How to Save Money with Your eCommerce Business and in Life
Hey guys, welcome to today's episode.
I'll talk to you about how to save money with your eCommerce business and life in general.
This section has four different parts to it. I'll talk about cutting expenses, raising your revenue, parlaying your profits, and investing for the future.
So the first action is cutting expenses. The biggest tip I can give you is only to use the services you need in running your eCommerce store. Experiment with other services within their free trial. Don't just go out and spend a bunch of money on different services. Plan things accordingly so that you only have to use the free trial for services you haven't used before. You get a feel of them and then use your calendar app on your smartphone. Set a reminder for a day or two before the trial expires so that you can cancel that trial if you don't want to use that service anymore. Using only the services you need will lower your monthly expenses quite a bit, especially if they charge recurring monthly revenues.
Keeping track of your monthly expenses is important. Even though that may not be the most significant thing, your eCommerce business certainly does add up every month.
The next tip I will give you for cutting expenses is for your eCommerce business to focus solely on building your SEO, backlinks, and email list throughout the first six months to a year of your business. This is so you can pay a lot less for paid traffic after six months to a year.
When you first get started, you're going to have to pay for traffic to get people to your product listings. But after doing this, if you do your work with SEO, get lots of backlinks, and get an email list built up, you can continue to market those people and get them to buy more things from you. And you can get them to share your website on their social media platform and get you more email sign-ups and things like that. So we'll go into more in-depth on in that kind of stuff on other episodes. Just know that working on SEO, backlinks, and an email list from the beginning will save you a lot of money on traffic in the long run.
So now we've got over how to cut expenses. Now, let's go to raising your revenue. You can't really save money if you're not making money, right? So let's talk about how to make more money. You can raise your average order value by offering up and cross sales on your eCommerce site.
The best way to do that is to find out what other products related to the products you're selling are useful to the customer. These are things that they might want to buy along with the product that they buy. Offer it to them, either on the product page or on the cart page. Another great way to do this is by sending an email after the sale.
In case they didn't put it in the cart, they might change their mind later if they get an email from you that says, "Hey, check out this other product, too, and you might want to get this with it. It's not too late to add this to your order". Add promos like free shipping, a discount coupon code, or something like that to get them to buy it. Upselling and cross-sales are great ideas because this stuff will raise your average order value. It will make your customers happier because they know that you really care about them. You are getting them everything they need, and you're making their lives easier. So they don't have to search that stuff out themselves.
The other way you can raise the revenue of your eCommerce store is to offer affiliate products via your blog posts, and maybe even videos of the reviews of the affiliate products you want to offer. Just think of any product or service that goes along with your eCommerce store. Even products or services offered by suppliers that don't offer dropped shipping accounts but do sell on Amazon. You can do blog posts or videos specifically around to review those products.
And get traffic from SEO and organic rankings. And make affiliate commissions that way, too. It's really cool that you can actually combine that.
Then the last tip for raising revenue that I'd suggest doing is experimenting with sales triggers to get more sales. So this goes along with conversion rate optimization. I have a different podcast on that. You can check it out. Play around all those different sales triggers like urgency, scarcity, and social proof. Things like that will help close more sales and raise your conversion rate. And you'll make a lot more money every month.
So once you cut your expenses and figured out how to raise your revenue quite a bit, then you should have some more profits you can play with.
What I always suggest doing is reinvesting or parlaying your profits so that you can build your company there. That's the number one thing you should do as an eCommerce entrepreneur, as any entrepreneur should be doing. And you can look at companies like amazon.com who've done this and become very successful at large because of it.
The first thing you can do is hire virtual assistants to take over your daily work so you can spend your time building new projects or building your site. Daily tasks can include customer service and sales. It can include writing content for your website, adding products, link building, and other things. So definitely hire a VA.
I would recommend checking out onlinejob.ph. Hire VA and train them. All you need to do is film a video of yourself doing your task. Once or twice or three times, and then they'll do it from there. And a video is the best way to train a Filipino. If you have a Filipino VA writing content for you, I recommend using the tool called Grammarly. It's a grammar checking tool.
They write very good content, but sometimes their grammar is just a little bit off. Grammarly will fix their grammar for you. So it works really well.
The second way to parlay profits is to hire a virtual assistant to build your content library, blog posts and videos, stripe traffic to your site, and raise your conversion rate. Generally speaking, VAs can do that work for you.
Every single piece of content is a salesman for you. It's a sales funnel. Just consider every video, every blog post, and every product page as a little sales funnel for you. And you should guide that traffic to your product pages and optimize your product pages so you can close those sales.
The last part that I want to tell you about how to parlay your profits is to start a new eCommerce business. You don't just have to stick with one, right?
I think you should stick with one until it's finished and until you have as much content as you possibly can and backlinks and SEO. But you should move on and start a new eCommerce store once you figure out how to outsource and stuff like that. If you have a little bit of extra time, you can relax.
Take a vacation. I love that, but you know, as an entrepreneur, we want to do more stuff. Build a new eCommerce store and do it all over again. Hire another VA for that store. The best way to do this is to use a project management tool like a spreadsheet or one of these other project management apps like Trello. Use them to manage your projects and know what step you want to do next or what steps you need to take care of next.
Duplicate your other eCommerce site in the new niche with a new set of products. Make the same pages, same kind of blog posts, but related to your new niche. Make things sort of similar because you don't have to reinvent the wheel. It's the same thing.
Do the same sort of dropship eCommerce store with different niches. You can also explore new business models. You can parlay your profits into learning and investing in your education. Learn new business models, models like affiliate marketing, maybe email marketing, and stuff like that.
You can also build your online courses and sell those online courses on Udemy or your platform, like click funnels.
You can get into other things like stock trading or bitcoin, or you can get into real estate investing, and you could do an app.
You can do software as a service company. You can sell services. You can be a consulting firm or something like that.
There are a million other ways you can build new businesses. And that's a great way to parlay profits as reinvest in your education and invest in building a new business.
That's more along the lines of what you want to do in your life. Maybe if you're looking for more passive income to travel more, you can make a more passive income business model like an affiliate site or an online course.
You could set all that stuff up, or you could make way more money. If your goal is to scale into a six-figure, seven figures a year in income, then work in that direction and work towards building out information.
The last thing, of course, is to invest in your future. So you're parlaying in profits, but you want to also invest in it for your retirement. And of course, with eCommerce, in a sense, you're retiring early.
But still, you want to work because you're an entrepreneur. Retirement is different these days. And it used to be. But still, it's good to have some sort of a fund built up so that you can draw from that the future. So I recommend saving your money, usually investing around 10 percent of your net earnings into retirement accounts like an IRA, SEP IRA, or a Roth IRA.
Roth IRA is the account where you put money in after taxes, and then we take it out. It's not taxable by the IRS, whereas a regular IRA works in the opposite direction. When you put money in it, you can deduct it from your taxable revenue, but they will take taxes out when you withdraw later on in life. A SEP IRA is a different type of IRA. It's a self-employment IRA, and it works a little bit differently.
Consult your tax professional before you go about investing in something like this. Don't just take my word for it.
Another great way to invest for your future, if you plan on having children, is to save money for your kid's college fund. My dad did this back when he was younger, and he also took inheritance when his parents passed away and put it into our college fund. So my sister used up 90 percent of my college fund, and she got two degrees, and it's great. Then I went to a community college when my dad went out of college funds. But he was able to pay for all my books and even support my room rent and meals. I was really grateful for that.
So if you're going to have kids, I definitely recommend doing that because it makes their life a lot easier. It will help them focus more on their time and effort on learning instead of working a day job at that time.
Then, of course, if you're at that point where you're kind of in your 20s or 30s, and you want to have a home and build a home, it's time to start saving for one. Save money for a down payment on the house. The best way to do that is to search online for the best high yield savings accounts. And issue around one percent. You save 10 percent every month. A few years, you might have enough for a down payment on a house.
So let's just recap. The episode talked about cutting expenses first and then raising revenue, then parlaying those profits and investing for the future. Again, cutting your expenses was only using the services you absolutely need and working on the SEO, backlinks, and email lists. This is so you can own the traffic and drive more traffic back to your website for free instead of paying for traffic all the time. Raise your revenue by raising your average quarter value, offering affiliate products, and experimenting with sales figures to get more sales. Parlay those profits by hiring virtual assistants to take over your daily work and by creating content for your eCommerce site. And start new eCommerce stores or new businesses. Invest in your future by saving your money in an IRA or a Roth IRA. Save money for your kid's college fund or putting money down for a house.
I hope you guys leave feedbacks and join the Facebook group. Type eCommerce paradise, and you'll find it.
Go check out the website, ecommerceparadise.com, and also our YouTube channel eCommerce Paradise.
Have a good day.
eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
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