Summary: Ecommerce Evolved – Chapter 1: Funnel-Based Ecommerce
This post is the 2nd of a series of posts I’m writing to summarize the book Ecommerce Evolved by Tanner Larsson, available on Amazon:
Here are links to the other posts:
Chapter 1: Funnel-Based Ecommerce (this post)
Chapter 2: Recurring Income Core
Chapter 3: Think Before You Sell
Chapter 4: Conversion Tricks, Sales Boosts, and Profit Maximizers
(Disclaimer: These are my personal notes so I’ve paraphrased quite heavily in some places. If you like what you read, please buy the book to get the complete information in its original glory.)
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Chapter 1: Funnel-Based Ecommerce
You should never spend any customer acquisition marketing efforts or dollars on sending visitors to your online store. (Yes, you heard right! Keep reading to find out why.)
2 Worlds of Ecommerce:
1)Online stores that sold physical products using shopping carts. Customers would find their product -> view product details page -> check out button.
2)Direct-response info marketers who sold information via courses/ebooks, through online sales funnels.
For ecommerce, a combination of these 2 approaches yields better results than using either approach exclusively.
Ecom shopping carts convert on average at around 1% on the front end – pathetic. Whereas even a basic sales funnel has conversions rates that are 3-5% higher.
Sales funnels also massively increase average order value. (By comparison, suggested items at checkout is better than nothing, but won’t dramatically increase growth for your company.)
A basic ecommerce sales funnel boosts average order value by 20%. An advanced multi-step ecommerce funnel can boost average order value by over 60%, and that’s just on the initial purchase. Add repeat purchases and lifetime value to the equation, and your revenues go through the roof!
Why sales funnels work: They capitalize on the buyer’s high – a dopamine rush customers get when they buy something. This is your best chance to get them to ...