Marketing budget allocation can be a real struggle. Especially when there are so many marketing channels and platforms — each vying for your attention, each evolving rapidly. Keeping up takes a lot of time and mindspace — two things business owners and many marketing managers may not have the luxury of.

Our webinar, “Marketing for E-Commerce: What Works and What Doesn’t” sifts through data, leverages our own experience as an eCommerce SEO agency, and gives you tangible advice on what channels work best for DTC companies.

Before we begin, you may wonder why you should pay attention to what an agency (which is not your agency) has to say about allocating your marketing budget. So, here are a few reasons:

• We have 10+ years of experience working in different verticals of digital marketing for eCommerce companies. From PPC to SEO to pricing strategy, we have more than dipped our toes into various marketing tactics. We have seen what works and what doesn’t.
• We have worked with several eCommerce companies and delivered measurable results like increased site visitors and increased conversions.
• Our clients stick with us long-term, proving that the work we do for them combines high quality with efficiency.

Let’s dive into the meatiest, juiciest parts of our webinar. We’ll begin by looking at a few statistics related to eCommerce and eCommerce marketing.

• The U.S. and Canada are home to about 1.3 million eCommerce companies.
• Revenue from retail eCommerce in the U.S. is estimated to exceed 1.3 trillion dollars.
• Many eCommerce companies spend close to 19% of their gross revenue on advertising.
• A Nasdaq study predicts that by 2040, 95% of all purchases will be through eCommerce.

ECommerce isn’t going anywhere. If anything, all studies point to it growing bigger. So, as an eCommerce business, what are some marketing channels you should consider to make a place for yourself in your customers’ minds?

While there is really no limit to creative ways in which you can market your products, some of the common digital marketing channels we tackled in our webinar are:

• Paid Search Ads
• Social Media Marketing
• Search Engine Optimization
• Email Marketing
• Website Design and Marketing

Below, we will weigh the pros and cons of each and give them each a verdict!

Paid Search Ads: These are most popularly run through Google. The ads are paid placements that sit at the top of search engine results above organic listings.

On average, eCommerce businesses spend about 3-6% of their annual revenue on PPC or pay-per-click ads.

Google search ads have an average ROI of 200% for those using them. However, 92% of browsers scroll past the ads and go to the organic results.

Our Verdict: It Depends. We usually recommend our clients aim to rely more on SEO over time.

These are paid placements in someone’s social media feed.

Typical ROI for those using social media ads is around 95% (it’s difficult to measure ROI for organic posts). Social media ads cost 47% more today than they did in 2021.

Our Verdict: No/It Depends. Over the past two years, we’ve seen social media marketing really struggle for our clients. For most brands, it makes sense to change the strategy to focus on SEO and PPC.

Search Engine Optimization (SEO): SEO is the strategy of getting your website to rank well on Google for relevant search terms. Organic listings appear below the paid ads. There is no cost to someone going to your website when they click on your organic listing.

The top 3 Google search results get 54.4% of all clicks. On average, eCommerce companies spend 1-3% of their revenue on SEO. The ROI on SEO is around 175% and importantly, organic traffic is the #1 source of eCommerce traffic.

Our Verdict: Yes. We are huge advocates of SEO. The traffic has high conversion rates and nearly every eCommerce business can benefit from this strategy.

Email marketing is sending promotional emails to your mailing list of either earned contacts or past customers.

On average, eCommerce businesses spend 1.3% of annual revenue on email marketing. According to Constant Contact, the average ROI on email marketing is $36 for every dollar spent. However, seeing success with this form of marketing requires a larger team of designers, photographers, and copywriters.

Our Verdict: Yes. Email marketing works well for our clients that have an established customer base, but for brands that don’t have a repeat buy type of product, it can be difficult.

Website design and branding is more than a Shopify account with a Fiverr logo. It’s creating a trustworthy shopping platform and a distinguished brand look and personality.

88% of visitors are unlikely to return after a poor website experience. Memorable brands are correlated with higher price points and can typically charge 2X more than their competitors.

Yes/It Depends. Website design and branding are necessary to some level for every client, but they can be done pretty simply for most. Then, as a company grows, we develop a stronger brand identity.

At Boxwood, we are committed to delivering high-value, no-nonsense expertise to our clients and their customers. If you enjoyed the information in this post, join us for our next webinar, “E-Commerce Holiday Shopping: A Dive Into Audience Behavior and How to Leverage It For Your Business.”