The Key Factors That Make eCommerce Websites Successful

E-commerce businesses are seeking automated web-based solutions that increase efficiency and lower costs. To compete and grow, businesses need a professional ecommerce website. These Key Considerations for eCommerce Website will help you maximize your profits.

1. Beautiful and modern website interface

Your website’s design interface is what customers see first when they visit it. It can be beautiful or ugly depending on who you are, but there is a common standard for an attractive and professional ecommerce website.

Beautiful websites will be modern and simple. The color scheme should complement the logo color.

For customer convenience, parts and layouts can be arranged and simplified. The homepage is the first place that visitors will visit. The sub-pages can then easily be made simple and logical.

2. All devices are compatible

Smartphones are the future. With more than half the web traffic coming from mobile devices alone, Google will be the first to appear on mobile devices. If you want your website to be found in search engines, it must be mobile-ready.

Customers will access your website from different devices, so it is important to customize the site for each device. This will ensure a better user experience and ensure that the website interface does not become distorted.

This will make it easier for salespeople to introduce products to customers.

It is crucial to make mobile e-commerce websites. It’s a unique selling proposition. You can also increase your conversion rates with your mobile device.

3. Secure customer data with SSL

An SSL certificate simply means that no one can access your customer data. SSL is used to secure a website when it has a URL that is https:// // instead of http:// //. SSL certificates provide strong encryption for your website and assure visitors about its credibility. You can get the same security level whether you buy comodo SSL certificate, or any other type. You can get huge discounts from different SSL certificate companies.

When customers visit your site, they will be given a clear warning that they are not secure. Customers may be turned off by insecure platforms or not be able access your site. Your sales will suffer as a result.

SEO is not complete without SSL. Google is concerned about the safety of users visiting your website.

Google’s webmaster tool will require you to submit two sitemaps: one for your version of http:// and the other for your version of https://. This confirms that your website is safe and can be indexed.

4. Optimize images to optimize SEO

Speed of image loading is important in general but it is especially important for images websites that are commercially important.

Two reasons are why it is crucial to have images loaded quickly:

Customers are busy and want to move quickly. They will abandon their cart if you slow down the order process.

Your site will load faster if your images are downloaded quickly.

Uploading images will take longer if they are smaller in size. It is possible to reduce the file size without sacrificing quality. How you save photos is the key. To compress web quality standard web quality, you can use Photoshop to choose the Save for Web option.

5. Enjoy interesting content

Keep your customers interested from the homepage through the product description.

Customers should receive accurate and useful information, as well as solutions and answers to their questions.

Although these small things may seem insignificant, they can really drive traffic to your website. Attractive content builds brand loyalty. Your customers will place orders when they see action content.

How to create engaging content for your website:

Highlight your unique selling propositions on your homepage. What are the unique selling propositions of your e-commerce website that are different from those of your competitors?

Clear and concise instructions are important so visitors don’t get lost in the process.

– Build brand loyalty and connect with customers.

This is one of the most crucial elements of Key factors for eCommerce website to increase your site’s traffic.

6. Personalize the customer experience

A highly customizable backend feature is essential. Customers should also have the option to customize their experience. Unique offers will help you introduce your visitors to the appropriate categories and order options.

Personalize the customer experience with factors

You can create a buyer character, also known as the Ideal Customer Avatar for your brand to help you have a clear idea of what they want.

Ensure consistency across all media platforms and at each stage of the buying process.

Start with small experiments and measure the indicators.

– Improve website rankings in search engines. You’ll know when you should get more SEO traffic.

In other words, your customers will be happier and your business will grow faster if they are happy.

source https://www.magetop.com/blog/key-factors-for-success-in-ecommerce-website/

Three key features are essential for an e-commerce site that is successful

This article will highlight 3 key features that sellers must include on their e-commerce site to ensure the best possible experience for customers.

Online sales of everything, from electronics to fashion and food, have exploded over the past decade. This trend is great, but businesses need to improve the features of their websites for e-commerce to keep up with the demands of consumers.

Online shopping should be as convenient, fast, engaging, and personal as physical retail.

Consider the following features to enhance your e-commerce website:

1. Optimize mobile app

Online shopping is now a part of our everyday lives and has seen a dramatic increase in popularity since the pandemic. Businesses need to create their own ecommerce apps because people are more likely to use mobile devices.

You can be mobile-first and meet your customers wherever they are.

Consumers expect to be able to access websites and apps whenever they need to view new products or create wish lists.

Mobile should be the primary channel for online sellers. This means that e-commerce features should be focused on visuals. They should include less text, easy access to shopping carts, fast purchasing procedures, and one-click payment options.

Your customers shouldn’t be stuck with bad mobile design, technical issues, long, complicated forms or any other inconvenience that could hinder a smooth, enjoyable, and fast shopping experience.

Magetop can help create mobile apps for both iOS and Android. Your mobile app will work faster than your website, increasing your sales.

2. Not just products, but experiences.

Consumers will choose your online store over many others if they have an easy, quick, and engaging shopping experience.

It is important to provide an experience your customers enjoy and will remember. They are more likely to return and refer their friends, family and social networks.

What is the real magic of this experience?

It is important to offer relevant imagery and intuitive navigation. You also need instant access to detailed product information including attractive and dynamic product visualizations.

Your customers will judge your company based on how you present your products or company. You can influence their decision about whether or not your business is right for them.

A great customer experience is key to ensuring that your customers are not just buyers, but true advocates for your brand.

3. Use artificial intelligence technology

Artificial Intelligence (AI), is intelligence that has been created by humans to help computers automate intelligent behavior like humans.

Online users are increasingly looking for products and content that is easy to find.

Online businesses have taken advantage of this trend and implemented website improvements projects to provide the best customer service. They bring in advanced technology solutions such as voice search, chatbots and other AI-powered options to their work.

These are some of the many benefits of using AI in website development

  • Search faster
  • Increase customer interaction
  • Provide personalized user experiences.

Marketing methods that reach target customers will be more effective.

Customers should be surprised with unique experiences and special offers whenever possible. This will make your brand stand out in an ever-evolving market for e-commerce.

We hope you’ll consider these three important features when creating your e-commerce website.

source https://www.magetop.com/blog/3-important-features-for-a-successful-e-commerce-website/

How to Get Inventory and Keep Your Stockroom Clear of Clutter

Retailers face a lot of problems with inventory management. Inconsistency in inventory receipt can lead to inaccurate stock numbers and wasteful replenishment of inventory. Both are costly–and preventable–mistakes.

This guide will show you how to create an inventory receiving process. It also includes bonus tips for getting new stock onto the shelves as quickly as possible.

What is receiving inventory?

Receiving inventory refers to receiving stock from suppliers, organizing it in a stockroom and selling it to customers.

A clear process for receiving inventory will help keep your stockroom clutter-free, and your inventory numbers accurate. If a customer asks you to check out a product, this will let you know how much stock you have and where you can find it.

The inventory receiving process

  1. Count inventory
  2. Verify accuracy
  3. Place inventory labels in your stockroom

Let’s now take a look at how to get inventory.

1. Count inventory

The first step in determining your inventory is to count it. You can count your inventory manually or use inventory management software. This will give you an idea of what products you should reorder.

For example, if you are running out of popular items, submit a order (PO). You must pay the invoice and agree on a delivery time. Wait for your shipment to arrive from your supplier.

INVENTORY TIP To create and send purchase orders to suppliers and vendors, use the Stocky App Shopify POS allows you to track the status of a purchase order and its expected delivery date once it is created.

2. Verify accuracy

Compare the shipping slip and the shipment to your PO when it arrives to ensure that the correct inventory was received.

As soon as your shipment arrives at your area, verify its accuracy. Be sure to check that the following elements correspond with your PO.

  • Description of goods
  • Codes for products
  • Quantities per SKU

If you find an error, contact the supplier immediately to let them know. Most suppliers will work with customers to rectify errors, regardless of whether they are missing quantities, incorrect products received, or damaged.

INVENTORY TIP After a PO arrives in your store, you can sync it with your inventory in Shopify by using the Stocky App. You can mark a PO as partially received if an item is damaged or missing. Contact your supplier to make sure the missing inventory is shipped.

3. Place inventory labels in your stockroom

After you have verified that you received the right amount and type, you can finally put them away.

Transfer your products from the receiving area into the place where you store inventory. Most merchants have a stockroom or backstore with shelves and storage units. Make sure your stockroom is well-organized and that items are placed in the right place. This will make it easier to locate products for customers by store associates.

source https://www.shopify.com/retail/receiving-inventory

Cash Wrap Counter Ideas For Retailers

Maxime Cohen, Scale AI Chair Professor of Retail and Operations Management McGill University’s Desautels Faculty of Management says that a cash wrap is the area inside the store where customers pay. It also includes surrounding retail displays.

The cash wrap of a store is not just where transactions take place. It plays an important part in increasing sales, improving guest experience, and decreasing theft. Continue reading to learn more about this important retail fixture.

What is a cash wrap and what does it do?

A cash wrapping is the area between a shop’s checkout counter, and all of the aisles and displays that surround it. This is where a shop can find its point-of-sale systems. Cash wraps are a great place for increasing revenue by making impulse purchases or adding inexpensive accessories.

It is important that customers can check out and purchase merchandise in retail stores. This is the last chance retailers have to convince customers to purchase products.

Maxime Chen, Professor, McGill University, Retail and Operations Management

Consider the checkout experience at your local grocery shop. There’s a good chance that the cash wrap is surrounded with displays containing magazines, snacks, drinks, gum, and other post-shopping goodies. These items have been selected in order to increase average purchase value.

Cash wrap counters are important

Cash wrap counters not only increase sales but also help prevent theft and improve checkout experience. Here’s how.

 

Sales increase

The cash wrap is a last chance to sell. Customers will reach for the cash wrap when they see displays displaying impulse buys at the checkout counter.

Cash wraps should encourage impulse purchases, but not be pushy. It should contain products that are targeted at the customers who visit the store.

Maxime Cohen, McGill University Professor of Retail and Operations Management

Customers’ needs should be anticipated by the checkout counter. Big box stores may tempt tired customers with candy bars and soda. Boutiques that specialize in gifts might offer gift bags, wrapping papers, and greeting cards along with cash wrap.

Cohen states that “Common practices include displaying cool new products that are visually appealing – preferably high-margin items.” Other common practices include displaying small, inexpensive products such as accessories and gift card.

The cash wrap and checkout experience can be used to promote add-on products as well as to inform shoppers about sales, store credit cards or loyalty program.

Improved checkout experience

Long lines can be a sign your shop is busy, but they can also ruin a great customer experience. You can break down long lines by using a well-designed cash wrap and keep customers entertained while they wait.

Wayfinding signs and screens that indicate open registers help keep things moving quickly. Wait times can be reduced by card payments, particularly contactless. Store associates can reach customers in line with a mobilePOS and verify their identity before they go to the cash wrap.

Customers will be happy to wait if there is a long line. Inspiring impulse purchases will fill the aisles leading up to your cash wrap. You can also show promotional videos or information about your shop in this area.

A well-designed cash wrap will entertain and reduce the lines for shoppers, which in turn will keep them coming back for more.

It is possible to reduce theft

According to the National Retail Federation, retailers lost on average $461.86 per shoplifting case in 2020. Your cash wrap can help you reduce shoplifting.

You can see if someone is leaving the store without having to go to the cash wrap. If someone attempts to leave the store without paying, it is easier to spot them if you have your checkout counter near the exit. This location discourages theft.

Different types of retail checkout counters

  • One countertop
  • Double cash wrap
  • Three-part unit

There is no universal cash wrap design. It is important to design a checkout counter that suits your shop’s needs. There are many options.

 

One countertop

One point-of-sale (POS) system is contained on one countertop. This is ideal for boutiques that sell luxury goods, such as small shops. There’s less chance of people waiting in line.

Cohen states that a single countertop can have the advantage of taking up a very small space.

Despite being small, one countertop can be used to display impulse purchases on either the top or the racks next to it.

Double cash wrap

A dual cash wrap, as the name implies, is made up of two checkout registers. It’s easier for queues to be reduced when there are more points of sale. If your store handles a lot of transactions or is busy, you might consider a dual cash wrap.

Cohen states that a dual cash wrap is more efficient and can be used to display items on the counter. He suggests strategically placing impulse items near your counter to take advantage of this.

Dual cash wraps are available in many sizes and shapes. You could have two POS systems on the same counter. Or, you could configure the counter to form an L-shaped shape. You should choose the configuration that best suits your store’s layout, traffic flow, and other requirements.

Three-part unit

Three-part cash wraps house three check out points. This design is more suitable for large stores that process many transactions.

You can have more retail displays at the register if you have a larger checkout area. These can be filled with accessories and other add-ons that will increase sales.

You can set up a three-part unit multiple ways, just like with a dual cash wrap. Side-by-side registers can be a great way to save space. L-shaped and U shaped counters make it easy for cashiers and other staff members to store returns and promotional items.

source https://www.shopify.com/retail/cash-wrap

Three key strategies to personalize at scale: Focus on financial services

New digital players have emerged as consumers try new brands and ways to purchase products. Our recent survey of top executives in the financial services, insurance and marketing industries found that 89% agreed customers have been rewired digitally. 80% of respondents said they have seen changes to customer journeys or completely new ones. The overwhelming majority of senior executives (86%) believe that the pace of change will continue for the foreseeable future.

Innovative financial service brands share one thing in common: a laser-focused focus on digital customer experiences. They offer highly personalized and convenient experiences that are becoming increasingly popular with consumers. Larger banks and insurance companies now have to offer similar personalized experiences on a large scale.

The challenge is not just about personalization technology. It is also about creating meaningful experiences that provide value to customers and address their most pressing issues. To do this, the industry requires deeper understanding of their customers and evolving needs.

Adobe and Econsultancy teamed up to create the 2022 Digital Trends — Financial Services In Focus report. This report helps financial service providers better understand today’s digital-first environment. We looked at what industry leaders are doing differently to others, and how they are “significantly outperforming” their sector or exceeding their customers’ expectations.

Personalization is difficult, but personalization at large is more difficult

We surveyed technologists and marketers from financial service companies that had outperformed their peers. 53% of those surveyed said that their organizations valued meaningful digital interactions that helped improve their customers’ financial health. The 38% and 37%, respectively, were significantly lower than those who slightly outperformed the sector.

Personalization is essential for creating meaningful experiences. This may prove difficult for many financial service organizations, according to our research. Only 12% of respondents agreed that the digital experience of their company is in line with customer expectations. A substantial majority (58%) said they are just “keeping up” with customers’ expectations.

It may not be as difficult as you think to improve personalized experiences. Three key strategies financial service companies can use to increase personalization at scale are highlighted in our findings

  1. Get control of your customer data.
  2. With the right technology, unify and activate all your data.
  3. Enhance cross-functional collaboration

Strategy #1: Get control of your customer data

Understanding your customers is essential to deliver memorable experiences for them. Understanding them means combining all data from different sources, journey stages and segments to create a coherent picture. This is a difficult task for any customer. It can also be daunting for millions of customers. Therefore, the top investment area in the industry is in improving insights and analytics capabilities. We asked top executives to pick their top technology priorities in 2022. 65% of them chose data and insight.

However, the industry still faces many obstacles in obtaining the data it requires. Google Chrome will stop supporting third-party cookies. This means that marketers won’t have the same access to the data they need at the beginning of the customer journey. The critical problem is that the large amounts of data financial institutions collect directly from customers — collectively called first-party data – is dispersed and unconnected across multiple systems.

Some financial institutions might not be able to see where all their customer data is at any one time. Even if they have a complete map of customer data, it is possible that they are not using it to unlock customer insights or deliver exceptional customer experiences. Our research has shown that financial service executives are more confident in gathering first-party information (63%) or preparing for a post third-party cookie environment (51%).

First-party data is becoming more important as the industry places more emphasis on retention and engagement to increase customer relationships’ value. First-party data strategies are a key advantage for financial services firms today over slower competitors.

Strategy #2: Unify your customer data and activate it in real-time

The first step in identifying a first-party strategy for data is not enough. Personalization at scale requires a combination key elements. These include the ability to produce content across an enterprise in order to meet the demands of personalization, and the ability deliver consistent and relevant journeys across touchpoints. Technology plays a vital role in ensuring that these three pillars are integrated to create, deliver, optimize, and optimize real time, cross-channel journeys.

This requires consistent data collection across all channels, continuous updates to customer profiles, high-volume content creation, and management. You will also need to connect your customer and journey profiles with each customer touchpoint technology so that experiences are consistent, personalized, and meaningful across all channels.

These solutions are being adopted by financial services companies more frequently. Executives also ranked data and insights (57%) and enterprise data architecture (57%) as their top technology priorities. Content management technology (47%), and customer journey (50%) were also high on the list. A growing number of practitioners and executives see the role of artificial intelligence (AI), and machine learning within their customer experience tech stack. 25% of respondents to the survey said that AI deployment is one of their top three priorities in order to better serve customers.

Some senior executives in financial services may have unrealistic expectations about their technological capabilities. We asked 31% of them if they believed their companies had the tools necessary to support personalization. Only 15% of practitioners agreed. Leadership teams must validate their assumptions to meet business objectives.

Financial services firms know that data alone won’t suffice. A tech stack must be able to connect to customer journeys and profiles to enable personalized experiences that are channel-specific and scale to meet customer needs at every stage of their journey.

Strategy #3: Make it easier for people to collaborate

Personalizing customer experiences is a challenge. Each part of a customer journey can be managed by different functional areas. Marketing controls the website content, while product or technology manages the mobile app. Customer service handles digital chat. Each of these elements must be customized and connected to create a seamless customer experience.

This requires cross-departmental collaboration. It involves managing change well, fostering transparency and openness within the organization and choosing and integrating appropriate technologies. Our research shows that financial service companies’ marketing professionals who consider their digital experience to be “ahead” of customer expectations rate their organization highly in terms of collaboration, agility and innovation.

Our research also showed that many financial service companies have the potential to collaborate even more effectively. We asked 44% of senior executives whether they believed that different marketing and experience teams could work together successfully. 44% of senior executives said that they were either working on it (48%), or hadn’t yet started to think about it (8%) Similar results were found for executives. 35% said they had reduced organizational silos consistently, 56% said that they are working on it and 9% said they hadn’t started.

Bottom line: Improved collaboration can quickly translate into improved customer experience, including more personalization.

It’s all possible

Financial services providers typically have all the customer data necessary to create personalized experiences at scale. These organizations must ensure that they have the technology in place to link their customer data to meaningful customer profiles. They also need the ability to integrate these profiles with systems that power customer touchpoints. This will allow for better collaboration among all teams that are involved in the customer experience.

source

https://business.adobe.com/blog/the-latest/focus-on-financial-services-three-keys-to-personalization-at-scale

BigCommerce brings a smile to NRF 2022, Commerce After Dark

It would be an understatement to say that BigCommerce was excited about . It was also our first ever booth presence at a conference, since March 2020. This meant that many of our team members would be meeting face-to-face for the first time.

These types of experiences are the foundation of our company culture, so it was so great to be able to meet up and have a chat.

This was not a BigCommerce event. Ken Natori President of the Natori Company joined us on stage to discuss Natori’s journey into eCommerce and the changes in the marketplace since 2008. We are excited to share the video so that you can see all the amazing insights from the session.

There were many great things that took place during the conference. But there was more.

BigCommerce’s Event “Commerce After Dark”

Commerce After Dark, an invitation-only event sponsored by our friends Attentive and Codal, was held Monday, January 17 at Dear Irving on Hudson

The attendance was phenomenal and it was great to see our customers and friends, such as Flower Power Coffee.

We couldn’t have asked to have a better night with a high-energy performance by the Hip Hop Violoist, delicious cocktails at the bar, and stunning views from the Big Apple.

We are grateful to everyone who attended NRF, and the amazing sponsors who made this event possible. We look forward to seeing you at the next eTail West event. You can find us from February 28 through March 2, so come by to say hi!

source https://www.bigcommerce.com/blog/nrf-2022-recap/#bigcommerces-commerce-after-dark-event

How much does it cost to buy a business?

We’ll be sharing with you the average cost of buying a business. This includes a breakdown by industry and a quick overview of how to calculate the small business’s value based on earnings. You will also be able to determine a budget and see which businesses you can afford.

Our complete guide to valuing small businesses provides a detailed explanation of how to value a small business.

Average costs of buying a business by industry

If you have less than $250,000 to invest
  1. Beauty Salons/Barber Shops – $80,000
  2. Landscaping and Yard Services – $128,500
  3. Restaurants – $128.750
  4. Other eating and drinking places – $130,000
  5. Apparel and Accessory Stores: $160,000
  6. Entertainment and Recreation $165,000
  7. Convenience Stores $175,000
  8. Bars/Taverns – $195,000
  9. Dry Cleaning/Laundry Services – $199,000
  10. Auto Repair, Parts, and Services: $240,000
If you have more than $250,000 to invest
  1. Gasoline service stations – $252,500
  2. Liquor Stores – $270,000
  3. Supermarkets – $270,000
  4. Educational Services – $275,000
  5. Health, Medical, Dental – $325,000
  6. Construction-Special Trades – $356,000
  7. Durable Goods – $431,500
  8. Hotel and other Lodging Places – $542.750
  9. Fabricated Metal Products – $725,000
  10. Lumber and Wood Products – $1,175,000

You don’t have to wait too long to begin thinking about how to finance. You should think about how you will finance the purchase of a business before you meet with sellers. A buyer who is able to move quickly, just like when buying a house. Start by checking your credit score. You can get a free report if you don’t have a credit score.

Lenders will require that you contribute at least 30% of the purchase price, even if your credit score is excellent. You can also use funds from your retirement fund. You don’t have to pay an IRS penalty for using a ROBS. We recommend that you read Is it right for me?

The Average Price of Buying a Business

You may be interested to see more data if you don’t have a narrower focus on the industry you are looking for a business. Here are the most recent data on median prices for small businesses. BizBuySell is the most popular business-for-sale website where you can find thousands small businesses to buy.

  • $185,000 = Median Sales Price Businesses sold in the 3rd Quarter of 2015.
  • $438,000 = Median Revenue for businesses that were sold during the 3rd Quarter of 2015.
  • $100K = Median cash Flow businesses that were sold during the 3rd quarter 2015.

These figures are called medians, which means they represent the middle point of each data set. If one business sells for $100,000, another for $250,000 and one for $750,000 respectively, then $250,000 would be the median. This is because the data set has exactly the same numbers on both sides of the business. Although median figures may not be as precise as averages, they can give an estimate of the price you should expect to pay for a business.

Median Sale Price

For the past 4 years, the median sale price for a business was between $150,000 and $200,000 It fell slightly between 2014 ($189,000), and 2015 ($185,000). BizBuySell says this could be due to lower prices because of the higher running costs of a business in 2015. The average asking price for a small business in 2015 was $200,000. In 2015, the average asking price for a small business was $200,000.

  • $200,000 = Median asking prices for businesses that were sold during the 3rd Quarter of 2015.
  • $185,000 = Median Selling Price in the Third Quarter of 2014.

Median Revenue

The median revenue of small businesses that were sold has increased by $438,000 over the past four years from $375,000 in 2011, to $438,000 in 2015. This shows that people are now buying larger businesses than they were in the past.

  • $375,000 = Median Revenue from Sold Small Business in the 3rd Quartary of 2011.
  • $438,000 = Median Revenue from Sold Small Businesses during the 3rd quarter of 2015.

Median Cash Flow (Seller’s Discretionary Earnings).

BizBuySell’s Insight listings and reports refer to a business’ cash flow number. This is the net income after subtracting the owner’s salary (full list ). This number is also called the Seller’s Discretionary Earnings of a business.

It is important because this number best represents the amount you can expect to make as a business owner. It is also crucial because it is the number used to calculate the business’ value (explained below and in this article).

Over the past 3-4 years, the median cash flow from small businesses sold has remained fairly stable at $80,000 to $100,000.

  • $80,000 – Median Cash flow for Small Businesses Sold in the Third Quarter 2011
  • $100,000 – Median Cash Flow from Sold Small Businesses during the Third Quarter 2015

Use Seller’s discretionary earnings to determine specific business pricing

These sales figures are great for estimating the general market. The reality is that people often spend more or less than the average on a business purchase. Seller’s discretionary earnings (SDE) can be used to get a more precise estimate of the business’s value. The following formula can be used to estimate the business’s value once you have SDE.

SDE x Industry Multiplier
+ Real estate
+ Accounts/receivables
+ Cash on hand
+ All other assets that are not included in the SDE multiplier
– Business liabilities

= Business’ Estimated Value

This is how it works step-by-step:

  1. Calculate the SDE

SDE can give you an accurate estimate of the business’s true revenue potential. SDE can be calculated by adding certain expenses to the net income of a company, as reported on its tax returns. Add back the owner’s salary and any other expenses that aren’t necessary to run the business.

Wayne Quilitz, president of Murphy Valuation Services business brokerage, explains that there are certain things that can be added to the net income of a business to calculate SDE.

  • The owner’s salary and perks
  • Family members on the payroll
  • Other expenses, such as amortization and depreciation, are not cash.
  • Business golf outings are a great leisure activity.
  • Charitable donations
  • Personal expenses such as the purchase or lease of a vehicle that were not included in the business tax return are noted as expenses
  • It is not necessary to travel for business purposes.
  • One-time expenses that are not likely to recur following the sale of the company, such as the settlement or litigation costs
  1. Get the correct SDE multiplier

Businesses typically sell for between 1 and 3 times the SDE. This is the SDE multiplier or multiple. It varies depending on market risk, industry and geographical trends, company size, tangible and intangible assets of the business, owner risk, and other variables. This is the most subjective aspect of valuing businesses because there are so many variables that can affect which multiple to use.

BizBuySell data can help you find an estimate SDE multiple. Multiples are listed by industry. BizBuySell uses “cash flow multiple”, but this is not the same as SDE multiple. In 2015, the average SDE multiple of all businesses sold was 2.28.

SDE x 2.28 = Average Business Value

  1. Add business assets to obtain business valuation

You must also add assets to the equation that are not part of the SDE multiplier. You must add assets such as real estate, cash on hand, accounts receivables and cash on bank. Liabilities (e.g. To get a final value for a business, you must subtract interest and debt.

This may sound too complex, but you can hire an appraiser to do the math for you. The professional appraiser will assess the business and charge you between $2,000 and $3,000. A professional appraisal is more accurate than a personal appraisal, but it leaves less room for negotiation between buyers and sellers.

How industry affects the value of a business

There are many factors that can affect the sales price of a business. It is important to consider industry-specific details when purchasing a business or trying to determine the price tag.

Because restaurants account for almost a quarter (24%) of all sales in small businesses, we decided to look into them. They easily make up the most popular category of small business (buy a substantial margin).

Other high-selling small businesses include dry cleaners/laundromats, bars/taverns, and convenience stores.

Because Dry cleaners/laundromats are the third most popular business category, and because they are so different from restaurants in nature, we included them in our statistics.

The report contains information about sales in the Dry Cleaning/Laundry and Restaurant industries.

 

There are many interesting differences worth discussing.

Sales Price

The data shows that restaurants are on average $70,000 more expensive than dry cleaning/laundry services businesses. If you’re not sure which option you prefer, or are looking for the cheapest, this difference in price could be a reason to consider purchasing a restaurant.

Revenue and Cash Flow

There are significant differences in median restaurant revenue and median revenue from dry cleaning businesses. Restaurants bring in almost twice as much revenue than dry cleaning businesses.

Restaurants have higher operating costs than laundromats. The primary expenses for Laundromats are wages and equipment maintenance. They also have to pay utilities like water, electricity, and water. Restaurants have on average more employees and higher ongoing costs (purchase of food and drink, etc.). Both industries have similar cash flows, even though restaurants generate more revenue. This would explain why the SDE multiples for the two industries are so different, 1.89 (restaurants) and 2.69 (dry cleaning/laundry).

Dry cleaning/laundromats generally have repeat customers and are therefore more likely to be reliable. Customers should not switch washers and dryers unless they have purchased washers and dryers. They are ready if the environment is safe and the equipment functions properly.

Market Risk & Owner Risk

The value of a business is affected by its industry and geographical trends. This is commonly referred to as “market risks.” Restaurants are more volatile when it comes to customer retention. Restaurants are constantly in competition with each other on many fronts, including price, quality, and service. One bad experience or poor quality of food can turn a customer off.

This means that the sustainability and transferability of a restaurant business are less likely than those of a dry cleaner/laundromat. However, there are exceptions.

Owner risk is the degree of independence a business has from its owner. Transferring ownership of Laundromats is easy and has minimal impact on customer base. Restaurants, on the other hand, are often dependent on their owner. A restaurant may be owned by someone in the community, or because a chef works there. They may not return to the restaurant if this happens.

It is important to look at specific industry multipliers when determining how much you can pay for a business.

Are you looking to purchase a business? To download our FREE Guide: How You Can Buy a Business, click here

Bottom line

All of this is meant to show how statistics (averages medians multipliers) can give you a good idea about what you should expect to pay for a business. These statistics can also help you understand why some businesses sell for less or more than others.

You can use industry-specific multipliers to get a fairly accurate estimate of the amount you can expect to spend on a business purchase. A business purchase can be expensive, as you can see.

https://fitsmallbusiness.com/buying-a-business/

The Five Ps of Peak Performance: A Guide for Preparing Your Infrastructure For High Traffic

source https://business.adobe.com/blog/how-to/five-ps-peak-season-performance-guide-preparing-your-infrastructure-high

Your journey to success during your peak season, whether it’s the traditional holidays or a specific period in your industry, starts with ensuring that your digital storefront’s infrastructure is up to the task. Your ecommerce website should be ready for peak season, regardless of what it looks like for you business.

Adobe has provided a guide for preparing for peak season performance. We call it “The Five Ps of Peak Performance” These recommendations are a minimal investment of time but should be high up on your priority list for your company so you can easily ramp up to your peak sales traffic.

To ensure you are prepared, we recommend you begin this work at least 3 months before your most important calendar dates. This overview can be used to help you talk with your partner (or systems integrator) about how they will prepare your site for peak season.

Graphic displaying people using their personal devices to online shop

1. Predict your traffic and order volume

While wild guesses made based on intuition are fine at your local racetrack or casino, data-based planning should be the norm when planning for your company’s most important opportunity. These four key benchmarks can be easily accessed via Adobe Commerce Business Intelligence or MBI to help you make accurate predictions about peak season traffic that you will need to support.

  • The traffic load of your site over the past six month on a daily or weekly basis
  • Last year’s peak season was a busy time for your site.
  • The percentage increase in peak season traffic last year compared to the six-month average before peak season.
  • Year-over-year traffic growth rates between the last year’s and this years site traffic

After your team has gathered the data, you can first predict peak season. This is done by comparing last year’s calculated percentage of growth to your site’s traffic running daily and weekly. To validate the prediction made in the previous step, you can use the year-over year growth rate by comparing this percentage to the peak season numbers last year. Talk to your team about how to resolve differences if the numbers don’t agree. Plan for traffic volume at the higher numbers to resolve questions regarding large differences.

A second method to predict the resources required is to identify peak sales hours and examine the load they place on your infrastructure (such memory, CPU, disk space). To get a rough estimate of the resources needed to handle heavy peak traffic incidents, multiply these metrics by 3. Your site may need additional resources to handle peak demand if your resources cannot meet the tripled metrics.

Remember to consider how COVID-19 may have impacted your digital storefront, and whether you might see peak season traffic levels that are different from last year.

2. Use your resources to test the waters

To validate your site’s ability to handle the anticipated peak season traffic, load test your infrastructure using your resource model. Review Adobe’s recommendations for load testing Adobe Commerce sites is a good place to start this process.

This testing often exposes many deficiencies. You should have a process to document and communicate these failing points within your organization. This will allow you to create a common action plan. When working with an SI partner, ask them to share their findings with you.

3. Make sure you prepare your site according to the following steps

Increase server and/or database capacities
After you have done site load testing and identified areas that require additional capacity, it is time to plan how to address those needs. Flexible capacity may be required to meet peak periods. You might consider increasing your capacity if your site is used to a high level of load. This will allow you to meet peak season demands and also give your company more room to grow. You might think that web traffic and transactions will continue to increase since many consumer habits have changed in the wake of the pandemic.

You might also consider adding Web Nodes in order to meet the load test’s resource requirements. Adobe Commerce customers can request temporary server increases by requesting surge capacity as detailed in the Knowledge Base article. Contact your Adobe Customer Success Manager (CSM) if you are interested in a permanent increase in memory, disk size or CPU.

Use a content delivery network
A content delivery network (CDN) is another way to meet peak season performance requirements identified during load testing. A CDN powers your cache by creating a global cache network that stores your static media files, HTML and JS Style Sheets. This helps to reduce load and improve response time. There are many CDN options available, but Adobe Commerce users have access to the Quickly CDN.

Change your caching configuration
A better caching configuration can help you reduce the hits to your server and solve infrastructure issues. We recommend Full Page Caching as a great way of speeding up your Adobe Commerce website.

4. Be a good example of good habits

Optimize images to create a fast eCommerce website
Images are an essential part of the sales process. However, they can also be a negative if not managed properly due to slow load times which impact site performance. WebSafe 72-dpi images are recommended for merchants. More information can be found in our article Resizing Product Image.

Latest ece-tools package
To take full advantage of the new enhancements in our deployment tooling, ensure that your cloud environment is running the most recent ece_tools. Recent releases include improvements to the local development experience, faster deployment of static content, and self-service capabilities that enable merchants to be more productive. For more information, see the ECE-tools Release Notes.

Don’t let deployment get you down
Visitors should be able to shop without interruption during holiday season. However, you may need to make changes to your production environment. You can set up your project to ensure that there is no downtime for customers during deployments. You can use these steps to set up Adobe Commerce for Zero downtime deployments. This is one of the best ways to practice cloud infrastructure management. These best practices will ensure that your customers interact with live sites regardless of how they are deployed.

Backup your eCommerce website
To avoid a costly and time-consuming environment rollback, ensure you have proper backup management. Snapshots allow you to quickly back up and restore specific environments from any location at any time. This can be a time-saver and cost-saving tool that can help you save time and money in the event of unforeseen circumstances. Snapshots are quick to restore your Adobe Commerce environment because they are read-only files. For more information on creating and using Snapshots, please refer to the Adobe Commerce Developer Guide.

Track your performance
To keep an eye on site performance, it’s always a good idea for monitoring tools to be well-designed. There are many tools and processes available to monitor site performance. Make sure you choose one that is compatible with your company. Adobe Commerce customers that use the cloud infrastructure management system should take advantage of New Relic services to monitor site performance.

Customers can also take advantage of Observation to Adobe Commerce, an New Relic nerdlet. This application gives you a quick overview of your site’s performance and allows you to drill down to find out more about potential issues.

Stay in touch with your Adobe team
Always log in to Adobe Commerce and verify your contact information under Account Settings. Make sure your Adobe CSM contains information about key technical contacts for your company. Discuss your solution partner’s support plans for the holiday period. This will ensure that everyone is able to execute the plan in case of an unexpected event. These steps will help us alert the appropriate people within your organization to any security or technical problems that may arise.

5. Protect your site (and customer data)

Upgrade to Adobe Commerce
It’s important that Adobe Commerce merchants have the most up-to-date software as hackers get more sophisticated. This is especially true as we approach Peak Season. Bad actors know that busy businesses can be distracted and use the holiday noise to commit their biggest frauds. We recommend that you upgrade your website to Adobe Commerce before peak season.

Stay safe
Security patches enable businesses to stay current with security trends even if they don’t use the most recent version of Adobe Commerce. We recommend that security patches be installed as soon as they are available. Do not let them accumulate. You can access and apply patches with the Magento Quality Pack, to ensure your site is always up-to-date.

To learn more about security patches and best practices, visit the Security Center.

Use the Adobe Commerce Security Scan
The Security Scan Tool can be used to scan all Adobe Commerce websites, including Progressive Web Apps (PWAs), for known security threats and malware. This tool performs over 21,000 security checks and gives insight into the security status of your store. The tool can be used to automatically run security checks on a daily, weekly or monthly basis. Security scan output provides guidance on best practices and lists all identified issues.

Three Ways Retailers Should Use AI to Increase Sales

The retail sector has enormous potential thanks to artificial intelligence (AI) technologies. These technologies are widely used in finance and healthcare. Total articles previously mentioned the potential of AI to revolutionize online shopping. But instead of dreaming about the future, let’s look at three practical uses of AI currently available for ecommerce sites.

Review
To help them find the best products, shoppers are increasingly looking for reviews and opinions from other customers. E-commerce sites have two problems. They don’t have enough reviews which can lead to potential customers abandoning them for other sites. Or they have too many reviews which can cause text fatigue.

Sites such as Shop.com use AI technology to collect opinions from consumers and display them on their site. Natural language processing is able to make sense of large amounts text and allow shoppers to quickly understand the opinions about specific products.

Shop.com uses AI to create easy-to-read and comprehensive reviews.

Searches
Once you have applied AI to the vast amount of consumer opinions, you can now use the review information for your e-commerce website’s search bar. This is crucial for retailers as it means that up to 30% of people will use the search box when searching for a product. The technology behind search has made huge strides, and users can now type text based on their intent instead of product description. These are just a few examples.

  • “Strollers that can be used for beach walking”
  • “Kitchen gadgets that are easy to use on sore wrists”
  • “Good vegetarian restaurants for a first date”

These are just a few examples of intent-based searches that show how consumers can search for products. AI’s ability include user-generated material to power these results means shoppers will not only find more relevant products, but also trust crowd wisdom as opposed to the descriptions brands give for their products.

Chatbots
Chatbots are computer programs that use text and data analysis to communicate in natural language with other computers to complete automated tasks.

1800flowersChatbots have become a hot topic as many retailers are trying them with mixed results. 1-800-Flowers.com uses chatbots to great success: 70% of its customers who order through the chatbot are brand new.

Bots are powered by AI and can perform many tasks including customer service, retention, sales, and customer service. The popularity of messaging apps (Whatsapp Messenger, Facebook Messenger, Sina Weibo), and voice-activated search assistants Siri and Cortana has increased the ease with which retailers can communicate directly with customers on the platforms they are most comfortable using.

Macy’s and IBM began testing a mobile webtool, ” Macy’s on Call,” in July across 10 stores. This web tool allows you to enter natural language questions and get information such as stock availability and store layout specific to your store.

Retailers who don’t keep up with the latest developments in consumer research will be left behind. The good news is that retailers of all sizes can now take advantage of the technology.

source https://www.mytotalretail.com/article/three-ways-retailers-should-be-using-ai-to-boost-sales/

Fossil to Close Some Stores, Reorganize

Fossil Group, a fashion accessories seller and manufacturer, announced last week that it is planning a multiyear overhaul that will include closing down some stores and focusing more on less products. Fossil did not say how many of its 610 stores it planned to close in the U.S. and Europe. The U.S. has 284 Fossil shops

Total Retail Take: It seems like Fossil had to reorganize, especially as it is designed to better align the company with customers’ shopping habits. Fossil’s online sales increased by 50% in the third quarter, while sales at its stores fell by 3 percent. Additionally, today’s consumers seem to prefer fewer products and higher quality merchandise, which has led to a reduction in merchandise.

source https://www.mytotalretail.com/article/fossil-close-stores-reorganize/

Walgreens close to Rite Aid Deal

As reports about U.S. pharmacy consolidation increase, Walgreens Boots Alliance could be closer to selling hundreds of stores in order to get U.S. regulatory approval for its Rite Aid acquisition. Fred’s Pharmacy revealed that it was in talks with a Walgreens partner. However, management at Fred’s warned that there is no guarantee that the deal will happen. However, executives stated they are interested in expanding U.S. pharmacy operations. Although it is not clear if Fred’s will partner with Walgreens or Rite Aid, Fred’s CEO Mike Bloom stated that “acquisition and partnership activities” were in the company’s future.

Total Retail Take I’m less certain that the Walgreens-Rite Aid deal will get U.S. regulatory approval. With Walgreens having to sell at least 500 stores in order to make it happen, the longer it takes. The FTC seems intent to ensure that antitrust concerns are addressed before approving the deal, just like the Staples/Office Depot merger. Even with the divestiture and consolidation of 1,000 stores, Walgreens and Rite Aid combined would have the largest number of U.S. pharmacies, surpassing chief rival CVS Health.

source https://www.mytotalretail.com/article/walgreens-close-store-divestitures-rite-aid-deal/

Five Tips to Deal with Stressed Holiday Customers

It’s not surprising to see frustrated and frazzled customers during the holiday season. They are not wrong, and who could blame them? Retailers can’t blame them. recent survey conducted by alldayPA found that 76 percent of respondents were unhappy with brands’ inability to apologize for their problems. While 47 percent claimed they had been personally blamed for the complaints.

Retailers, this is a poor plan. What are the alternatives? These five strategies will help you keep your customers happy, your salespeople healthy, and your business afloat during the madness of the season.

1. You should be a partner and not a salesperson in stressful situations. Customers want to know that you are there to assist them with any problem or complaint. It might seem like you are only trying to solve the problem to make a sale or profit. It is your responsibility to ensure that the customer feels you both are working together towards a mutual solution.

2. Do not take it personally. However, they are dissatisfied with the service or product that they received. You, whether you are good or not, are the cause of their discomfort. Keep your cool if a customer starts to yell. You will have the best chance to make things work, even if the customer seems rude. Don’t be the problem, solve the problem.

3. You should have options and understand the value of each. Then you can offer a solution. To do this effectively, you need to be aware of all options and their value. You want your customer to be happy. However, it is important to ensure that you provide a solution that is both valuable and beneficial to both you and the customer.

4. Listen. Customers are often looking for someone to listen when they vent or express anger. Listening with patience and respect is the first step to negotiating a positive outcome. To show that you understand, you can repeat to them the complaint. Ask them any additional questions. Positive body language such as eye contact, nodding, and avoiding crossing your arms will show that you are listening. Finally, show sympathy. You can help them by showing sympathy.

5. Even if you don’t feel like it, you must apologize. No matter the validity of the issue, or the nature of the complaint, you should apologize. If you want to keep the customer, apologize. It doesn’t matter if they are expressing their dissatisfaction with your product or service or simply that they are upset, a simple “sorry” can make a big difference. Even if it’s not necessary or that the customer is at fault, an apology can help keep the customer coming back to your store in the new year.

The holidays are a wonderful time of year, but they can also be stressful. Your customers can feel supported and helped by you every time they come to your front door.

source  https://www.mytotalretail.com/article/how-to-deal-with-stressed-customers-during-the-holidays/

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