The Secret to Turning Online Revenue Into Profit
NetSuite SuiteCommerce was built with the idea that ecommerce is no longer a standalone channel but a core capability for retail and B2B business. SuiteCommerce unifies ecommerce with your core operational systems – order and inventory management, marketing, merchandising, CRM and financials. Download The Secret to Turning Online Revenue Into Profit
Back-end data is where the profit is
If you’re an ecommerce merchant, you might think that profitability lies in the ability to sell more products, grow revenue, and provide your customers with the ability to get the items they’re interested in and purchase them as quickly as possible. The real secret to ecommerce profitability, however, lies in what some in ecommerce consider a dying breed: brick and mortar retail. During the approximately 150 years of modern retailing, the industry has spent hundreds of millions of dollars learning about customers, analyzing their actions, and understanding how to motivate them to buy. All of this taught retailers how to better manage their pricing, products, and inventory – creating a body of knowledge that is known today as retail science.
5 Tips: Turn Online Revenue Into Profit
- Front-end creates revenue
- Sell what customers want
- Carry more, sell more
- Promote everything
- Show everything
- Back-end drives profit
- Sell what you have
- Carry less, sell more profitably
- Promote best sellers
- Show most relevant
As a result of years of data-gathering and customer analysis, retailers large and small today employ multiple, detailed store layout plans called planograms throughout the year to help plan merchandising for every department, category and shelf depending on seasons, promotions and trends. These planograms have become their blueprints for success and now, with the rules of retail science and an ecommerce platform integrated with business operational systems – orders, inventory, financials, marketing and customer support – online merchants have the ability to create the tools to help them achieve the same success.
We’re now entering a critical new phase of ecommerce as increasing numbers of online merchants understand the value of the data that already exists in their systems and realize that while the front-end drives revenue, the back-end drives profit. As the rules of retail science begin to take hold in ecommerce, we can expect to see the dramatic rise of online as a percentage of total retail sales, jump from 6% today to as much as 20% or or more in the next ten years.
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Plumb is a NetSuite Solution Provider and Sage Authorized Partner and offers valued financial and business resources for companies on the move. Plumb has over 400 clients in the southern California region and their customizable NetSuite consulting services guarantee a successful transition to NetSuite. Plumb is located at 1227 Prospect Street, Suite 200, La Jolla, CA 92037.