If you’re like most online boutique owners, you are always looking for ways to make more money. Well, you’re in luck!
In this blog post here at Start Your Boutique, we will discuss 3 strategies that will help you increase both your revenue and your profit. That way, you’ll be able to grow your business. And do things like reinvest in inventory, spend more on marketing and eventually hire help.
So read on to learn what you should be doing this year to make money in your online boutique. Implement these strategies and watch your bottom line grow!
Revenue vs. Profit
Now before we dive into the strategies, we have to differentiate between revenue and profit. Revenue is the total amount of money that your business brings in over a given period of time. This could be a month, a quarter or a year. Profit, on the other hand, is what’s left over after you subtract all your expenses from that overall revenue number.
This is important because you want to be regularly looking at your expenses to see where you can possibly make your business more profitable.
Because profit is what helps you grow. And allows you to reinvest in inventory, expand your marketing or even hire help.
So as a new boutique owner, you should be looking to increase profit in addition to your overall revenue.
Now that we’ve cleared that up, let’s move onto the strategies.
Bundle Products Together
One great way to make money in your online boutique is to bundle products together. When you do this, you are essentially selling two or more products for a lower price than purchasing each product individually.
This is an important strategy because it increases AOV or average order value. Instead of a customer only purchasing one thing, you incentivize them to purchase more by adding a savings component.
The key is that if their average order value increases, then their overall lifetime value increases. Which means more revenue (and over time) more profit for your online boutique.
Now let’s move onto the second strategy.
Leverage Customer Reviews
Another great way to increase both revenue and profit. make more money in your online boutique is by getting customer reviews. Online shoppers rely on other customers experiences as they weigh the decision to purchase. This is important for three reasons.
First, potential customers will be more likely to purchase from you if they see that other people have had a positive experience with your products.
Second, search engines like Google use customer reviews to rank for visibility. So the more reviews you have, the higher you will show up in search results. Organic search can be a significant way to drive consistent traffic to your online boutique. So showing up in results for key search terms can really help to grow your online boutique.
Finally, customer reviews help to build social proof. They make your boutique look like a trustworthy destination. And social proof is essential when it comes to increasing conversion rates and making more sales.
The more reviews you have, you can leverage them as posts on social media, include them in your email marketing or use them for your paid advertisements too.
How to Get Customer Reviews for Your Online Boutique
So how do you get customer reviews for your online boutique?
You can automate your review requests. If you use a platform like Shopify, you can use a variety of apps that automatically reach out to customers to ask them to review your products. And those reviews can be uploaded directly to your product page.
You can also include a card in each order that asks customers to leave a review. It’s more of a personal touch that can make even more of an impact.
Set a Shipping Threshold
Threshold-based shipping is when a customer has to spend a certain amount for that order to qualify for free shipping. Free shipping is a popular selling incentive, but most new boutique owners don’t actually count the cost of what offering it can mean for their overall profit.
That’s why we always recommend setting a threshold for your shipping. So instead of customers always having access to free shipping, they can ‘unlock’ it as a special reward by spending a particular amount. As the boutique owner, you get to determine what that amount is based on your target customer and your pricing strategy.
But that can make your incentive much more powerful. And you can end up saving a free shipping promotion for things like Black Friday or Cyber Week when customers tend to spend more anyway.
As an online boutique owner, you should always be looking for ways to make more money in your business. And that can be a combination of growing your overall revenue as well as your profit.