The world of e-commerce is an incredibly profitable and lucrative one. We have seen how e-commerce has led to the establishment of billionaires like Jeff Bezos. His questionable practices and treatment of employees aside, he has managed to create an e-commerce empire that made him one of the richest people alive. While e-commerce can be profitable, it is not easy by any means. It is only profitable for people that know how to use it, and as much as we think we know the internet, running a business on it is an entirely different story. The most difficult part of any business, be it online or a physical shop is attracting customers, and this is where different marketing and other strategies come in. One term that you might have heard in passing is the use of conversion funnels and we will be talking about it in detail below, or you can just click here for more information.
Conversion funnels is a term that is used to explain the path or process that people go through from potential customers to making the actual purchase. The conversion funnel has 3 steps or levels to it, so the upper funnel, the middle funnel, and then the bottom of the funnel.
- The upper funnel is used to describe the timeperiod where the person is beginning to become curious about a certain product or service. The person will spend this time looking up information about the product, and then the brands or companies that are offering the product/service.
- The middle of the funnel is the point where the person has narrowed their options down to a few known and/or popular brands or companies that offer the product/service, allowing them to filter other options out.
- The end of the funnel is where the customer has selected their brand/company to buy from and are now looking through reviews of the product to finalize their purchase, and this is considered to be the last step here.