How should sellers achieve profit growth?
Purchasing home items is very personal and requires a lot of effort, including visuals, content, and long-term support. Simply put, you can “mirror a furniture store” without stepping into a furniture store. Sales growth for online retailers relies on understanding and optimizing four levers.
Encourage visitors with purchase intentions (V)
Use the latest technology to improve conversion rate (CR)
Increase profit from repurchase (LTV)
Take advantage of every opportunity to reduce costs (VC)
Attract more high-quality visitors.
1. Paid advertising.
Sellers need to think differently about how Facebook ads are formed, what factors inspire consumers to buy, and what the most popular SKUs are for first-time purchases and repeat purchase rates.
For potential customers, dynamic ads (DABA) can be used to benefit a wide audience. DABA is essentially a new customer version of dynamic product ads (DPA), which allows sellers to find potential customers to reach readers who are interested in products, even if these people have never visited the seller’s website.
2. Paid Search
For a pet-focused home decor brand like West &Willow (shown above), its search terms can include pet portraits, pet pictures, pet canvases, dog portraits, etc.
Trademark Search: <10%
Limited to 10-15% of total ad spend, branded search ads should generate the greatest return on ad spend.
Google Purchase: >60%
Clear, optimized data feedback and product reviews are the secret to success in Google Business Center.
Non-Branded Search: 18%
Combined use of Dynamic Search Ads (DSA) targeting and Smart Bidding; search ads generally earn less than shopping ads due to higher cost per click (CPC).
Video (YouTube): 8%
Start with YouTube remarketing, then lead generation; these two methods each use about 8% of the budget.
Search ads: 5%
Create multiple redirection touchpoints within 24-72 hours after users visit, view products, and add to shopping carts. Display ads should be controlled at around 3%, and search ads should be controlled at around 2%.
Third, increase conversion rate
A big gap that online e-commerce needs to cross is how to improve the actual use experience of the product. Shopify has developed its own AR to give shoppers a more realistic feeling of the product and interact with the product for a better shopping experience. Many early users come from the home goods industry.
Second, product page design is the key to improving conversion rates. The more information consumers have before and when they buy, the better. Sellers need to highlight customer opinions, videos showing details, descriptions of product images, recommendations of related products, and so on.
Planning promotional activities during major festivals can improve sales performance. It is necessary to combine brand culture with festival culture and grasp the customer’s festival consumption psychology, which can enhance the brand’s attractiveness and help improve sales performance.
Fourth, optimize variable costs.
One of the biggest problems facing online furniture retailers is shipping costs, which are very expensive even for domestic delivery. Sellers may consider adding shipping costs to product prices or setting a threshold for free shipping. Furniture retailer WayFair offers delivery services for orders over $35.
Traditional shopping methods alone can no longer meet the needs of consumers, and even after the outbreak, more and more consumers will choose to shop online.
In short, although the home decoration industry is growing at a slower rate, its prospects are bright and it is booming.