How to Improve Ecommerce Store Profit Margins Without Losing Existing Customers?

Updated 15 December 2022

In this article, we will learn how to improve ecommerce margins without losing existing customers. As everyone knows, earning reasonable profit is essential for every business to sustain itself.

Due to this, every organization puts its best efforts into continuously improving itself and staying ahead of the competition.

Earning good profits also allows companies to streamline their business processes effectively and efficiently. The same strategy applied to the eCommerce business as well.

Nowadays, eCommerce businesses are finding new ways to improve their margins to have more profitability at their end.

With the latest technological innovations like AR (Augmented Reality), virtual try-on, and voice commerce are helping them to achieve the same.

Due to these latest innovations, the biggest expense in the business the return, and exchanges reduced with great numbers. And other innovations like PIMs (Product Information Management Systems) help eCommerce sellers to improve the quality of their online listings.

Ways to Improve Margins in eCommerce Business:-

Here, I am listing a few important elements which you can look into to increase your e-commerce business margin.

Reduce Return Requests

The main concern of any eCommerce website is frequent returns. Due to that, business experience loss and fewer margins.

To reduce these returns store owners need to work on different aspects like product quality, proper sizing, product shipping on time, providing trials, and so on.

If customers are satisfied with the product quality and size then the return will become negligible. Also, try to provide products without defects so the customer will not return the product.

Virtual Try-on Experience

If an e-commerce store provides a virtual try-on experience then it will become easier to do online shopping with the appropriate size and choice.

Due to this, product returns will reduce, and store owners can save multiple things like extra packaging, waste material, and most importantly revenue of the store.

virtual try on

Virtual try-on will give the appropriate idea about the product that will make the purchase easier. So the customer will not move to another website and your return will reduce.

It will also give an idea about the size and fit so the customer will not return the product due to size or fit issues.

View in AR

Augmented reality products give you a brief idea about the specification of the product, look, and dimension, and it’s like you can virtually feel the product. This will help you to understand the product easily.


In AR mode you can view the product in a nearby or home environment through the phone camera, video, different 3D images, and so on.

Due to this, shoppers will get to know about the product which will directly help you to prepare your mind to purchase the product.

More understanding of the product will lead to more purchases, so it will help you to increase sales. Which are directly proportional to the profit margins.

Improve Product Quality

Nowadays most customer returns the product because the quality of the product didn’t match their expectation. Due to this, you will lose your existing customers and sales.

To prevent these scenarios you need to work on your product quality and try to make it better, so the customer can be satisfied with the product and don’t move toward returning the order.

Quick Delivery Option

Faster shipment is the main concern of the eCommerce store. So, if you provide the same then the customer will attract to your store and purchase the product.

Many big e-commerce giants take additional charges for priority delivery or provide it free of cost to premium customers since they already know the importance of it.

If any customer wants a product within one or two days and you fulfill their requirement. Then it will build their trust in your store and encourage them to make more purchases. This will promote your eCommerce store as well as profit margins.

Reduce Operating Expenses

Operational costs such as labor costs, employee benefits, license fees, maintenance fees, office expenditures, etc. Due to that, your margin will affect.

If you manage all these operation costs without affecting your work environment then you can reduce substantial operating costs and these reductions will improve the margins of your business.

Store owners can also deduct the operation cost by implementing new methods like a chatbot system instead of a toll-free number to resolve the customer’s queries.

These small changes in your eCommerce store will reduce a good amount of cost, which is directly proportional to your website margins.

Generate Brand Awareness

Customers always prefer well-known brands to shop online. Because these brands already build the trust of the users.

Similarly, to create awareness about your brand you need to do marketing through many ways like email, affiliate, word-of-mouth, leaflets, billboards, ads, SMS, etc.

All these are marketing strategies to build brand image and awareness among new and past customers.

The best way to stand out from your competitors is a catchy slogan and logo. This will help you in branding your eCommerce store, the more you promote your brand it will create trust in the customers in the store.

To create brand awareness you need to implement some new tactics which will help you to promote your brand between all eCommerce stores.

Manage Waste Cycle

Waste management in eCommerce can prevent unnecessary costs and this will help in increasing margins.

There are many types of waste produced in eCommerce like overproduction, products with defects, extra packaging, frequent returns, inventory management, and so on. So you can manage them all and increase your margin.

The store owner can implement new ways to manage the waste cycle. This will help to reduce the cost and extra burden on the owner.

Manage Average Order value

If you focus on a single product margin you will lack in progress. To increase the margin of your eCommerce store without losing customers you need to focus on average order value. Now the main question is how to increase the average order value.


ecommerce margins

All these aspects will help you to increase the average order value and it will proportionally increase the profit margin of the store.

Initiate a Customer Loyalty Program

If a customer gets benefits while they share the eCommerce website with some other customer. It will encourage them to share it again and again and this will increase website engagement.

If you provide additional benefits to your existing customers in the form of reward points, refer and earn points, cashback, discount coupons, etc.

As you are already aware of that retention of old customers is easier than acquiring new customers. The old customer always prefers to shop with their preferred brand so providing benefits is an easy task to retain the customers and get the store profits.

Implement Product Promotional Offers

Many big giants provide maximum discounts on products on different occasions and it helps them to clear out the old stock, sale new launched products, discounts on grouped products, and so on.

These are the simple ways to provide and gain the benefit of the store. All promotional offer belongs for a certain time, so users will purchase the product in the meantime which will directly boost sales.

ecommerce margins

Bottom Line

You don’t need to implement some major changes in your store to gain the margin or retain customers. But small profit margin changes will create a large impact on your sales which will enhance the margin and you will earn a good profit and also provide benefits to your customers.

. . .

Leave a Comment

Your email address will not be published. Required fields are marked*

Be the first to comment.

Start a Project

    Message Sent!

    If you have more details or questions, you can reply to the received confirmation email.

    Back to Home