If you are an ecommerce business owner with an online store, it’s important for you to focus on optimizing average order value (AOV), ad spend and inventory performance in order to reduce operational costs and increase your bottom line.
Optimize AOV
Average order value (AOV) is one of the easiest ways to capitalize on existing buyers, without needing to increase your audience size. According to Sucharita Kodali, a principal analyst with Forrester, strategies like upselling can increase profits by up to 30%.
Most often, increasing your AOV means getting consumers to add more items to their cart during a purchase. Upselling, cross-selling, bundling, and free shipping thresholds are all great ways to improve your AOV.
Optimize Ad Spend
PayHelm’s marketing analytics for ecommerce help you skip the vanity metrics and get straight to ROI, helping you better understand the true performance of your advertising campaigns with top-line KPIs that take ad spend into account.
By identifying which marketing channels and efforts are generating the most new customers and the most revenue, PayHelm helps you determine where and how you should reallocate resources to optimize ad spend.
Optimize Inventory Performance
Inventory performance is a vital metric that helps you measure how efficiently your inventory is being cleared and replenished. If you have an ecommerce store, you should track your inventory to answer the following questions:
1. What amount of product is in hand?
2. What is out of stock?
3. What products are moving fast?
4. What products are taking costly shelf space?
5. What are seasonal trends and holiday buying patterns?
PayHelm’s inventory analytics for ecommerce help answer these questions by tracking all your inventory KPIs, including sell-through rate, depletion days, out-of-stock products, fast-moving products, and slowest-selling products. The actionable insights offered by PayHelm’s inventory analytics enable you to price products appropriately and develop discount strategies to move products faster.