Inflation is affecting everyone, from rising energy prices to everyday essentials. As a result, people have less disposable income and put off larger purchases. Shopify stores are directly affected as a result of this, as people consider twice whether they *really* need that new watch, new sneakers, or couch. So, is it time to throw up your hands and capitulate?! We would say: No! As an ecommerce platform, Shopify is uniquely positioned to help merchants weather rising inflation. Here are a few ways that Shopify merchants can use their platform to offset the effects of inflation:
1. Use Shopify Payments to get paid in multiple currencies
If you sell internationally, then you may be affected by currency fluctuations due to inflation. By using Shopify Payments, you can get paid in multiple currencies and have those funds automatically converted into your home currency. This way, you can avoid any losses due to currency fluctuations. Use a currency conversion app to automatically convert prices into your customers’ local currency based on their location.
2. Use Shopify Shipping to offer free shipping
Rising fuel prices can impact the cost of shipping goods, but you can offset this by offering free shipping on orders over a certain amount. By using Shopify Shipping, you can easily set up free shipping thresholds for your customers.
3. Use Shopify’s built-in discounts and promotions features
Inflation often leads to price increases for goods and services. To counteract this, consider running promotions or offering discounts on your products through Shopify’s built-in discounting feature. This will help entice customers to buy from you despite the higher prices caused by inflation.
4. Use Shopify’s abandoned cart recovery feature
If customers are hesitant to buy due to inflation, you can use Shopify’s abandoned cart recovery feature to send them reminder emails about the items they left in their cart. This way, you can encourage them to complete their purchase despite the higher prices.
5. Use Shopify’s reporting features to track your sales and margins
By using Shopify’s reporting features, you can keep track of your sales and margins over time. This information will be helpful in understanding how inflation is impacting your business and will allow you to make adjustments accordingly.
6. Experiment with new marketing channels to increase your ROAS
As your cost of goods rise, a marketing channel that was profitable last year may no longer make sense for you. When times are good, having just a few percent of margin on a Facebook ad can be acceptable, but in an inflationary setting, make sure to focus your efforts on channels that actually make you money. Try out advertising on newer platforms like TikTok, Snapchat, and branch out into other platforms that traditionally haven’t been used for eCommerce ads to test your acquisition costs there while cost-per-click prices are still low.
By following these tips, Shopify merchants can weather the effects of rising inflation and continue to grow their business.
A Helping Hand from ShopFox
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That’s why hashtags are a great way to get more attention on social media for your online shop.
Contact us today to learn more about how ShopFox can help your online store build trust and get more sales.