Maximise Your E-commerce Business For Christmas
November 23, 2020
E-commerce brands know that this Christmas will be vastly different to last year.
During the lockdowns and restrictions imposed in Australia, e-commerce has become a preferred way to purchase everything from household staples, to homewares and electronics. The Christmas buying season has begun and while this year will have an increase in online shopping, the question is how much more?
Research released on Finder.com.au
provides insights into Australian spending online over the last 8 months. The numbers confirm that the average Aussie is spending 5.3 hours a week online shopping, at a cost of $188.
So how do e-commerce and retailers prepare for shopping in December? We have created our top tips to help businesses navigate the weeks ahead.
Ensure customers have a good buying experience, update your website now
Be sure to fix potential issues to your website to ensure it can cope with increased holiday traffic. Peaks in online traffic can cause websites or apps to slow down and ultimately crash. It is important to note that a slowdown is as bad as a crash. A 2017 study
found as little as a 100-millisecond delay decreased conversion rates by 7 percent. Mobile shoppers are especially impatient. According to research by Google, 53% of mobile users entirely abandon websites that take longer than 3 seconds to load.
For most e-commerce sites payment plugins, shopping carts and photos of items can put stress on the infrastructure of a site. Any delays have a huge impact on your bottom line. It is so important that hiring someone to review your site for faults or to resize and upload images is money well spent. There are tests you can run on your site to check the loading speed. If you receive a low score be sure to act quickly and fix the issues now. One free tool to check out is HubSpot Website Grader.
Automate selling, shipping and fulfilment
All e-commerce websites should have plugins installed for payments, shipping and fulfilment. A seamless and automated system keeps staff members from doing the data entry and reduces the possibilities for mistakes.
Most e-commerce websites use automated selling plugins such as Shopify
or WooCommerce. For shipping in Australia, WooCommerce
is now working with ShipStation
for automatic generation and printing of shipping labels. It is also critical to manage is stock in an automated way. There are platforms that ensure the proper tracking of stock such as Dear Systems. Dear Systems can also assist with automating fulfillment and integrates with all major e-commerce platforms.
Create strategic holiday marketing and promotions
A solid approach to marketing your e-commerce business is based on three key things, re-engaging your existing customers, creating paid promotions on social media and partnering with complimentary brands to expand your reach.
The key to success with any business is turning customers into repeat customers. This is best achieved by building an email list and sending them offers and updates on new products on a consistent basis. Remember that during the lead up to Christmas most brands will be sending emails, so ensure yours stand out with compelling offers in the headlines. Don’t make your customer’s guess, keep it clear and simple.
It is also important to put aside some budget for promotions on your social media channels or Google Ads. A small budget for social media is about 30 – 50 dollars per day. It is important to understand what budget you have available and then committing to getting the ads right through testing and adjustments. If possible, hire a digital marketing expert to assist with setting the ads up.
And finally, if you have relationships with complementary brands consider any opportunities for cross promotion. This can help to expand your reach and add more value to your respective customer bases. These types of collaborations can often be achieved for less than a marketing campaign and create similar results in sales.
Ramp up customer service and support for holiday traffic
With the increase in traffic and purchases on your site, there will also be an increase in questions, returns and shipping problems. It is important to hire more casual staff or increasing the hours of staff who already know the systems. While it is important to maximise profits at this time of year, it is equally important to ensure customer service does not fall to the wayside. With online consumer spending increasing in Australia, if they have a good experience with you, they will remain a loyal customer for years. The goal is to turn first time online shoppers into committed converts who will shop with you for years to come.
How to measure the success of your holiday period
With the very recent increase in online shopping in Australia it can feel difficult when forecasting potential profits and budgeting for operation costs. There are some standard approaches to creating forecast based on the previous quarter instead of from this time last year.
Use your sales data from last quarter to map out the trajectory of your sales over the holiday period. The rate of increase from each month should help you to understand the possible rate of increase for the next four weeks. Of course, the forecast should act merely as target. If you surpass the projected rate of increase in the first week of December, assume that the next week will grow by the same increase.
Remember that this year is the beginning of a new trend for online shopping in Australia. While there will be some adjustments as restrictions are lifted, the appetite for online shopping is here. We are always available for a chat about your unique challenges, be sure to book in a free assessment in our calendar. We are always happy to help.
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Boost Your Efficiency with Australia’s Favourite Accounting Software
How Cloud-Based Accounting Transforms Australian Businesses
Effective debt management is crucial for the long-term stability and growth of any business. While debt can be a valuable tool for expansion and investment, uncontrolled or poorly managed debt can lead to significant financial distress. This document outlines key strategies for businesses to manage their debt effectively, ensuring a healthy financial outlook. Understanding Your Debt Landscape Before implementing any debt management strategies, it's essential to have a clear understanding of your current debt obligations. Categorise Debt: Differentiate between short-term debt (e.g., lines of credit, accounts payable) and long-term debt (e.g., mortgages, term loans). Interest Rates and Terms: Be aware of the interest rates, repayment schedules, and any specific terms and conditions associated with each debt. Debt-to-Equity Ratio: Regularly assess your debt-to-equity ratio to understand how much of your business is financed by debt versus equity. A high ratio can indicate financial risk. Cash Flow Analysis: Understand how your debt repayments impact your cash flow. Ensure you have sufficient cash flow to cover your obligations without straining operations. Strategies for Proactive Debt Management Proactive measures can significantly mitigate the risks associated with business debt. 1. Develop a Clear Debt Repayment Plan Create a detailed plan for repaying your debts. This should include: Prioritisation: Determine which debts to prioritise. Often, high-interest debts or those with strict deadlines should be addressed first. Budgeting: Integrate debt repayments into your overall business budget. Contingency Fund: Establish a contingency fund to handle unexpected expenses or downturns, preventing the need for additional debt. 2. Optimise Cash Flow Strong cash flow is the backbone of effective debt management. Accelerate Receivables: Implement strategies to collect payments from customers more quickly. Manage Payables: Negotiate favorable payment terms with suppliers, but avoid delaying payments to the point of damaging relationships. Control Operating Expenses: Regularly review and reduce unnecessary operating expenses. Revenue Growth: Focus on sustainable revenue growth through increased sales, new products, or market expansion. 3. Consider Debt Restructuring or Refinancing If your current debt terms are unfavourable or unsustainable, explore options for restructuring or refinancing. Lower Interest Rates: Refinancing can secure lower interest rates, reducing your overall cost of borrowing. Extended Repayment Periods: Restructuring can extend the repayment period, lowering monthly instalments and improving cash flow. Consolidation: Consolidating multiple debts into a single loan can simplify management and potentially reduce interest costs. 4. Diversify Funding Sources Relying too heavily on a single type of debt or lender can increase vulnerability. Equity Financing: Explore equity financing (selling ownership stakes) to reduce reliance on debt. Government Grants and Programs: Investigate government grants, subsidies, or loan programs that may be available to businesses in your industry. Strategic Partnerships: Form partnerships that can provide capital or reduce the need for debt financing. Monitoring and Review Debt management is an ongoing process that requires continuous monitoring and periodic review. Regular Financial Reviews: Schedule regular reviews of your financial statements, including balance sheets, income statements, and cash flow statements. Key Performance Indicators (KPIs): Monitor KPIs related to debt, such as debt-to-equity ratio, debt service coverage ratio, and interest coverage ratio. Adjust Strategies: Be prepared to adjust your debt management strategies as market conditions, business performance, or interest rates change. Conclusion Effective debt management is not about avoiding debt entirely, but about using it strategically and responsibly to fuel business growth while maintaining financial stability. By understanding your debt, implementing proactive strategies, and continuously monitoring your financial health, businesses can navigate the complexities of debt and achieve sustainable success.
Boost Your Efficiency with Australia’s Favourite Accounting Software
How Cloud-Based Accounting Transforms Australian Businesses
Effective debt management is crucial for the long-term stability and growth of any business. While debt can be a valuable tool for expansion and investment, uncontrolled or poorly managed debt can lead to significant financial distress. This document outlines key strategies for businesses to manage their debt effectively, ensuring a healthy financial outlook. Understanding Your Debt Landscape Before implementing any debt management strategies, it's essential to have a clear understanding of your current debt obligations. Categorise Debt: Differentiate between short-term debt (e.g., lines of credit, accounts payable) and long-term debt (e.g., mortgages, term loans). Interest Rates and Terms: Be aware of the interest rates, repayment schedules, and any specific terms and conditions associated with each debt. Debt-to-Equity Ratio: Regularly assess your debt-to-equity ratio to understand how much of your business is financed by debt versus equity. A high ratio can indicate financial risk. Cash Flow Analysis: Understand how your debt repayments impact your cash flow. Ensure you have sufficient cash flow to cover your obligations without straining operations. Strategies for Proactive Debt Management Proactive measures can significantly mitigate the risks associated with business debt. 1. Develop a Clear Debt Repayment Plan Create a detailed plan for repaying your debts. This should include: Prioritisation: Determine which debts to prioritise. Often, high-interest debts or those with strict deadlines should be addressed first. Budgeting: Integrate debt repayments into your overall business budget. Contingency Fund: Establish a contingency fund to handle unexpected expenses or downturns, preventing the need for additional debt. 2. Optimise Cash Flow Strong cash flow is the backbone of effective debt management. Accelerate Receivables: Implement strategies to collect payments from customers more quickly. Manage Payables: Negotiate favorable payment terms with suppliers, but avoid delaying payments to the point of damaging relationships. Control Operating Expenses: Regularly review and reduce unnecessary operating expenses. Revenue Growth: Focus on sustainable revenue growth through increased sales, new products, or market expansion. 3. Consider Debt Restructuring or Refinancing If your current debt terms are unfavourable or unsustainable, explore options for restructuring or refinancing. Lower Interest Rates: Refinancing can secure lower interest rates, reducing your overall cost of borrowing. Extended Repayment Periods: Restructuring can extend the repayment period, lowering monthly instalments and improving cash flow. Consolidation: Consolidating multiple debts into a single loan can simplify management and potentially reduce interest costs. 4. Diversify Funding Sources Relying too heavily on a single type of debt or lender can increase vulnerability. Equity Financing: Explore equity financing (selling ownership stakes) to reduce reliance on debt. Government Grants and Programs: Investigate government grants, subsidies, or loan programs that may be available to businesses in your industry. Strategic Partnerships: Form partnerships that can provide capital or reduce the need for debt financing. Monitoring and Review Debt management is an ongoing process that requires continuous monitoring and periodic review. Regular Financial Reviews: Schedule regular reviews of your financial statements, including balance sheets, income statements, and cash flow statements. Key Performance Indicators (KPIs): Monitor KPIs related to debt, such as debt-to-equity ratio, debt service coverage ratio, and interest coverage ratio. Adjust Strategies: Be prepared to adjust your debt management strategies as market conditions, business performance, or interest rates change. Conclusion Effective debt management is not about avoiding debt entirely, but about using it strategically and responsibly to fuel business growth while maintaining financial stability. By understanding your debt, implementing proactive strategies, and continuously monitoring your financial health, businesses can navigate the complexities of debt and achieve sustainable success.
