The ultimate aim of any eCommerce store is to be profitable.
They are looking to consistently:
✅ grow sales,
✅ improve their brand reputation, and
✅ increase repeat sales.
This article includes:
20 eCommerce Growth Strategies to Boost Revenue
1. Leverage AI
Without a doubt, AI can easily win the Breakout Award of 2023.
Brands worldwide experimented with AI for their marketing efforts.
As Dominic Zijlstra, Founder, Adaptify, shares, ““I encourage you to leverage AI in your growth strategies. AI can automate labor-intensive tasks like content creation and SEO, freeing up your time to focus on more strategic aspects of your business."
eCommerce stores can use AI as a growth strategy by:
- Utilizing AI-driven analytics for better targeting,
- Automating chatbots for improved customer service, and
- Advanced recommendation engines to increase upselling and cross-selling opportunities.
Mason, who heads his digital marketing agency, concludes, "Embrace AI, but never lose the human touch. Combine your AI tools with authentic, brand-specific interactions to foster loyalty and trust.”
2. Embrace voice search
Recent reports estimate that currently, half of the US population uses voice search features daily, and more than one-third (34%) use them at least once a week.
Christy Pyrz, CMO, Paradigm Peptides, shares, "In 2024, we need to make it easier for people to find us. This means optimizing our website for voice search. Through the voice-activated search technology strategy, we expect a boost in our boost conversions.”
Here’s how to implement this eCommerce growth strategy:
Research the keywords, long-tail phrases, and contextual clues that are most utilized in voice searches in your industry.
Focus on words used in everyday conversations rather than technical terms.
Then include those keywords in your webpage content, such as product descriptions and copy.
This way you can increase traffic to your website and drive up business.
3. Acquire more customers with subscribe and save
Studies have shown that it costs five times more to acquire a new customer than it is to keep one, and this same research indicates that loyal patrons also spend significantly more per purchase.
James Wilkinson, CEO, Balance One, offers eCommerce growth strategy advice, "Consider a subscription-based business model in 2024. As an eCommerce owner, transitioning from a traditional sales approach to a subscription-based model offers anticipation for substantial business growth; not only does this shift project catapult profits, but it also promises long-term sustainability in the competitive market--a clear testament to its potential benefits.”
As an eCommerce growth strategy, subscribe and save has many benefits:
- improves customer retention,
- provides eCommerce stores with a consistent cash flow, and
- shows purchase behavior to preference trends.
4. Expand your loyal brand community
In 2024, one of the key eCommerce growth strategies to focus on is improving customer engagement and retention.
Erika Mac Donald, Founder & CEO, Engaging New Media, “Another key growth strategy that I will focus on in 2024 is expanding my online presence and reach. I believe that having a strong online presence and reach can help me to increase my brand awareness, visibility, and credibility, and to reach a wider and more diverse audience. To expand my online presence and reach, I will use various channels and platforms, such as websites, blogs, podcasts, videos, webinars, and online marketplaces.
Dan Dillon, CEO, CleanItSupply.com, "As a key eCommerce growth strategy, we will focus on in 2024 will be short and engaging video content. As 'Danny D' on YouTube, I've produced over 6,000 product videos, and the direct positive impact on our sales and customer engagement was tremendous. For instance, our sales increased by 20% after posting a product demo video.”
5. More direct selling
A golden eCommerce growth strategy: don't sleep on mobile optimization.
Make your site snappy and easy to navigate on phones.
A smooth mobile experience can be the difference between a customer sticking around or bouncing off.
Furthermore, integrate your store with social platforms to make the purchase journey as frictionless as possible.
6. Diversify your product range
With a wider variety of things to choose from, attract a more diverse customer base and stay up-to-date with changing market trends.
Alex Horsman, Head of Marketing, Ammo.com, “We’re expanding our product range to cater to niche segments and explore new geographical markets. We hope to introduce eco-friendly products to cater to growing environmentally conscious customers. We will measure the success of this strategy through the expansion of our market share and the growth in sales of the new products."
7. Prep for the recession slow down
Even with net sales increases, eCommerce stores aren’t immune to global inflation, macroeconomics, and geopolitical situations.
As an eCommerce growth strategy, businesses need to invest in technology (such as CRO solutions) and technological capabilities to improve profits.
David Bitton, CMO &Co-founder, DoorLoop, "With the looming possibility of a mild recession coming, DoorLoop is conducting thorough risk assessments to anticipate and mitigate potential market impact, while also refining our budgeting and operational processes to remain adaptable in fluctuating economic conditions."
He further adds, "Paralley, by diversifying product offerings, ensuring that they are tailored to meet the varying needs of our customers across different economic scenarios, thus safeguarding our business against potential downturns and maintaining our commitment to delivering exceptional property management solutions.”
8. Leverage Neurocommerce Ethically
Al Lijee, CEO, myWindshield, further adds, “The one piece of growth advice I'd offer to fellow store owners is to prioritize ethical data usage. While harnessing customer data is crucial, ethical considerations and respecting user privacy should be at the forefront. Striking the delicate balance between personalization and consumer trust will be fundamental in sustained growth within the ever-evolving eCommerce realm.”
9. Adopt live shopping experiences
Zephyr Chan, Founder and Growth Marketer, Better Marketer, shares, ”In 2024 blend entertainment, instant purchase capability, and real-time interaction. Live shopping combines the authenticity and engagement of social media with the convenience of eCommerce.”
Some benefits of live shopping experiences:
- viewers can see products in action,
- ask questions in real time, and
- make purchases with just a few taps.
Zephyr Chan, further elaborates, “Influencers hosting live shopping sessions can provide genuine reviews and demos, creating a trust factor that traditional online shopping can't match. Adopting live shopping means embracing a more dynamic, interactive approach to eCommerce. It's about creating an immersive shopping experience.”
10. Collaborate with authentic creators
Abhi Madan, Co-Founder, Amarra, shares, "In 2024, we will be leveraging micro-influencers within the fashion industry, whose engagement rates generally outpace those of their high-follower counterparts. Also, I need to stress the importance of aligning the brand with current market trends and consumer values. For instance, as a fashion company, we have found our commitment to sustainable fashion resonates deeply with our customer base, distinguishing us in a competitive marketplace.”
Benjamin Beck, Director of Marketing, Tortuga Backpacks, further elaborates, “Collaborate with creators who have a direct and authentic connection with their audience. This approach not only bypasses the volatility on the SEO horizon but also fosters genuine brand engagement and trust. For example, at Tortuga, we are shifting away from creators doing reviews of our carry-on backpacks and instead having the creator show how they can use it to travel across Europe for two weeks.”
11. Prioritize sustainable business practices
As a key growth strategy for eCommerce businesses, Yoana Wong, Co-Founder, Secret Florists, shares, “Implement eco-friendly packaging, carbon-neutral shipping, and sourcing from ethical suppliers to attract conscious consumers. Incorporating sustainability into marketing and brand messaging can differentiate businesses and resonate with environmentally conscious customers.”
She further states, “For example, an eCommerce store could partner with a reforestation organization and commit to planting a tree with every purchase, showcasing their dedication to the environment. By prioritizing sustainability, businesses can tap into a growing market segment and enhance their brand reputation.”
12. Listen to your customers
Samantha Odo, Sales Representative, Precondo, “Prioritize customer satisfaction and feedback. Your customers are your greatest asset, and their opinions can help positively shape your business. Always listen to what they say, respond to their concerns promptly, and continuously strive to improve your products and services based on their input.”
She further adds, “Happy customers not only come back but also become your best advocates, helping you grow through word-of-mouth and positive reviews. Building strong, lasting relationships with your customers is key to long-term success in any business."
13. Create memorable customer service experiences
In today's competitive market, focus on understanding your customers' needs, preferences, and pain points, and tailor your products, services, and interactions accordingly.
Pavel Naydenov, Head оf Marketing, Businessmap, shares, “For instance, implementing live-chat support for faster response, optimizing the website for seamless navigation, or investing in dynamic retargeting for a personalized advertisement experience.”
14. Leverage AR/VR
Jon Morgan, Founder, Venture Smarter, “We believe that AR and VR can revolutionize the way customers interact with businesses, leading to increased engagement and customer satisfaction. For instance, we can allow customers to virtually try out clothes before purchasing.”
He further adds, “Additionally, businesses should invest in upskilling their teams in digital marketing and analytics to stay ahead of the curve. By doing so, they can build a loyal customer base and drive growth."
15. Optimize post-purchase journey
Most retailers spend all their resources optimizing the front-end acquisition journey.
It means the post-purchase experience is often forgotten.
One of the biggest eCommerce growth strategies for retailers in 2024 is to focus on what happens immediately after purchase.
He further adds, “For example, D2C bidet retailer Tushy was able to achieve a thank you page conversion rate of 2.9% and add $191,786 to their monthly Revenue with ReConvert's pre-built templates. In terms of return, for the level of investment, there's arguably no bigger bang-for-your-buck growth strategy in 2024."
16. Smoothen the checkout process
No one likes a complicated checkout.
So cut out any unnecessary steps by smoothing out form-filling and giving customers one-click or even guest checkout options.
Normand Chevrette, President & CEO, CME Corp, “From picking a product to hitting the purchase button, it's as simple and speedy as it gets. We're doing this not only to reduce abandoned carts but also to offer a hassle-free checkout process. Our game plan is to make the buying journey as seamless as possible, as this can become a reason our customers will stick around."
17. Add unique payment options
Tyler Browne, CEO & Founder, To the Cloud, shares, “In 2024, my focus will continue to be on embracing market trends and unique payment methods, like Bitcoin. For instance, we offer a 3% discount on orders paid with Bitcoin, which has increased sales, customer interest, and engagement.
He further adds, “In our case, endorsing cryptocurrency as an innovative payment method has proved to be a game-changer, attracting a tech-savvy customer base and distinguishing our brand in a crowded marketplace."
18. Focus on predictive analytics
The most important long-term eCommerce growth strategy centers on the delicate balance between keeping customers and making smart decisions based on data.
Ammo.com, shares, “In 2024, we are working on adopting predictive analytics to supplement our current data analytics. We aim to use predictive analytics to identify and predict future outcomes based on historical data, which will be incredibly useful for us.”
He further adds, “We can optimize inventory management, improve customer retention rates, and personalize our marketing campaigns by predicting future purchasing behavior. It can also help us identify potential new markets. Metrics for evaluating these data-driven efforts will be sales forecast accuracy, customer retention rate, and inventory turnover rate.”
Michael Wall, Founder, Codefixer, elaborates "When we focus on the customer, building lasting ties with the people who already buy from us becomes very important. The focus here is clearly on putting in place strong loyalty programs, planning individual experiences, and making a firm promise to always provide excellent customer service. These three customer-focused projects don't just want to make transactions more meaningful; they also want to build a web of loyalty that connects customers to our brand's values.”
19. Measure the average contribution margin per order
Joshua Uebergang, CEO, Digital Darts, shares, "Make decisions based on profits. Marketing spend can be one of the biggest determinants of profit so know your big marketing metrics that drive profit. From my conversations with large DTC founders, their favorite metric is contribution margin. It measures how much revenue you make on a product minus its variable costs.”
So if you want to take your eCommerce profit to a whole new level, measure the average contribution margin per new customer order and per new order.
Here are the metrics:
The average contribution margin per new customer order = New Customer AOV - CAC - ((COGS + Shipping Costs + Gateway Fees) / New Customer Orders) - (Return Percentage AOV).
The average contribution margin per order = AOV - Total CPA - ((COGS + Shipping Costs + Gateway Fees) / Orders) - (Return Percentage AOV).
20. Product marketing with a purpose
For eCommerce businesses specializing in luxury products, a key growth strategy is to intensify customer experience relentlessly.
eCommerce Growth Statistics to Keep in Mind
Fact: eCommerce growth rates vary according to industries and product type.
However, it’s essential to understand some eCommerce growth projections to strategize your next moves.
Here are some eCommerce growth statistics to make sure your goals are aligned:
🚀 Worldwide eCommerce sales growth is poised to reach 9.4% in 2024.
🚀 Retail eCommerce sales are forecasted to grow by 56%, reaching about 8.1 trillion dollars by 2026.
🚀 By 2024, 21.2% of total retail sales will happen online.
🚀 In the US, eCommerce growth sales are forecast to increase by a whopping 50% from $907.9 billion in 2022 to $1.4 trillion in 2025.
🚀 Forecasts say the rest of the world will see an increase of 52% in online sales from just over $1 trillion in 2022 to $1.5 trillion in 2025.
🚀 Mobile commerce is expected to account for 42.9% of eCommerce sales by 2024.
🚀 55% of shoppers have said they shop internationally. Almost two in five respondents said they’d made an international purchase in the past three months.
Frequently Asked Questions
1. What are eCommerce growth strategies?
eCommerce growth strategies are strategies or techniques used to rapidly increase the growth and success of an online store.
These growth tactics help to acquire more customers, boost sales, improve customer retention, and enhance overall business performance.
2. Can growth strategies work for all eCommerce businesses?
Not all growth strategies will yield the same results for every business.
The effectiveness of a growth strategy depends on various factors like industry, target audience, product/service offered, and market trends.
Continuous A/B testing, experimentation, and adaptation are key to finding what works best for your specific business.
3. How can I determine which growth strategies to use for my eCommerce store?
Understand your target audience and their behaviors.
Test different strategies, measure their effectiveness through analytics, and iterate based on the results.
Choose strategies that align with your brand, audience, and resources.
4. Are growth strategies sustainable in the long run?
Some growth strategies may provide quick boosts, but not all are sustainable in the long term.
It's crucial to balance these strategies with a solid foundation of good products, customer service, and ethical business practices for sustainable growth.
5. How can I measure the success of eCommerce growth strategies?
Use key performance indicators (KPIs) such as conversion rates, customer acquisition cost, customer lifetime value, bounce rates, and overall sales metrics.
Analyze changes before and after implementing growth strategies to gauge their effectiveness.
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