1. Optimize Your Product Selection
The foundation of good ROI starts with choosing the right products. Look for items with:
- High perceived value (can be sold for 3-5x cost)
- Lightweight and small (lower shipping costs)
- Not readily available in local stores
- Strong emotional appeal
2. Improve Your Conversion Rate
Even small improvements in conversion rate can significantly impact ROI:
- Use high-quality images and videos
- Add customer reviews and testimonials
- Simplify your checkout process
- Offer multiple payment options
3. Reduce Your Advertising Costs
Lowering your cost per acquisition (CPA) directly improves ROI:
- Test different ad creatives and copy
- Refine your target audience
- Use lookalike audiences for better results
- Consider alternative traffic sources like Pinterest or TikTok
4. Increase Average Order Value
Getting customers to spend more per order improves profitability:
- Offer product bundles or packages
- Implement upsells and cross-sells
- Create volume discounts (e.g., "Buy 2, Get 10% Off")
5. Negotiate Better Supplier Terms
As your order volume grows, negotiate with suppliers for:
- Lower per-unit costs
- Better shipping rates
- Faster processing times
6. Reduce Returns and Refunds
Minimize profit-killing returns by:
- Providing accurate product descriptions
- Including size charts for apparel
- Offering excellent customer service to resolve issues
7. Automate Where Possible
Use tools and apps to:
- Automate order processing
- Handle customer service inquiries
- Manage inventory and stock levels
This reduces labor costs and allows you to scale more efficiently.