In any business, there are times when the economy doesn’t cooperate with your plans. The same goes for ecommerce merchants, who must prepare for economic downturns to protect their businesses from being crushed under the weight of consumer spending cuts and changes in consumer behavior. While you can’t always control the economy, there are some Ecommerce strategies to combat economic downturn. You can use them to protect your ecommerce business from downturns and increase your chances of survival and growth during uncertain times.
in Covid-19 regime many ecommerce merchants suffered a decline in their sales, and some even went out of business. The key to surviving an economic downturn is understanding what your competition will do and how you can compete with them using new strategies while they’re busy cutting costs and slashing prices.
The global economy is growing and on an upward trend, but there are always economic downturns that can throw businesses off track and set them back. While you can’t predict exactly what will happen with the economy, there are some strategies you can implement to help your ecommerce business survive an economic downturn if and when it happens. Here are seven ecommerce strategies to use during economic downturns that you can easily implement on your own store.
1.Look at Your Competitors
All of your competitors may be suffering, but those that are doing the best are going to continue beating you in this downturn. This means that you will need to evaluate them and see what they’re doing differently. In particular, you need to look at their merchandising strategies as well as their business behavior.
If you take time to learn from them, you will find strategies that you can apply in your business and make it stronger than ever before. It’s hard, but you need to find ways to outshine your competitors if you want your business to survive. After all, no matter how small it may be at first, there’s always room for improvement!
2.Don’t think about reducing Prices
Instead of looking for ways to offer deep discounts and other merchandising strategies, try altering your business behavior. Give customers more value with your products or services without changing the prices, give them a more personal touch with added attention and service, try new marketing tactics like coupon usage through social media outlets and email campaigns, be innovative in the way you offer deals and promotions that they cannot find anywhere else, etc.
To avoid pricing wars, work on offering better value than anyone else in your industry while focusing on improving business behavior and experience. You can’t always compete on price alone but if you know how to take care of customers before, during and after their purchase then they won’t even consider shopping at a competitor who may have lower prices anyway!
3.Do More Promotions
Giving customers the opportunity to get discounts and deals helps them feel more confident about purchasing products, so developing a strategy around this can help bring in sales. Additionally, creating smaller or less expensive versions of products that have been successful can also be an effective merchandising strategy during difficult economic times. This tactic is especially relevant for online retailers because it makes their products available at different price points.
For example, if you’re selling footwear online, offering a discount on accessories or jewelry can be a simple way to help customers feel like they’re getting something extra with their purchase. If your products are expensive, you could instead offer small versions of them for less money or create unique models that appeal to a specific niche—allowing you sell more but charge less.
4.Do More Product Discounting
While it’s not a great marketing strategy, many small businesses are using discounts and promo codes for a quick cash infusion. In today’s economic climate, business owners don’t have the luxury of spending money on things like TV or radio advertising. Discounts and promotional codes are not only attracting new customers but also retaining old ones by assuring them that they won’t miss out on a good deal while they’re waiting for their next paycheck.
This is one of those tried and true techniques that tends to get a lot of traction in a down economy. Product discounting and promotional offers encourage customers to buy now at a lower price rather than later, when they may not be able do so because of finances.
5.Get Feedback on your Products
Do your research on what other people are selling in your niche. Be unique! Do you have a product that’s one of a kind? If so, this is the time to be brave and offer it. Identify what sets you apart from the competition and offer those benefits. If everyone sells three-pack t-shirts for $15 then sell a single item for $25 instead.
Remember that a downturn is actually a perfect time to show off your best stuff. If people are feeling tight, you can offer them something unique and top-notch for a slightly higher price. Just be sure your quality matches!
6.Experiment with Cashback offers and rewards Programs
If your customers have lower disposable incomes and are spending less, you can offer them incentives. For example, if they spend $50 or more, they will receive 5% cash back. This way, the customer is only out $45 instead of their original $50 and you’re bringing in a couple extra dollars as well. You can also create special rewards programs with in-store discounts or online coupons that customers can use anytime with any purchase as long as they sign up for your email list or social media feed.
7.Keep track of Customers and Market Trends
– Develop a marketing strategy that sells the benefits of your product in one succinct sentence.
– Use social media, such as Facebook and Twitter, to create personal connections with potential
– Check your advertising expenditures and adjust accordingly.
For example, use newspaper ads during
busier months and save money on print ads during slower months.
Know that every challenge can be overcome with a little patience and understanding. The most important thing is to remember your company’s mission, what you are willing to do and where you are willing to compromise. If you have any other questions or concerns, feel free to contact us.