6 Financial moves to reach a new standard for eCommerce platform
- November 18, 2020
Every business needs an eCommerce store to remain competitive in the modern business world. Consumer trends have changed dramatically over the years, and technological advancements mean that more customers than ever are choosing to make purchases online rather than shopping in physical stores. All businesses should be taking advantage of this modern shopping trend by having an eCommerce store that facilitates online purchases. To remain competitive, modern businesses must ensure that their eCommerce site is optimized to provide the best user experience possible. Having a quality eCommerce site should improve customer service, boost conversion rates, and generate more sales and profits. With this in mind, here are six financial steps to take your eCommerce site to a new level.
1. IDENTIFY YOUR FINANCIAL NEEDS
The first financial step to improving your eCommerce site is to identify your financial needs. You should start by determining what action you need to take to improve the efficiency of your eCommerce site. Some common methods to enhance an eCommerce site include optimizing web pages to fit the smaller screens of mobile devices, increasing page loading speeds, and marketing the site to increase traffic and conversions. You must then calculate how much these improvements are going to cost. This will enable you to identify your financial needs and create a realistic budget for your eCommerce site.
2. CONSIDER YOUR FINANCING OPTIONS
Once you know how much capital you need to invest in improvements for your eCommerce site, you need to decide how you are going to fund these upgrades. Business owners have access to an excellent variety of financing options to help them grow and expand their business. Here are a few of the most popular financing options to consider:
- Personal savings – If you choose this option, then you must be prepared to take the risk that you may lose money if your investment does not give you a good return for whatever reason.
- Business term loans – This is a traditional form of finance that is well-known to most businesses. When you apply for a business loan, the bank will provide a lump sum of money that then has to be repaid via monthly installments over a set period.
- SBA loans – These loans are backed by the Small Business Administration and are provided by partner lenders such as commercial banks. These loans typically benefit from lower down payment requirements and interest rates as there is less risk for the lender.
3. GAIN CAPITAL FROM INVESTORS
Investors can be another great way to gain capital for your eCommerce site. The major benefit of getting financial support from an investor is that you don’t have to pay the money back if things don’t work out. Along with funding, an investor can also provide valuable advice and guidance and help you build your professional network. Experts at Brian Gaister explain how an investor can also provide motivation and encourage you to overcome business challenges and difficulties. There are many different types of investors, and you must find the best one for your business. To win over investors, you must have a quality business plan that outlines your short-term and long-term business goals, along with details of how you are going to achieve each objective. This document will be used to convince investors why they should invest capital in your business.
4. CREATE A PLAN FOR FINANCIAL EMERGENCIES
Unfortunately, most enterprises encounter problems with their IT systems from time to time. A technical fault with your eCommerce site, i.e., an error with your payment link or a cybersecurity breach, can harm your business and lead to lost sales and revenue as well as damage to your reputation. For that reason, all business owners should have a detailed disaster plan in place to ensure that any issues with their eCommerce site can be resolved swiftly. A straightforward way to manage financial emergencies is by applying for a working capital business loan. According to biz2credit.com, a working capital loan is designed for short-term business activities and can help businesses continue running efficiently in the event of an emergency. You can use finance such as a working capital loan or a business line of credit to assist you if your eCommerce site experiences problems. This will help minimize any damaging effects on business productivity and profits by ensuring that your eCommerce store is returned to optimal efficiency as soon as possible.
5. INVEST IN ECOMMERCE MAINTENANCE SERVICES
Investing in eCommerce maintenance and management services may seem expensive, but this service should pay for itself in the long-run through the cost-saving benefits. Some of the main advantages of hiring eCommerce maintenance services include improved webpage speed, regular updates to keep your site current, and preventative maintenance to minimize the risk of major issues occurring. If issues do develop with your eCommerce site, then you can have peace of mind knowing that these will be dealt with quickly by skilled professionals. This will allow you to spend more time focusing on the core areas of your business, such as customer service, marketing, and development.
6. HIRE A PROFESSIONAL WEB DEVELOPER
As mentioned, an eCommerce store is a vital way to attract customers and increase sales and revenue potential in the modern business world. There is a lot of competition online, so it’s crucial that your online store is user-friendly and built to a high quality. One simple way to ensure that your eCommerce site runs in the most efficient way possible is by hiring a professional web developer for your company website. A web developer will be able to ensure that your site is accessible, SEO optimized, and designed in a format that aligns with your business goals and objectives. Hiring a professional web developer is a worthwhile investment, as it means that you won’t need to waste valuable time and money attempting to create your own company website. Designing a quality user-friendly eCommerce site is not easy, so it’s best to leave this task to the professionals!