If you have a product based business, there are a lot of factors that your success depends on. And it is vital that you approach these in the right way. Otherwise, you could miss major opportunities and spend more than your profits allow. So to avoid running razor thin margins on your products, implement the tips below:
One of the worst things that can happen to a product business is buyer’s remorse. Someone may order your product and after trying it they find out that they don’t like it. If you are like most businesses, you have a return policy that lets them get their full refund. But not only do you lose the sale in this case, you also have to pay for shipping many times and pay labor for the employees to process the refund and the order.
To avoid this, consider offering a free trial on your products. Allow people to try them for a few days or weeks. Then, if they really love it, when they buy it you will have less returns. It may take some risk on the front end, but you can make much more profit by getting your product into the hands of people who may have been reluctant otherwise.
Leverage Multiple Channels
Today’s product businesses need to use the different channels available to them. You should have your own website, certainly. But depending on your market, consider other avenues. For instance, you can pair up with a local business that lets you use their storefront space in return for a small commission.
Major sites like Amazon could be a great way to get your name out to the masses by listing it on there without paying for ads upfront. Sure, you will pay fees after the sale, but the end profit could be more due to the higher volume you generate with a strategy like this. Having a smaller piece of a much bigger pie is better than all of a very small pie.
Tracking orders, delivery dates, returns, and shipping requests can be a handful. It can cause a lot of stress and additional time and effort in your business. A great order management system program can help you keep your logistics in place, and know exactly where each shipment is and how it reflects your monthly revenue numbers in just a few clicks.
Test Marketing Campaigns
Don’t just put a marketing campaign out and hope for the best. You need a better strategy than that. Test your campaigns side by side instead. This is called A/B testing. For instance, test the headline on your most profitable ads. Use two different versions and use software to split them so that half of your audience sees one version and the other half sees version number two. This ensures that you can continue to weed out the headlines that don’t perform well while creating new ones to run against the current winner.
Without great copywriting, it is going to be hard to stand out in your market. Products are becoming commodities faster than ever now that consumers can look for them anywhere online and usually order them cheaper than your store.
If you want to sell more, you have to understand the language of selling, which is copywriting. It uses persuasion techniques like scarcity (limited time offers or limited quantities on key products), social proof (testimonials) and a layout that is easy to read so people don’t get overwhelmed or bored.
Competing in the product based business category is a difficult task. You have a lot more overhead than someone selling software, services, or information. To come out ahead and win your customers for life, you need to be smart about the tools and tactics you use, otherwise competition could take more of your market share with each month that passes. So implement the ideas above and grow your business while reducing costs.
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