Table Of Contents:
- Efficacy of Email Marketing
- Return rates of brick-and-mortar stores
- The cost of hiring an E-commerce agency
- Conclusion
If you’re in the process of building an e-commerce website, you should look for the following qualities in an e-commerce agency: passion, after-sales service, and cost. As a client, you should be happy with the agency’s work. A passionate and caring agency is important, and you should ask to see their past clients’ testimonials. Check to see how many of their customers have been satisfied with their after-sales service. If they’ve got a great reputation for delivering high-quality e-commerce solutions, you’re probably in good hands. If they don’t have any positive testimonials, you can move on to another agency.
Efficacy of Email Marketing
Email marketing is one of the most effective ways to generate leads and drive online sales. Statistics show that more than two-thirds of American consumers have made a purchase after interacting with an email marketing message. However, only 20 percent of new leads are qualified, so an e-commerce agency must spend time nurturing each lead down the sales funnel to ensure success. Here are some tips for effective email marketing.
Among the channels that generate the highest ROI, email marketing is one of the oldest and most effective. With a 24% open rate and 4.29% conversion rate, email marketing is an established pillar of any marketing strategy. Email marketing is also ethical and appealing to consumers, as they voluntarily opt-in to receive email updates from your business. Further, recent improvements in automation have shifted email marketing away from the hit-and-hope model, meaning that consumers can expect personalized messages and improved customer loyalty.
Return rates of brick-and-mortar stores
Online returns are much higher than in brick-and-mortar stores. In fact, the average return rate for online purchases is 30%, while it is just 8% to 10% for brick-and-mortar stores. This difference between the two types of stores is due to different factors, including shipping costs, product quality, and the ease of returning items. Since online shoppers are more likely to send a portion of their purchase back, brick-and-mortar stores must be prepared to handle online returns.
One reason for this massive shift is the explosion of e-commerce. Consumers can no longer touch and try on an item before making a decision to purchase it. They can’t even be sure if it was worn in a store. Combined with the fact that the average brick-and-mortar store’s return rate is usually in the single digits, online returns range between 15 percent to 30 percent. The return rate for clothing can be higher because many people bracket orders to make sure they get the right size.
Retailers need to improve their return policies. A shorter return window will increase returns, while a longer one will boost customer satisfaction and cut returns in half. Providing a customer with a feedback form is another way to improve returns. Consumers also appreciate small gifts or discounts, which can cement their loyalty to a brand. And, most importantly, retailers must always try to engage with their customers. Most consumers are willing to buy again if the return process is simple and hassle-free.
Returns are expensive for retailers, and it makes more sense for them to offer an easy to exchange or refund option. Many consumers prefer to exchange an item than to return it. The reasons for this may vary between retailers, but they can benefit from a simplified process. Using email to communicate with customers can encourage them to return a product instead of return it. Many respondents also offer free return shipping and a no-box option for customers.
Although many consumers like the convenience of shopping online, they may not be comfortable making a return. Online shoppers have no fitting room to try on clothes, so they often purchase the wrong size or style. Returns at brick-and-mortar stores can be even higher. Despite these drawbacks, they are necessary for the future of retail. For many retailers, high returns are a necessary evil. It’s estimated that 50% of items returned on e-commerce channels will be put back into their inventory.
Online returns are often higher than those for brick-and-mortar stores. Moreover, omnichannel retailers will likely see their return rates rise as more consumers make the switch. Typically, brick-and-mortar stores have five to ten percent return rates while online returns can reach 25%. Combined, these factors may cause an increase in return rates for omnichannel retailers. There have been a few recent cases where brick-and-mortar stores experienced an increase in returns due to lock-ins on like-for-like products.
The cost of hiring an E-commerce agency
Considering hiring an E-commerce agency? The fee range should be around seven to eight percent of your gross revenue, although this amount can increase to twenty percent for smaller businesses in highly competitive industries. Then, calculate the cost of not working with an agency versus the cost of dealing with a faulty website. E-commerce retailers are highly susceptible to website problems and can experience a number of costs as a result.
Choosing the right e-commerce agency is crucial. Not only do you want a company that understands your business, but one that has a proven track record and has the technical expertise needed to build a successful e-commerce site. Not only is this critical for your business’ success, but an agency can also be a great way to increase your business’s online visibility. Aside from being a good investment, a good e-commerce agency can also improve your bottom line by reducing your costs.
Hiring an e-commerce agency for your business can greatly improve your conversion rates, brand awareness, and online sales. A professional agency can provide technical support and help fix your website if it encounters technical difficulties. According to recent research, eighty percent of online consumers will abandon a site due to poor technical support. If you’re struggling to sell your products, a seasoned e-commerce agency can take care of the problem for you.
Pricing for an e-commerce agency varies greatly. The amount you spend will depend on the scope of your project, your current assets, and your future needs. It will depend on your current and future needs, your customer database, your social media presence, and how much support you want your agency to provide. Your budget will also have a big impact on the e-commerce agency’s fees. For small businesses, annual support plans can cost anywhere from $30k to $14k.
Whether to hire an agency or hire an in-house team depends on your goals. Hiring an e-commerce agency can greatly reduce the cost of marketing your business. An in-house team of marketers can be time-consuming and expensive, but an e-commerce agency can get the job done quickly and with a minimum of hassle. In addition, e-commerce marketing agencies are experts in the field of e-commerce and can quickly learn a new brand. This can result in quick returns on investment.
Conclusion
While it may be tempting to save money by hiring an e-commerce agency, this does not mean that it is the best choice for you. Hiring an agency can allow you to focus on the other aspects of your business while your agency is handling the economic side of things. After all, hiring an e-commerce agency can make your business grow faster and reach more customers. While hiring an agency will save you a lot of time and money, it will also increase your profits and customer base.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.
