We are now in the throes of the traditional busy season in almost
all businesses. In this post I’m going to reveal how you can outspend and
outsell all of your competition by creating amazing offers around your eCommerce
products. I’m confident that if you apply the lessons below you can make big improvements in just one week.
The person that can spend the most to acquire a customer wins – Dan Kennedy
Creating an offer vs selling a product is the difference
between selling one product for a tiny profit or selling multiples of the same
product, plus several complementary products, and perhaps even a high ticket
offer worth 10 times the original price of the product you offered the customer
initially.
Sounds crazy right? Doesn’t have to be. This one tip can
literally be the difference between losing money and doing profits from your
online business.
How you traditionally sell an eCom product:
1. Find a decent product on Aliexpress.
2. Put it in your shopify store
3. Start sending traffic to it and
4. (hopefully) generate some sales.
Here’s the problem:
Unless you found a product with a gigantic profit margin and
very high perceived value – both of which are extremely hard to find on
Aliexpress – then you are almost certainly losing money on each sale when you
factor in Facebook ad cost.
For example: You find a $3 product which has a $2 shipping
charge attached. Say you sell it for $10 – 50% margin. This leave you with only
$5 to acquire a customer through Facebook. Depending on the product you are
selling this cost can very often be 2 or 3 times what you need it to be. Easily
Facebook ad costs can be $10-15 per purchase.
So how do we solve this problem?
The first thing we do is offer quantity break discounts.
What that means is we offer the customer the opportunity to order multiples of
the aforementioned product and get a better deal for purchasing more. You see
this all the time at all sorts of real world retail outlets, and it offers the
opportunity to increase the Average Order Value (AOV).
So here’s an example of an offer you could run:
1 item – $10
2 items – $18
3 Items – $25
4 items – $29
5 items – $32
So now what happens is, a percentage of people will actually
start to order multiples of your product, and while you make slightly less per
unit, on average you sell more of the product at a higher price, increasing
your AOV from $10 to $20 for example.
Congratulations, you are now no longer losing money in your
store. You now have $10 to get a customer on Facebook whereas before you had
only $5.
But how do we actually make money in eCommerce? Ah…
the greatest question of our time.
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The next piece of this puzzle is called upsells.
Upsell #1
More of the same please! Yep, offer your customer the opportunity to buy 3 additional products, the same exact ones you just sold them, for an amazing deal. EG buy 3 more of this and get them for just $23!
Believe it or not, a lot of people will actually go for this. How many times have you gone to a store to buy one bar of chocolate and seen they were doing 3 for the price of 2, and you bought 3 because, well… one is ‘free’?!
Well done, you have just made an additional $8 profit in your eCommerce business. Now we are getting somewhere!
Upsell #2
Subscription
Is this product replenishable? Could your customer possibly be back looking for this again? Maybe in a month or 2? Offer them the opportunity to subscribe to regular deliveries. You can even use a great offer here to get them to subscribe such as get this free applicator or complimentary product to help you use the original product.
A percentage of customers will subscribe to your offer. Congratulations, you now have subscribers that you don’t need to pay Facebook for anymore. Each time their subscription renews you make your $5-10 clear profit. You could also offer a higher priced subscription with more products in it and actually make even more profit but that’s for another post.
Upsell #3
Complementary products
Does buying your first product also create a problem? You buy this and you need that. Offer a product to solve the next logical problem a customer will have. Pro tip here is to try and make it a product you make an even better margin on to help bank more cash in your pocket. You could also charge more and throw in some free extras such as guides on how to use the 2 products together. Solve the customers problem for them right when they realise they have a problem.
Upsell #4
High ticket
Now this is where we can make some real bank. Think of your core customers problem, and think of the way to totally solve it. Like completely sort it, if they buy this they won’t need another piece of equipment for another year because this has everything they need.
This could be done in a few ways:
An entire professional kit around their problem. Example: A full make-up kit, a professional car washing kit.
An online course to help them achieve their goal – Learn how to use these kits to start a business and make money from your hobby.
If you’re involved in your niche yourself, then maybe they could book a call with you? Example: I’m a personal trainer and I can help you get the most out of those new workout products you just bought.
Charge $5- 197 for this product and try to make at least $50 profit.
Now we have what’s called a multiple tiered sales funnel optimized for doing actual profits form eCommerce. The majority of money is made on the backend. This is the big secret to eCom. You could now have upwards of $40 to acquire a customer and still be in profit.
You will need to set up a sales funnel to do this, there is various software out there to achieve this, now you can get to work and enjoy your wildly profitable Q4. If anybody has any questions I’d be happy to help. Just email me at gredmond5833@hotmail.com