Do not panic! Keep calm!
You are the owner of an online platform, like a e-commerce website and your sales go down this month. Do not panic, keep your calm. You will need it to make some research into why this is happening. So, keep your shit together for now!
Let’s check the amount of traffic!
First thing I would check is the traffic. Meaning the number of visitors, or visits, if you like, per month. If that looks like it took a dive then it is probably the cause of your low sales. If you do not have a tool to check the visitors of your website then just stop, this article is not for you. The best thing to recommend is a free consultation with one of our experts, click here and send us a message.
If your traffic is down then you should go ahead and calculate your conversion rate per year. Check if that conversion rate is smaller than the conversion rate in the analyzed period.
If the conversion rate per year is significantly bigger than the one in the current month (analyzed month) then the drop in traffic is NOT the only thing that is making your sales go down. We should look deeper.
Check the last changes you made!
We are assuming now that the average conversion rate (for the last 12 months) is bigger than the conversion rate of your affected period. So, in other words, your conversion rate just took a dive, leading to poor sales.
Why? Check your last changes:
- to the website
- or to the marketing campaigns (Google Ads, Facebook Ads, etc)
- or to the prices of your products
Looking at these metrics you can find that sales went down when you changed something on your website. Easiest thing to do is to revert that change! If you can not revert, leave us a comment or send us a message and let’s see what we can do. It might be causing a performance issue with the site and visitors are abandoning it more than usual. This can be fixed and we can help you out with this.
If the marketing campaigns changed in any way, revert the change. This is a very complex discussion and maybe we will tackle it in a different article. Leave us a comment if your marketing campaigns have changed and your sales went down, or if your campaigns are not producing as many sales as you want. If we see engagement, we will create another article to tackle this subject.
If the prices of your products changed …well…I think you know what I’m about to say!
I have not changed anything – sales still go down
You might not have, but maybe someone else who has access to the site/marketing campaigns could have. Double-check!
Still, if no changes were made recently and you still can’t find the issue, check your competition!
If they are running an aggressive campaign, big discounts, black-Friday-like promotions or something like that, it could affect your sales, big time. It’s time to adjust your strategy, maybe a change in your USP and a repositioning of your brand.
Where saying ‘maybe’ because there is a lot to take into consideration and a short answer is never the solution, we need to check all the variable before making a change in strategy. So,this is not a decision to take without some proper research.
The competition has not changed anything
This is getting interesting! You might need to have a data specialist look over your numbers. We would start by pulling metrics reports from 2-3 years back and see how they affect the business.
This could be an issue of seasonal sales, let’s take an extreme example: Christmas trees, you can’t sell them in the summer, can you?
Other stuff that can affect your sales:
- your products just became obsolete (iPhone 10 just came out and you’re selling iPhone 9s)
- economical/legal environment issues: a change in taxing laws can affect your sales. For example, you are selling luxury items and the government just passed a law to increase taxes on luxury items. Taxes that the buyers pay directly, in some countries, this happens.
- bad reviews. Say you’re running a food delivery business and someone left a really bad review on TripAdvisor. You are f…d, because you probably deserve it. Take care of your customers, this should never happen.