As more and more businesses are finding an online presence, e-commerce business is growing rapidly. It is estimated that around 95% of total product purchases across the globe would be facilitated through eCommerce by 2040. In the past year alone, eCommerce sales reached a whopping $3.914 trillion, clearly evidencing the substantial growth of online trade in recent years. However, despite the substantial growth of eCommerce, not all businesses realize success in online sales. This is attributed to the intensified online competition making it increasingly difficult for brands to make themselves visible online.
With increased online competition, eCommerce marketing comes in handy to enable brands to increase their online presence and enhance sales. Unlike traditional marketing, which broadly falls into three categories, i.e. print, TV and OOH, eCommerce marketing is broad and largely unstructured, with plenty of options to choose from. Besides, eCommerce and Web marketing are full of technical terms and industry conventions, which can be confusing. Here’s a detailed beginner’s guide to eCommerce marketing in 2021.
eCommerce Marketing Explained
eCommerce is a general term that encapsulates all range of activities undertaken to market an eCommerce store. In other words, eCommerce is the combination of all digital marketing campaigns aimed at driving the target audience towards an online shopping website to boast conversions or sales.
eCommerce marketing involves using different platforms, such as social media platforms, emails, and Search Engines, to boost sales or enhance conversions. The best eCommerce marketing campaigns incorporate online and offline marketing tactics plus account for all stages of the selling process from brand awareness, consideration, purchase, and customer retention.
eCommerce marketing campaigns are not uniform across the board. Instead, companies or brands have their own eCommerce marketing campaigns based on their brand history, social platform, targeted audience, company’s preference, etc. Also, unlike traditional marketing strategies, eCommerce marketing outcomes can be analyzed with the metrics readily viewed on various dashboards. This enables companies to determine their ecommerce marketing campaign’s outcomes and determine the appropriate direction to take.
Technical Terms Used in eCommerce Marketing.
As mentioned earlier, ecommerce is full of technical terms that may be confusing to beginners. Here’s a breakdown of the common technical terms used in eCommerce.
Key Performance Indicator (KPI)
Key Performance Indicators are metrics or milestones businesses use to compare their performance relative to the goal of eCommerce marketing. Common KPIs include click-through rates and cart abandonment percentages. KPI in eCommerce is essential in enabling brands to measure the progress of their eCommerce marketing plus set future goals as well as take appropriate actions on setbacks or poor performance.
In eCommerce marketing, personas refer to a group of people who display similar buying behaviors. Personas are quite powerful in eCommerce marketing and enable companies to understand the motivations behind purchasing specific products. Personas are determined by analyzing several factors such as age, profession, gender, interest, intent, financial capability and leisure time, among other factors.
Return on Investment (ROI)
Return on Investment (ROI) refers to a measure of efficiency and returns on investment. In eCommerce marketing, brands use ROI to determine the best possible eCommerce marketing campaign that would generate more outcomes. Besides, it determines whether a particular campaign works or is just a waste of money.
Return on Ads Spend (ROAS)
ROAS is quite similar to ROI, only that it measures returns on investments made on ad campaigns. ROAS is used to compare the effectiveness of different advertising campaigns to determine the one with the most outcomes as well as cost-effectiveness.
Common eCommerce Marketing Methodologies
eCommerce marketing strategies differ from brand to brand, and there is no single methodology that fits all brands or ecommerce platforms. Choosing a suitable eCommerce is critical for organizations as it determines sale conversions, ROIs, and the campaign’s overall success. Some common eCommerce marketing methodologies include:
- Email marketing- Email marketing campaigns involve reaching out to prospective customers via email platforms with discounts, offers, content etc. Most email marketing campaigns are aimed at eliciting interactions by engaging potential customers.
- Content marketing- is one of the biggest and most popular eCommerce marketing methodologies. It involves producing quality written content, videos, photos, infographics, etc., with the aim of engaging customers on various platforms such as blogs and social media to enhance conversions and increase leads.
As brands are increasing their digital footprint each day, eCommerce is becoming really competitive. eCommerce marketing is vital in enabling an eCommerce business to achieve success. Now that you understand what eCommerce is all about, why don’t you read this guide to find out some ideas for creating an effective eCommerce ad?