As an online seller, you relish the freedom to set your own working hours, make your own business decisions and be more in control of your destiny. But growing pressure to reduce your prices or provide free shipping are eating into your online profit potential and making that freedom thing harder to keep a hold of.
There are a number of things you can do to increase your online profits. Here are some to consider.
Reduce Your Costs -The most obvious way to boost your bottom line is to lower your costs. Start by looking for such as switching to a cheaper cell phone and internet plan or bundling services to get a lower overall rate. Likewise, your selling costs could be due for re-evaluation. See if you can cut out fees for unnecessary listing extras, or source free or lower-priced shipping materials to keep your online business. The right bookkeeping tools can help you and give you better insight into your business performance, allowing you to make the right decisions of how to increase sales or where to cut cost.
Reposition your merchandise- Product bundling allows merchants to create unique allowing you to preserve your selling price and your profit margin. You don’t have to be an artisan to create new products, but you do need to use some creative thinking. Creating product bundles can not only set you apart from the competition, it can also serve a real need in the marketplace.
You can also aim to sell more in each transaction using cross-selling techniques. By suggesting additional, related items to someone who is already buying from you, you can increase your average order size and boost your online profit. This is another area good customer care comes in.
Focus on a niche- Instead of trying to compete with large retailers that market to a broad audience with a broad assortment of products, specialize in a niche. Decide on a particular product and cater to that market’s unique needs. Then keep a look-out on how those needs change and what other needs arise. Find out all you can concerning that product down to the tiniest detail. One benefit of niche focus is that your business will attract customers who already know what they want, and are ready to buy. There will be room for product growth after you have maximized your profit.
Reassess your product offering- To improve your profit potential and move your business forward, it may be necessary to change your product line once or twice until you find your niche. If you have inventory that’s moving slowly—or not at all—re-consider your product line. No matter how much like those particular towels, if they’re not selling, they’re a drag on your online profit. Adding a new product at the right time can breathe new life into your business. Think about it: If your customers consistently buy this product, wouldn’t they also like that one? Identifying your proven products can help you make informed decisions about how to expand your product line based on what’s already working.
Try a new inventory source- Buy low, sell high. That’s the idea behind retail profit, or buying something at retail to resell at a higher price. Many resourceful online sellers source profitable merchandise from chain stores, larger markets, even competitors. Another way to source inventory with low pricing is to become a trading assistant, or consignment seller. Selling other peoples stuffs saves you the time and money of sourcing merchandise, while giving you the freedom to explore market niches you might not have considered before.
( Culled from The Online Seller post on 5 ways to increase your online profit )