It is always difficult to respond to fellow Ecommerce entrepreneurs when they ask us: “How much money can you earn with an online store?”
The reason is simple, there are no limits to the amount of money you can make. Regardless of whether you are looking to earn $ 10,000 or a little more each month, or if you are simply looking to save a little money for difficult times, the important thing is that you carry out your Ecommerce business effectively, because that will allow you to achieve the financial goals that you you have fixed.
We have published this article to show you how to start generating sales with your online store and to help you a little more, we have included some of the free tools that you can use to manage your finances successfully. At the end of this article, you will have a substantial amount of ideas related to e-commerce that will help you generate money and make your ecommerce business successful.
Let’s get started.
Generating traffic is essential for a successful online store
Driving a significant amount of traffic to your online store is critical, because when your ecommerce business has a high level of traffic, there are many potential customers who visit your store and therefore see your products. If your online store sells great products at an affordable price, it will only be a matter of time until you start generating both traffic and profit.
Unfortunately, there is no guarantee that you will generate traffic to your online store immediately. You probably need to resort to marketing channels to be able to drive traffic to your online store and before you make a decision regarding which channels best suit your Ecommerce business, it is important that you are aware of the amount of traffic you will need to generate in order to meet your financial goals.
Understand how much traffic you need
The amount of traffic that you will need to generate for your online store will be variable depending on the amount of money you want to obtain.
You can easily calculate the amount of traffic you need to generate thanks to Dropshipping Traffic Calculator. All you have to do is enter the amount of money you want to earn and the number of days you want to use to obtain that profit. The tool will break down the number of visitors you will need to attract to your online store and the number of orders you will have to generate.
How to generate traffic?
The fastest way to generate traffic to your Ecommerce business is through marketing campaigns. There are a set of different marketing channels that you can use to attract potential customers to your online store. Each marketing channel has unique benefits and requires a variable degree of investment on your part.
Here are the different marketing channels that you can use to help you make the right decision for your online store.
PPC (pay per click) marketing channels
PPC marketing, or pay-per-click marketing, is based on businesses paying for better opportunities to drive traffic to their online stores. If you’ve ever noticed that one of your Google searches has returned a yellow logo with the word ‘Ad’ next to it, or a Facebook post with the word ‘Sponsored’ at the top, then you’ve seen PPC marketing in action. Successful ecommerce businesses have some PPC marketing campaigns, as they are a great way to generate sales.
PPC marketing is very good to generate traffic, to increase brand awareness, and above all to increase your sales. You will receive the results of your campaigns quickly and you will only pay when someone clicks on your advertisements.
There are three main platforms that you can use for PPC marketing and they are Google, Bing, and Facebook. If you choose Google or Bing for your PPC marketing strategy you will be able to inquire about the number of people who search for what you publish, which will help you make the advertisements related to your online store more effective. The downside of using Google and Bing is that you don’t have exact information about your target audience, such as their age, gender, or interests.
If you use Facebook for your PPC marketing strategy, then you will have the ability to obtain information about the age range of your audience, gender, and interests, but you will not know the popularity level of your advertisements.
If you are interested in using PPC advertising in your marketing strategy then check out this Google AdWords guide by Neil Patel and also this Guide on Facebook Marketing on the Shopify blog in Spanish for more information.
Low-cost marketing channels
If investing money in your marketing strategy sounds like an uphill battle or even daunting, you can turn to low-cost marketing channels. Low-cost marketing channels take longer than PPC marketing channels to produce results, so it will take longer to drive the necessary traffic to your online store, however, if you do it effectively, they can be a Cost effective alternative to drive traffic to your Ecommerce business.
Content marketing is a popular low-cost marketing channel that you can turn to to drive traffic to your online store. You can create a blog and publish relevant content optimized for search engines (SEO) that relates to your products, thus increasing your ranking in organic search and your brand authority. You can use social networks for your Ecommerce business, and in that way alert your public about new products, flash sales, or advertisements related to your online store.
There are also discussion platforms such as Reddit, which you can use to drive more traffic to your online store. Reddit has a very wide variety of niche specific categories known as “Subreddits” that you can use to interact with other users who are interested in your products.
If you have created any type of content marketing resources, you can share them on Reddit, as they will surely be relevant for discussions in progress. Knowing that these users are interested in your niche, it ends up being a formidable way to drive high potential customers to your online store while promoting awareness about your brand.
Identify your earnings
When your online store starts selling, it’s important that you can identify how much of that money can be considered profit. Create a Google Sheets Monthly Profit Calculator that you can use to identify the amount of profit your online store is generating, and all you need is a Google account.
Simply copy the form we have created and paste it into your own Google Spreadsheet and enter your own figures in the sections marked in green. When you have entered your figures in the green sections, the Monthly Traffic Calculator will generate gross income, net income, and your profit. It is important that you understand how the calculations related to gross income, net income, and earnings work, and that is why we detail them below:
- Gross income: you can identify the gross income that online store has obtained by multiplying the price at which you sell your products by the number of products you have sold.
- Net income: you can identify the net income by multiplying the cost at which you purchased your products by the number of products that your online store has sold. When you have made this calculation, you simply subtract that result from the gross income and thus you obtain the monthly income of your online store.
- Earned profit: to identify the profit your online store has made over the course of a month, simply subtract the budget for marketing activities from your net income.
It’s time to start making money
Now that you have the tools and knowledge you need to reach your financial goals, it’s time to start making money. Finally, we only have one final tip: make sure to test your marketing campaigns and the prices of your products, as this will really help you grow your ecommerce business. You may suddenly discover that your Adwords campaigns are not being successful, and then you can choose to use a Facebook Ads campaign. You can also try to adjust the price of your products. If you realize that your customers are willing to pay a higher price, then you will be able to use more resources in your marketing strategies.