Is your eCommerce reporting wrong?

Setting up tracking arrrrrrrrrrrrrrrrrrrrrrrrrrh!!!!

Achieving accurate eCommerce tracking to get reporting accurate is about as easy as getting someone from NSW to shout “QUEENSLANDER”.

Really hard, but not impossible.

Why is eCommerce tracking important?

It tells you where sales are coming from, but most importantly, if set up correctly, let’s your advertising accounts (Google, Facey etc) who bought from you so it can go find other people like them.

This gives you a better return on your adspend, a key metric to being more profitable.

Why is setting up tracking so hard?

I’ve never seen a perfect setup, there is always something that is just a bit off.

Most of the time it’s just plain wrong!

The issue is lots of different systems talking to one another, and it can break really easily.

Add on top of that, each system/company (Shopify, MailChimp, Google, Facey) all want to prove they are giving the best return.

How can I make sure my tracking is correct?

Smart question, glad you asked.

You could spend many months learning how to do it. For example there is a brilliant course by Love Data on how.

But lets face it, you’ve got better things to do.

I used to try doing it, then I found someone who is amazing at it!

Now for every project I work on or help with I get them to do it.

If you want their details, just contact me, and I’ll pass on their details.

You’ll be glad you did.

Who you need on your eCommerce team

You can’t build a great Aussie eCommerce business without a little help.

But what type of team do you need?

Choose people who get your brand/product

Anyone who uses or has a genuine interest in your product will understand what customers want, because they are customers! This will help your eCommerce business serve customers better.

“Serving customers better” is often said, but rarely done. This will become your competitive advantage as eCommerce gets more and more competitive.

Ecommerce really clicked for me when I started working for Billabong. As a skateboarder and snowboarder, I was the target customer. This helped me apply my technical eCommerce knowledge to a brand I understood.

They can be based anywhere

Long gone are the days you could only work with people driving distance from the office. With remote working becoming the norm, you have the whole of Australia or wider to choose from.

Aren’t “Experts” expensive?

“Experts” tend to be technical experts, i.e. Facebook marketers. Too much importance is put on this.

You need experts on your customers who are good at solving problems.

They can learn Facebook marketing (plenty of good free courses out there) or good customer service.

What about overseas?

Like most things in life, it’s all how you do it.

We’ve all heard the horror stories, but it can work really well.

Need a specific technical skill like website coding and know exactly what you want? Someone overseas who is cheaper can be a good way to go.

However, you can’t expect a Philippino who has only lived in Manila to write a useful guide on where to walk a dog in Perth.

It’d be like me writing about the best dog walking locations in Russia. I’ve never been and don’t have a dog!

Do I need full time employees?

No, not for every position. You can have contractors for things like advertising, web development and quality assurance in the factories.

Are you posting and hoping?

The biggest mistake I see Aussie eCommerce stores make is posting an update on Facey or Insta and expecting sales.

Unless you have amassed loads of followers (100k+) or have a very engaged established account (pre 2016) then very few people will even see your post, never mind click through and buy from you.

The latest stats show only about 1% – 6% of your followers in the Asia Pacific region will see your post.

Ya what?

Yep, Facey wants you to pay to boost those posts or run ads to get to your followers.

Unless you boost a post (pay) then it is pretty much a waste of time.

“My mate who is a social wizz, they do it all the time though”

It did used to work. When Facey was building it’s customer base it was basically free marketing.

But guess what, Facey is now a publically listed business that needs to make bigger profits every quarter. So now they charge us.

How do I use Facey and Insta to get sales then?

If you’re not running any type of advertising for your eCommerce store you’re going to be waiting a long time to make sales.

If you’re not sure how to advertise your eCommerce store, watch this video.

Quick win for more Facey and Insta sales

Running ads on Facey and Insta (not just posting and hoping) then you should already be making sales.

However, there is a very common mistake most Aussie eCommerce businesses make with their ad setup though.

If your ad campaign goals aren’t set to conversions and the conversion isn’t a purchase or add to basket, then you’re missing out on sales.

Setting your campaigns to conversions tells Facey and Insta you want people that buy online.

You do need to have conversion tracking setup (which can be a pain).

I’ve seen lots of campaigns set to “traffic” or “engagement” because they’re “nurturing the customer along their journey” or some other weird marketing phase that looks good in a preso.

Stuff that!
Maxout showing ads to people who are ready to buy now. Once maxed out you can look at doing branding with engagement and traffic.

Remember, most Facey and Insta ads charge you for Impressions (views of your ads) so they want to show your ads as much as possible. We want sales, cash in the bank.

It’s very common to have social ad accounts set up this way if the person running it is used to selling non eCommerce products or services, as they often have a longer time to purchase.

All social ad accounts I run for my eCommerce business are all set to conversions as a goal.

Do it and get more sales.

How to forecast startup DTC eCommerce sales and costs?

You know what to sell, the site is being setup or you’re already trading.

But how much revenue will your Direct To Consumer (DTC) eCommerce brand do and what will your expenses be?

Excel is demanding answers, and your pulling more figures out of the air than Trump!

Sound familiar?

You’re not a lone. To make things worse it’s the most important thing you’ll do in your eCommerce business.

However, to create an accurate forecast you need previous sales data.

If you’re a start up, you don’t have that.

Bugger.

Start up DTC brands need to take a different approach to forecasting

Ideally you’d know your eCommerce conversion rate and how many visitors you can get with all your marketing activity (you have a marketing plan right, course you do).

However, until you start selling you won’t know these figures, and averages, in this case, are about as useful as a drunk bogan at an economics convention. Entertaining but ultimately a distraction.

Every site performs very differently.

You’ve told me all the things I can’t do, what is the answer?

All smart DTC eCommerce sites buy and hold stock so they have higher margins and quick delivery times.

If you’re drop shipping I suggest you pay an online guru who works from a hammock far to much money to help you and find out it doesn’t work. See you in 6 months.

Anyway, you have or need to commit to certain amount of stock. The more stock you buy the greater the opportunity for sales.

Buuuuuut the more stock you buy the greater the risk.

Time to put on the big girl/boy pants and commit some cash. Otherwise this thing will never work.

Take your stock cost amount (what you paid for it), lets just says it’s $10,000AUD (At Boom Ecommerce it’s always AUD, because we’re about helping Aussie Ecommerce stores).

Work out how much you plan to sell that stock for. Lets say your gross margin is 50% your retail value is $20,000AUD.

You can only sell the stock you have, so until you order more, your revenue will be $20,000AUD.

Now split that into months.

The amount of months will be depend on how aggressive your marketing is.

If your approach is “I’ll build my site and they will come”, then forecast those sales to be over 120 months or 10 years. Because unless you get so lucky that you should buy a lottery ticket, you won’t be selling much anytime soon.

Not sure where to advertise? Watch this Youtube video on “Where to advertise your eCommerce business in Australia” (That’s me in the video, hi Mum!).

Back to the forecasting.

You should now have sales by month for the stock you have, but what are your other major costs?

  • Advertising
  • Technology fees (Shopify, Xero etc)
  • Staff or warehouse fees
  • GST and other super fun taxes
  • Usual business costs

These will vary on your setup.

How much you spend on advertising will depend on your Gross Margin and how aggressive you want to be.

After 3 months of trading you’ll have some data to work with that will make for better forecasts.

If you’re not sure of any of the figures (start-up eCommerce costs or % of marketing spend to revenue) or terminology i.e. Gross Margin, how much you’ll need to get your DTC eCommerce business started, signup for the Boom Ecommerce Training course. It has everything you need to know.

Advanced Tip, How to track instore sales from social ads

If you work in, or run, a retail business that has an eCommerce and physical retail stores, this tip is for you.

You can track sales in stores after customers saw Facebook and Instagram ads.

Yep!

As long as the person in store asks for their email address (so they can email the receipt to the customer) then you can connect this to Facebook Ads Manager.

You can then generate a report in Facebook Ad Manager to show sales in stores.

It’s amazing.

I’ve seen 25% of in store sales be “influenced” by Facebook and Instagram ads.

To set this up, you need a service by a company called Yrecipts. They connect your in store tills to Facebook Ad Manager.

Your tills have to be PC based, so they can install a print driver on them.

Find out more here…

https://www.yreceipts.com/#live_purchase_data

What not to do in eCommerce

DON’T (repeat do not) send promotional emails every day to every email address you’ve ever collected.

Not matter who says it’s “best practice” to send emails everyday.

That is the definition of spamming people.

Only drongos do that.

Apart from the fact it’s annoying, customers will ignore them, your open rate will go down, and your email service provider (ESP, aka Mailchimp, Klaviyo etc) will start marking you as an untrusted sender and your emails will be less likely to get to your customers inbox.

If you’re not making enough sales, address the root problem, don’t spam the good people of S’traya.

How to advertise to previous customer with Insta

It’s easy to forget about your previous customers in the never ending chase for new ones.

Don’t!

As long as you have more than 100 customers you can advertise just to them on Insta, or Facey in Australia.

You’ll need either…

  1. 100 email addresses of customers
  2. A page that only customers have seen
    (i.e. purchase confirmation page)

Using either of these, you can create something called a “Custom Audience”. There are many great guides online on how to do this. Below is a good example.

AdExpresso guide to Custom Audiences

However, there are a few things that could be gotchas.

If you’re using email addresses, 100 have to match email addresses users login to Facey or Insta with. You really need 150 to be safe.

Planning on using option 2, targeting people who viewed the checkout confirmation page, the Facebook Pixel will need to be installed on your site.

If that sound complicated, you’ll need a bit of help from an expert.

Need a Facebook marketing expert, contact us. We’d be happy to put you in touch with someone based in Australia.

Boom doesn’t implement these, only train non technical Australians on how to get the best out of your store. Sometimes that means getting the experts in!

Forecasting sales accurately is ESSENTIAL in eCommerce

You want to sell as much as you can.

Sell too much, you’ll run out of stock.

Run out of stock, no cash flow.

Bad

Sell too little, your cash will be tied up in stock.

Bad

The most important activity in any eCommerce business in getting your sales forecast right.

It dicates how much stock to buy and when.

How much you can spend on adverting.

Who you can hire.

The list goes on.

Don’t skip it or half arse it.

Dedicate time to getting it right.

Your future self will thank you.

What’s a good eCommerce email open rate?

You’re using email marketing for your Aussie eCommerce store aren’t you? Of course you are.

However, you want to know how you compare to other stores.

A good indication you’re emails are the right message for your customers is if your open rate is over 20%

I hate giving generic figures, because there are a lot of factors that contribute to it, list size, age and email software you use.

But as a finger in the wind comparison figure, this is a good bench mark.

If yours is lower, sign up for Boom Ecommerce tips to improve this and much much more in you Aussie eCommerce store.