Essay on Is Advertising Costs The Cost Of Gaining Each New Customer?

1046 Words Sep 22nd, 2016 5 Pages
Without exception, the biggest overhead for any online retailer today is advertising costs. As more and more online stores open each day, competition for available advertising space is increasing and driving up the cost of advertising and putting pressure on profits.

The question is how to increase profits given that the cost of gaining each new customer is increasing coupled with increasing input costs and a diminishing market share due to an increase in the number of competitors.

This is no doubt an issue that all online retailers are facing today. The answer is to increase sales revenues per customer. This article explores the various methods for achieving this goal.

1. Your home page is the most valuable real estate in your website as it is the page that receives the most exposure. In fact, all search engines place more importance on your home page than any other page in your site so it is most likely the page that will perform best in the search engine results.

Place as many products on your home page as possible to ensure maximum exposure to potential customers for a wide range of the items you sell. A well structured home page should include: featured items, new arrivals and sale items. Whenever possible, include your products with the highest profit margins.

2. Many online retailers miss out on the value added sale. A value added sale is an additional product sold over and above the main item which a customer is purchasing. The idea is that a customer enters…

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