The second quarter of the financial year is soon to dawn upon. Needless to say, e-commerce sellers will be listing their business objectives to reach their annual goals.
It is also the time when last year’s taxes are being dealt with and the income numbers for the second quarter are beginning to set in. Many e-commerce sellers and businesses are also forecasting their budgets and making adjustments to boost their quarterly earnings.
The Importance of the Second Quarter for the E-Commerce Industry
April has two very important milestones attached to it that are equally significant for all business owners. Particularly those in the e-commerce industry: taxes and the beginning of the second quarter.
Quarter 2, or Q2, holds great significance worldwide for e-commerce sellers. That’s because it is a great time to assess:
- how the year is going for your business,
- how well your business has been doing so far, and
- the ways in which your business can improve and boost its sales and revenues.
These quarterly goals are actually what help pave the way towards annual goals. They provide a clear foundation for your business.
Furthermore, when you string together quarterly goals for your business. They build upon each other and lead you successfully to your annual goals.
Key E-commerce Insights and Trends to Plan Your Q2 Strategy
For a successful and smooth transition into the second quarter, it is essential to assess how well your business performed in Q1. You must also research important e-commerce trends from the past years that are likely to boost business in the future months. And finally, you should take a look at e-commerce statistics of the past few weeks to use them for your next quarter.
This is a famous business model that has been rising to the front as a highly profitable model for most business owners. Especially for those who don’t have a lot of capital in-stock. It requires one to act as a middleman between suppliers and customers.
This entails your business processing the purchase without you handling the physical product. It gets shipped directly to the buyer by a logistics team or the supplier itself.
According to the data presented by the 2018 State of the Merchant eCommerce Report, 16.4% of online stores have been using dropshipping. These businesses had an average revenue growth of 32.7% while their average conversion rates were 17.4%.
The reasons behind this slowly-emerging trend in the e-commerce world are:
- it allows your business to have lower overhead costs,
- not having to spend any money on storing inventory, and
- you only have to buy products after a customer places an order.
According to the Wall Street Journal, even flourishing stores like Macy’s and Home Depot have also implemented this same business model to broaden their online reach.
Selling Through Multiple Channels
Nowadays, most people use several channels to make their online purchases.
The 2018 Omnichannel Buying Report has shown that 87% of consumers in the United States shop offline. Out of all those:
- 11% of consumers shop through Facebook,
- 78% purchase on Amazon,
- 34% on eBay, and
- 65% at brick-and-mortar stores.
These statistics show that e-commerce businesses can make huge profits by catering to omnichannel shoppers.
This further implies that to grow your e-commerce business, you must make your presence known on all the channels and platforms that your target audience visits.
An example of multiple channels includes different social media platforms like Instagram and Facebook, and also your own brick-and-mortar store.
As an e-commerce online seller, you might hesitate to engage in multi-channel selling because of how difficult it can be. However, there are many solutions to that provided by a few e-commerce platforms like BigCommerce.
From the second quarter onwards, you should consider creating custom packaging for all your customers. This is because many people tend to perceive the packaging as an integral part of the product itself.
This was further proven by a Dotcom Distribution Study. It showed that 68% of shoppers believe that packaging can help a brand become more upscale.
Furthermore, 61% of the people claimed that a unique and not so ordinary packaging makes them more excited about ordering and receiving their product.
What this suggests is that customized packaging will surely set your business apart. It will also make your brand or shop even more recognizable.
Smart and Precise Payment Process
Did you know that 70% of shoppers abandon their shopping cart due to long and complicated payment processes?
This suggests that the payment process is a vital step that can make or break a conversion. Even after putting so much effort in filling their carts, so many shoppers discard it all at the checkout point.
If you have been experiencing something similar, it may be because of a long and complex payment process.
If you wish to grow your business and get ahead of your competition, you must efficiently tackle this aspect in your business in Q2.
For that, you will need a smoother checkout process with simple payment options. These can pave the way for smooth and quick conversions.
A report by the Baymard Institute showed that 13% of shoppers abandon their shopping cart if there is no option available for local payment. So, before expanding your business globally, ensure that it has great payment solutions for shoppers residing in your own country.
It is safe to conclude that the e-commerce industry is growing and transforming every single year. Given its rapid progress, you, as an e-commerce seller among a thousand others, should ensure that your business stands out from the rest.
And in doing so, you should be able to reach more people and establish a bigger and better online presence.
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