I love online shopping, I really do. It is so much more convenient and there are so many options which mean I can buy what I want, when I want it without having to leave the comfort of my home. However, this convenience comes at a price, the primary one being that I often find myself shopping online when I’m bored or when I’m stressed. Another price is that as a consumer, I don’t get to physically try on the clothes which means I can’t find out whether or not they feel right on me. This, in turn, often makes me feel unsatisfied with my online purchase even though I liked what I bought.
Why An Online Fashion Line?
An online fashion line is a clothing brand that primarily sells their goods online, some may also offer a limited in-house retail program but it is the main online presence that matters here. These brands exist to make money, plain and simple, and they do this by appealing to the consumer with an array of trendy clothing items at affordable prices. Naturally, this is something that resonates with me as a consumer as I want to be able to afford fashionable items but need inspiration to know what to buy so that it fits me well and doesn’t end up in a damaged state due to poor quality control. To achieve this, I look to online marketplaces for inspiration as they provide me with a wide variety of trendy products at a quick glance.
Identifying The Key Performance Indicators (KPIs)
The key performance indicators (KPIs) for an online fashion brand are very similar to those of a traditional fashion brand, however, there are a few differences. Since this is an online brand, growth is of paramount importance as it indicates that there is an interested audience that wants to support your efforts. The number of orders placed and the amount of money spent are also critical as it gives you an indication of the demand for your product. Similarly, the conversion rate of orders into sales is critical as it shows how well you are doing at converting traffic into paying customers. Finally, the revenue you generate from online sales compared to your total revenue is what determines your success as a business and whether or not you should expand your offerings further. This last point is critical as you will not be able to grow your business if you don’t have enough revenue to support your efforts. For these reasons, the KPIs for an online fashion brand are:
- Growth: This measures the total amount of unique visitors to your website over a specific date range (usually a month or more).
- Conversions: This measures the total amount of visitors to your website who converted into a purchase (ie. finished shopping or opened a shopping cart) over a specific date range. You can find the shopping cart element on your website with the help of Google Analytics.
- Revenue: This measures the total amount of money that has been taken in by your website over a specific date range (ie. sales revenue). The first step is to set up automated income reporting through your bank account so that you can track your revenue effectively. In the beginning, you won’t have much so you’ll want to focus on growing your business slowly, establishing yourself as a reliable and trustworthy brand before you attempt to grow rapidly.
- ROI: This measures the revenue generated by your website compared to the amount of money spent (ie. cost to generate this revenue). A high ROI indicates that your efforts are paying off and that your business is a worthwhile venture. Remember, however, that it can take time for this metric to begin to show significant improvement since you’ll have to generate a certain amount of revenue before you can claim that your efforts are paying off.
The Most Important Thing To Remember
Above all else, remember that your customers are the lifeblood of your business and it is essential that you nurture and grow your customer base. Without them, you’ll never be able to improve your revenue significantly. So, make sure you develop and maintain strong relations with existing customers by: