Two of the most important numbers to track for your e-commerce business are your total sales and your average transaction amount. These numbers can fluctuate depending on the season, but overall, you want to keep them moving steadily upwards. A few tried-and-true tactics can help in that regard.
Calculating Your Average Transaction Amount
It’s not hard to find your total sales for a specific time period. Your e-commerce platform probably has this information readily available. You may need to calculate your average transaction amount, but it’s a simple formula just divide your total sales by your number of transactions. You can use whatever time period you want, although it’s best to use a period of at least two weeks to a month for more reliable data. Your average transaction value is an important metric; as a general rule, higher average transaction values mean more profit.
Raising Your Average Transaction Amount
Once you know your average transaction amount, you can set a new goal and come up with a strategy to hit that mark. One of the best ways to make more money on sales is the upsell, which is when you offer optional add-ons and upgrades on your product pages. For example, if you’re selling a smartphone, your product page could also offer customers the option to upgrade to a more advanced version or add accessories, such as phone cases. Consider offering bundle packages, so customers can save by purchasing multiple items together. If a customer is already planning to buy a product, the opportunity to score a discount can result in a bigger sale for your business. Making a higher average on your transactions may be as simple as adding a few premium items to your lineup. You can only make so much per transaction if all your items are within the same price range. Include some higher-quality items that you can sell for higher prices.
By boosting your sales volume and your average transaction amount simultaneously, your business can have a dramatic revenue increase in a short amount of time. The first step to increasing sales volume is bringing more customers to your site. Start with search engine optimization, so your site ranks higher in search engine results. You can also get more organic traffic through social media marketing and content marketing. If your traffic numbers still aren’t high enough, consider paying for online advertising. Next, look at your conversion rate, specifically checking for weaknesses in your sales funnel. You can pinpoint these weaknesses through website analytics. A high bounce rate could be the result of poor design, a slow-loading page, or just failing to grab the viewer’s attention. Do customers look around without adding anything to their carts? You may need better product copy. To build and maintain a successful e-commerce business, you need to track its performance and continually strive for improvement. For the best results, take a three-pronged approach focusing on increasing traffic, converting more of that traffic, and making more money from each sale.