In 2017 ecommerce was responsible for around $2.3 trillion in sales and expected to hit $4.5 trillion in 2021. Clearly, business is booming in this sector and there is money to be had for ecommerce retailers. In the United States alone, ecommerce makes up approximately 10% of retail sales and that number is expected to grow by nearly 15% each year. After all, with 125 million US consumers owning smartphones and 50 million U.S. consumers owning tablets, technology is making it easier than ever for consumers to shop online. With 62% of smartphone users making a purchase in the last 6 months, consumers are showing no signs of slowing down.
Online retailers looking for ways to amplify their business and boost sales, often miss out on one major revenue stream. But by thinking outside of the typical transaction, there’s one option that Mulberry makes easy to implement and can make all the difference to your bottom line: extended warranties. Mulberry offers the first plug & play option for product protection so you can get up and running quickly.
Selling product protection will benefit you well past additional revenue. By going above and beyond and giving your customers what they want (and what they may not realize they need) you are helping build their trust and loyalty. There are several ‘peace of mind benefits’ that cement customer loyalty in addition to other positives when considering extended warranties as an additional revenue stream for your ecommerce business:
Build Your Reputation
As an ecommerce business your reputation is everything. From online reviews to social media, your consumers and prospective customers look to you as the authority. Because there are so many options for consumers, literally at their fingertips, doing due diligence to keep your reputation in check is key. One way to do this, while adding to your revenue, is by offering extended warranties. You help build brand loyalty and your customers trust that you are taking care of their needs well past the day of purchase.
Peace of Mind Benefits
Extended warranties take away the anxiety that may affect consumers due to the financial loss of an unexpectedly high repair bill. If the product completely breaks consumers don’t have to spend time searching for a company to take care of the repairs. They can rest easy knowing that the product will be repaired or completely replaced. More so, the threat of being “ripped off” by costly repairs is not even a thought thanks to knowing the company will take care of the customer. An extended warranty lets consumers sleep better at night knowing their purchase is covered.
No Extra Inventory Required
Selling protection plans allows you to increase your revenue without needing to stock inventory. So often when ecommerce businesses try to add extra revenue streams they think of adding more SKUs. Not only does more inventory cause more labor, time, and storage space, you run the risk of it not selling the extra products at all. That leads to waste. Adding a protection plan is easy and takes up virtually no space.
Hit Missed Sales
Hitting your sales quota is easier than ever by adding extended warranty plans to your customers’ purchases. By up-selling with extended warranties, you are setting yourself up to hit your sales goals, without selling more products.
If you’re interested in increasing your sales by offering Mulberry to your customers, let’s get connected! Send us an email at firstname.lastname@example.org or click here to get started.