How to Successfully Manage Your New Online Store and Minimize Expenses: 15 Tips and Tricks

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A well-run online store can grow exponentially once it gets going. So managing it efficiently and effectively means you can reinvest time and money into other business areas that will bring in more revenue over time.

To increase the exposure and profitability of your business, list on multiple platforms, no matter the size. Here are tips on managing your new online store and minimizing expenses to save cash for other projects.

Use a Dropshipping or Consignment Model

Dropshipping is a popular model in which you sell items without having them in stock. When an order is placed, you purchase it from the manufacturer or wholesaler and ship it directly to the customer. It’s a great way to test out different products without investing in inventory upfront.

The consignment model allows you to sell items without stocking them. Instead of purchasing inventory upfront, you pay manufacturers or wholesalers when they sell those products. This way, you risk have no risk if your customers don’t buy anything.

Avoid High-Risk Customers

Depending on the type of product you’re selling, you may also want to be selective about who you do business with. If your products are vulnerable to fraudulent or risky orders, try to limit your exposure by working with customers with a good track record and strong financial credentials. You can look through previous sales data to determine which customers are your biggest risk and limit the number of orders you accept from these types of customers.

For instance, if most of your stubborn customers come from your Facebook campaign strategies, you can also limit the number of Facebook campaigns you run. This will save you a lot of time and money in the long run while allowing you to get exposure to your online store through other more successful campaign strategies.

Prioritize Scalable Solutions

If something doesn’t work, you don’t want to be stuck with it for years because it is expensive or difficult to change. If your employees spend too much time manually processing orders and shipping them out, consider automating this process with software so that they can focus on other tasks instead of manual labor all day.

If you’re selling products online, consider using apps that will not limit your growth or require additional purchases.

List and Sell on Multiple Platforms

It’s common for customers to shop across multiple platforms before making a purchase decision. If you have an online store that sells products on Amazon, eBay, and Walmart, you’ll increase the chances of making a sale by having your products appear in front of shoppers on all sites. So, consider taking the opportunity to list on multiple platforms for your business to compete with giant companies.

This help brings in more traffic, which means more sales and money. Listing your products on multiple platforms increases exposure. You’ll be able to reach more people, boost sales and keep overhead costs low.

Invest In a Good Marketing Strategy

You don’t need to spend thousands of dollars on marketing campaigns or pay for pricey ads when plenty of free methods can help drive traffic to your online store with little effort.

Utilize social media advertising, affiliate marketing programs like Amazon’s, and email marketing campaigns. Giving away products or offering discounts can significantly affect how many people know about your brand.

Consider Using Accounting Software or App

An accounting program is essential for managing your finances and keeping track of all expenses related to running an online store, such as advertising costs or salaries for employees who help with shipping orders daily.

Accounting software or apps make it easy for even non-tech-savvy people to determine how much money has been made or lost. Most of this software is free.

Customer Service

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This is an important aspect of online retail. It can make or break your business, so ensure you have a great system in place from day one. You’ll want to hire someone available 24/7 to answer questions or concerns from your customers.

Alternatively, if hiring someone full-time is expensive, consider using a platform like Help Scout, which offers an excellent customer support system with live chat support available 24/7.

Provide them with the right information to give accurate feedback and recommendations.

Prioritize Scalable Solutions

If something doesn’t work, you don’t want to be stuck with it for years because it is expensive or difficult to change. If your employees spend too much time manually processing orders and shipping them out, consider automating this process with software so that they can focus on other tasks instead of manual labor all day.

If you’re selling products online, consider using apps that will not limit your growth or require additional purchases.

Find a suitable eCommerce Software

When choosing an eCommerce platform, look for one that can handle all of your needs, is easy to use, has an affordable price, and offer support.

There are different types of software available, but all have common elements: inventory management, payment processing, and customer service functions. Some offer extra features like marketing tools or mobile apps that allow customers to shop while on the go.

Choose an eCommerce software that works well with your product line and brand identity. Consider software that’s easy for customers to find what they’re looking for and check out quickly while giving them enough information about each product so they feel confident making a purchase decision.

There are several options available, but the most popular ones are Shopify, BigCommerce, and WooCommerce.

Explore Payment Options

You can save money by exploring all payment options available to you. If you’re selling physical products, look into using PayPal, Amazon Payments, or Google Wallet instead of setting up your merchant account with a bank.

Choose Products Carefully

To make sales online, ensure there is demand for your product and that it can be easily sourced from suppliers around the globe before investing time or money into it.

Use Free Website Builder

Plenty of free website builders make it easy for anyone without coding experience to create an online presence for their business.

Wix and Weebly are good examples. These sites allow users to build their websites without paying any upfront or monthly fees. However, there are some limitations on what features are available. The free options may not offer you a custom domain name.

Minimize Product Returns

Your e-commerce platform should include a practical returns policy. This is important in managing your online store, as it can minimize expenses and satisfy customers. A returned product means you’ll incur additional costs to restock and send the product back out.

If you experience a high volume of returns, consider including a note in your product descriptions that outlines how customers should assess the size or fit before ordering. You could also offer free shipping on all orders to encourage your customers to take their time when making purchases.

Watch Your Shipping Costs

One of the biggest expenses in any business is shipping costs making it necessary to keep them low while still offering fast delivery.

Shipping prices can eat away at profits quickly, especially when dealing with large orders or heavy packages that require expensive materials like cardboard boxes and bubble wrap. The cost of shipping has been rising since the onset of the Covid pandemic, but as a business, you can still find a way to keep this cost low.

You’ll want to consider the shipping options available in each location where you do business and base your prices on these options. For example, if there’s a free shipping option available, don’t charge for shipping; instead, offer free shipping as part of your service package.

Use Free Social Media

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Social media does more than socializing. These social media channels, Facebook, Twitter, Instagram, and Pinterest, offer free tools for managing your business’s social presence and marketing efforts. You can post about sales and special events on these platforms and engage with potential customers in real-time.

Consider Repackaging Your Product

If you are having trouble managing your expenses and getting more sales for your online store, you may want to consider repackaging your product. Repackaging involves taking the same basic product and packaging it differently or with additional features or accessories that may appeal to a different type of customer.

There are several benefits to repackaging your product, including reaching a new customer base and increasing overall sales. By thinking creatively about enhancing your product or offering additional value through accessories or add-ons, you can maximize your profits while minimizing other costs associated with running an online store.

If you are interested in repackaging your product, you might want to look at your existing product and consider ways to enhance it. For example, if you are selling a basic t-shirt, offering different colors or sizes may be a great way to reach a larger audience. Or, if you are selling software, offering additional features or support services can greatly add value and increase your profits.

Additionally, you should as well consider the costs associated with repackaging. This may include additional inventory or development costs, depending on what changes you are making to your product or service.

Wrapping Up

Developing a plan for ongoing online store management is essential for minimizing expenses and ensuring that you are maximizing profits long-term. As you manage your new online store, keep track of the costs associated with running your business and the potential revenue you could generate from sales. This will help you make the best business decisions and grow your online store.