Ecommerce merchants have a lot to think about when it comes to maximizing conversions and optimizing revenue. In the search for culprits that can drain profits, it’s often easier to find more problems than solutions.
That’s why Signifyd teamed up with Magento and other ecommerce solution providers to create “The Mystery of Who Killed Mr. Profits” — an e-book that puts a critical lens on seven of the most common threats to ecommerce profits.
Magento’s ebook contains useful clues to help merchants identify their most pressing revenue optimization questions with real-world case studies. It features merchants who have successfully conquered their profit-stealing problems by working with ecommerce solution providers that specialize in revenue optimization and best practices to help ecommerce leaders keep their profits alive and well.
We’re sharing in this post a bit on Signifyd and two fellow ecommerce solutions, TaxJar and Worldpay, and how each helps retail leaders make better decisions about key functions like tax management and cross-border expansion.
- Tax non-compliance can cost ecommerce merchants 10% in late fees for not filing on time — and in some states, even mean jail over unpaid taxes.
- Cross-border ecommerce will account for $1 billion by 2020 — about 25% of the total global market.
- With so much at stake for ecommerce merchants, profit drains are still the biggest problems retail leaders face as they scale up their businesses. Magento’s latest e-book can help address those problems.
Tax troubles tank profits
For businesses in growth mode, making the sale is definitely a top priority. But there’s a lot more that goes into a strong revenue strategy. Taxes can be a hidden cause of profit loss. Tax laws vary per state, and the legal language can obscure the key points that business leaders must understand to make informed decisions about their tax strategy.
The risk is too high for merchants to tackle their taxes solo. The money saved in accounting fees can quickly disappear when merchants don’t manage their taxes properly. They risk losing profits, incurring steep penalties for late tax payments or worse — in some states, they can even face jail time.
“The Mystery of Who Killed Mr. Profits” features TaxJar as a solution for ecommerce tax management. TaxJar’s section includes important information on why it’s key to work with tax specialists to avoid complicated and costly tax problems. Their advice starts with asking three questions about your business to diagnose your tax needs:
- Do you sell products or services that have varying taxability rules by state and how are you handling that today?
- How much time do you spend on tax filing and reporting?
- Do you require the assistance of an in-house or external accountant to do your taxes?
The answers to these questions should spell out where your gaps are in tax management. It’s a good place to start when considering the next step to take. Solutions providers like TaxJar can help merchants make sense of the most onerous revenue drains in ecommerce.
Getting cross-border ecommerce right
Cross-border commerce is a hot topic in retail for a good reason. Growth-minded and enterprise-sized merchants alike are clamoring to corner the expanding international market. McKinsey Global Institute projects that cross-border ecommerce will account for $1 billion by 2020 — 25% of the global market. Cross-border business-to-business is expected to be four to five times larger.
There’s a lot at stake in the international ecommerce market. To find success in global expansion, merchants must consider the differences across countries and regions like languages, cultural attitudes, currency and exchange rates and more.
“The Mystery of Who Killed Mr. Profits” posits an important question for merchants looking for cross-border ecommerce success: How do international shoppers want to pay for goods or services? The answer varies across each region and country. It’s hard to keep up with that level of cultural competence on your own, especially when it’s probably not a natural talent among retail leaders.
Fortunately, solutions providers like Worldpay are experts in the nuanced world of making cross-border ecommerce work. Magento’s e-book features a few questions that can help you find the right rhythm for providing fast and easy payment options for customers around the world:
- Do you tailor the checkout experience to suit local payment preferences?
- Have you determined if it makes sense to establish a legal entity in a new country?
- Do you consider domestic or intra-regional processing?
The answers to these questions can help open up the dialogue needed to shape your cross-border payments strategy. It’s only the beginning for finding international success, but providing a better payment experience is essential to secure sales for any shopper anywhere in the world.
Safe shopping experiences start with Signifyd
Chargebacks are one of retail’s most perplexing problems. They’re hard to challenge, and the cost of fighting these claims can add up: For every $1 stolen by order fraud, merchants lose another $2.56 to lost labor, lost productivity and chargeback penalties. Chargebacks and other fraudulent activity can cost even more in the damage done to your customer experience.
Signifyd specializes in guaranteed fraud protection and chargeback recovery. It’s important to keep your chargebacks under control for revenue optimization and customer service, and it helps you avoid additional fees from your payment provider.
“The Mystery of Who Killed Mr. Profits” shows how Signifyd helps ecommerce merchants find the sources of revenue leakage in their sales funnel, by asking three basic questions:
- What is your current order approval rate — and how fast are approvals?
- How much revenue are you losing to false declines?
- What is your current chargeback rate?
Start with answers to these questions to find the vulnerabilities in your sales funnel. Then work with Signifyd to stop the leaks for good.
Revealing sources of revenue leakage
Magento’s latest e-book has actionable insights on where lost ecommerce profits come from, and how to attack the problems at the source. Along with the examples we shared in this blog post, “The Mystery of Who Killed Mr. Profits” takes a critical look at other profit killers like poor omnichannel experiences, a lack of retail financing options and more.
Download the e-book to learn about where your sales funnel needs the most help.