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8 E-Commerce Growth Hacking Tactics to Drive Profitability

Written by Nick Brown | Oct 23, 2024 2:47:00 PM

Launching an e-commerce store can be an extremely profitable enterprise. What’s more, thanks to e-commerce platforms, almost anyone can now set up shop online.

In a few simple steps, you can get your products in front of anyone, anywhere in the world. Thanks to this ease of access, retail e-commerce sales are expected to exceed 6.3 trillion U.S. dollars in 2024.

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But as more and more stores crop up, the market is also becoming increasingly crowded.

To succeed, businesses need methods to stand out and achieve exponential growth. This is where e-commerce growth hacking comes in – a handy tactic designed to help your online business get ahead. 

In this article, we’ll explore this tactic in more detail. We’ll also explore some ways to help increase your business’s profitability. 

What is E-Commerce Growth Hacking?

Growth hacking uses experimentation to find the best methods for achieving business growth.

The catch, however, is that these tactics must use as few resources as possible. This involves many different fast-paced activities that usually center around A/B testing.

This is the process of splitting traffic into groups so that you can test variations of the same webpage. For instance, you might A/B test different variations of copy on a product page.

The goal is to find the best results as quickly as possible so that you can get your new design up and running. Now, when you direct potential customers to your store through digital marketing, there’s a higher chance of customer engagement.

There’s also a reduced risk of spending money marketing to users who don’t convert. 

8 Growth Hacking Tactics to Drive Profitability

There’s no denying that there are clear benefits to growth hacking. But where should you get started? We’ve listed some winning e-commerce growth hacking strategies below.

1. Boost your product pages

The design and layout of your product pages are essential in e-commerce.

Engaging copy and eye-catching visuals are key to ensuring customers stay on a page. Additionally, leveraging strong relationships with wholesale suppliers can enhance product variety and availability, further improving the user experience.

Ultimately, the better your product page, the higher the chance of achieving higher conversion rates.

There are lots of ways product pages can be A/B tested to find winning combinations. These include: 

  • Improving your product descriptions – Descriptions should sell your product professionally and interestingly. On a basic level, make sure there are no spelling or grammar errors. Beyond this, consider how you use more engaging language to appeal to shoppers. Try variations of longer and shorter copy to see which lands with customers.
  • Rethinking image use – Images can be a valuable asset, but they can also serve to distract. Consider whether you’re using too many (or too few) images on your product page. Blurring certain elements may also help to maintain interesting visuals while being less distracting. 
  • Improve your keyword usage – Keywords are an essential part of every B2C and B2B SEO strategy. Test different combinations of keywords on your product pages. Look for an approach that helps you climb the results page of search engines and attract the most organic traffic. 
  • Editing your CTAs – Your CTAs are the most important elements of product pages. Testing can help to identify a winning approach. You might edit the copy, resize the button, or change its position on the page.

2. Offer a live chat

Free to use image sourced from Pexels

Sometimes, customers need extra information before they can commit to making a purchase.

A live chat option lets users get in touch and ask questions. Customers will be placed in a queue and notified when agents are ready to respond. 

You also have the option of utilizing a chatbot. In the past, bots have received a poor reputation due to a perceived lack of reliability.

Modern chatbots, however, use generative AI and machine learning to improve customer service. In the same way as a human agent, they can learn from previous customer queries and produce smarter responses.

If you opt for a chatbot, it may be worth A/B testing its appearance and position on the page. For instance, should the chat window always be visible on the page or only when a user selects a button?

WhatsApp Business API is an ideal solution for establishing seamless, two-way communication with e-commerce customers. Utilize its capabilities to enhance both marketing initiatives and customer support operations.

3. Offer personalized product recommendations

Source: segment

Modern customers love personalized experiences.

That’s why, according to a recent segment survey, 89% of business leaders believe personalization is valuable to their business success in the next three years.

Improving your personalized product recommendations can be a quick and effective way to improve profitability.

Your product recommendations should appeal to current customers based on previous purchasing and browsing habits. To succeed, however, you must first understand the preferences of different groups within your customer base.

For this, you’ll need data analytics tools capable of unpacking customer behavior.

These provide valuable insights into your audience and enable you to create comprehensive buyer personas. Tailor your cross-selling approach towards these personas. 

4. Cross-sell products

Cross-selling involves marketing products to customers when they reach the checkout page. You’ll advertise items designed to complement a user’s purchase. 

For example, if a customer is purchasing office equipment, you might cross-sell related insurance plans that cover business property or liability, enhancing the security of their commercial operations.

To cross-sell successfully, look to historical e-commerce sales data. Which items do customers tend to buy together? These are prime candidates for cross-selling.

To cross-sell successfully, look to historical e-commerce sales data. Which items do customers tend to buy together? These are prime candidates for cross-selling.

You may also choose to A/B test different cross-selling approaches. You might test different combinations of items for product bundles. Or, you could alter the order in which items appear based on popularity.  

5. Improve upselling

Source: dataaxelgenie

Upselling is similar to cross-selling. In this instance, however, you attempt to persuade users to buy a more expensive version of their existing purchase.

For instance, if you’re selling a laptop, you might upsell a version with higher specifications.  

Effective upselling should highlight the benefits of higher-tiered products. Usually, this involves displaying a table to compare the features of each tier.

You could also offer free shipping to further encourage customers to upgrade their purchases. 

6. Rethink navigation

Free to use image sourced from Unsplash

Navigation is one of the most basic elements of your e-commerce store.

So much so that you could end up overlooking this critical area; navigation is important for many reasons, not least because it is a critical factor in user experience. Whether you're concerned about small business or enterprise SEO, your site’s usability is a central part of optimization. 

Ultimately, users should be able to move smoothly from their current page to their destination. They shouldn’t be left scratching their head, unsure how to proceed.

A simple but effective method of growth hacking is to A/B test different navigation layouts.

For example, you might test a more streamlined approach, adding more options to relevant drop-down menus. Or, you could rearrange your menu to prioritize your store’s most popular categories. 

7. Build a sense of urgency

One of the biggest difficulties for e-commerce businesses is customers who think, “I’ll come back later.” Unfortunately, sometimes, these customers get distracted or find a better offer elsewhere.

To avoid this situation, online businesses must secure a sale while retaining the customer’s attention. A simple way of achieving this is through limited-time offers. 

This form of offer specifies a clear end date, providing a sense of urgency. Customers are less likely to risk missing out on a deal and will feel more compelled to make a purchase.

You can test different ways of presenting offers. You could opt for a large countdown timer, or even have a limited-time section on your site. 

Alternatively, you could build urgency by adding a stock counter to product pages.

Let customers know when an item is almost out of stock. You could also send automated emails to shoppers who have added an item to their wishlist, warning them of a potential stockout. 

8. Include more social proof

Free to use image sourced from Pexels

A study has shown that a huge 99.1% of customers look at product reviews before buying. Ultimately, shoppers need to trust the quality of a brand and its products before placing an order.

Social proof, also known as user-generated content, can be an excellent way of putting prospective customer’s minds at ease.

Below, we’ve listed some different ideas of how you can utilize social proof effectively: 

  • Social media reviews – Customers will often share their thoughts about brands through social media posts. Include some favorable examples on your product pages.
  • Video testimonials – Get in touch with your most loyal customers and ask them to fill out a video testimonial. Here, they can talk about positive shopping experiences with your brand, and why they recommend it to others. 
  • A reviews section – Having a dedicated section for customer reviews shows that your brand is open to criticism. Allowing shoppers to leave a rating out of five can provide useful social proof to other potential customers.

Frequently Asked Questions

1. How quickly can I see results from these growth hacking tactics?

The timeline for seeing results varies depending on the tactic.

For example, SEO optimization can take several months to show significant improvements, but they’re more likely to be long-term. On the other hand, tactics like creating a sense of urgency may deliver faster results but their impact is diluted if they’re used all the time.

2. What should I prioritize when applying growth hacking tactics?

It’s essential to focus on the tactics that align with your business goals and target audience.

For example, if your priority is to increase website traffic, SEO and product page optimization might be key areas. Improving navigation and personalized marketing could be more effective if you're focusing on boosting conversion rates.

3. Are these tactics suitable for small e-commerce businesses?

Yes, many of these growth hacking tactics are affordable and scalable, making them ideal for small e-commerce businesses. Strategies like upselling and using social proof are great options for small businesses that can deliver significant results.

Become a Growth Hacker

With an estimated 5.4 billion people online, now could be a great time to set up your e-commerce store.

But with so many businesses thinking along the same lines, standing out is essential. E-commerce growth hacking can help you cut through to your audience, build better experiences, and boost conversions. 

Here, we’ve shown how, with a few simple tactics, you can build rapid growth strategies.

Why not explore each point one by one and see how our tips can improve your store? Profitability might only be a few steps away with the right growth hacking tactics.

Author Bio

Nick Brown is the founder & CEO of accelerate agency, the SaaS SEO agency. Nick has launched several successful online businesses, writes for Forbes, published a book, and has grown accelerate from a UK-based agency to a company that now operates across the US, APAC, and EMEA. Here is his LinkedIn.