ daily lives. For example: with 66% of employees returning to the office, there’s a tangible need for solutions that cater to the meal-prepping commuter. You could sell kitchen tools like: Silicone baking mats Adjustable measuring spoons Multifunctional vegetable choppers Magnetic spice jars Reusable food storage bags Digital food scales Bamboo cutting boards Electric salt and pepper grinders Collapsible colanders Non-stick silicone utensils Cold brew coffee makers Glass food containers with lids Herb scissors Pancake batter dispensers Oven-safe meal prep containers When selling home decor items and looking to build your own brand its also worth considering branded dropshipping or white label dropshipping . 03. Fitness and exercise equipment The fitness landscape has quietly transformed. As the echoes of the pandemic fade, the traditional gym model has felt the shift following the closure of approximately 5,000 gyms over the past three years and a notable 15% dip in its market grasp last year. Yet, this isn't a tale of dwindling health ambitions. On the contrary, the journey for wellness is taking place in our homes. Instead of opting for the once-ubiquitous gym memberships, many individuals are turning to digital workout companions—apps that bring fitness into the living room. According to data from Statista, mobile health and fitness apps were used by 23% of American consumers in 2019. By 2022, that number had jumped to 36%. This presents a great dropshipping—and even reverse dropshipping opportunity since there's fertile ground for affordable, at-home fitness equipment. Think: resistance bands that can be tucked away in a drawer, yoga mats that roll out in a flash and foam rollers for those much-needed post-workout sessions. What else fits into this niche? Some ideas below: Jump ropes Kettlebells Dumbbells Pull-up bars Exercise balls Push-up stands Ankle weights Workout gloves Wrist wraps Hydration packs Heart rate monitors Abdominal wheels Speed agility ladders Balance boards Pilates rings 04. Pet supplies and accessories The pet supply market is large and continues to see steady growth despite economic challenges, like inflation, facing the everyday consumer. In fact, 68% of consumers spent more on pet supplies in February 2023 than January 2022, even as they looked for ways to economize. Pet supplies are a treat that keeps on giving. Every pet owner looks for opportunities to spoil their fur babies, and there are plenty of pet dropshipping subcategories to explore within pet toys, pet food or pet grooming products. Consider the simple yet indispensable paw washer—dog lovers dread those muddy trails, and this nifty tool promises a mess-free home. It's not just practical; it's a hit sale after a rainy day walk. And how about the donut dog bed? It's where comfort meets Instagram-worthy aesthetics, a perfect impulse buy for pet parents scrolling through their feeds. Or pet socks—a big draw for customers aiming to protect their paws from icy walkways or slippery floors. Consider the following products to dropship within this niche: Adjustable pet harnesses Chew-proof dog leashes Orthopedic pet beds Cat scratching posts Interactive treat dispensers Personalized ID tags Portable water bottles and bowls Automatic feeders Grooming gloves and brushes Small animal cages and habitats Reptile heating mats Fish tank ornaments Camera and monitoring systems Custom clothing and costumes Travel carriers and strollers 05. Car accessories The car accessories market was valued at $498.9 billion in 2022 and is projected to reach $821.7 billion by 2030. Additionally, with 77.3% of American workers commuting and spending an average of 61.3 minutes driving each day , there's a significant market for car accessories. No matter whether your car is kitted with all the latest tech or has seen plenty of miles on its radar, there's always a way to add some flair or make the interior more comfortable. From phone holders to seat covers, there's a wide range of dropshipping products to sell in this niche for folks looking to customize their ride. Some lucrative car accessories to consider include: Steering wheel covers Portable air compressors Tire pressure gauges Jump starters Cleaning kits Trunk organizers LED interior lights Dash cams USB chargers Sunshades Waterproof rooftop cargo carriers Seatbelt cutters and window breakers Floor mats GPS tracking devices Aromatherapy car diffusers 06. Gaming accessories Did you know that 66% of Americans play video games regularly? That's 215 million folks over 18 years old playing on a console or a desktop. Gamers are notoriously picky about their setups, but owning the latest Logitech or Razer headset or gaming mouse is like buying the latest iPhone when it drops; it's expensive. The big brands dominate the high-ticket gaming accessories market, but there's still a blue ocean for peripherals that help gamers maintain their gear. We're talking products like mini blowers, footrests for gaming chairs and even adjustable tables. Gaming is a huge industry, with the global video game market generating $217.06 billion in revenue in 2022 . It’s projected to reach $583.69 billion by 2030. If you can build a brand for specific types of products, you could potentially earn passive income for years to come in this niche. Some ideas relevant to video game accessories include: Wireless gaming controllers High-speed HDMI cables Controller charging stations Keyboard and mouse adapters for consoles Game storage racks Racing wheel and pedal sets Console skins and decals Mobile gaming clips Console cooling stands Thumb grip covers for controllers Gaming mouse pads Controller carrying cases Screen protectors for handheld consoles Cable management sleeves Gaming glasses to reduce eye strain 07. Eco-friendly products Deloitte recently surveyed customers about sustainability, and the data shows that eco-consciousness isn't just a buzzword—it's a business strategy. Here’s why: 33% of savvy shoppers are choosing products based on the plastic in packaging, according to the Deloitte survey. For anyone looking to find a profitable niche, there’s a gap ripe for the filling, with a third of customers ditching brands that miss the mark on ethics and sustainability. Here’s another kicker: 42% of customers are opting for products that last longer. By offering eco-friendly picks, small business owners are not just ticking the box for sustainability, they're building a brand that stands the test of time. Check out some of these eco-friendly product ideas for inspiration: Bamboo toothbrushes Biodegradable phone cases Organic cotton tote bags Stainless steel water bottles Beeswax food wraps Compostable cutlery sets Seed-embedded greeting cards Solar-powered chargers Reusable silicone baking mats Recyclable aluminum straws Hemp clothing items Cotton mesh produce bags Soy or beeswax candles Wooden hair brushes Recycled plastic sunglasses 08. Arts and crafts supplies The surge in DIY enthusiasm has translated into a surge in demand for materials that fuel creativity—from beads to yarn, and paint to brushes. This isn't just about selling products; it's about delivering the joy and satisfaction that comes from creating something unique. With a conversion rate of up to 4.07% (the highest among popular eCommerce industries), the data points to a clear opportunity for the arts and crafts supplies market. The target demographic is as varied as the supplies themselves, encompassing avid hobbyists, professional artists and families alike. For those ready to launch an eCommerce business , offering these supplies could indeed be a stroke of genius, opening doors to a community eager to bring their imaginative ideas to life. What can you offer within this niche? Some creative ideas include: Paintbrush sets Sketchbooks Calligraphy pen sets Scrapbooking kits Jewelry making kits Candle making supplies Polymer clay packs Embroidery threads and needles Quilting fabric assortments Easel and canvas sets Stamping and embossing tools Silk screen printing materials Mosaic tile pieces Wood carving tools Airbrushing kits 09. Office supplies and products With hybrid work models becoming the new norm for 81% of companies by 2024 , the office supplies niche is about to get even more in demand. Whether you're working from home or at the office, a recent study showed that personalizing your working environment contributes to greater productivity. From recyclable pens to smart notebooks and trendy bean bags, there are plenty of product ideas you can offer in this niche. Let's not forget that you can sell wholesale, as well. Offices need to restock their inventory, and you could be their go-to store that sells all their office stationery at affordable prices. Some more profitable ideas within the office supply niche include: Desk organizers Staplers and staples File folders Whiteboards and markers Desk lamps Envelopes in various sizes Calendar planners USB hubs Document shredders Adhesive notes Keyboard and mouse sets Monitor stands Desk fans Stackable letter trays Hole punches 10. Baby and maternity products The baby care market is on an upward climb, with a trajectory set to soar from $67.35 billion in 2020 to $88.72 billion by 2026 , an impressive 32% increase in market share. For the target audience, parents are always on the lookout for the best products for their babies and are willing to pay a premium if it means getting a quality item. You can sell trending products, such as snug onesies or interactive toys, or stick with evergreen parenting staples like cozy swaddles and sturdy strollers. The great thing about this niche is that children quickly outgrow their clothing and move on pretty quickly from their toys. If you could offer various products for children across different age ranges, you could build an audience of returning customers. To explore this niche further, consider the following products: Baby carriers and wraps Diaper bags Nursing pillows Swaddle blankets Teething toys Baby monitors Postpartum care kits Baby bath products High chairs Stroller organizers Baby food makers Pregnancy journals Non-contact thermometers Portable changing pads Sippy cups and feeding sets 5 dropshipping niches to avoid To maximize your chance of success in dropshipping, it's important to steer clear of certain niches that may not be ideal for beginners. Some niches might look tempting but hide undercurrents that could capsize your venture. Things that make these markets challenging often revolve around logistics, ease of finding reliable dropshipping suppliers , fierce competition, customer satisfaction issues and lack of quality control. Especially for beginners, it’s wise to tread lightly with the following product categories. 01. Furniture At first glance, furniture may seem like a high-ticket jackpot. However, its bulky nature can lead to exorbitant shipping costs and a higher likelihood of damage during transport. This has the potential to complicate the customer experience and your logistics. 02. Clothing Despite its evergreen demand, the clothing niche has a reputation for being cutthroat, with established fashion giants dominating the scene. The added hassle of dealing with various sizes and the subjective nature of style make returns all too common. 03. Health products The market for health products is known for its regulatory landmines and quality assurance issues. Low-quality items here can have severe consequences, not just for the consumer, but for your brand’s longevity and legality. These are different from beauty dropshipping ideas . 04. Watches High-ticket dropshipping looks great for the high profit margins, but these numbers can be deceptive in the watch market, which is saturated with both genuine and imitation products. Without in-depth knowledge, there’s a risk of stocking inferior products that won't move off of the shelves. 05. Seasonal decorations Seasonal items promise a boom during holidays but slump the rest of the year. This feast-or-famine scenario makes it tough to maintain a consistent revenue flow and can be a logistical nightmare, so you’ll want to avoid becoming over-reliant on seasonal items. For those just venturing into dropshipping, it pays to focus on less treacherous niches that require less specialized knowledge, fewer upfront costs and simpler supply chains, like coffee dropshipping , tea dropshipping or sticker dropshipping , for example. It's about choosing the steady stream over the tempestuous tide. How to evaluate your dropshipping niche competitors The final piece of the puzzle is understanding who your competitors are and their respective market share. After all, it's one of the core things to check when learning what dropshipping is , and can give you a better idea of whether or not you can build a successful dropshipping business in your chosen niche. Market saturation : Begin by asking, "What is the dropshipping saturation level in my niche?" For instance, if you're eyeing the fashion sector, count how many players are offering similar styles. Is there room for another unique voice, or is it a case of too many hats on the rack? SEO benchmarking : Harness Moz to spy on competitors’ domain strength. Check if your site's SEO game matches up—think catchy titles, sleek URLs and smart content. Look for opportunities where you can outperform, outrank or outsmart them. Customer reviews and feedback : Dive into reviews on competitor sites—they're telling. Complaints about flimsy widgets or snail-paced shipping? That's your cue to step in with quality goods and swift delivery, nailing down those best dropshipping products. Pricing strategies : Notice how rivals tag their wares on their sites or eCommerce platforms . Are they slashing prices or riding the high wave with brand mojo? Get this scoop to smartly set your price tags and stand out in the dropshipping playground. Other dropshipping ideas and products to consider T-shirt dropshipping B2B dropshipping Automated dropshipping Dropshipping niches FAQ How do I find the best dropshipping niche for me? Identify your interests and expertise, research trending products, evaluate market demand using tools like Google Trends and social media analytics. Analyze competition, consider profit margins and assess shipping logistics. Choose a niche that aligns with your passions, has growth potential and offers a competitive edge in the dropshipping market. What are some of the most profitable dropshipping niches? Profitability in dropshipping can vary, here are some potentially profitable dropshipping niches: Fitness and wellness products: Exercise equipment, supplements, and fitness apparel. Tech gadgets: Smart home devices, unique electronics, and accessories. Eco-friendly products: Sustainable and environmentally friendly items. Pet supplies: Unique pet products and accessories. Hobbies and crafts: Niche hobby supplies and crafting materials. Home decor: Trendy and unique home decor items. Always conduct thorough market research and adapt to current trends to ensure success in your chosen dropshipping niche. Additionally, be aware that market dynamics may change over time, so staying updated with what's in demand from consumers is crucial for profitability. Can I make $10,000 per month dropshipping? Yes, it’s possible to earn $10,000 or more per month with dropshipping. However, success comes from consistent effort, smart strategies and a focus on growth. For beginners, it can be challenging to reach this level right away. It takes time to learn skills like selecting the right niche, creating effective marketing campaigns and building a strong brand. Additionally, managing customer service, understanding advertising platforms and staying ahead of market trends can feel overwhelming at first. Reaching this income often requires a significant investment in advertising and ongoing optimization of your store. With persistence, patience and the right approach, you can scale your business and overcome these initial hurdles to achieve your goals.
- 13 top white label dropshipping products and suppliers for your store
Get started with Dropshipping today If you’re wondering whether dropshipping is worth it , it all comes down to how well you build your brand and market your products. White label dropshipping is one of the easiest ways to start an eCommerce business without handling inventory or manufacturing. The model is simple: you sell ready-made products under your brand, and a supplier handles fulfillment. This guide will walk you through everything from finding suppliers to scaling your business for long-term success. What is white label dropshipping? White label dropshipping is a business model where you sell ready-made products under your own brand while a third-party supplier handles inventory and delivery. It lets you launch an eCommerce store quickly with minimal upfront costs. Many businesses use this model to sell popular items like skincare, tech accessories and home goods, rebranding generic products to fit their niche. Since the supplier ships orders directly to customers, you don’t have to worry about warehousing or fulfillment. This model is great for entrepreneurs who want to start selling fast without dealing with manufacturing or logistics. The key to success is focusing on branding, marketing and creating a great customer experience since others may also sell the same products. Platforms like Wix make it easy to set up an online store with customizable templates, built-in marketing tools and automated dropshipping integrations. With the right approach, white label dropshipping can be a profitable and scalable way to build an online business. 13 white label dropshipping products When it comes to white label dropshipping, selecting the right products is crucial for success. Here's our detailed list of 13 white label dropshipping business ideas to help you start a dropshipping business . Reusable water bottles Customized fitness apparel Organic beauty products Personalized jewelry Yoga mats Pet accessories Health foods Sustainable fashion items Home decor Custom-printed books and journals Board games and puzzles Aromatherapy diffusers Educational toys 01. Reusable water bottles White label reusable water bottles are a great way to connect with eco-conscious consumers. Many suppliers offer BPA-free stainless steel and insulated options that can be customized with logos and packaging. Features like unique designs, leak-proof lids and options for engraving or custom colors can make your products stand out. Marketing often focuses on sustainability, hydration benefits and stylish designs for different lifestyles like gym-goers or office workers. 02. Customized fitness apparel Fitness apparel like leggings, performance shirts and compression wear is a profitable white label niche. Suppliers often provide options for branding with printed or embroidered logos, custom colorways and premium fabrics like moisture-wicking or anti-odor materials. Success in this space comes down to quality, comfort and durability, so choosing a supplier with high-performance textiles is essential. Partnering with fitness influencers and leveraging social media can help you grow a loyal community around your brand. 03. Organic beauty products White label organic beauty products like skincare, hair care and cosmetics are in high demand as consumers focus on clean and eco-friendly ingredients. Many suppliers offer cruelty-free, vegan and USDA-certified organic options. Custom branding, eco-conscious packaging and clear ingredient transparency can make your products stand out. Partnering with micro-influencers and sharing educational content about the benefits of organic skincare can help build trust and boost sales. Learn more: How to start a beauty business Beauty dropshipping 04. Personalized jewelry Selling white label personalized jewelry lets customers create unique pieces with engraved names, initials or meaningful symbols. Many suppliers offer rings, necklaces, bracelets and earrings that can be customized with different metals, stones and personal messages. This niche thrives on its emotional appeal, making it perfect for gifts, anniversaries and special occasions. Focus on strong branding, premium packaging and storytelling in product descriptions to help your brand stand out. Learn more about jewelry dropshipping and its appeal as a profitable niche. 05. Yoga mats White label yoga mats can be customized with unique prints, eco-friendly materials and branding. Many suppliers offer mats made from natural rubber, cork or TPE to meet the growing demand for sustainable fitness gear. Standing out means offering premium thickness, non-slip surfaces and alignment guides to enhance practice. Partnering with yoga instructors and wellness influencers is a great way to build trust and boost sales in this competitive market. 06. Pet accessories The pet industry is booming, and pet dropshipping is a huge opportunity for businesses to grow. White label pet accessories like collars, beds, toys and grooming tools are perfect for branded dropshipping , allowing you to offer eco-friendly, durable and customizable products under your own brand. Suppliers now provide options that appeal to pet owners seeking stylish and functional items. Selling themed collections, such as matching pet and owner accessories or focusing on sustainable materials, can help your brand stand out and build a loyal customer base. 07. Health foods White label health foods like protein bars, superfood powders and organic snacks are meeting the rising demand for clean eating. Many manufacturers now offer private branding with natural, high-quality ingredients. Success in this space comes down to having clear nutritional labels, being transparent about sourcing and following food safety rules. Subscription boxes and influencer partnerships are great ways to build brand awareness and customer loyalty. Learn more about the benefits of tea dropshipping. 08. Sustainable fashion items Sustainable fashion is a rapidly growing niche, and clothing dropshipping is making it easier than ever to launch your own eco-friendly brand. White label suppliers now offer recycled fabrics, ethically made accessories and t-shirt dropshipping options for custom designs. Stand out with custom branding, limited-edition drops and sustainable messaging. To succeed, focus on transparent sourcing, ethical production practices and sharing the unique stories behind your materials. 09. Home decor White label home decor items like candles, wall art, throw blankets and decorative pieces let businesses tap into trending interior design styles. These products can be customized with color palettes, patterns and branded packaging. Building collections around popular aesthetics like minimalism, boho or Scandinavian design and promoting them on Instagram and Pinterest can help drive sales. Learn more about candle dropshipping . 10. Custom-printed books and journals Journaling and self-improvement products are growing in popularity, making custom-printed books and journals a great white label opportunity. Businesses can sell planners, gratitude journals and guided notebooks with personalized covers and themes. Pairing these with complementary products like productivity tools or mindfulness accessories is a smart way to boost order value. 11. Board games and puzzles White label board games and puzzles are popular with families, hobbyists and educational markets. You can add custom branding to packaging, game designs and special-edition releases. This niche thrives on strong storytelling, creative themes and interactive marketing strategies like influencer partnerships and Kickstarter campaigns. 12. Aromatherapy diffusers With the rise of holistic wellness, white label aromatherapy diffusers offer a great business opportunity. Many suppliers provide USB, ultrasonic and smart diffusers that can be branded and paired with custom essential oil blends. Selling these products alongside wellness-focused content and self-care bundles can increase perceived value and drive more sales. 13. Educational toys White label educational toys like STEM kits, wooden puzzles and interactive learning tools are perfect for parents and educators looking for fun ways to teach kids. Success in this niche comes down to quality, safety certifications and branding that highlights learning and development benefits. Offering age-specific toy collections and teaming up with parenting bloggers can be a great way to boost traffic and sales. What makes a product ideal for white label dropshipping? Growing market demand : These products tap into industries with steady or rising consumer interest, giving them long-term sales potential. Customization potential : You can add your logo, tweak designs and customize packaging, making them ideal for white labeling. High profit margins : With the right supplier, they’re affordable to source and can be sold at a premium for maximum profit. Broad customer appeal : They suit a variety of demographics and lifestyles, expanding your potential customer base. Trend-driven popularity : Many align with big trends in technology, health, sustainability and personalization, making them easier to market. Easy logistics and shipping : Most are lightweight, non-perishable and simple to store or ship, keeping logistics hassle-free. Fewer compliance issues : Unlike regulated industries like pharma, these products usually require minimal certifications, except for items like food or beauty products. Benefits of white label dropshipping You can put your own brand on white label dropshipping products , which helps in building customer loyalty and differentiates you from competitors. Since you're not manufacturing the products, your startup costs are much lower compared to traditional retail models. You can easily add or change products in your lineup without worrying about unsold inventory. As your business grows, you can scale up easily by adding more products or adjusting your inventory levels with suppliers. With logistics handled by suppliers, you can concentrate on marketing and growing your brand. Top 5 white label dropshipping suppliers Choosing the right supplier is a critical step in establishing a successful white label dropshipping business. Here are four major dropshipping suppliers that stand out in the market: Modalyst : Modalyst specializes in connecting online stores with suppliers of high-quality products. They offer a wide range of items suitable for white labeling. Spocket : Spocket offers a vast range of customizable products from vetted suppliers in the US and Europe, ensuring quick delivery and high-quality items. With Spocket's seamless integration with platforms like Wix, you can efficiently manage product fulfillment and scale your white label dropshipping business. Printify : This platform is ideal for custom print-on-demand products. Printify allows you to create personalized designs on a variety of items. Printful : Similar to Printify, Printful provides comprehensive print-on-demand services with the added benefit of warehousing and fulfillment. Aliexpress : Known for its vast selection, Aliexpress is a marketplace that connects you with numerous manufacturers willing to dropship products. By partnering with any of these suppliers, you can access a range of products and services tailored to support your white label dropshipping business. Each supplier offers unique advantages that can help streamline your operations and improve customer satisfaction. Creating and selling custom products has never been easier. With Wix’s on demand printing , powered by Printful, you can design and launch personalized apparel, accessories, home goods and more—made to suit any style, niche or need. No extra tools, no complex setup. Just pick a product, upload your design and start selling—all from your Wix dashboard. With seamless Printful integration, you get a streamlined way to build, brand and sell—without ever leaving Wix. Getting started with white label dropshipping Starting a white label dropshipping business can be an exciting venture. Here's a step-by-step guide to help you start your business . 01. Research and select your niche Look for trending products that align with your interests and market demand and which can be customized for white label dropshipping. Check out your competitors to see what they're doing and how you can differentiate to stand out. 02. Source your products Select products that are viable for white labeling and have a proven track record of sales. Many suppliers include reviews per product for this type of information. 03. Set up your online store Pick an eCommerce platform like Wix that supports dropshipping. Then, start your online store , design it to reflect your brand and make it appealing to visitors. In order to achieve a professional result without additional cost, you can use a professionally-designed eCommerce website template . 04. Create your brand Have a professional logo designed that represents your brand identity., you can use a logo maker for this. Create packaging, inserts and promotional materials that resonate with your brand. 05. Market your products Decide on your marketing strategies , consider types of marketing such as SEO, content marketing and social media marketing. 06. Manage your operations Choose payment gateways that are secure and reliable for handling transactions. Next, coordinate with your suppliers to ensure smooth fulfillment of orders. 07. Provide excellent customer service Quickly address customer inquiries and issues to build trust and loyalty. Be sure to also use customer feedback to continuously improve your products and service. Private label vs white label dropshipping White label dropshipping and private label model often get mixed up since both let you sell products under your brand without handling manufacturing. While they share similarities, the main difference lies in customization and exclusivity. Here’s a quick breakdown. White label dropshipping White label dropshipping lets you sell ready-made products under your own brand without dealing with inventory or shipping. Manufacturers create generic items that multiple businesses can rebrand and sell. It’s a quick, affordable option for entrepreneurs who want to launch without upfront manufacturing costs. The downside? Since many sellers offer the same product, it can be harder to stand out, build brand loyalty or charge higher prices. Private label dropshipping Private label products are made just for your brand, giving you control over formulation, design and packaging. Unlike white label, private label lets you create unique products tailored to your audience. While it requires a bigger investment in production, branding and logistics, it leads to better long-term growth, stronger brand identity and higher profit margins. With this model, businesses work directly with manufacturers to create custom products, ensuring market exclusivity. White label vs private label difference: pros, cons & best fit Brand differentiation: Private label products are exclusive to your brand, while white label items are generic and sold by multiple sellers. Investment: White label has lower upfront costs. Private label requires more investment in manufacturing and branding. Profit margins: Private label offers higher margins due to exclusivity, while white label faces more price competition. Time to market: White label is faster to launch, while private label takes longer because of development and customization. Scalability: Private label can grow into its own established brand, while white label depends more on trends and high-volume sales. White label dropshipping FAQ How do I find white label products for dropshipping? Use online marketplaces and supplier directories to find products that offer white labeling options. Reach out to suppliers directly to inquire about their white labeling services. How do I ensure quality control with dropshipping suppliers? Before selling products to customers, order samples to check the quality yourself. This is even more important when you’re putting your own brand name on third party products. Read reviews and feedback about the supplier from other dropshippers. How can I differentiate my brand from competitors? Create a strong brand identity with unique packaging, custom designs and personalized customer service. Specialize in a niche market to cater to specific customer needs more effectively than general stores. Are white label products legal? Yes, white label products are completely legal. This business model involves rebranding products from a manufacturer—a common and widely accepted practice. To stay compliant, here’s what you need to know: Work with trustworthy suppliers : Partner with suppliers who give you clear authorization to rebrand and sell their products. Always review agreements to confirm your rights. Check trademarks : Make sure your branding and products don’t conflict with any existing trademarks or intellectual property. Follow product regulations : Depending on your product type (like cosmetics, food or electronics), ensure you meet all relevant safety standards, labeling requirements and industry guidelines. By partnering with reliable suppliers and understanding key regulations you can confidently build your brand with white label products. When in doubt, consulting a legal expert can provide extra clarity and peace of mind. Other dropshipping ideas and products to consider Coffee dropshipping Tea dropshipping Branded dropshipping Automated dropshipping B2B dropshipping Sticker dropshipping Pet dropshipping
- How the low-code/no-code movement transforms website creation
Once upon a time, you needed to know backend code to understand how to make a website . But today, everyone can drag and drop to their hearts’ desire, without worrying about the complex computing behind the scenes. And it’s all thanks to the low-code/no-code movement. While you may not know what the term “low-code/no-code” entails—you’ve probably used the technology. In this article, we’ll dive into the history of the low-code/no-code movement, discuss the pros and cons for your website, and predict how it may evolve in the web’s next era. What is the low-code/no-code movement? The low-code/no-code movement is an approach to design that enables non-coders and novice developers to build websites and applications. Driven by the creation of user-friendly website development tools such as a code free website builder , this technology runs the gamut from code-less drag and drop interfaces, to more advanced platforms that involve basic programming. In our digital forward ecosystem, both low-code and no-code technologies have a special significance. Many diverse professionals need an online presence to boost their competitive edge—from different types of websites , to apps and email marketing campaigns. The low-code no-code movement allows us to create sites with little or no coding skills and to do it quickly, independently and efficiently. You can also use low-code/no-code to build a static or dynamic website . Learn more: Best vibe coding tools Evolution of low-code/no-code The internet runs on code, which at its start, was left to computer gurus who programmed using complex digital languages. But as the web became increasingly more essential, so did the need to support more versatile functions for its users. In the 1980s, at a time when the industry recognized the need to develop applications more rapidly, the Rapid Application Development (RAD) kickstarted the low-code movement. The RAD goal was to simplify programming languages for developers so they could work quickly and efficiently. Eventually developers realized that the beauty of software engineering is that it was malleable enough to meet the needs of users, leading to the low-code no-code movement we know today. Mechanisms for automatic programming, visual programming and model-driven development have helped evolve the low-code movement even further. Now, low-code/no-code platforms are powered by pre-arranged code, so people from all backgrounds intuitively use a drag-and-drop builder to create websites, develop apps or send email marketing campaigns. Low-code vs. no-code: Which is best for you? While both low-code and no-code platforms ultimately ease processes and empower all users, they differ in a few key ways: Low-code Low-code takes a hybrid approach to development, creating a system between traditional coding and no-code creation. Individuals who may not be proficient, but have some basic knowledge of code may use low-code platforms to improve on their skills or further customize their website or other digital product. Although low-code software is more tedious than no code, it still significantly improves and speeds up the development process. Unlike no-code platforms, low-code uses what’s known as open system technology, allowing the user to make limited changes to the code that develops a systems function. Often reliant on drag-and-drop interactions, components (like CSS and Javascript) and visual development, low-code platforms facilitate an efficient and user-friendly environment. Velo by Wix is an example of a low-code platform. Although driven by a drag-and-drop interface, users can add their own JavaScript, APIs or custom CSS to the Editor to customize the way a website looks or interacts with a user. No-code Aimed at non-developers, no-code software is a form of rapid application development most suitable for people with no knowledge of code. Because no-code platforms require no programming knowledge to use, they have become a favorite of business owners, freelancers and individual creatives. Despite the marketing term “no code,” the code is still what drives development on these software. However, it’s hidden behind a user-friendly design so that individuals create a basic web page , build websites with advanced dynamic content or make a website an app . With no-code platforms, this is all while working with an interface that speaks their language. No-code platforms work on a closed system, which means that the changes made to a design via the front-end interface will be limited by the backend development. This leaves little room for customization, but provides users with the building blocks to add cutting-edge design elements and features to their creations. The Wix Editor, a no-code platform, uses a WYSIWYG interface and CMS (Content Management System) that reveals real-time edits on the user’s display. On top of a no-code platform for website design, businesses can use Branded by Wix to build their own mobile apps. What are the pros and cons of low-code/no-code software? The low-code/no-code movement has been widely adapted for a good reason. While many of us benefit from digital product design and development, we don’t necessarily need or want to know the complex programming behind-the-scenes. That said, the low-code/no-code movement doesn’t come without criticism. Let’s look at the benefits proponents adore, as well as the downfalls critics have outlined. Benefits of low-code/no-code software Develop faster Low-code tools can save you hours in coding and maintenance, helping you deliver a finished product or prototype faster. Low-code tools allow businesses to not only meet the increasing demand for digital product creation, but also adapt to audience needs. Narrow the learning curve No-code, low-code platforms support all users, from small business owners to creatives looking to manage and design their own websites, email campaigns, applications and more . In return, these assets support customers and clients in a digital-first environment, by providing means for eCommerce, community building and updates. Allows for scalability Low-code/no-code technology’s speedy production time benefits small businesses and freelancers by enabling them to make a digital presence faster. Now, they can get a head start on managing projects like building a website, marketing campaigns and growth more quickly and simultaneously. More cost-effective Low-code/no-code systems usually come at a lower cost than creating bespoke software or hiring a web designer and developer. Challenges of low-code/no-code Less customization The low-code/no-code platforms makes complex customization difficult. As you adapt to the technology, you may recognize certain design features that you wish you had or could have more control over, but can only be created with custom code. Technical limitations Sometimes we’ll run into cases where certain features are missing and cannot be implemented on a low-code/no-code platform, which has locked access to the interface’s visual components. Vulnerability Although most low-code/no-code solutions have built-in security protocols, standalone development technologies offer full-control over the data being created. Because of this, vulnerabilities in low-code, no-code platforms can often be overlooked by users. The future of low-code/no-code Despite some criticism , many industries and users have embraced the benefits of the low-code no-code movement. Statista estimates that global low-code market revenue will increase from $13 billion in 2020 to approximately $65 billion in 2027. Gartner also estimates that by 2024, low-code technology will be responsible for 65% of application development. Many respect low-code/no-code software for democratizing the digital age and producing incredible results. And new technologies like an AI website maker in the mix (see how does AI work ) will increasingly change how users interact and create with this software. Tip: From the time we launched Wix ADI in 2016 to the time we launched our AI website builder in 2024, Wix has used AI to enhance the web design process. By simply entering a conversation with AI, you can create a professional-looking site that comes with all the business tools and functionality that you need.
- The essential guide on how to run a business
The most seasoned entrepreneurs know that running a business is a marathon, not a sprint. In order for your business to last the race, you must invest in a strong foundation and good habits. Throughout this guide, we'll explore a variety of tips and strategies to help you navigate the challenges that come with starting and running a business, such as creating an effective business website , securing financing and managing your team. By implementing these suggestions and staying committed to your vision, you'll be better prepared to overcome obstacles and succeed in the long run as a small business owner . How to run a business: 10 tips for success Turn your ideas into action Create your business plan Consider an exit strategy Set your budget Choose a bookkeeper or accounting software Secure financing for your business Effectively hire and manage employees Develop a strong marketing strategy Scrutinize the customer experience Invest in yourself and team 01. Turn your ideas into action Every business is born from an idea, but not all ideas have the same potential. Some ideas may be too risky. While others may be too shortsighted. That’s why one of the first steps in learning how to start a business is learning how to separate the wheat from the chaff. Start by looking for inspiration in areas that are familiar to you: Personal interests or passions: Transforming your passions into a business allows you to leverage your enthusiasm and expertise in a niche market. By focusing on areas that genuinely interest you, you're more likely to remain motivated and connect with your audience. Professional experience: It goes without saying that drawing from your past work experiences or industry knowledge can give you a leg up in understanding your niche wants and/or developing a unique product or service. Start with what you know before branching out into other areas. Trend and competitor analysis: Keep an eye on emerging trends and look for opportunities to position yourself at the forefront of change. This can help you to capture early adopters' interests and gain a competitive edge. Consumer research: Take the time to talk with experts in your industry, plus the people that you’re looking to serve. Get their feedback on your idea, and use it to refine your vision. 02. Create your business plan Once you’ve identified a promising business idea, a business plan can help you clearly define your long-term goals and gameplan. You should be able to reference this doc to keep your team on track, as well as explain your vision to potential investors. A solid business plan consists of these sections: Executive summary: A concise, persuasive overview of the business plan that enables readers (such as investors or potential partners) to quickly grasp the essence of your venture. Company description: An outline of your business's background, including your mission, vision, early achievements, unique strengths and competitive advantage. Products and services: A detailed explanation of your offerings, proof of concept, visuals and pricing plans—with the goal of showcasing your unique selling points and the value you bring to the market. Market analysis: Research on your industry, competitors, barriers to entry, target market and your business's position within the market. Marketing and operations plans: Details on how you plan to reach your audience via branding, advertising, promotional activities and fulfillment strategies. Management and organization: A description of your venture's legal structure, key personnel and other stakeholders. Financial projections: An estimate of initial investment, funding needs, profit timelines and financial management practices. (These projections help you to evaluate your venture's financial health and long-term potential.) 03. Consider an exit strategy Do you ultimately dream of selling your business, merging it with another company or passing it on to a successor? While it may seem counterintuitive to think about your exit strategy before your business has even taken off, envisioning your endgame can help you make more strategic decisions. An exit strategy also forces you to anticipate market changes, industry trends or personal circumstances that may impact your exit from the business. It additionally plays a crucial role in attracting investors or potential buyers by demonstrating a clear plan for delivering returns on their investment. Keep in mind that an exit strategy doesn’t mean you necessarily have to go through with it. Think of it as a contingency plan—by having a planned exit, you can reduce potential losses if unexpected challenges arise or if the business doesn't perform as expected. 04. Set your budget It’s always helpful to create a detailed budget that factors in your startup costs, ongoing operational expenses, marketing costs and more. To accurately assess how much money you’ll need to run your business, you’ll need to know your break-even point as well—that is, the point at which your business's total revenues equal its total expenses, indicating that you have neither made a profit nor incurred a loss. Knowing this figure gives you a baseline for understanding how many products or services you need to sell to cover your bare minimum expenses. Once you’ve calculated your break-even point, you can: Set the minimum sales volume needed to cover your costs Evaluate the profitability of your offerings and create pricing plans Identify opportunities for cost reduction Assess how feasible your business model is 05. Choose a bookkeeper or accounting software If accounting isn’t your forte, then it’s especially important to invest in a bookkeeper or accounting software from the get-go. Both can help you keep accurate records, comply with legal requirements and analyze your finances properly. Accounting software can serve as highly convenient plug-and-play solutions, helping to automate routine tasks like invoicing and payment reminders. However, you’ll need some basic bookkeeping knowledge to get the most out of these types of software. So, if you’re not sure where to start, it might be better to hire a part-time bookkeeper. Did you know: Wix offers integrations with popular accounting apps , as well as powerful reports and analytics to keep your finances organized. Bookkeepers can offer their expertise in financial record-keeping and accounting principles. They can streamline workflows and advise you on ways to better manage payroll services (among other things), ultimately providing personalized attention. Submitting the wrong tax records can cause all sorts of problems, so it’s best to get this right first time by someone who knows what they’re doing. 06. Secure financing for your business When it comes to financing your new business, there are several options worth considering: Personal savings or contributions from family and friends. This allows you to retain full ownership and control over your business. Traditional bank loans or lines of credit , but these typically require a strong credit history and collateral. Small business grants or government programs that offer financial assistance to startups meeting specific criteria. Crowdfunding platforms that let you raise capital from a large pool of individual contributors who are excited about your idea. Venture capitalists or investors who are willing to provide funding in exchange for equity or a share of future profits. These financing options can help to stabilize your operations or nurture business growth , helping you afford new locations, equipment or product lines. They can additionally assist with cash flow management. No matter how big or old your business may be, you may face fluctuations in revenue that can impact your ability to cover expenses, payroll and investments. By securing extra capital, you can manage your cash flow during challenging periods. Debt refinancing could also be a valuable strategy if you're looking to improve your business's financial situation. By consolidating existing loans or securing a new loan with more favorable terms, you can reduce your interest rates, lower monthly payments and free up cash for other essential business needs. Just make sure to carefully assess your financial health and have a clear plan in place to manage your debt responsibly. 07. Effectively hire and manage employees As American author and management consultant Jim Collins once said: “Great vision without great people is irrelevant.” Inviting the right individuals to join your team is a crucial step in bringing your vision to fruition. Let’s take a look at some aspects you should keep in mind when adding new members to your team. Define your needs: Before you start recruiting, identify the specific roles and skills that you need in your team—both now and in the long term. Map out the qualifications, skills and experience required to get the job done. Prioritize cultural fit: While skills and experience are essential, it's also crucial to find employees who fit your company culture. Look for candidates who share your values and work ethic. Strive to build a cohesive, collaborative environment where everyone feels comfortable and motivated to contribute their best work. Hire for potential: Don't overlook candidates who show potential for growth, aiming to develop a team that can grow and evolve alongside your business. Conduct regular performance reviews: Give your employees both scheduled and immediate feedback to help with their development. Use performance reviews to set clear expectations, offer constructive feedback and discuss growth opportunities. Invest in employee development: To attract and retain top talent, show that you're committed to your employees' growth and success. Offer ongoing training and development opportunities, plus encourage your team members to pursue their professional goals. Establish a clear and fair compensation system for employees: Creating a fair compensation system for employees, including salaries, hourly wages or commission structures, will help attract the right talent. Consider the types of additional benefits and incentives that matter to your staff beyond the essentials, such as health coverage and growth opportunities. By supporting your employees' well-being and achievements with a carefully crafted compensation strategy, you can nurture a driven and loyal team. Encourage flexibility and adaptability: During the growth phase, you might find yourself shorthanded and needing to wear different hats to keep up with demand. This flexibility extends to your team as well. As your business evolves, encourage your team to be open to embracing new roles, responsibilities and opportunities. 08. Develop a strong marketing strategy An effective marketing strategy outlines your approach to promoting your products or services to your target audience through both organic and paid means. As you look to formalize plans for reaching your target audience, make sure to take these essential steps: Analyze your competitors: Understanding the current market landscape helps you see if there’s a blue ocean of opportunities or a red ocean of established players. To conduct a thorough market analysis, identify your competitors. Make a list of your main competitors, both direct and indirect. Analyze their marketing strategies (see business strategy examples ), strengths, weaknesses and customer base to identify gaps in the market. Perform a SWOT analysis: Gather feedback directly from your target audience through surveys or interviews. Talk to industry experts, study market reports and use other tools at your disposal to identify your business's strengths, weaknesses, opportunities and threats within the market. Develop buyer personas: Buyer personas are semi-fictional representations of your ideal customers, based on both internal and external consumer research. Creating detailed buyer personas can help you to better define your target audience's needs, motivations and spending power so that you can properfly target your marketing campaigns. It’s helpful to revisit buyer personas, even if you’ve done it when you first launched your business. As your business evolves, your customers’ needs may also have evolved over time. Consider the Jobs To Be Done (JTBD) theory: As you think of the right way to introduce your product to buyers, heed Harvard Professor Theodore Levitt’s advice that “people don't want a quarter-inch drill. They want a quarter-inch hole.” In other words, focus on the benefits and results that your product helps to achieve—not just the product itself. What are customers actually looking to gain from your product or service, and how do you deliver on that? Choosing the right marketing channels: Avoid chasing every new and shiny marketing channel, and instead be selective of where you spend your time. Experiment with a manageable number of channels and content types, using clear KPIs and benchmarking your progress towards your goals. Create a professional website: One of the biggest small business challenges is building brand awareness, especially if you’re fighting for attention on crowded third-party platforms. For this reason, you’ll want to create a website that helps you stay in full control of your branding and the customer experience. 09. Scrutinize the customer experience Needless to say that in order to win and retain customers, you must deliver a strong customer experience. But the customer experience is influenced by a variety of factors, including the website experience, the experience with your product or service, customer service and more. In that vein, you’ll want to map out and analyze the customer journey from start to finish. How are people discovering your brand? What do they feel on your site? Where are customers getting stuck, and what questions do they have pre- and post-purchase? One way to understand the customer journey is by implementing the right Customer Relationship Management (CRM) software to gather data on how customers engage with your business. With the right CRM data, you can: Personalize your communication: Use CRM software to tailor your messaging and interactions to individual customers to improve the overall experience. McKinsey reports that 78% of customers who received personalized communication are more likely to recommend a brand to friends and family, underscoring the importance of first impressions. Resolve issues proactively: CRM software can help you identify customer pain points and address them before they escalate. By resolving issues proactively, you can enhance customer satisfaction and reduce churn. Get ahead of any obstacles: Track customer touchpoints throughout their journey and identify areas for improvement. For example, if you sell products online, keep your eyes peeled for reasons why people may abandon their carts. Test different solutions to potential problems, and use your CRM to gain insight into their impact. Wix’s built-in CRM tools allow you to centrally manage customer orders, communications and other tasks. Test drive Wix for free . Consider building your own AI agent: Wix's AI Custom Agent (Omni) is a no-code toolset that lets you build tailored AI agents to help run your business better. Once built your agent can run autonomous workflows, deliver personalized interactions and surface critical insights. For example it can, re-engage inactive customers by automatically generating and emailing coupon codes, manage inventory by checking stock and contacting suppliers to reorder, boost sales with discount rules for underperforming products or automate reporting through AI-generated, actionable sales summaries sent to you via email. 10. Invest in yourself and team Understanding your target market and sorting out the finances is important for your business, but improving yourself is just as crucial for thriving in a competitive landscape. Beyond your business plan and marketing strategies, there are several ways you can continue to grow professionally so that you can better run your business. Fail fast, fail often: There’s a great little quote from Little Miss Sunshine from the grandpa to Olive, the granddaughter. In a moment of doubt about the beauty pageant, Olive tells her grandpa she’s scared of being a loser, to which he replies, “A real loser is someone who's so afraid of not winning he doesn't even try.” Mistakes and setbacks are inevitable in any business venture. Instead of avoiding them, embrace a culture of continuous learning—which, in turn, will foster innovation and resilience, preparing your business for long-term success. Stay informed about industry trends: Stay informed about changes in your market (such as the rise of AI tools for business ), emerging technologies and evolving customer preferences. By staying ahead of the curve, you can seize new opportunities and continue to grow and adapt to shifting conditions. Set realistic goals: Setting realistic, achievable goals allows you to measure progress and build confidence as you accomplish each milestone. When you achieve a goal, take the time to celebrate your success. It’s especially important to celebrate with your team. A little acknowledgement and a “thank you” goes a long way in boosting morale. Invest in personal development: As a small business owner, it's important to invest in yourself. By focusing on personal growth, you'll become a more adaptable and effective leader. Plus, your dedication to learning will foster a culture of growth within your company, inspiring your employees to seek out new opportunities for improvement, which ultimately contributes to the overall success of your business. Surround yourself with a supportive network: A supportive network of peers, mentors and colleagues is invaluable. Surround yourself with individuals who believe in your vision and can offer constructive feedback, advice and encouragement. A strong support system can also help you maintain confidence through the ups and downs of your entrepreneurial journey.
- 17 eCommerce metrics to help you sell more
Get started by: Creating an online store → | Getting a domain → When you’re running an ecommerce business , gut instinct alone won’t make you successful. Success requires having a clear understanding of the health of your business. It requires having a constant pulse on your eCommerce metrics and key performance indicators (KPIs) in order to keep your business growing in the right ways. That said, eCommerce metrics can run the gamut. For the purposes of this blog, we’ll look at the eCommerce metrics across these three categories: Marketing-focused data points like conversion or customer retention rates Business-related measurements like profit margin and cost of goods sold Customer service-related benchmarks like net promoter score Keep reading for a breakdown of each and tips for improving your online store’s performance. What’s the difference between an eCommerce metric and KPI? KPIs and metrics are sometimes used interchangeably. However, they are not one in the same. A metric is a data point that can be used to inform a KPI or your understanding of a business process. For example, “time on page” is a metric that indicates how engaged your consumers are with your products and your online store. A KPI, meanwhile, is a clear and measurable goal that you set to guide your growth. It is a subset of your most important metrics. For example, if your KPI is conversion rate and your goal is to increase conversions from 2.5% to 3.5%, then you may use several metrics (like time on site, bounce rate, and cart abandonment rate) to gauge progress and understand the steps that you need to take. The purpose of both metrics and KPIs is to help you quantify, benchmark, and track success. Once you identify the right metrics to routinely track, you can establish a baseline and collect data on various business functions. You can then use this information to tweak your business strategy and improve individual ecommerce KPIs . 17 eCommerce metrics you should be tracking Customer acquisition cost (CAC) Organic vs. paid traffic Cost-per-click (CPC) Return on ad spend (ROAS) Bounce rate Average session duration Transactions Conversion rate Cart abandonment rate Return rate Cost of goods sold (COGS) Net profit margin Average order value (AOV) Customer retention rate (CRR) Customer lifetime value (CLV) Customer satisfaction score (CSAT) Net promoter score (NPS) Marketing-focused 01. Customer acquisition cost (CAC) CAC is your average cost of attracting a new customer. Calculate CAC using the below formula, where promotional costs include any money you put towards a certain campaign. These costs don’t just refer to ad costs, but also the money that you spend on producing content, hiring designers, and using software to build and track your campaign. CAC = Total promotional costs ÷ number of customers acquired As an example, if you spent $2,000 launching a Google Ad campaign and attracted 150 customers, then your CAC would be $13.33/customer. You'll want to make sure that your CAC is manageable and costs less than your customer lifetime value (CLV). A few ways to reduce CAC: spotlight higher-margin products, optimize your ad spend, and build up your organic strategies to reduce your reliance on paid channels. 02. Organic vs. paid traffic Knowing the source of your web traffic can help you to understand the effectiveness of your eCommerce marketing efforts. Two important traffic channels include: Organic : The number of visitors you attract to your site through unpaid channels. Improving organic traffic volumes typically means having a strong eCommerce SEO plan, plus making the most of your owned media channels (email newsletters, blog, and social media channels). Paid traffic : The number of visitors you attract through paid channels, such as Google Ads or paid social media campaigns. Paid channels offer the advantage of immediate and wide-scale reach, but require ongoing payment to see consistent results. To find the breakdown of organic versus paid traffic, use tools like Wix Analytics or Google Analytics . If you find that your paid traffic far outweighs organic traffic, then it’s likely time to focus on your organic channels. Otherwise, you might see a lot of your traffic dry up whenever your ad budget dries up. It’s also worth looking at differences in conversion rates and behaviors, depending on which channels your buyers enter from. Are buyers converting better after seeing a certain ad? Are they browsing multiple items on your site, or are they just viewing and buying one particular product? The answers to these questions can help you decide how to optimize your campaigns and improve your site to deliver a better experience. 03. Cost-per-click (CPC) CPC is the amount you pay for each person who clicks on a link within a pay-per-click ad (think: Google ads, Amazon ads, and Facebook ads). The higher-volume a keyword, the more competitive it generally is. So you’ll likely pay a higher CPC (i.e., submit a higher bid) to win placement on these SERPs. At this point, you’ll want to avoid overpaying for ads by doing your due diligence. Are keywords attracting people with the right intent? Are there other long-tail keywords that you could target at a lower price? How can you tweak your targeting, and what can you do to make sure that every ad you deliver drives results? 04. Return on ad spend (ROAS) ROAS is an emerging eCommerce metric that enables you to measure how much revenue an ad campaign brings to your business. ROAS = Total revenue generated from paid ad campaign ÷ total campaign ad spend So, if you earned $12,000 in revenue from a Facebook Ad campaign that cost you $1,500, your ROAS would be $8. ROAS is most often expressed as a ratio. In this example, your ROAS ratio would be 8:1. Across all industries, a generally accepted positive ROAS ratio is 2.87:1 . 05. Bounce rate Bounce rate represents the number of people who only view one page on your site before exiting out. Bounce rate = (total # one-page visits ÷ total # of website entries) x 100 Bounce rates are provided by most web analytics tools, like Google Analytics and Wix Analytics. A healthy bounce rate is relative. However, most sites will see bounce rates between 26% to 70%, according to a study by RocketFuel, with bounce rates between 41% to 55% considered average. Bounce rates above 70% may signal technical issues with your website, such as slow page speed, broken links, or mobile responsiveness problems. (A super low bounce rate could also signal tracking or other issues, as some bounces are to be expected.) If you notice high bounce rates on your site, check for technical errors as well as poor-performing content. It’s possible that customers aren’t connecting with your products, your messaging, or overall branding. Or, the messaging on your landing page may differ drastically from the messaging someone sees on an ad (as an example). 06. Average session duration Average session duration is the amount of time users spend (on average) during a single visit to your website (though the definition of a “session” may vary between tracking tools). In general, a longer average session duration is good. It’s an indicator of your visitors’ level of interest in your brand or products. But it could also mean that it takes longer than it should for your shoppers to navigate your online store. The best way to know is by digging into what users are doing once they enter your site. Are they exploring multiple pages? Are they actually taking steps towards making a purchase? Where are they dropping off? If most people are abandoning their carts, a longer session duration could be a symptom of an inefficient checkout process. For comparison, the average session duration across all industries is four minutes and 17 seconds, according to a report by Contentsquare . However, time spent on buying sessions across industries is longer—averaging 11 minutes on mobile and 20 minutes on desktop. Business-related 07. Transactions The number of transactions from your website doesn’t tell the full story regarding your profitability, but it does indicate the popularity of your products over time. Transactions are, quite simply, the number of individual sales made on your site over a specific time period. You can choose to track transactions on a weekly, monthly, or yearly basis to develop a baseline. Doing so will help you measure the impact of seasonality or discounts on specific products. It will also help you separate your most popular products from the least popular ones. However, make sure to measure transactions against order value and margins to confirm that your most popular products are worth further investment. 08. Conversion rate A “conversion” could mean different things to different people. For example, a marketing team may define conversions as the number of signups to an event. By comparison, you may choose to define conversion as a sale—or, you could track several types of “smaller” conversions, like adding a product to a cart, entering a coupon code, or signing up for a free trial. Once you’ve defined what a conversion means for your business or campaign, you can calculate conversion rate using this simple formula: Conversion rate = (conversions ÷ total visitors) x 100 Note that as you look to increase conversion rate across your eCommerce site , your store design could heavily impact user behaviors. Here are several conversion rate optimization tests that you can try out if you’re looking to raise your conversions. 09. Cart abandonment rate Cart abandonment rate is, as the name suggests, the percentage of shoppers who add items to their cart but leave your store without completing their purchase. Cart abandonment rate = [1-(total # completed transaction ÷ total # of unfinished transactions)] x 100 Today, nearly seven out of every 10 shopping sessions end in abandoned carts, according to the Baymard Institute . And that translates to $18 billion in lost revenue per year. There are seemingly an infinite number of reasons why shopping cart abandonment continues to happen—some of which are in your control, and some of which aren’t. Among the many strategies you could try: send abandoned cart emails to shoppers who left without making a purchase. Wix stores with active abandoned cart recovery automations have increased sales by up to 29%. Other ideas: offer free and/or faster shipping, provide multiple payment options at checkout, and simplify your overall checkout process to reduce friction. 10. Return rate Growing rates of product returns stand as another headache for many eCommerce retailers. Retail returns jumped from 10.6% in 2020 to 16.6% in 2021, according to a survey by the National Retail Federation and Appriss Retail . This amounted to more than $761 billion of merchandise that ended up back in stores or warehouses. To calculate return rates for your store, use the below formula: Return rate = (# orders returned or refunded ÷ total # of orders) x 100 It’s important to keep in mind that returns don’t just cost you money. They have the potential to erode your brand reputation if customers aren’t satisfied with their purchases. The best way to improve your returns rate is to ask your shoppers why they’re returning your products at the time of return. If they say that the product they received doesn’t match their expectations, it could be a sign that you need to improve the quality of your product pages (or the quality of your products). Another tip: make sure that your eCommerce return policy is clear and easy to find. Plus, take steps to prevent retail bracketing. 11. Cost of goods sold (COGS) COGS, short for “cost of sales,” rolls up all the expenses of sourcing or manufacturing your products—including the costs of raw materials, labor charges, and other costs directly related to the creation of your product. It does not include utilities, marketing costs, taxes, rent, or other indirect costs. COGS = Beginning inventory + total purchases – ending inventory COGS is particularly useful in calculating your inventory turnover ratio and margins. It can also help you learn your true production costs so you can see areas where you can reduce them without affecting product quality. 12. Net profit margin It goes without saying that you don’t just want to be making sales. You want to be making a profit. The best metric to measure your progress in that regard is net profit margin. Net profit margin = [(Revenue - COGS - operating and other expenses - interest - taxes) / revenue] * 100 Net profit margin is indicative of your bottom line, whereas gross profit margin gives you an immediate look at whether your business is operating at a profit or loss. The average eCommerce net profit margin is 7.26%, according to Investopedia . 13. Average order value (AOV) Your AOV is a measurement of how much income you generate per order. This eCommerce metric provides insight into your shoppers’ purchasing habits, and helps gauge the effectiveness of your marketing and pricing strategies (among other things). AOV = Revenue ÷ total # of orders When you increase AOV, you’re more focused on retaining and strengthening your bond with existing shoppers versus acquiring new customers. For example, many Wix merchants use Wix’s out-of-the-box tools or Velo to better upsell and cross-sell buyers. Think: “related products” banners or free delivery after a customer meets a minimum cart total. Check out other ways to increase AOV using Wix. 14. Customer retention rate (CRR) It costs five times as much to attract a new customer as it does to retain an existing one. Your CRR measures how well you hold onto your existing customers and therefore is a good metric of overall eCommerce efficiency. CRR = (# of return customers ÷ total # of customers) x 100 An average eCommerce CRR is about 30%, says Omniconvert . Improve your CRR by creating ad campaigns targeted at existing customers, developing an email newsletter to nurture current customers, or creating rewards and discounts to incentivize repeat business. 15. Customer lifetime value (CLV) CLV is an estimate of the total revenue you’ll earn from one person (or a group of people) over their lifespan as your customer. It’s influenced by your conversion and customer retention rates (CRR), and can also help you benchmark your CAC. CLV = Average transaction value x average number of purchases x expected years of relationship CLV is normally calculated over the period of one year. So, if your customers spend an average of $75 per shopping session, purchase around six items a year, and shop with you for an average of five years, your CLV is $2,250. Optimizing customer lifetime value is important for nurturing brand loyalty, and ensuring that your customers have a positive experience when shopping with your brand. Customer service-related 16. Customer satisfaction score (CSAT) CSAT scores involve a popular method for gauging customer satisfaction. Establish a CSAT by asking your customers a single question: “How satisfied were you with your experience?” Ask them to respond on a scale of one through five (five being the best). Once you’ve collected all the responses, you can generate your CSAT score: CSAT = (total # of “4” and “5” responses ÷ total # of responses) x 100 Alternatively, you can ask customers to rate an interaction between extremely satisfied, somewhat satisfied, satisfied, not satisfied, and very dissatisfied—and find the CSAT from extremely satisfied and somewhat satisfied answers. You can measure CSAT at various parts of the customer lifecycle, such as when someone makes his or her first purchase, or someone interacts with your customer service team. This can help you to identify areas that need improvement. It’s worth noting that in eCommerce, the average CSAT score is 81%, according to relationship operation company Netomi . 17. Net promoter score (NPS) NPS is another, complementary way of analyzing customer satisfaction. It involves asking your customers a different question: “On a scale of one to10, how likely are you to recommend our store to a friend?” Scores ranging from nine to 10 represent “promoters,” while scores ranging from seven to eight represent “passives.” Scores ranging from zero to five are “detractors.” NPS = % of promoters - % of detractors The higher your NPS score, the better your overall CX is considered to be. Yet in eCommerce, customer expectations are rising, bringing greater emphasis on even higher NPS scores. While an NPS of 50 is considered very good in most industries, the average eCommerce NPS dramatically rose to 62 over the past year, reports Retently . Keep a close watch over your eCommerce metrics Above is just a sample of metrics you could be tracking. There are plenty others that you could and might already be tracking. However, not all metrics are worth the same to your business. It’s okay to pare down this list to just the ones that are the most relevant to your goals. Keep in mind that a platform like Wix eCommerce already includes dashboards and reports for tracking the performance of your store. Look at the reports that are already available to you and take steps towards improving your business by making data-driven decisions.
- 7 eCommerce merchandising techniques to try (with examples)
Turn your ideas into sales and start selling with Wix eCommerce → In the same way that retailers dress up their store windows, there’s a reason why eCommerce sellers invest in smart merchandising strategies. Whether in the real world or the online world, the goal is to be able to stop people in their tracks. Below, we’ll discuss eCommerce merchandising strategies that can keep shoppers on your site longer and guide them toward a purchase. Keep reading for practical tips and real-world examples to learn from. Ready to start your eCommerce journey? Now’s the perfect time to bring your vision to life. With Wix eCommerce, you have the tools to build a professional online store and create a website that captivates your audience, drives traffic and boosts sales. Take the first step and explore Wix eCommerce today. Make your mark online and turn your ideas into success. What is eCommerce merchandising? Ecommerce merchandising is the practice of organizing and displaying products attractively throughout your online store to entice a sale. Unlike traditional retail merchandising, which relies heavily on physical store layouts and displays, eCommerce merchandising relies on your website layout and interactive elements. For example, when building your eCommerce site , you may choose to display your newest products on your homepage while making personalized recommendations throughout your product pages. Ecommerce merchandising techniques can (and should) be applied all across your site, from your homepage to your checkout page. Looking to revive your online store? Try Wix’s eCommerce website builder . The evolution of eCommerce merchandising and how it works today When it comes to eCommerce merchandising, we’ve come a long. In the early days of eCommerce, merchandising simply involved uploading your products to your website (which alone was an arduous process). Today, it's a much more dynamic process that involves engaging with customers through various touchpoints and personalizing the shopping experience. Technology has been a game-changer in how merchandising strategies across all types of sites are developed and applied. Modern analytics provide an in-depth look at customer behaviors, allowing for more targeted marketing efforts. Tools like AI and machine learning offer predictive insights into shopping trends, making it possible to anticipate customer needs before they express them and create opportunities for strategic flash sales or other eCommerce marketing tactics. In short, eCommerce merchandising is much more agile and data-driven today, entailing techniques like: Product selection Product placement On-site navigation and search Pricing and promotions Upselling and cross-selling Personalized recommendations Social proof and reviews Content marketing 7 eCommerce merchandising techniques to improve sales There are infinite ways to set up and optimize your eCommerce website to help shoppers out. For starters, here are several best practices to keep in mind: Think like a curator Think mobile Don't skimp on your visuals Less searching, more showing Get personal Let your brand advocates do the talking Remember off-site techniques 01. Think like a curator The job of any curator—be it for a museum, art gallery, library or eCommerce site—is to thoroughly research a topic and ensure that information is presented in a compelling, easy-to-understand way. In the same vein, you’ll want to become an expert on your audience and industry, and then curate your online products in a logical way. Group similar products together, while being intentional about how you create categories and subcategories. For instance, jewelry brand Yam groups its products in a few different ways: by jewelry type (necklaces, earrings, bracelets & rings), popular collections (silver edit, flowers, hoops, collaborations) and appeal (new, best sellers). This allows shoppers with varying interests to find what they need quickly. Meanwhile, a typical clothing store may group products by gender or age group first, then by clothing type or by the more eco-friendly products . On the other hand, a furniture store might group products by room, then material or aesthetic. 02. Think mobile As you’re progressing with how to create a website , it’s easy to become fixated on the desktop experience. But given that “mcommerce” is expected to make up 62% of all retail sales by 2027 , you’ll want to pay attention to how your site displays on smaller screens. While you might be able to promote several products side by side on your desktop site, you may only be able to show one product at a time on mobile devices. So, be deliberate about how products are arranged across your mobile homepage, category pages and product pages . Prioritize your most important content first, and adjust your navigation menus so that shoppers can easily move around your site without getting distracted or fat-fingering anything. Did you know? With Wix’s mobile editor, you can adjust your layout, remove certain elements from view and make other customizations specifically for mobile screens. Create a free Wix account and try it out yourself. 03. Don’t skimp on your visuals When customers can’t touch and physically examine your products, visuals like product photos, videos and user-generated content (UGC) become ever more important. For this reason, you’ll want to pay extra attention to how visual cues are used throughout your site to keep visitors engaged. A few pointers: Put your best foot forward in all of your product photos , bearing in mind that the quality of your photos may reflect the quality of your products and the professionalism of your brand. Offer multiple photos for each product, showing all its variations and angles. Provide visual confirmation , e.g., show product photos in addition to their names in on-site search results or dropdown menus so shoppers know that they’re searching for the right things. Validate purchase decisions via visuals, e.g., UGC, star ratings and photos of influential brands or people who’ve shopped at your store. Tell a story with your pictures , e.g., use lifestyle photos or videos that demonstrate who your brand is for and how your products can be used. For example, Chairigami uses inviting imagery to flaunt the strength and cleverness of its cardboard furniture. Be consistent in your branding. Think of your website as a showroom where your layout, logo, colors and fonts all make up your brand and make it easier for people to remember you. Don’t sacrifice user experience for style points. Keep the UX simple and clean, so shoppers don’t have to expend too much effort trying to find what they’re looking for. 04. Less searching, more showing For your customers, the best shopping experiences are easy and enjoyable. They don’t involve too much clicking or scrambling around to find the right products. Just like how a salesperson might help you find the right shoe size while you’re shopping in stores, you can connect your online shoppers with the right products in various ways. As ideas: On your homepage , feature the best-selling, highest-rated or newest product above the fold. On your category pages , prominently display subcategories, filters and sort bars that help shoppers quickly narrow their options and avoid choice paralysis. On your product pages , offer product comparisons or ways to style your product, so buyers don’t have to look elsewhere for inspiration and/or validation. Also, show crucial product details, such as size charts, care instructions, fit details and more. On your checkout pages , recommend add-ons or other products that are frequently purchased with the products in a visitor’s shopping cart. Draw inspiration from Chairigami’s product pages, which included a “related products” section and “trade show booth sets.” Both of these sections present how products can be used and purchased together, without requiring customers to click off the original product page. You can further assist customers through things like autocomplete or auto-suggestions in the search bar, or through pop-up promotions and more. 05. Get personal Take advantage of the data and technology at your fingertips; personalize the shopping experience to your customers’ unique tastes, values and behaviors. You can use tools like Wix’s AI-powered product recommender to showcase related products based on various factors—like products from the same categories, items that are frequently bought together or those that are frequently viewed together. Try Wix's website builder for free. Help customers shop more efficiently by personalizing your recommendations and promotions in these ways. Utilize the space on your product pages, checkout pages, emails and more to highlight them. 06. Let your brand advocates do the talking Give your satisfied customers a space to champion your brand. Invite and incorporate customer reviews, social proof and/or star ratings across your site to build credibility. If you’ve collaborated with other brands or influencers, or have been featured in prominent publications—show that off. For example, Koketit (a brand started by artist Shira Barzilay) gives visitors a way to admire all the recognition that the artist has received over the years. In both the hero image and farther down on the homepage, the brand features its latest collaboration with Polish brand TATUUM. 07. Remember off-site techniques Your work doesn’t end when a shopper exits your site. Rather, every touchpoint should be optimized for engagement, from the moment customers land on your homepage to the moment they leave. No matter if a shopper leaves with or without a purchase, follow up with tailored emails, engaging blogs, creative social media posts, retargeting ads and more. Aim to provide real value as opposed to simply shoving your products in people’s faces. This can be done by offering thoughtful discounts and promotions. You can even set up a loyalty program, where buyers are incentivized to continue engaging with your brand. For instance, Jule Dancewear offers “Jules Rewards.” Frequent shoppers can expect special discounts every time they refer another shopper. Or, they can rack up points by ordering a product, following the brand on Instagram or celebrating their birthday. Challenges in eCommerce merchandising Navigating the world of online retail comes with its own set of hurdles. As an eCommerce business , you'll face challenges that can stall or impact your merchandising efforts. One significant challenge is staying ahead of the competition. The digital marketplace is crowded, and standing out requires a mix of creativity, marketing savvy and a deep understanding of your customers. Another hurdle is managing inventory effectively to avoid overstocking or stockouts, which can hurt your margins or credibility. Beyond this, it’s nearly impossible to avoid issues with shipping or other unexpected events when you’re selling online. To minimize these obstacles, take these preventative measures: Leverage data analytics: Use customer data to make informed decisions about your inventory. Study up on different demand forecasting and inventory management strategies, perhaps even testing things like accepting preorders to right-size your inventory. Have a contingency plan: If you still wind up with too much or too little stock, what will you do? Will you sell excess inventory at a lower price or bundle them with more popular products? How will you respond if you accidentally oversell a product? Keep customers in the know: The last thing your customers want is to feel duped. Create an atmosphere of transparency. When the unexpected happens, find a way to communicate with customers without raising alarms or throwing mud over your issues. Streamline the checkout process : Minimize cart abandonment by keeping the checkout process simple. Accept multiple payment options (which card payment solutions like Wix Payments make possible) and only ask for essential information. Optimize for search engines : Invest in long-term organic marketing strategies like SEO. Check that your site pages are SEO-friendly, and consider other content marketing methods for driving traffic to your online store . Sell on multiple channels: Avoid becoming over-reliant on a single channel for your sales. Explore opportunities to sell on other marketplaces or social channels to diversify your sales strategy. Monitor market trends : Stay updated on industry trends so you can quickly adapt your merchandising strategy as needed. Stay open to integrating tools like chatbots, AI-driven analytics and AR into your online store (as examples). Invest in training: Encourage your team to stay current with digital marketing skills and eCommerce best practices. Trends shaping the future of eCommerce merchandising Ecommerce merchandising is constantly evolving. What works today may not necessarily work tomorrow, and new technologies regularly shape how customers discover and experience products online. Future-proof your business by looking into these emerging trends. Artificial intelligence (AI) technologies You can expect AI to open up even more opportunities to hyper-personalize product recommendations, search results and marketing messages (among other things). Not to mention that AI will continue to refine the efficiency of inventory management systems, reducing waste and ensuring that popular items are restocked promptly. Other advancements, like AI website builders , will further simplify and evolve the web design process. “In the coming years, AI will allow you to offer hyper-personalized and zero-friction shopping experiences like never before. Imagine entire storefronts, catalogs, promotions and products that look completely different for every customer. “ - Oren Inditzky, Wix VP & GM of Online Stores Augmented reality (AR), virtual reality (VR) and omnichannel Already, we see AR and VR shaping a new reality for eCommerce and taking omnichannel concepts to new heights. HOKA, as an example, allows buyers shoppers to virtually try on sneakers or view them in AR, mimicking a real-world shopping experience. Meanwhile, more and more DTC brands are using their brick-and-mortar stores as showrooms. Reformation is one brand that has been using AR to upgrade the in-store shopping experience for years; customers can explore different sizes, colors and styles of any item from touchscreens placed throughout the store. Virtual influencers Virtual influencers are staking their claim, with brands like IKEA and Calvin Klein hiring these virtual models for creative ad campaigns. In the same vein, you’ve got companies like Meta, hoping to push the envelope with AI chatbots—even buying the rights to model AI characters after cultural icons like Tom Brady and Kendall Jenner. “Once you are digitized, you are immortalized,” says Cameron Wilson, CEO of The Diigitals and the creator of Shudu, the world’s first digital supermodel.
- 21 effective eCommerce marketing strategies for you to keep sales rolling in
If you own an eCommerce store , then you know that generating traffic and sales can be a challenge. While there are many marketing approaches you can take to increase site traffic and motivate customers to buy, planning effective eCommerce marketing strategies can be daunting. After all, traffic doesn’t come cheap these days. While ad platforms like Facebook, TikTok and Amazon are all great places to reach consumers—ad prices have skyrocketed within the last year, jumping anywhere between 11% and 70% year over year. The challenge of rising ad prices and increased competition for consumer attention means you must make your marketing budget do more for less. Below, we've compiled 21 eCommerce marketing strategies focused on helping you balance cost with reach and effectiveness. Lean on these strategies, along with eCommerce marketing solutions by Wix , to drive more traffic and sales without burning through your capital. Need a reliable platform for leveling up your store? See Wix’s full suite of eCommerce features . What is eCommerce marketing? First, let’s make sure we’re on the same page as to what marketing for eCommerce entails. Put simply, eCommerce marketing is the process of driving traffic to your online store and convincing visitors to buy your products or services. Tactics usually involve a mix of three approaches: Traffic generation : Draw new customers to your store through a mix of paid and unpaid tactics, including (but not limited to) SEO, content marketing, social media, paid ads and email marketing. Conversion optimization : Employ strategies to increase sales and average order value (AOV), including personalization, intuitive website design and special offers. Customer retention and loyalty : Keep existing customers happy with customized offers, loyalty programs and rewards so that they continue purchasing from your brand and refer new customers through word-of-mouth marketing. All of these together aim to achieve benefits like: Increase marketing efficiency and ROI Gain a better understanding of your customers Keep up with and outperform competitors Elevate and increase the visibility of your brand Grow business and improve cash flow 21 eCommerce marketing strategies to test out Dazzle your customers with impactful content marketing Prioritize search engine optimization (SEO) Build an email marketing list (and use it) Re-engage customers with retargeting/remarketing Implement Google Shopping Ads Expand your reach with social media Tap into established audiences with influencer marketing Foster loyalty, repeat business and sales with personalization Create a loyalty program Generate hype with a flash sale Upsell and cross-sell to increase AOV Offer a special discount Experiment with SMS marketing Incentivize referrals with affiliate marketing Optimize for mobile users Leverage video marketing Integrate chatbots for customer service Implement subscription models Embrace sustainability and ethical marketing Encourage user-generated content Plan seasonal and holiday marketing 01. Dazzle your customers with impactful content marketing Be it blog posts, social ads, podcasts, videos, or product descriptions—content is essential for driving traffic to your online store . But to understand where to start, you need a cohesive content marketing strategy that outlines your main goals, priorities and other important details. For many online brands, a blog is a great place to start. It offers a platform to regularly publish articles, guides, product reviews, or other types of content that spread the word about your products in a more natural way. Not to mention, it’s easy to add to any Wix eCommerce site. Read Also: Adding and setting up your Wix Blog Content can also be user-generated (e.g., adding customer’s social media posts to your site) or co-branded (e.g., collaborating with another brand to improve your brand reputation, visibility and backlinks). The ultimate goal: build more authentic customer connections and improve visibility online. Learn more about how to create a landing page. 02. Prioritize search engine optimization (SEO) SEO is the process of improving your store's rankings on Google and other search engines in order to attract more organic traffic. Ecommerce SEO is unique in that it specifically focuses on getting product pages, category pages and other transaction-oriented pages to rank—in addition to any supplementary content, such as a blog. When done well, SEO is an extremely cost-effective way to attract visitors who are actively looking to buy what you're selling. The best eCommerce platforms offer built-in SEO tools to make the process of optimization easier. Wix eCommerce, for example, offers advanced SEO features that help to automate (and scale) optimizations across your pages so that they can be easily found and indexed by search engines. Wix store owners that take advantage of our SEO tools have an average of 21% more traffic than those that don't. 03. Build an email marketing list (and use it) As a type of marketing , email marketing is still alive and thriving, with email ROI coming in at $36 for every $1 spent . Email has the power to move the needle when traffic is slow or you want to capitalize on seasonal trends (e.g., increased traffic during the holidays). The first step, of course, is to build a subscriber base by adding an email signup form to your online store. Promote a newsletter that includes special discounts, product announcements, recommendations and other interesting content. With a clear eCommerce email marketing strategy, you can reduce abandoned carts, increase conversions and keep your brand top of mind. 04. Re-engage customers with retargeting/remarketing Retargeting or remarketing (which are often used interchangeably) provides an avenue to re-engage with people who've visited your website once before. It’s relatively cheap and is simple to set up. For example, Facebook retargeting just requires you to add a pixel to your site. This helps to populate a list of contacts, which you can then re-engage with a Facebook ad that draws attention to your brand or showcases a product that buyers may have been interested in before. Wix additionally offers integration with apps like AdRoll that help you to manage your ads more efficiently. Retargeted ads tend to get a much higher response than standard ads, both in terms of clicks and sales. Some advertisers report a 128% increase in conversion rate from retargeted ads, with consumers being 10 times more likely to click on retargeted ads than standard ads. 05. Implement Google Shopping Ads Google Shopping Ads allow you to showcase your products on organic search results and Google’s dedicated Shopping results page. As with standard search ads, advertisers are charged a per-click amount whenever someone actually clicks on the ad. Google drives a massive amount of product searches, with nearly half ( 48% ) of consumers starting their product searches on search engines. It therefore stands to reason that getting your products listed on Google is a no-brainer. Google even offers a Buy on Google feature, which makes it easy for your consumers to complete a transaction directly from the search engine. Wix store owners can run shopping campaigns on Google using the Wix and Google Ads integration . This simplifies the process of setting up a Google Merchant account. 06. Expand your reach with social media The eCommerce customer journey increasingly involves social media touch points. In a 2022 survey of over 14,000 global shoppers, 65% of respondents said they use social media for inspiration when making a purchase, and 60% said that they shop from content posted by brands on social media. Of course, social media isn’t meant to be purely transactional. It’s—at its core—a place to be social. There are plenty of ways to leave an impression or to simply get your customers more involved. Think: Wendy’s sassy tweets . Or, Disney’s # ShareYourEars campaign. In the same vein, consider how both social commerce and social media marketing can help your brand reach its core consumers and have them warm up to your brand. Launch a social contest. Share shoppable posts. Host livestreams. Don’t forget to consider paid ads as well. Most social platforms—including Facebook, Instagram, TikTok and Twitter—have paid advertising options that allow you to target potential customers via their interests, demographics and/or behaviors. Ads can serve as a good complement to your organic strategies, actively bringing my people to your account. Learn more: Behavioral marketing 07. Tap into established audiences with influencer marketing After you have started your business , the right influencers can help you increase consumer trust in your brand. These influencers typically have large and/or niche followings that value their recommendations and content. They can either share your content or produce original content featuring your products (among other collaborations). The biggest thing to remember is that influencers are creators in their own right—the most fruitful partnerships are two-way, and allow the influencer to have some creative freedom over how they introduce their followers to your brand. Creating an influencer marketing strategy can help you discover and select influencers that jive well with your buyer persona and business approach. An influencer can even be an existing customer (e.g., a brand evangelist) or another business that sells complementary products and/or services. 08. Foster loyalty, repeat business and sales with personalization Personalization is arguably one of the most effective eCommerce marketing ideas because it inspires a more seamless and satisfying customer experience. From offering personal product recommendations to sending targeted emails—there are many eCommerce personalization approaches that you can experiment with. To help with personalization, use data from past purchases to recommend similar or complementary products to customers. Nearly 60% of shoppers in a recent poll said that emails that contained product suggestions based on past purchase history would likely result in a sale. Moreover, according to the same poll, relevancy tended to trump newness when convincing U.S. shoppers to make a purchase from email marketing. 09. Create a loyalty program Building customer loyalty is an oft-underrated way of growing sales, even though acquiring new customers is five times more costly than retaining existing customers. However, a good loyalty program can keep customers coming back. Through a customer loyalty program, you can reward customers for repeatedly buying from your brand, e.g., you can offer points or credit that can be redeemed for discounts, free shipping, exclusive products, or other perks. Loyalty programs can also help you collect valuable data about your customers, including their purchasing habits, interests and contact information. You can use this data for market segmentation of your email list, personalize marketing campaigns and create better loyalty rewards. Wix merchants can use the Wix Loyalty Program app to get started. The tool lets you easily create and manage all aspects of a loyalty program—from awarding points to tracking member activity—via one convenient console. 10. Generate hype with a flash sale A flash sale is a short-term promotion (usually lasting 24 hours or up to a week) with deep discounts on select products or product categories. While the primary goal of a flash sale is to increase purchases, they also help create a sense of urgency and excitement around your brand—which can encourage customers to return to your store sooner than they may have ordinarily returned. To pull off a successful flash sale, you'll need to promote it in advance (email marketing is a great option here). You'll also want to plan post-sale follow-ups, such as abandoned cart reminders or emails featuring similar products. Our internal data confirms the effectiveness of flash sales, especially for SMBs. We've found that, on average, online stores increase monthly gross merchandise value (GMV) by 64,000% when they run a flash sale. Check out our flash sale guide for more information on how to set up a successful flash sale. Or SMS marketing might be the tactic you need to reach more people, fast. 11. Upsell and cross-sell to increase AOV Upselling and cross selling can be proactively prompted in order to encourage repeat customers and offload excess inventory. Upselling encourages customers to purchase a higher-end (and higher-priced) version of the product they're interested in. In another scenario, you might upsell customers to purchase multiple items of the same product (e.g., a five-pack of socks for a discounted per-item price). Cross-selling, on the other hand, uses personalization and past shopping history to suggest complementary products. So, if someone's looking at a five-pack of socks, you might suggest that they buy a five-pack of underwear to keep their drawers stocked. Both upselling and cross-selling can be employed via your product pages, cart abandonment reminders and post-purchase follow-up emails. 12. Offer a special discount Ah, sales. They've been a staple of store owners (both off and online) for decades. Sales—including discounts, limited-time offers and rewards—motivate purchases, encourage email signups and fuel customer loyalty. A good proof point for this: Amazon’s annual Prime Day(s) event, which is based entirely on flash sales, lightning deals, coupons and special rewards for Prime buyers. Last year, this two-day event generated an estimated $11.2 billion . It goes without saying that you don't have to be a billion-dollar behemoth like Amazon to create effective sales campaigns. 13. Experiment with SMS marketing SMS marketing (aka text message marketing) allows you to get in front of consumers on a device that they can’t ignore. There are multiple ways you can use SMS too, including to: Follow up on a purchase : Once a user has sealed the deal, sending order updates and shipping confirmation via texts can feel like next-level service and can be easier for consumers to keep track of. Deliver exclusive promotions and sales : SMS marketing encourages quick behaviors. For holiday sales, last-minute deals and even birthday promos, SMS marketing is a great way to build urgency without spamming users. Remind customers of specific actions : SMS marketing (and even push notifications) can be an engaging way to connect with customers in a friendly and relevant way. Let them know that their coupon is about to expire, offer a personalized daily deal, or remind them that they still have items in their cart. Gather feedback or customer reviews : Social proof is an incredible device for building trust among other consumers. Texts can be a gentle and personal way to ask your buyers to review their purchases or your services. 14. Incentivize referrals with affiliate marketing Affiliate marketing refers to any partner of your business who markets on your behalf and drives traffic (and sales) to your site in return for a reward or commission. Affiliate marketing tends to work best with skilled marketers or partners, who are focused on generating regular income from commissions. Ideal affiliates are active in a space related to the one you operate in. For example, if you make and sell Montessori children’s toys, a good affiliate might be a notable mommy blogger who is an expert in Montessori parenting and is willing to feature your store on her site. Think of working with an affiliate as forging a business partnership where you exchange value for external marketing efforts. Because this strategy leverages trust, it may be most productive as a small business marketing technique when you’re trying to break into a new or tangential market. Just be sure to focus on and vet affiliates carefully. Wix's free eCommerce website builder is built with small business ideas in mind so you can cost-effectively increase traffic, generate sales and foster customer loyalty. Our advanced suite of marketing tools includes built-in SEO features, social media integrations, discounting tools and more. Check it out for yourself— create a free account today . 15. Optimize for mobile users As more people shop on their smartphones and tablets, having a mobile-friendly eCommerce website is important. Mobile optimization ensures that your website is easy to navigate and quick to load on smartphones and tablets. This includes simplifying your checkout process, optimizing images and videos for mobile and ensuring that buttons and links are easily clickable. A mobile-friendly design not only enhances the user experience but can also lead to higher conversion rates and lower bounce rates. 16. Leverage video marketing Video marketing is a powerful tool to engage customers. convey your brand message effectively and showcase products in a dynamic way. Create product demos, customer testimonials and behind-the-scenes content to showcase your products and build trust. Videos can be shared on your eCommerce website, social media platforms and email campaigns to reach a broader audience. 17. Integrate chatbots for customer service Chatbots can enhance customer service by providing instant responses to queries and assisting with purchases. Integrating chatbots into your website ensures that visitors receive help at any time of day, which can lead to increased satisfaction and loyalty. Chatbots can also collect valuable customer data, which can be used to personalize marketing efforts. 18. Implement subscription models Subscription models offer a convenient way for customers to receive products regularly while providing steady revenue for your business. his model is particularly effective for consumables like beauty products, food and other recurring needs. Subscription offerings can include perks like discounts, exclusive products, or early access to new collections, encouraging customers to commit to your brand long-term and increase your customer lifetime value . Additionally, subscription boxes can create a sense of excitement and anticipation, enhancing the overall shopping experience. 19. Embrace sustainability and ethical marketing Consumers are increasingly driven to support brands that prioritize sustainability and ethical practices. Emphasize your commitment to eco-friendly packaging, sustainable sourcing and fair labor practices in your marketing efforts. Transparent communication about your values can build trust and resonate with socially conscious customers. 20. Encourage user-generated content User-generated content (UGC) can be a highly effective way to showcase your products through the eyes of your customers. Encouraging customers to share their own photos, videos and reviews of your products on social media provides authentic testimonials that can influence potential buyers. Highlighting UGC not only provides social proof but also fosters customer engagement and trust. 21. Plan seasonal and holiday marketing Seasonal and holiday marketing campaigns are an excellent way to boost sales during peak shopping periods. From Black Friday and Cyber Monday to Valentine's Day and back-to-school season, aligning your website promotions with these events can create a sense of urgency and drive purchases. Planning your campaigns well in advance ensures you capture your audience's attention when they're most likely to buy. Don't miss out on maximizing your seasonal sales: Check out the ultimate eCommerce holiday readiness checklist and get your business holiday-ready today. Ecommerce marketing strategies FAQ What are the benefits of eCommerce marketing? Ecommerce marketing can help businesses reach a wider audience, increase sales and build brand awareness. It can also help businesses to: Increase efficiency and marketing ROI Gain a better understanding of your customers Keep up with and outperform competitors Grow business and improve cash flow How do I create an effective eCommerce marketing plan? To create an effective eCommerce marketing plan , you need to: Set clear goals: What do you want to achieve with your eCommerce marketing efforts? Do you want to increase website traffic , generate leads, or increase sales? Identify your target audience : Who are you trying to reach with your eCommerce marketing efforts? What are their interests and needs? Choose the right marketing channels: Which marketing channels will be most effective for reaching your target audience? Create compelling content: Your content should be informative, engaging and relevant to your target market . Track your results: It's important to track the results of your eCommerce marketing efforts so you can see what's working and what's not. What are some future trends in eCommerce marketing? Future eCommerce marketing trends are likely to be focused on personalization, automation and the use of social media combined with omnichannel marketing. Businesses that can personalize their marketing messages and automate their marketing campaigns will be at an advantage. Social media will also continue to be an important marketing channel for eCommerce businesses. What’s the difference between eCommerce marketing and digital marketing? Ecommerce marketing is the process of promoting and selling products or services online. It can involve a variety of channels, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email marketing and content marketing. Digital marketing is a broader term that encompasses all marketing activities that use digital channels, including eCommerce marketing. Interested in comparing the top eCommerce platforms. Read more about each one: Best eCommerce platforms Squarespace alternatives Wix vs Squarespace Shopify alternatives Wix vs Shopify WordPress alternatives
- 8 discount pricing strategies and when to use them
In this post, we’ll help you to solve the riddle behind eCommerce discount strategies. Learn how to craft a discount strategy that benefits your business without cutting too deeply into your bottom line. There’s no denying that a great discount can do wonders for conversions. But if your discounts are too generous, too frequent, or too broad, you risk losing money—and even attracting a different crowd (e.g., deal seekers) than you originally intended. On the flip side, if you’re overly stingy with discounts, you may find that sales are few and far between. Read Also: How to start a business , Best online payment solutions What is a discount pricing strategy in retail? A discount pricing strategy is a deliberate decision to sell a product or service at a lower price than the listed or advertised price. Discounts can be temporary (for new items) or permanent (for clearance products). They can also take different forms (e.g., percentage off vs. free shipping). We'll get into specific pricing strategies in a minute but first, let’s discuss a few different scenarios that are appropriate for offering discount pricing. When should you offer a discount? You want to motivate new customers to make a purchase Discounts not only draw attention to your site—they can also entice customers who are unfamiliar with your brand to follow through with their first purchase. Discounting is particularly helpful if you’re selling in a crowded market or if you’re a new eCommerce small business owner with a newly minted online store. You want to boost shopper engagement and improve customer loyalty A competitive discount pricing strategy can be useful for incentivizing repeat purchases or organic marketing. For example, you might offer a discount as a reward when customers refer their friends and family to your brand. Or, you might choose to launch a loyalty program that offers gifts, discounts, and other incentives based on how much and how often members buy from you. You want to clear out old inventory If you’re looking to clear out inventory that’s taking up space in your store or warehouse, a discount can improve inventory turnover and help you make room for new products. You want to increase sales when demand is high Discounts can give you an edge during the holidays and other hyper-competitive selling events, like Prime Day. These types of events tend to have a “halo effect,” whereby the excitement caused by these promotions have positive ripple effects on other retailers (read: you may see a nice bump in traffic and sales even if you have no direct ties to the event). Discounts can additionally be useful in the weeks following these periods. For instance, a retailer that sells candles might offer discounts on holiday-scented candles after the holidays have passed, or a sporting goods store might offer coupons at the end of the regular sports season. 4 key considerations behind any discount strategy There is no one right way to set discount prices. Your strategy should be tied to your business goals and the types of products you sell. That said, there are some general guidelines that you can use when planning for a discount. 01. The timing When does demand for your product peak and drop? Or, when do people tend to drop off during the buying process? Think about when customers are mostly likely to seek out discounts, or how you can use discounts to close the sale. Look at historical sales data for clues and peek at how your competitors are using discounts to their advantage. If you've just started a business , it might take time to collect this data so don't rush ahead with a discount strategy until you have this information. 02. The messaging The way you present a discount may or may not motivate a sale. Jonah Berger, author and marketing professor at Wharton, advises retailers to use The Rule of 100 when advertising a discount. “Subtle ways of framing the same information can make consumers more compelled to purchase,” writes Berger . For instance, let's say the list price of a candle is $30, but the discounted price is $22.5. The discount can be presented as either “$7.50 off” the list price or “25% off.” The Rule of 100 says that the percentage is more enticing to consumers than the fixed amount. This remains the case until the listed price of an item exceeds $100. A discount for higher ticket items, like a smartphone, is typically more compelling when it’s presented as a fixed fee. For example, if the sale price of an $850 phone is $595, you should present the discount in a dollar amount rather than a percentage, so $255 off and not 30% off. In both cases the customer will pay $595 for the phone, but they're much more likely to act on the discount when the deal is presented in absolute dollars saved. 03. The product The type of product you’re selling should also inform your discount strategy. If you’re trying to build a luxury brand, avoid deep discounts that could devalue your brand or the product itself. On the other hand, if you are reselling a popular item, you might need to offer a steeper discount to stay competitive and make it worth it to shoppers to buy from your store versus a vendor they’re more familiar with. Just make sure that you’re not breaching any MAP policies when you do so. 04. Your costs Take into account the costs of manufacturing, shipping, and packaging your product (among other related expenses). It’s alarmingly easy to lose track of costs and lose too much money on a promotion—a problem that 20% to 30% retailers face, according to a study by the Boston Consulting Group . According to the same study, 20% to 50% of promotions don't actually generate a noticeable lift in sales. But retailers hesitate to scale back on these campaigns because they’re not sure which ones are working and which ones are not. 8 types of discount pricing (with examples) Granted that you’ve done your homework, discounts can be instrumental in attracting new customers or delighting existing ones. Here are eight types of discount strategies that you can bake into your eCommerce marketing strategy. 1. Quantity discount 2. Price breaks 3. Bundle pricing 4. Stackable discounts 5. Flash sales and lightening discounts 6. Loyalty discounts 7. New customer discount 8. Personalized discounts 01. Quantity discount Offer a discount when customers purchase certain quantities of your product. For example, you could offer multipacks, run buy-one-get-one (BOGO) promotions, or offer special pricing for bulk orders. The goal is to motivate customers to purchase more products than they'd originally intended. It's the “five for $25” approach that retailers like Victoria Secret and Urban Outfitters use when selling relatively low-priced items. Or, as shown in the example below, Wix merchant Coal and Canary incentivizes larger basket sizes by setting a minimum order requirement. 02. Price breaks A volume price break is similar to a quantity discount, but applies to a broader range of order sizes. For example, you may require customers to purchase at least 10 items to get a 10% discount off the total order price. However, they can still get a 5% discount if they buy eight items. Each of these checkpoints come with its own price break. 03. Bundle pricing Bundling different but related products together can increase average order value (AOV), while reducing the per-unit price of one or more items within the bundle. Bundles double-up as a great strategy for promoting gifting, especially during the holidays. For example, if you own a beauty brand, you could create a "spring nail" package that bundles several pastel-colored nail polish with nail-care tools. Alternatively, you could create "starter bundles" or bundles that feature products from the same collection. Take a look at this plastic-free utensil set offered by MightyNest , an eco-friendly retailer. MightyNest offers additional discounts to customers who are part of their loyalty program—which leads us to the next discounting strategy, stackable discounts. 04. Stackable discounts There are multiple ways to offer stackable discounts, all of which can motivate buyers to break out their credit card and complete their purchases. As with the MightyNest example above, you can offer bundles and multipacks as part of your catalog, and allow loyal customers to exercise additional benefits at checkout (e.g., in this case, MightyNest members get free shipping and an additional 15% off their purchase). Another approach is to offer free shipping contingent upon a minimum order amount (e.g., free shipping for orders over $50). Or, let customers apply rewards, coupons, or credits to discounted items at checkout. A stacking discount strategy can help you achieve multiple goals, including (but not limited to) increasing AOV, improving loyalty, and encouraging repeat purchases. 05. Flash sales and lightning deals A flash sale is a discount offered for a limited time. This type of discount encourages impulse buying. It can be the final push that customers need to hit “buy” when they’re on the fence. Examples of flash sales include special promotions when a new product first launches, or a 24-hour discount on a hot-selling item. A lightning deal is like a flash sale on steroids. Lightning deals offer heavily discounted prices on a single product for an extremely short time (think: Amazon Lightning deals). They’re an effective way to drive sales when traffic is slow or when you’re trying to clear out inventory—without committing to long-term sales. However, you’ll want to make sure you set aside enough stock to meet customer demand, otherwise your sale could backfire and cause you to oversell. This, in turn, could leave a bad taste in customers’ mouths. 06. Loyalty discounts This type of discount is often offered as a reward for repeat purchases or membership in a loyalty program . For example, you might offer 10% off to customers who have purchased from your store three or more times within the past year. Or, you could offer free shipping to newsletter subscribers or members of your VIP club, a strategy that Wix merchant Vivi et Margot employs. Loyalty discounts can also be awarded to customers who refer friends and family to your store (e.g., earn $10 off your next purchase for referring a friend). 07. New customer discount A new customer discount is offered to first-time buyers to get them to take a chance on your brand and/or return for a future purchase. For instance, you might offer 10% off a shopper's first order or include a free “welcome” gift for new customers. As with any special offer, you’ll want to make sure that your offer is clearly communicated and easy to redeem so that customers walk away with a good impression of your brand. 08. Personalized discounts A personalized discount is a discount that's tailored to the individual shopper based on his or her purchase history, browsing behavior, or other triggers. For example, you could offer a 10% discount to shoppers who visit your site frequently or have searched for specific items. Personalized discounts can additionally be used to encourage certain behaviors, such as completing a purchase within 24 hours of adding an item to the cart. Pros and cons of discount pricing When developing a discount pricing strategy, there are a number of factors to take into consideration. Make sure you have thought of these pros and cons before you implement your pricing strategy: Pros of discount pricing: Learning how to craft the proper discount strategy for you is key. If you do it right, there are a number of benefits for your business: Increase sales : Discount pricing can be a great way to increase sales, especially for new products or products that are not selling well. Attract new customers and boost brand awareness: Discount pricing can be a great way to attract new customers who may not have otherwise considered your products and help to boost brand awareness by making your products more visible to potential customers. Clear out inventory: If your warehouse is cluttered with old inventory, discount pricing is a great strategy to clear it out. Cons of discount pricing: Getting carried away with discount pricing is where businesses sometimes go wrong. The downsides for your business include: Reduced profit margins: Discount pricing can reduce your profit margins, especially if you offer deep discounts. Damage brand image: If you offer discounts too often, your customers may start to think that your products are always on sale, which can damage your brand image. Can attract bargain hunters: Discount pricing can attract bargain hunters who are only interested in getting a good deal, and they may not be repeat customers. Manage discounts with Wix eCommerce Clearly, there are many discount pricing strategies that you can use to drive sales on your site. Whether you choose to offer flash sales, loyalty discounts, or new customer offers, be sure to carefully track your results and analyze which strategies work best for your brand. By experimenting with different offers and promotions, you can find the winning combination that boosts your bottom line. If you're looking for an easy way to manage coupons, pricing strategies, loyalty programs, and more—check out Wix’s full suite of eCommerce features . Get the tools you need to bring your ideas to life and stay in control of your orders, inventory, and more. Discount pricing strategies FAQ What is a random discount pricing strategy? A random discount pricing strategy involves offering periodic, unpredictable discounts on products or services. Unlike regular sales or promotions, the timing and extent of discounts are not predetermined, creating an element of surprise for customers. This strategy aims to maintain customer interest, encourage spontaneous purchases and foster a sense of urgency. While it may enhance customer engagement, careful implementation is required to prevent potential negative impacts on brand perception and profit margins. What is a deep discount pricing strategy? A deep discount pricing strategy involves offering products or services at significantly lower prices than competitors or standard market rates. This approach aims to attract price-sensitive customers, stimulate sales volume, and gain a competitive edge. While it can drive short-term revenue and customer acquisition, businesses must carefully manage profit margins, as sustained deep discounts may impact long-term profitability and brand perception. Strategic implementation and consideration of overall business goals are crucial for the success of this pricing strategy. Marketing and discount pricing strategies Effective marketing and discount pricing strategies involve creating compelling promotional campaigns and strategically offering discounts to attract and retain customers. By aligning marketing efforts with well-timed discounts, businesses can drive sales, build brand loyalty and remain competitive. Balancing discounts with overall business goals is essential for long-term success in attracting customers and maintaining profitability. What's a popular discount pricing strategy example? An example of a discount pricing strategy is a "Buy One, Get One Free" (BOGO) promotion. By offering customers an additional product for free when they purchase one at full price, businesses incentivize larger purchases and create a sense of value. This strategy is effective in clearing inventory, attracting customers and promoting immediate sales.
- Amazon seller fees you need to know about and tips for managing them
As an Amazon seller, you’ll encounter many types of fees. Among them: referral fees, subscription fees, refund fees and storage fees. It’s essentially the price of admission for gaining access to Amazon’s massive customer base. But if you’re new to Amazon (and to starting a business or selling onlin e), it’s easy to feel overwhelmed and wonder “is Amazon worth it?” The short answer: yes. For most sellers, Amazon can be a lucrative sales channel and a valuable addition to your multichannel selling strategy. In fact, 32% of Amazon sellers earn profit margins above 20% even after fees—double the average margin ( 7% to 10% ) for healthy small businesses. In this article, we’ll discuss all the fees involved with selling on Amazon so you know what to expect. We’ll then cover tips for managing your fees and running a profitable Amazon business. What are Amazon’s seller fees? Amazon seller plan fees Referral fees Amazon FBA fees Miscellaneous Amazon fees Amazon seller plan fees Before you can sell on Amazon, you must pick a selling plan. Amazon offers two options for sellers: Individual - No monthly subscription fee, but you must pay an additional $0.99 per unit sold on top of the referral fee Professional - $39.99 per month, but no fee per unit sold If you’re just starting and want to test the waters, the individual plan may be best for you. But if you’re serious about building a real business and making money on Amazon, choose the professional plan. The professional plan offers many valuable benefits, such as the ability to advertise your products, to view advanced reporting, and to sell in restricted categories (provided that you meet the requirements). Per Amazon’s guidance, the individual plan is likely too limiting if you plan to sell more than 40 units per month. Amazon referral fees The referral fee is a percentage-based fee that you will pay after each sale you make on Amazon. Think of it as Amazon’s commission. The exact cost will depend on the category you sell in, but the referral fee is typically 15% of the total sale price (including any delivery or gift-wrapping charges). You will be charged the referral fee once the item is shipped to your buyer. View a complete category-by-category breakdown of Amazon’s referral fees . Amazon FBA fees When selling on Amazon, you can choose to fulfill orders in two different ways: Fulfilled by Merchant (FBM) Fulfillment by Amazon (FBA) A third of sellers still use FBM for some or all of their products, but a vast majority of sellers (89%) leverage FBA—either in part or in full—to remain competitive in the marketplace. With FBA, your products become Prime eligible. This means that you can appeal to Amazon’s 200 million Prime members and offer fast, free shipping on any FBA items. Amazon will also pack and ship orders for you, leveraging its advanced fulfillment network to ship orders within two days or less. You don’t need to worry about packaging, labeling, or shipping out orders—nor handle returns or customer service for any FBA items. Of course, this service comes with other fees that you’ll want to be aware of. Make sure you fully understand these costs, alongside the pros and cons of fulfilling through FBA . FBA fulfillment fees FBA fees are paid on top of the referral fees mentioned above. These per-unit fees cover the cost of shipping, returns, and customer service. The exact fee depends on your product type, size, and weight. Note: Starting April 28, 2022, a 5% Fuel and Inflation Surcharge will be applied to FBA fulfillment fees. This surcharge is subject to future adjustment. Below are the rates for non-apparel goods. And for all of you fashion and apparel sellers out there, here are the fulfillment fees you can expect to take on. If you sell small, low-priced products on Amazon, you may qualify for the FBA Small and Light program. The program offers reduced fees on items that meet size, weight, and price requirements. FBA monthly storage fees On top of the fulfillment fee, Amazon also charges storage fees for items in their fulfillment centers. You’ll be charged monthly based on the “daily average volume in cubic feet” that your inventory occupies once it’s properly packaged and ready to ship. These fees typically range from $0.83 to $2.40 per cubic foot for standard size items (with the latter charged during the Q4 holidays). Oversize items are subject to fees ranging from $0.53 to $1.20 per cubic foot. FBA long-term storage fees If you have inventory that is not selling, take action to get it sold or removed from Amazon’s fulfillment centers. If your inventory sits there for longer than 365 days, you will be charged a long-term in addition to the monthly storage fee. Long-term storage fees range from $6.90 per cubic foot or $0.15 per unit—whichever is greater. They are charged monthly and calculated based on unit volume or per unit—whichever is greater. Amazon will assess your inventory on the 15th of each month to determine if you have inventory older than 365 days. Needless to say, if you have lots of inventory older than 365 days, it can cost you hundreds or thousands of dollars. Use Amazon’s Inventory Dashboard in Seller Central to check your inventory performance and heed these inventory management tips to avoid losing control over your costs. FBA removal order fees You can create a removal order if you have inventory that’s at risk of attracting long-term storage fees. A removal order allows you to ship inventory from Amazon back to your location. You’ll be charged a one-time fee for this service, which ranges between $0.52 and $1.51 per unit for standard-sized items. Or, for oversize and special handling items, you face fees between $1.50 and $7.25 per unit removed. Miscellaneous Amazon fees We’ve gone through the main fees you’ll face selling on Amazon, but here are some additional expenses you may encounter. Refund administration fees - applied whenever you, the seller, initiate a customer refund Closing fees - per-unit fees charged for certain categories, including books, DVD, music, and video game accessories Lithium batteries fee - per-unit fee for products sold with lithium batteries High-volume listing fee - monthly fee applied if you list more than 1.5 million active SKUs on Amazon FBA Inventory Placement Service fees - charged if you sign up for Amazon’s Inventory Placement Service, which allows you to send all FBA shipments to one place where Amazon will then receive and distribute them FBA Prep Service fee - per-unit fee if you hire Amazon to prep your products for FBA (which you’ll otherwise have to do yourself) or if Amazon has to unexpectedly prep your products How to estimate the fees you’ll pay selling on Amazon It goes without saying that you should calculate all of your fees before selling a product on the online marketplace . Luckily, Amazon offers a free Revenue Calculator , which you can use to estimate the fees for both FBM and FBA offers. Simply enter the ASIN of the product you want to sell or a similar product, alongside the selling price, cost of goods, fulfillment costs (if you’re fulfilling the product yourself), and any other costs associated with selling the product. The calculator will break down all your fees, including Amazon fees, fulfillment costs, and storage costs. The calculator will also show you your net profit and net margin. How to manage Amazon’s fees and run a profitable business The key to managing your fees is always being aware of what’s happening in your seller account. Aside from this, you’ll want to take these six tips into account. 01. Know your costs ahead of time Use the Amazon Revenue Calculator to calculate your costs and potential profit before investing in inventory. The revenue calculator accurately records your profit per unit when selling on Amazon after selling fees, unit costs, and fulfillment fees. Before selling any new item, plug in all your numbers to the calculator to make an educated decision. 02. Ship larger quantities to FBA Shipping larger quantities of inventory to Amazon will reduce your cost per unit. If you only ship a handful of items (e.g., one to 10 units) to Amazon FBA, the cost per unit to ship will be much higher, thus eating into your profit margin. Amazon does have a partnership with UPS to keep inbound shipping costs down, but the more units you send at a time, the less it will cost per unit. 03. Beware of overstocking With that said, be careful not to send too much inventory into Amazon's fulfillment centers unless you are sure it will sell quickly. As a general rule of thumb, only send around three months of stock at a time. Many sellers make the mistake of sending thousands of units of a new product that they think will be a hit—only to end up with tons of excess inventory. Test a smaller shipment first and gradually increase your inventory, especially if you’re new to Amazon and still need to establish your authority and rankings on the marketplace. Amazon’s Inventory Dashboard will also estimate how much inventory you should send in per product you’re selling. Or, use Jungle Scout’s Opportunity Finder to gauge demand as well as competitiveness around your product on Amazon. 04. Stay alert for any Amazon policy changes Stay informed on Amazon’s terms and conditions so that there are no surprises, and keep in mind that Amazon may adjust fees throughout the year. Amazon has many help articles to keep you informed, as well as a News section within Seller Central that includes any recent updates or changes. 05. Audit your Amazon listings Audit your listings at least once a month to be sure your fees have not changed and that you are still selling profitably. It’s possible for your Amazon FBA fees to be incorrect due to an error in Amazon’s system or because Amazon has logged inaccurate measurement of your product. If your FBA fees do not look right or have increased, contact Amazon Seller Support and ask them to re-measure and re-weigh your product. 06. Use automation to your advantage As eCommerce sellers, you need to know your numbers at all times. You'll have difficulty running your business if you don’t use software or have another way of tracking sales, expenses, and inventory. Leverage software like Jungle Scout or Wix eCommerce to centralize data and retain a grasp on your Amazon inventory levels and profit margins. Learn more: eCommerce vs marketplaces Amazon seller fees FAQ What percentage does Amazon take from sellers? As of my last knowledge update in January 2022, Amazon's referral fees vary depending on the category of the product being sold. Typically, referral fees range from 6% to 45% of the item's sale price, with most categories falling in the 8% to 15% range. Amazon may charge other fees, such as fulfillment fees for products stored in Amazon fulfillment centers, subscription fees for selling plans, and optional advertising fees for using services like Amazon Sponsored Products. It's important to note that fee structures and policies on platforms like Amazon can change, so sellers should refer to the latest information provided by Amazon Seller Central or contact Amazon Seller Support for the most up-to-date details on fees. How much are the monthly seller plans with Amazon? Amazon offers different selling plans for sellers, each with its own monthly fees. Individual plan - $0.99 per item sold - Suitable for sellers who plan to sell fewer than 40 items per month Professional plan - $39.99 per month - Suitable for sellers who plan to sell 40 or more items per month .
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