When you start selling online you think that knowing how much you sell each day is enough. You may get as far as measuring the cost of the channel versus what it generates and mentally decides whether it is worth it or not. If that’s what you’re doing, you’re wasting absolutely all the advantages of selling for an online channel.
The advantages of selling on an online channel
When your channel is your own website you can measure almost everything that a user does. Something impossible (or very expensive) to do in a physical store. On platforms like Mercadolibre you will have access to enough data and if you pay for some metrics service will even help you make decisions.
In your Online Shop you can know among other things:
Channel by which a visitor arrives at our website . Visits arriving at a website can be identified and segmented with free services like Google Analytics . We can know if a potential customer came by: Email, Google Searches, paid Google Searches, Facebook, Twitter, etc.
Behavior of the visit within the website . You will know why pages enter, how they look, where you lose them and where they convert. You can even know they liked it even if they did not buy it and then show ads on other websites they visit.
Cost of each visit and each new client . Unlike offline advertising, when you do online marketing you have a much clearer view of the cost each visit has. And even more in detail the cost that each new customer has. This makes it very easy to know the Return on Investment in advertising .
Full history of each client . You can know how much you bought, what, how much, etc. With that you can know the Value of each Customer and calculate the return better, but also know what to offer and how often.
Many e-commerce environments allow you to easily manage data and even make decisions under certain rules. Even Mercadolibre or similar platforms are offering more and more intelligence so that we can sell more and better.
At upwork you can find freelance experts who can help you achieve the best results on your online channel. It will only take you a few minutes to create your free project to hire them!
A practical example
Imagine that we managed to attract 10,000 relevant paid visits per month to our website. We understand relevant people who have an interesting buying potential for us. You pay because they are visits we buy using Google AdWords.
- Total Google search marketing cost: $ 10,000
- Total paid visits from Google: 10,000
- Total users who added at least one product in a cart: 2,500
- Total users who clicked the “Checkout & Checkout” button: 500
- Total new customers in the month: 300
- This means that each new customer cost us ~ $ 33
Is that good? We do not know. It depends on every industry, niche and many more factors. The important thing is to measure it and start optimizing it. We recommend these experts in Google Analytics, Business Intelligence and metrics.
Ask yourself questions like:
Can I improve the type of visits I receive so that they have more interest in buying me?
Why do I lose three-quarters of my visits that do not buy anything? Could I try to keep your email at least? I do not have the product they need?
Because so many of those who add products to the cart do not end up buying?
Because whoever tries to pay does not end up doing it? My payment processors are not good?
Those who end up buying, had a good experience? How likely are they to repurchase?
And so we could keep asking questions that are going to trigger tests on where to optimize. It will almost always be more valuable to optimize the final part of the funnel, but every optimization ends up adding new customers.
You will not be able to measure everything
It is very easy to end up measuring others also in the online world . We recommend you choose some key metrics and optimize about it. As you learn about what’s relevant to your business, you can add new metrics and places. The important thing is to have everything measured for when you want to do a deeper analysis.
Some ideas where you can find good data:
- Product Categories
- Time on the users site
- Pages Visited
- Origin of users
Where do they lose them?
What means of traffic payments bring the best potential customers?
Which products have the best total margin? (Cost of online marketing vs. product margin, etc.)
This is just some ideas from where you can look, every business has its peculiarities and the important thing is to know who you buy. Not only for their behavior, especially at the beginning we strongly recommend surveying them and even call them on the phone to find out how the whole shopping experience was.
Do not forget that at Upwork you can find expert professionals to set up your online channel!
We recommend starting small, if you do not measure anything other than channel sales, then start by seeing what cost you have to sell. Then you can go over each step of the funnel and see how your users behave.