Ecommerce website owners are most interested in increasing profits. This can be done by either increasing the number of items sold, or increasing the prices of those ecommerce products. Suggesting that ecommerce retailers offer freebies and run contests to increase profits seems to run counter to their goals. However, these two practices can actually increase your ecommerce income greatly.
Offering Freebies to Increase Ecommerce Profits
One of the oldest methods of attracting sales is by offering loss leaders or free gifts to people. Loss leaders are items that are drastically reduced below wholesale cost. Between the two methods, offering freebies works the best. “Free,” after all, is the magic word in marketing. Who would turn away a free gift?
The offer of a freebie is useful for the sole purpose of attracting attention and getting a purchase out of someone. By putting your freebie offer on the front page of your ecommerce website, you will do just that.
Of course, you should make the freebie contingent on a purchase. Some good examples are “Buy one, get one free!” “Free Gift Worth $14.95 With Every Purchase!” or “Buy Two Items and Get This Top-Of-The-Line Widget FREE!”
Having Contests to Increase Ecommerce Profits
Besides offering free items, another great way to increase ecommerce profits is by having contests. You have to pay close attention to the laws surrounding sweepstakes and raffles however, as they change from state to state. After the legal business is taken care of, however, you have a very viable marketing ploy left.
You might consider that holding contests is detrimental to profit making. After all, the end result of a contest is that you give away an item, for free, to the winner. It is what happens in the meantime, however, that is important.
By advertising your ecommerce website contest or sweepstakes on sweeps websites, you will be getting additional exposure for your products. You will also be creating a desire for your products. Most people enter a contest because they want what is being offered. If your product is attractive enough, many of the contest entrants will decide to purchase the item if they do not win it.
Offering freebies and running contests on your ecommerce website is a great way to increase interest and profits. Many expert marketers agree that the most powerful word in advertising is “Free.” Using freebies and contests, and their accompanying websites, to market your ecommerce site is big business. Instead of concentrating on profit per item, ecommerce mindsets must be shifted to see the bigger picture. Giving away items free, or running contests may attract more business than any other method.