Ecommerce Advertising For Profit Maximisation

Using ecommerce advertising on your site allows you to maximize your profits, capturing those visitors not interested in your main product.

Ecommerce advertising allows you to place adverts for other companies and services on your site in the form of banners or, perhaps text adverts using a contextual advertising program such as Google Adsense.

The two most popular forms of advertising are cost per impression and cost per click.

Each has its own benefits:

Ecommerce advertising using the cost per impression model

If you use a cost per impression ecommerce advertising solution, you are making use of the simplest type of ad revenue generation.

This is the best system as you will be paid a certain amount of money for a certain amount of ads being displayed on your website.

Advertisers will vary with how much they will pay, but a good example is $1.00 CPM. If they had the ad campaign set at 500 views, you would get $1.00 for every 500 ads that are displayed on your website.

You don’t have to do a selling job on potential customers of these advertiser’s online businesses in order to benefit from this type of ecommerce advertising. Your job is just to display the advert to your visitors.

You may not get rich using this type of advertising but it is hands off and it may just pay for your hosting costs every month.

Ecommerce advertising using the cost per click model

In addition to displaying the adverts in the cost per impression model above, cost per click ecommerce advertising demands that your visitors click on the advert to visit the advertiser’s site before you get paid.

As you only get paid if a visitor clicks through to the advertisers site why should you consider using the cost per click model?

Simply because you stand to gain more money using this model, particularly in the more competitive niches where advertising budgets are larger and businesses spend more to bring in customers.

You may be able to earn anything from a nickel up to even $70 per click this of course has made the cost per click model very attractive.

Ecommerce advertising using the pay per click model allows you to blend in the adverts into your site. You can change the colors and fonts so that they blend into the existing color scheme of your website.

Arguably the best and most flexible cost per click advertising program is Google Adsense.

Free Vs Pay Monthly Ecommerce Shopping Cart Solutions

As a provider of several different ecommerce shopping cart websites to clients all over the world, there is one particular question that I get asked time and time again: “Should I use a free ecommerce shopping cart or a hosted solution?”. My reply is always the same: “It will depend on your specific requirements”.

I have always said that no one ecommerce solution can cater to every single customers individual requirements. We will all have different needs, and we will be trying to achieve different end results.

I wanted to take a look at the pros and cons of these two different types of ecommerce options.

What are the differences?

Usually with a free ecommerce shopping cart you will need to do everything yourself. From choosing your domain name, to selecting hosting, installing your ecommerce software, designing it etc.

With a hosted ecommerce solution provider many of the required steps are already taken care of for you. You still need to decide upon & register your domain name, but hosting is taken care of by the ecommerce company that you choose.

Hopefully taking a look at the pros and cons of each will help you to decide which best suits what you are looking for.

Free Ecommerce Shopping Cart

With a free platform you will first need to decide on platform you would like to use. Zen Cart and OS commerce are popular but are getting old and becoming less supported. Magento, Presta shop and X cart are the choice of the professionals, but have a steeper learning curve.

Pros

  • It’s free! – You can’t get any cheaper than getting something for free ay?
  • No tie-ins – There are no commitments with free ecommerce solutions. If one particular platform is not working for you, you can usually just start again on another ecommerce platform.
  • You have full control – The great thing about hosting and running your own ecommerce store is that you will have full control over all aspects of your store and so cn be a bit more flexible. Some people may find a hosted solution quite restrictive.

Cons

  • Little to no direct support – You are usually on your own support wise when it comes to free ecommerce solutions. So if something goes wrong, you’ll need to either consult forums for the answer yourself, or outsource and hire a developer to fix things for you.
  • It’s harder to install a new theme – Depending on the ecommerce solution you choose, installing a new theme can be a complicated process. You will usually need to access your websites core files and upload your new theme using FTP (File Transfer Protocol) software such as file zilla.
  • Updates – You will usually be on your own when it comes to ensuring your shopping cart software is up to date. Some updates for the software you are using could include important security patches or bug fixes.
  • Security – How secure your website is from hackers will rest with you and you alone.

Hosted Ecommerce Shopping Cart

There are several companies out there not that provide a hosted solution for a reasonable monthly fee. Each company also has their own pros and cons as well as differing feature-wise. You will need to invest time into deciding which best fits your needs. Big commerce, Volusion and Actinic are popular choices.

Pros

  • Free themes – Several free themes are available for hosted ecommerce solutions that are usually just one click away to install.
  • Better support – The majority of hosted ecommerce solutions will have a helpful in-house support team that you can turn to if you are having any problems with your store.
  • Updates – The ecommerce company that you choose will usually ensure all customers are running the latest versions of their software.
  • Security – No ecommerce company would want their platform – or a customers website to be hacked. The majority will do all they can to reduce the chances of this happening.
  • Easy installation – Most hosted solutions are very simple to set up. It’s usually just a case of entering your details.

Cons

  • Not as flexible – Those who prefer to spead their wings and experiment with their store may find a hosted solution quite restrictive.
  • You’re tied in to a monthly fee – Whether your website becomes instantly profitable or not, you will be tied in to paying a monthly fee that will range anything from $10 – $20PM.
  • No core file access – For security reasons hosted solutions will not give you access to your websites raw code. They instead make all aspects of your store editable by using the likes of a WYSIWYG editor ( what you see is what you get ).

So as you can see, the choice when it comes to ecommerce is not an easy one. I personally prefer the flexibility that the free ecommerce platforms can provide; but I can also see why hosted ecommerce solutions are becoming more and more popular.

Various Types of Ecommerce Sites You Can Build

Are you interested in eCommerce? It is on a massive upward curve. Technology allows businesses to transact their business online as another method of doing business.

What can you do on an eCommerce site you ask? It is not just for sales. Depending on the base of operations for your business, the site can be used for a range of purposes which you will find out about in just a few minutes.

Virtual Storefronts – These are the sites you catch sight of when you are looking to shop online. By way of a transactional site like this, you can do the whole thing in one place. It offers new meaning to “one-stop shopping.” Shoppers can shop a virtual store to a great extent like they would a physical one.

Menus allow them to pick product sub-groups and narrow down their searches. As soon as items have been chosen, they can be stashed in a virtual basket or cart. As soon as shopping is concluded, they can settle up with the cashier and get authentication of their acquisition.

Numerous types of products are sold on virtual storefronts. You are only restricted by what you can realistically present to your clients and still make a profit for your business.

Information Sites – Here, the objective is making the deal but not on the website. Companies with physical stores can use this type of site to market their products. Large corporations exploit this type of site to secure interest in their product.

One of the most important reasons that people trawl the Internet is to come across information. Let’s say that you wanted to buy a car but didn’t want to spend the full day and half a tank of gas driving to showrooms. As an alternative, looking at informational sites for cars should assist you in your car dealing decisions.

These sites make available, content on the items, like cars, that they put on the market. Visitors can see pictures and/or videos of the products as well as images, pricing and geographical locality information.

Marketplaces – Unless you have been living in a cave, you will have you heard of eBay. In a marketplace eCommerce location, a middleman brings sellers and buyers together to conduct business. Items for sale can be purchased directly or through an auction process as with eBay.

In this arena, there are a number of businesses functioning in one area at the same time. Because it is the virtual world, there is scope for expansion into larger spaces as your business grows. The beauty here is that a great deal of what you will want to do to get ready for eCommerce is laid out for you.

Food for Thought: Understand what kind of site you require to make a start with. Online businesses can make use of one or more of these types of sites to flesh out their venture and be obvious to the utmost amount of consumers.