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After all, one thing is linked to the other: reducing expenses increases profits. And with a higher profit, you can invest in marketing, technology, staff, among other aspects that are fundamental for a good climb.
The truth is that the idea of opening an online store may seem very easy, since it is a promising market – in 2022, Brazilian e-commerce had the highest growth in Latin America. But any business requires solid structures to be successful.
With this in mind, we have put together some tips on how you can reduce e-commerce costs by using email marketing as a great ally. Check it out:
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1. Build customer loyalty
2. Use digital marketing to your advantage
3. Negotiate with suppliers
4. Invest in automation tools
Bonus tip: reduce returns
1. Build customer loyalty
We have already talked several times on our blog about how acquiring a new customer brings a higher cost to the company.
“In addition, customers who buy from a brand again tend to have a higher average ticket because they already have more trust” , adds Lucas Brum, Head of Sales at Mailbiz.
To illustrate the importance of customer loyalty, we have gathered some information:
50% of your customers would like to buy from you again;
It is 7x cheaper to sell to an existing customer than to acquire a new customer;
25% is how much more a returning customer spends compared to a new customer.
Mailbiz can support your business in this loyalty process. Our Impulse solution helps retailers segment their contact base , communicate and build relationships with customers through email marketing, using data collection to analyze order histories.
>> Find out how customer loyalty helps increase your average ticket
2. Use digital marketing to your advantage
Digital marketing is your greatest ally when it comes to promoting your online store. Using social media, sponsoring your website, and having an email marketing campaign strategy, you have several options for communicating with your audience in the digital environment.
The thing is, if we're talking about reducing e-commerce costs , email marketing will always be the best option. After all, to reach your target audience precisely among so many competitors, you'll need to use sponsored ads, which tend to have inflated costs over time.
With email marketing, you can easily obtain customer contact information in exchange for some benefit – such as a discount on their first purchase, tips on how to use a product, special gifts – or from their newsletter registration. This way, you communicate directly with them, guiding them through the entire purchasing journey until they reach conversion.
>> Discover how to reduce remarketing costs with email marketing
3. Negotiate with suppliers
In addition to suppliers such as those for your e-commerce platform or transportation/logistics, you need to have a good email marketing supplier. Considering what we said in the previous owner/partner/shareholder email lists item about the importance of using email marketing to build relationships with your target audience, keep in mind that the lowest price is not always the lowest cost.
Planning and implementing your campaigns is essential to achieving the conversions you seek. Therefore, evaluate the cost-benefit of having a partner who can guide your campaigns from start to finish.
4. Invest in automation tools
Automating processes allows you to communicate with your customers much more quickly, efficiently and, best of all, reduce e-commerce costs . Mailbiz, for example, offers a dynamic template solution : just enter the product URL and we will automatically bring the name, photo, price and desired link directly from your website to the body of the email.
Additionally, with Mailbiz's email marketing automation , you can delegate to the tool the sending of any type of important information to help the customer close a deal with your company. This includes:
Create automatic campaigns based on your customers' purchase history to encourage repurchases of products that sell out quickly, such as cosmetics and supplements;
Create automations based on consumer behavior with relevant content after opening or clicking interactions. Focus on delivering what is capable of increasing the repurchase rate;
Recommend products, categories and brands related to the last order made within a given period.
Bonus tip: reduce returns
This tip is not directly related to email marketing, but it is an expense that also causes a lot of headaches for store owners. According to the Consumer Protection Code, it is the company that must bear the postage costs for returning merchandise.
Not to mention the labor costs of getting the product back into stock and the marketing costs of getting it out there again. In other words, the costs of returns can have a significant impact on your business's budget.
So, try to understand why returns occur. Is the product description on the page accurate? Create detailed descriptions, add photos from different angles, and use videos to give buyers a realistic idea of the product.
If you’re a fashion e-commerce business , you want to make sure that there are no returns due to incorrect sizes or styles. Provide accurate charts that allow customers to identify their chest, waist, and hip sizes and understand how the garment will fit on their body.
Customer success is what drives us. And to achieve your goals, we know how important it is to reduce e-commerce costs . So, count on our team of experts to define the best strategy for your sales. We are here to help your online store achieve all the results it deserves.
