Online sales continue to account for a growing proportion of total sales.
Even the smallest business can no longer ignore the online channel.
The online channel offers opportunities for every type of business and with ecommerce platforms like Big Commerce** it was never easier or more affordable to open an online store.
Once you have an online sales presence, channel revenue maximisation becomes a key objective.
Three key variables impact the total revenue from the channel.
These are: (1) total number of site visitors
(2) the conversion rate of visitors to customers and
(3) average order value.
Should you focus on increasing the total number of visitors or seek to increase the conversion rate, say, by 20% or increase the average order value by,say, 10%?
Each requires a different strategy and results in a different revenue outcome.
Our Ecommerce Revenue Business Model Calculator lets you do “what-if” revenue analysis on these key variables for each of four periods.
Revenue, traffic and conversion rate projections are calculated and displayed in tabular format and in a graphic dashboard.
** Big Commerce is used by over 39,000 small business online store worldwide and costs as little as $25 per month.