For Jeff Bezos, Amazon is a “famously unprofitable company.” Back in 1999, Amazon made $1.6 billion in sales but suffered a net loss of $720 million, prompting the company to think twice in its investment decisions.
We know what happened next: Amazon became the king in the ecommerce fairytale.
Moral lesson: Invest wisely. Maybe you can start with knowledge; we can help you with that.
- TikTok’s growth-accelerating program 🔥
- FREE guide in creating viral TikTok Shop campaigns 🤳
- Pros and risks of Buy Now, Pay Later 🤔
- Tips for a better ecommerce ad strategy 💡
ECOMMERCE NEWS
While 86% of TikTok users know about TikTok Shop, only 31% have purchased from the platform; 28% never even attempted. This means TikTok needs to woo U.S. consumers (and sellers) harder.
That’s probably why TikTok introduced small business accelerator initiatives, including the Women-Owned TikTok Shop Accelerator.
👒 What’s that, exactly?
According to Retail TouchPoints, it’s a 6-week program that aims to empower women-owned small businesses by:
- Teaching the ins and outs of the marketplace;
- Hosting courses to equip participants with valuable skills, including forecasting sales, analyzing social media and influencer marketing metrics, and expanding their businesses; and
- Providing relevant training in navigating and using TikTok Shop.
But wait, there’s still a ban
Let’s not forget that the platform still faces a potential ban in the country. So, why is TikTok still trying to attract more U.S. shoppers and small businesses?
Well, we can’t know for certain what drives TikTok to do this. But one thing’s clear—it’s not backing down without a fight! 🥊
TOGETHER WITH INSENSE
FREE Template: How to brief for viral TikTok Shop campaigns
The #1 TikTok pain point for Amazon sellers is effectively briefing TikTok Shop affiliates to produce high-quality videos that drive sales. Insense, an official TikTok Shop Partner, can help with that.
Insense and its team of TikTok Shop experts will help:
- Produce effective creative briefs for flawless content delivery
- Match you with vetted creators FAST within 2 days
- Deliver killer shoppable videos in 10 days or less
And they’ve published a FREE Creative Brief Template!
You can use the free template to:
- Accelerate your TikTok Shop video content creation
- Receive flawless content deliverables the first time
- Effectively explain your brand and product for high-impact shoppable TikTok videos
BITES OF THE WEEK
- Perplexing Practices: Perplexity AI, hosted by AWS, is in hot water for scraping abuse.
- Access Expansion: Shopify's AI tools, including Sidekick Assistant, are now available to more users.
- Mid-year Trends: Here's a look at 4 retail trends evident in 2024.
CASH CORNER
Is offering BNPL worth it?
Did you know that more than half of Americans turn to Buy Now, Pay Later (BNPL) during financially troubled times?
According to TechFinancials, it’s a “must-have” for merchants. But—only if there’s a balance in its ups and downs. ⚖️
Benefits of BNPL
In the eyes of consumers, BNPL is the answer to their retail cravings when it’s not yet payday. This payment option has seen exponential growth and adoption because it:
- Offers no-cost credit to consumers, unlike credit cards;
- Helps consumers avoid high-interest payday loans; and
- Facilitates access to necessary products and services immediately.
But do you know why many sellers also look to BNPL as an answer to their retail prayers? Because it attracts customers and drives sales!
🪝 Is there a catch?
Unfortunately, there is.
Yes, BNPL can boost your sales. But it’s not exactly the most sustainable way for your margins.
For example, if your markup is 10%, a BNPL service provider could charge you as high as 7.5%. Also, if some of your products don’t meet the required price range of providers, you’d have to say goodbye to potential buyers who would’ve purchased if those products were eligible for BNPL.
So, before you jump in:
- Choose a trusted and reputable BNPL partner.
- Understand repayment terms and rates.
❔And most importantly, ask yourself if the increased brand attractiveness of offering BNPL is worth the financial and stability risks.
ACTIONABLE ADVICE
How to improve your ecommerce ad strategy
Have you ever wondered how some online stores seem to sell out of everything so quickly?
Turns out, the secret is in their ads!
💡 With the right ad strategy, you, too, can turn your small business into a big success story. Retail TouchPoints shared some tips to level up your ad game:
- Ensure marketing objectives match your business goals. This ensures your ads not only attract customers but also drive profit.
- Embrace automation and AI. Automate your campaigns using AI tools to optimize your ads effectively.
- Value new customers. Don’t just focus on loyal customers. Adjust your ads to attract new customers as they help grow your business.
- Use granular return rate data. High return rates can hurt your profits. Instead of using average return rates, train your algorithms with detailed data to make better adjustments.
- Manage stock wisely. Use data to detect stock issues early. Adjust ads to avoid promoting low-stock items and focus on clearing overstocked products.
💰 Boost your bottom line
If done right, ecommerce ads can skyrocket your sales. So, take charge of your ad strategy today to see your business thrive!
