The e-commerce industry is developing at a dizzying pace and few stores give up the possibility of selling products online, even if they have a stationary store. A drop in sales in the online store is a fear of many entrepreneurs. Strong competition on the market makes it easy to lose regular customers and it is difficult to attract new ones. What could be the reasons for the problems with the decline in sales and what can be done in this situation in order not to lose more?
Why is the store experiencing a decrease in sales? Probable causes
Before we even start thinking about the reasons for the drop in sales, it is worth determining at the beginning whether the sales dropped suddenly, or maybe it has been happening successively for several months. Why is it so important? Well, in this way, you can direct further activities without in-depth analysis. If sales dropped by a large percentage overnight, then most likely it will be technical problems - problems with finalizing orders, choosing a delivery method or paying for the basket. A store that has been constantly losing a little in the number of orders for a long time should think about whether communication strategy does it disappoint, and perhaps this is the effect of an outdated and deterrent website? Finding the cause is the first step to improving the situation. So - what could be the reasons for the drop in sales?
Technical problems
The online store requires constant attention and technical problems can arise for various reasons. A contractor who is not able to finalize the transaction has problems adding products to the cart or making a payment, most likely he will look for another store. Errors can be the result of poor plug-in implementation, hosting, lack of updates, as well as the result of employee interference who unknowingly messed up the system. The sooner they are detected and eliminated, the faster sales will return to normal.
Stagnation
Trends are constantly changing, and so are the needs of consumers. A store that has not invested in development for years will eventually lose its customers who will take advantage of the competition's offer. Sometimes small changes are enough - refreshing the layout or graphic designwhich will emphasize brand image can bring good results. Sales effectiveness is the result of everything you do, so if a store doesn't take action at all, it will eventually lose momentum and customers.
Competition is awake, so neither can you
Another common reason why stores drop in sales is very strong competition, which turns out to be more effective over time. Constant monitoring of rivals' actions allows not only to react to changes, but also to be one step ahead of them. Reacting to a constantly changing market allows you to offer customers exactly what they need. It is also a good way to ensure an advantage in acquiring new contractors.
Effective marketing activities
Good marketing is a driving force for any e-commerce store. Without it, a drop in sales is basically certain. If the company does not pay too much attention to broadly understood promotional activities, it will most likely start losing customers over time. On elements of marketing there are many factors, including:
- a good product that is what customers are looking for,
- an attractive price for the consumer, which is competitive in relation to other stores offering the same product,
- sales and promotion channels through which the store reaches new customers and maintains contact with existing ones,
- advertising targeted at the relevant target audience and tailored in a way that is attractive to the client.
Specialists are well aware of the fact that they are well conducted marketing activities have a real impact on sales results. Neglecting any of the key elements of marketing can lead to significantly fewer transactions.
Presence in social media and sales channels
The vast majority of current and potential online store customers browse social media every day. A company that does not use this space loses a lot, because it is one of the most effective ways of acquiring new contractors and maintaining contact with the current ones. Social media offers a lot of opportunities - from building the image of an expert, through product promotion, to sharing important events in the life of the company.
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Fall in sales, or what can be done to improve the company's situation
Some of the answers are in the discussion of potential problems that can lead to a drop in sales. Nevertheless, it may turn out that the store is not able to implement the necessary changes on its own or has difficulties with determining the real problem. In such situations, a good solution is to cooperate with a marketing agency, which will not only direct the company to possible ways to solve the problem, but also help take appropriate steps. The decline in sales has various causes. Many entrepreneurs give up employing people who know the e-commerce business inside out, assuming that they know their market and customers best, so someone from the outside will not be able to identify the source of the problem. This is a serious mistake, because the lack of objectivity and emotional attachment make it difficult to find the source of trouble
The customer himself should not be underestimated - his feelings towards shopping and help from the store service. Where can you find clues? A dissatisfied customer will often share his opinion on external websites. Don't worry about each comment, especially if it is unfounded, but take a sober look at those that seem objective and to the point, and then draw conclusions.
Think about what changes the store needs to turn dissatisfied buyers into repeat customers. Perhaps the problem lies in poor communication with the store staff and difficulty in getting answers to questions about the products sold? Or is it a matter of shipping time or cost? The number of satisfied contractors will have a huge impact on the company's profits.
Fall in sales as a turning point in the company
The drop in sales should be treated as a moment for changes and a moment of reflection on the path that the company wants to follow. It may turn out that the problems will motivate you to introduce changes that the store has needed for a long time. However, one thing must be said for sure - time plays an important role. If the store has recorded a decline - the situation will not correct itself. Quick response and implementation of appropriate actions are crucial in this case. Delaying taking important steps will aggravate the problem and, in extreme situations, lead to a loss of financial liquidity. On this occasion, it should also be mentioned that the decrease in sales may be due to one or more reasons. The first step must always be to identify them, and then to direct actions to eliminate problems.
This is a potentially problematic topic that leaves many entrepreneurs losing ground. It does not have to be this way, and if the store takes appropriate action, it may eventually turn out that even if it lost at the beginning, it turned out to be positive and changed many things that needed improvement for a long time.