1. Sell Online
Since this site is named Practical Ecommerce, it might not be a surprise that our very first profit-generating suggestion for brick-and-mortar retailers would be to begin selling online. But there are lots of good reasons to add ecommerce to your retail business.
For the quarter, ecommerce earnings had climbed 3.9 percent over the first quarter, while total retail sales (brick-and-mortar and ecommerce united ) were up 1.6 percent. Compared to Q2 2017, total retail sales for Q2 2018 were up 5.3 percent, but ecommerce sales were up 15.4 percent.
The general growth in ecommerce doesn’t guarantee that your brick-and-mortar company will find a share of these sales if it provides ecommerce, but it does represent an opportunity.
Second, you might have the ability to get more from your employees. If your neighborhood shop has slow intervals, idle employees may be processing online orders or adding goods to your ecommerce website.
Third, getting your products online might boost physical-store sales. Many shoppers look online before they store in-store.
2. Master Google My Business
Google My Business is a tool to manage the way the business is introduced on Google Search and Google Maps. Google My Business is the basis for neighborhood search engine optimization.
A successful Google My Business list may increase your retail shop’s likelihood of showing up for local searches or appearing in what SEO professionals predict the local package.
This is significant because the quantity of local, mobile, and voice-based search is increasing.
In May 2018, Google reported a three-fold growth in mobile searches (within the previous two years) containing the term”me” Google also reported an 85-percent growth in mobile searches that have the phrases”where to shop” and”where to buy” between the first six months of 2015 and the exact same period of 2017.
Many of your community shop’s potential clients are looking online (especially on the mobile search). If it is possible to enhance your shop’s local search engine optimization , you should have the ability to acquire additional shoppers to go to. With extra visits comes the chance for more sales and more profit.
3. Increase Average Order Value
Average order value, which may be known as”typical market basket” in brick-and-mortar retailing, is a measurement of the average amount customers spend every time they make a purchase. To calculate it, just take your company’s total revenue for any particular period and divide it by the total number of transactions during that exact same time.
If you can improve your shop’s AOV, you also need to have the ability to increase profit.
Every transaction has associated costs. In your shop, you must pay overhead and labour. Online you might need to cover shipping.
When you raise how much revenue you generate on each sales transaction, you typically increase earnings.
4. Buy Better
All the advertising and marketing in the world can’t help your brick-and-mortar retail company if it’s too much costly stock.
If shoppers really don’t want, say, a combination avocado peeler lug wrench, you may be stuck with a lot of stock that will not sell even at closeout prices. Having to shut out or even give away product kills retail profits.
Likewise if your shop only brings in 10 of the year’s hottest-selling things and all 10 are gone within hours of when your store opens, you might have missed out on sales. Could you’ve sold 20, 50, or 100?
This is the retail buyer’s dilemma. Do not buy so much stock you must discount it to eliminate it. Do not buy so small that you miss out on sales. You want just the perfect amount.
This is easier said than done. But if you would like to improve your shop’s profits in 2019, concentrate on inventory management.
5. Advertise Wisely
A thoughtful, well-executed marketing and promotion campaign will drive sales for your retail business. But careless, untested advertising will ruin your profit.
John Wannamaker, a nineteenth-century retailer, is supposed to have stated that”half the money I spend on advertising is wasted; the trouble is that I do not know which half.”
In 2019, you can do better. You should have a great idea of the operation of virtually every dollar your business invests in advertising and marketing. Purchasing a specific advertisement should create trackable sales.
Experiment. Try new promotions. But if you would like to produce more profit for your brick-and-mortar retail company, measure every ad you place and every marketing campaign you attempt.