1. Embrace Technology
An effective way to utilize technological advances in business is through automation. This involves replacing time consuming, repetitive tasks with technical solutions that execute these tasks with little to no requirement for human intervention. For example, if you spend a great deal of time monitoring product inventory and ordering new shipments, an inventory management system could automate the entire process for you, increasing your time resource which can be focused on areas of your business that add value to your bottom line.
2. Manage Suppliers
Keeping a close eye on your supply chain can pay off enormously, especially if you work with vendors that you're satisfied with. Building stronger relationships with them can allow you to work out long-term agreements that could have long-term cost benefits especially if you're in the position to provide ssurance on ongoing relationship with them. even as they get the guarantee of your business, The more you and your vendors know about each other, the more closely and efficiently you can work together, saving both of you time and money, resulting in a win -win relationship.
3. Understand Your Customers
Another great way to leverage technology is to use it to get to know your customers. This is especially true of online businesses, where big data analytics can provide you with a huge treasure trove of information about your customers. The more you know about your customers, the more you can tailor your communications with them. For example, you could configure an email newsletter that was filled with products they viewed but didn't purchase, or you could learn just how small a discount you need to offer to get them to complete a purchase. There's no sense in offering 20% off their purchase if 5% or 10% would be enough to convince them to buy!
4. Increase Prices
This isn't exactly a clever tip or trick, but it's always possible to raise your prices. This is a tricky one to do well, however, because customers generally don't like it (no surprises there). If you can justify why they're paying more, you'll be able to avoid the common pitfalls that come with this tactic. It's important to note that you don't have to increase your prices on every item you sell at once, so pick a range of your products and test the waters to see how customers react, and then adjust your strategy accordingly.
5. Manage Costs
Last but not least, you can lower the source cost of your goods. This is also a slightly risky strategy, because lower source prices can mean lower quality, and this can send you into a spiral of disappointed customers who flee your shop and seriously impact your profit margins. If done carefully, however, you may be able to find a wholesale supplier who runs a more efficient operation and passes those savings on to you.
As with everything in business, it's usually a good idea to test out your ideas on small scale first before diving in. This gives you the chance to correct any problems before they reach the customer, because the customer is always going to be your source of profit. Keep them happy, and you'll keep your bottom line happy!
See how Competitor Monitor turns pricing intelligence into a competitive advantage for online retailers.