2. Why affordable scale is needed<\/a><\/p>\n\t 3. Tips for sustainably growing your eCommerce business<\/a><\/p>\n\n\n\n <\/p>\n\n\n\n As more buyers move online, marketers must keep up with evolving consumer trends and monitor consumer behavior to create a sustainable revenue stream. Consumers are hunting for information in different ways, and brands have to expand their marketing efforts to the right channel to increase customer acquisitions<\/a>.<\/p>\n\n\n\n Staying up-to-date with the latest eCommerce statistics helps brands meet consumer expectations and keep their marketing efforts relevant. Here are some stats that reveal the current state of the industry from a comprehensive report and review<\/a> by Kantar and Catalyst.<\/p>\n\n\n\n This statistic reveals that the majority of consumers prioritize convenience over factors such as price or value. To keep up with consumer expectations, brands have to expand their cross-platform marketing efforts.<\/p>\n\n\n\n While most consumers\u2019 buying decisions are influenced by social media platforms, search engines and product sites like Amazon or Walmart also play a key role in their purchasing choices. Therefore, eCommerce brands should expand their cross-channel marketing to increase visibility and ensure customers can reach them with ease. <\/p>\n\n\n\n Social commerce has also gained momentum following the COVID-19 pandemic, with more consumers becoming aware of social media purchasing opportunities. Social shoppers are especially interested in shopping on social media platforms because of the options to buy unique products. In this manner, eCommerce business owners can leverage Instagram Shops (which now come with Shopify integration<\/a>), Facebook Shops, Facebook\u2019s Marketplace, and similar social commerce features, to drive sales through social channels.<\/p>\n\n\n\n Although platforms like Instagram and TikTok have gained increasing popularity among marketers, Facebook remains one of the most preferred channels for digital marketing activities. While establishing your brand\u2019s social media marketing efforts, Facebook is one platform to consider seriously. <\/p>\n\n\n\n Affordable scale fuels brand growth without driving your overhead costs through the roof, and it\u2019s vital to grow a sustainable business. If you fail to scale affordably, your revenue stream is at risk of inconsistency, and your bottom line might suffer in the long run.<\/p>\n\n\n\n Not only that, but affordable scaling can put more money in your pocket for other, more important business functions, including preventing fraud. The statistics on online fraud<\/a> show that this practice is on the rise, and you\u2019ll need more funds to prevent data breaches. <\/p>\n\n\n\n Affordable scaling practices help businesses improve their efficiency without significantly increasing operational costs, encouraging sustainable brand growth. Here are some reasons why affordable growth is needed more than ever.<\/p>\n\n\n\n Digital advertising costs are rising across multiple channels, including Google, Facebook, Instagram, Twitter, and even Pinterest. Several years ago, Facebook advertising was something of a goldmine\u2014brands in various niches could enjoy significant ROI thanks to the social platform. <\/p>\n\n\n\n However, while digital advertising is still relevant, increasing advertising costs bring its sustainability into question. While it\u2019s still worth investing in advertising to achieve certain goals, it\u2019s unwise to direct the majority of your marketing efforts into it continually.<\/p>\n\n\n\n For example, digital advertising may still be perfect for bringing in new leads for your brand. But is it still the best option for your post-purchase selling efforts? As ad costs increase, marketers need to monitor their returns continually and decide how much ad spend is justified in these new times. <\/p>\n\n\n\n Considering how fast the eCommerce industry is expanding, it should come as no surprise that competition in the sector has also skyrocketed. It\u2019s hard to find niches with \u2018little\u2019 competition anymore. But what does this competition mean for your marketing efforts?<\/p>\n\n\n\n Well, take a look at digital advertising, for example. Advertising networks like Google and Facebook run on an auctioning model. So as the competition in your space increases, you have to invest more to outbid competitors and keep your ads in front of your audiences. <\/p>\n\n\n\n Increased competition also means that your target audience has more options to choose from, so having a solid customer retention strategy is vital. Maintaining customer loyalty is different from conventional marketing efforts – it\u2019s a longer game, and requires direct, consistent interactions with your customers. <\/p>\n\n\n\n Competition in the eCommerce space is increasing rapidly not only due to new ventures but because established brick and mortar brands are expanding into the digital marketplace. These brands have built a name for themselves as authority figures, and have large followings of loyal customers that trust their reputation. <\/p>\n\n\n\n Competing with established brick-and-mortar retailers is difficult, as their name alone inspires consumer trust. Moreover, established brands have enormous marketing budgets, which translates to high digital ad spends. <\/p>\n\n\n\n Small and medium-sized eCommerce stores struggle to compete with these businesses in more ways than one. If you\u2019re consistently out auctioned by ad spend, then it\u2019s challenging just to get your products in front of your target audience, so you need to invest in increasing visibility alongside optimizing your conversion strategy.<\/p>\n\n\n\n While eCommerce giants like Amazon can effortlessly offer 2-day and overnight delivery options<\/a>, it\u2019s a different story for small and medium-sized brands. If your customer base is diverse and located in different regions, offering fast shipping speeds may not be feasible at all. However, you can use <\/em>flexible route planners<\/a> <\/em>to ease the process and have better time management and planning.<\/p>\n\n\n\n Logistics costs aren\u2019t cheap, with last-mile delivery costs hitting new highs and may continue to rise<\/a> throughout 2022. So unless you\u2019re selling big-ticket items or your customers are racking up big carts<\/a>, offering fast shipping speeds can invite significant losses.<\/p>\n\n\n\n Aside from the cost concerns, providing fast shipping from a practical point of view is challenging too. Fulfilling orders requires time and significant human labor, and as your brand grows, keeping up with the demand becomes increasingly challenging. <\/p>\n\n\n\n While modern eCommerce businesses face many challenges and a great deal of competition, don\u2019t forget that the industry still offers great potential. You need to strategize and find creative solutions to common challenges, but by employing the best sustainable practices, you can grow your brand sustainably.<\/p>\n\n\n\n Expedited shipping is a costly venture, so keep it in reserve for customers that invest more<\/a> in your brand. After running the numbers, you can set a price threshold for customers to unlock expedited shipping options, based on a price point that doesn\u2019t hurt your bottom line. <\/p>\n\n\n\n While customers hate \u2018paying\u2019 more for shipping costs, keeping expedited options behind a price threshold doesn\u2019t technically increase how much customers pay for shipping. Instead, they have to increase their order value, which means they\u2019re still paying for just the products (from their perspective). <\/p>\n\n\n\n Keeping expedited shipping behind a threshold doesn\u2019t just protect your bottom line, but also encourages customers to spend more. <\/p>\n\n\n\n Brands that offer referral programs benefit from an 81% increased likelihood of consumer engagement and referred customers boast a 37% increased retention rate (source: extole<\/a>). These statistics highlight the revenue potential that referral programs offer and showcase how they foster customer loyalty.<\/p>\n\n\n\n Referral programs encourage customers to market your brand for you and offer the added benefit of providing your brand with more loyal customers. Referred customers have a lifetime value that\u2019s 16%<\/a> more than non-referred ones, and they\u2019re also 4x more likely to buy from you. So, setting up a referral program example can drive revenue in more ways than one.<\/p>\n\n\n\n By offering valuable rewards at higher tiers, brands can significantly motivate customers to continue their referral efforts and increase customer acquisition.<\/p>\n\n\n\n Providing customers with unique shopping experiences is vital to increasing conversions, boosting customer retention, and outclassing your competition. Modern consumers are 45% more<\/a> likely to buy from eCommerce brands that offer personalized buying experiences<\/a>, so it\u2019s important to deliver. <\/p>\n\n\n\n With the rapid advancement of technology, eCommerce professionals can take their pick from personalization tools to improve customers\u2019 buying experiences. For example, you can leverage SMS and email marketing platforms to send personalized marketing messages<\/a>, and use segmentation to provide customers with recommendations tailored to their buying interests.<\/p>\n\n\n\n Earlier, we discussed how pulling off expedited shipping is both costly and possibly impractical. Fortunately, partnering with an experienced third-party logistics provider makes it feasible for eCommerce brands of all sizes to provide customers with 2-day or overnight shipping. <\/p>\n\n\n\n Established 3PLs provide eCommerce merchants with various options to decrease shipping times and costs. 3PLs have multiple fulfillment centers, so you can distribute your inventory to reduce shipping times. <\/p>\n\n\n\n Moreover, a 3PL<\/a> takes care of the order fulfillment process for you, including picking, packing, and delivering each order. You don\u2019t need to invest time or your own labor force to fulfill orders. Also, as your brand grows and the volume of orders increases, 3PLs can continue to meet the demand and deliver orders on time.<\/p>\n\n\n\n TikTok is becoming the go-to platform for many eCommerce brands to connect with their audiences in a novel way. If your target audience is using TikTok, then it might be time to establish yourself on the platform and up your social media marketing game.<\/p>\n\n\n\n TikTok\u2019s AI-driven algorithm picks up valuable content that your audience engages with, and increases its visibility. The platform offers great potential to grow your brand\u2019s visibility, but to succeed, you need to create high-quality content.<\/p>\n\n\n\n![\"How](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2022\/08\/How-To-Prepare-For-The-Downturn-1-1024x636.png\")
<\/a><\/figure>\n\n\n\nThe current state of eCommerce<\/strong><\/span><\/h2>\n\n\n\n
66% of consumers select a retailer due to convenience<\/h3>\n\n\n\n
59% of digital consumers are familiar with social commerce<\/h3>\n\n\n\n
Facebook is used for digital marketing by 72% of eCommerce professionals <\/h3>\n\n\n\n
Why affordable scale is needed<\/strong><\/span><\/h2>\n\n\n\n
Ad costs are getting really high<\/h3>\n\n\n\n
More competition than ever in the eCommerce industry <\/h3>\n\n\n\n
Established brick and mortar retailers are embracing eCommerce <\/h3>\n\n\n\n
Fast shipping speeds are expensive<\/h3>\n\n\n\n
Tips for sustainably growing your eCommerce business<\/strong><\/span><\/h2>\n\n\n\n
Only offer expedited shipping to customers above a certain price threshold<\/h3>\n\n\n\n
Create a referral program with valuable rewards at higher tiers<\/h3>\n\n\n\n
Make use of personalization tools, so every customer gets a unique shopping experience <\/h3>\n\n\n\n
Work with a 3PL to offer 2-day or overnight shipping<\/h3>\n\n\n\n
Leverage TikTok (if applicable)<\/h3>\n\n\n\n