Costs, costs and… costs again
Running an online store is associated with high costs. In a situation where you are both a seller and a manufacturer, in addition to spending on an online store, you also need to secure a budget for materials, production and logistics. If you are a distributor, you only make money on the margin you impose on products you buy in bulk. In each scenario, you also need to cover all operational costs: accounting, server and domain maintenance, and employees’ salaries.
A bottomless well
Every online store owner aims for a situation in which current sales will reach such a scale that the revenues cover all expenses, while leaving room for investment. Especially in the eCommerce industry, where, due to the development of technology, more and more modern optimization solutions are available, constant development of the sales channel is a must. Rescuing abandoned carts, personalized newsletters, push notifications, a mobile application, a customer loyalty program or a recommendation engine are just some of the tools no online store can do without. So the question remains: if the current activity, production and improvement of an e-shop absorb the lion’s share of funds, where to get the funds for promotion?
Marketing is the key to success
Even the best optimized eCommerce with the latest technological solutions must effectively reach its potential customers. A well-planned entry into the world of online sales is the basis, which we wrote about here. However, the preparation itself is not enough. Promotional activities such as communication and campaign in social media, the use of search engine marketing, creating engaging content or cooperation with comparison websites and sales support networks must be permanently included in business plans. When planning an integrated online campaign, you need to define its goal, channels and how to measure its effectiveness. The golden rule is that online marketing is a matter of scale: the more you spend, the more you get.
No need for borrowing money, no need for using your savings
Let’s assume that you have been running your store for six months, the business is slowly developing, sales increase its level from month to month and bring regular income. You start to see the potential and want to go to the next level, increase the scale of your business and the profits it brings. For this, however, you need a budget. The solution that meets the needs of online retailers is Revenue Based Financing (RBF), which is a model in which you do not have to pay extra fees for your business or be bound by long-term contracts with banks on unfavorable terms. In the world of startups, investors and the dynamic development of e-commerce, you can fortunately count on support. In just a few days, you are able to get the right amount of money to finance an advertising campaign at a level that will bring you an appropriate return on investment. No debt and no interest. In the RBF model, you pay off the borrowed amount with a small, fixed, one-time fee, you make monthly payments only when your business generates income. Thanks to this, you receive money for marketing activities immediately, and with the increase in sales, you pay few percent monthly on what your online store will bring.
Do you want to increase your sales and promote your online store? Email us at: firstname.lastname@example.org