- A compelling product, impeccable listing details, and attractive photos. You have all the online selling basics covered. So, how about taking your business to the next level by enticing new buyers and making the existing ones buy more?
In the ever-expanding ecommerce marketplace, waiting for buyers to discover your product may take a while. What if there was a way to show up prominently in the sea of products and increase the chances of buyers purchasing from your store? This is where eBay’s Promotions Manager can help.
What is Promotions Manager?
Promotions Manager is a tool that helps eBay sellers create compelling offers to incentivize buyers to buy more, both in terms of quantity and the amount of money spent. These promotions, if used smartly, can help increase average transaction value as well as average cart size.
Why should you use Promotions Manager?
Let’s say a buyer comes to your store and likes a pair of shoes. They realize that if they buy two pairs, they will get 20% off on the second one, because you are running a “Buy One, Get One at 20% Off” offer.
Result: They intended to buy one, but your promotion encouraged them to buy two.
Or, let’s say a buyer intends to buy two pairs of earrings and the total cost is $30. They realize that if they spend $50 in your store, they get 10% off thanks to a promotion you’re running.
Result: They intended to spend $30, but your promotion encouraged them to spend $50.
Buyers are looking for deals on anything and everything, and Promotions Manager enables sellers to create compelling offers like, Free Shipping, BOGOs, and percentage discounts. And, it makes discounted items more discoverable by highlighting them on the item page and search-result pages.
Result: Buyers discover exactly what they want at discounted prices or with other benefits like Free Shipping.
Adi Behara, Senior Manager, Seller Growth at eBay says, “Testing and data shows us that an average seller can see an 11% increase in sales within the first few months of using promotions.”* And guess what? All sellers who have a store on eBay are eligible to use Promotions Manager at no extra cost.
Basically, Promotions Manager is a great tool for your business. In case you missed the benefits, here they are again:
- Attract clicks and conversions. Buyers are more likely to click on items with deals, period. With an attractive offer, you increase the probability of them buying from you.
- Increase in cart size. You have got the buyer on your eBay store and they like your product. With offers like “Buy 2, Get 1” or “Spend $50, Get 10% Off,” you incentivize them to buy more from your store, increasing the average cart size.
- Strategic placement. Let’s say you are selling white running shoes. On the product page of white running shoes, a buyer will see white running shoes from your store and similar shoes from other stores. However, when you create a promotion with Promotions Manager, the product page for white running shoes will have four additional items from your store that are a part of the same promotion. Here’s what happened: Promotions Manager generated a module just below the main listing to show off more items from your store. This dramatically increases the chances of a buyer seeing—and buying—your products.
How do you use Promotions Manager?
Creating promotions with Promotions Manager is easy to learn and quick to use. Here are a few things to keep in mind as you set up your offers (and put your business on a growth trajectory!):
- Scheduling. eBay focusses on retail moments in a big way. Whether it’s Mother’s Day, Father’s Day, Back to School, or Holiday, eBay’s seasonal marketing efforts bring buyers to the site to shop for a specific retail moment. Capitalize on that traffic by timing your promotions to these high impact marketing activities.
- Winning promotions. Promotions Manager is a strategic merchandising tool. With this tool, you can create promotions that are unique to your business, product, cart size, and price point. A good promotion is one that gets a buyer excited and makes them take the deal. While there is no set formula for a perfect promotion, curation is of utmost importance. Think from the perspective of a buyer, and group the items based on relevance.
- Duration. It’s recommended that you run 10 promotions for a 10 to 12 weeks and arrive at the one that’s right for your business. It’s imperative that you try different promotions and observe which one makes the right the impact on your business. If the business volume is low, let your promotions run longer to ascertain the right strategy.
Understanding the data points
You’ve created some promotions, and sales are coming in. Great! But, how do you know if the promotions really worked for you? Here are a few important metrics that will help you determine performance:
- Average cart size. This is the average number of items that were sold in each transaction.
- Average transaction value. The average amount of money a buyer spends in your store in one transaction. You can calculate average transaction value by dividing the total value of all transactions by the number of transactions or sales. So, if your average transaction value is $50 and you create a promotion that incentivizes the buyer to spend $60, it will likely work for you.\
- Sales Lift. This is the percentage that you get when you divide promotion sales divided by total sales. You can easily find this percentage on the promotions dashboard.
- Attach rate. The ratio of transactions in which the promotion was used vs. the number of transactions on which the promotions was available.
Promotions Manager offers four broad categories:
Order discounts. These promotions make the buyer spend more in your store or buy more products from your store. Here are a few examples:
- Save $15 When You Spend $50
- Save 25% When You Buy 3 or More
- Buy 1, Get 1 50% Off
Shipping discounts. With these promotions you can play with shipping offers to entice the buyer. Here are a few examples:
- Free Expedited Shipping on Orders Over $49
- Free 2-day Shipping When You Buy 3 or More Items
If you are using promotions for the first time, the easiest ones to start with our Order Discounts, and Shipping Discounts.
Codeless coupons. This promotion creates coupons with unique URLs. Here are a few examples:
- Extra $10 Off
- Save $10 When You Spend $100 or More
Sales Events. If you have created sales using markdown manager, you can amplify the impact by promoting the discounted products. For example, “Save up to 50% on all running shoes”.
Have you used promotions on your eBay store? Or do you plan to use them soon? Share your experiences in the comments section below.
* Claims are based on gross merchandise volume (GMV) data generated by a defined set of items on eBay during 2016-07-04 and 2016-12-31 which were promoted in a variety of formats (example order size discounts, free shipping offers, sales events, and related item discounts) by their sellers’ use of the promotions management tool on eBay for the first time. The GMV from the sale of these items was measured before and during these promotions. The increase is the difference between the GMV measured before and after compared to it during the promotions. Your actual results from use of the promotions management tool on eBay may vary and eBay makes no guarantee that you will see similar results.