Strategies to increase e-commerce profit margins

1. Identifying trending items

For sellers looking to source goods well in advance of Q4, deep research is the way to go. Each marketplace hosts a best-selling or trending items list to help independent traders figure out what’s flying off the virtual shelves quickly. Amazon’s best sellers, or ‘Movers & Shakers‘, are excellent places to search for trending products.

Social media tools are also perfect for identifying trending items over the holiday period, with influencers plugging affiliate links across their accounts throughout the season.

Remember to also look at seasonal retail trends that remain popular year after year. Holiday decorations, cards and party accessories are always in high demand during Q4. Sourcing affordable, quality products from low-cost territories such as China can help you capture these long-term sales trends without breaking the bank.

2. Sourcing from China: Pros and cons

China accounts for 28.7% of the world’s manufacturing output, making it a major supplier of goods for businesses worldwide. Chinese suppliers are often willing to work with smaller companies and offer smaller minimum order quantities. With many manufacturers to choose from and platforms like Alibaba.com simplifying the search process, online sellers can find a wide variety of products to source from the region.

However, there are also some potential pitfalls to be aware of when sourcing goods from China. These include intellectual property protection, language barriers, and product importation and customs clearance complexities. Businesses should carefully consider these issues before partnering with a Chinese supplier.

One way to mitigate risks is using a sourcing agent. A sourcing agent can help you evaluate potential suppliers, verify contracts and documents, and communicate your needs to ensure that your products match your expectations.

Another way to overcome sourcing pitfalls is to partner with WorldFirst for all your international payment needs. Opening a World Account lets you send payments to global suppliers directly in their local currency. You can also send and receive payments instantly from one World Account to another with zero fees for same-currency transfers – helping you and your suppliers save time and costs on currency exchange.

Expanding your reach and marketplace promotions

1. International expansion

Experiencing domestic success is rewarding, but achieving recognition in new markets overseas can be transformative, with marketplaces providing the perfect platform to make that seamless leap.

To illustrate, 60% of Australian Amazon sellers in 2022 used the platform’s Global Selling tools to expand their offerings to new markets and ensure seamless fulfilment with the help of Amazon’s extensive logistics network.

However, being clear on your brand’s positioning in potential new markets is essential, as global audiences vary massively. For example, seasonal disparity in Q4 alone could mean that trending products in the UK market for ‘luxury goods’ could be very different from the trending ‘luxury products’ found in the Australian market.

Therefore, consider tailoring your offerings to small, highly-specific niches within established marketplaces to ensure your global expansion strategy incurs less risk. This can be a more cost-effective approach than investing large sums upfront to reach a wider audience, as it will allow you to test and adjust marketing messages as your brand develops momentum in your new market.

2. Setting up effective promotions

Offering discounts to customers who purchase early can help brands generate buzz and secure sales well before the peak shopping season begins.

Bundling products at a discounted rate can entice customers to spend more, providing them with perceived added value and increasing the average order value for businesses. Google, for example, identified a 30-45% increase in search traffic for terms like ‘buy one get one free’ and ‘loyalty programme’ in 2022.

Limited-time offers also create a sense of urgency among consumers, driving quick sales and generating excitement around products or services. Q4 has many occasions you can jump on to make fast sales, including Halloween, Black History Month and Movember, so make sure your marketing captures these holiday shoppers.

3. Spreading the word

Platforms like Instagram, Facebook, and Twitter are invaluable for promoting Q4 deals. Engaging content and targeted advertising can reach a vast audience and drive traffic to sales platforms.

Moreover, partnering with influencers can give businesses access to a ready-made audience. Influencers can authentically promote products or services, making their endorsements more trustworthy to their followers. So, sign up for an influencer marketing site like Tribe Group or Upfluence to get paired up with an established social media personality.

How WorldFirst can help you maximise Q4 e-commerce profits

Finally, ensuring payments can be accepted in localised currency through marketplaces is vital to 79% of online customers, as it helps ensure they experience a streamlined checkout process.

WorldFirst offers a comprehensive suite of services for online sellers looking to optimise Q4 profits. For example, our World Account integrates with over 100 major online marketplaces, including giants like Amazon, AliExpress, and Shopify. This vast network can help facilitate your global business expansion in just a few clicks while saving around 1% on currency conversion fees.

We also offer collections and payment services in over 40 currencies, enabling businesses to operate like locals in international markets. This not only simplifies the process of managing international payments but also offers the flexibility to hold funds in your account until the exchange rate suits you.

With a track record of assisting nearly a million businesses, WorldFirst stands as a trusted partner. We ensure that money is safeguarded with leading financial institutions, offering peace of mind alongside financial solutions. Open a free World Account with us here or call us on 1800 744 777.