How many times have you Googled how to build an eCommerce business?
Probably more than you could possibly count. Now, how many times have you seen the answer for that question being building a Shopify store with a storefront and all of that stuff?
The answer to that question is probably more than you could count as well.
Unbelievably, people are still preaching this method, even when every single person (and their mum) has a Shopify store today, making it more saturated than ever before. And it’s going to get even more competitive in a not so distant future.
I know that there are many other eCommerce platforms out there such as BigCommerce, WooCommerce, Magento and others but since Shopify is the most used one out of them all, I’ll talk about only Shopify and the data I’ve gathered about stores built with it.
However, most of the stuff I am going to talk about in this post include most of eCommerce businesses today, no matter which software they’d used to build their stores.
Since 2014, worldwide eCommerce sales have almost tripled, going from 1.3 trillion USD to 4.2 trillion in 2020 and it’s expected to hit 6.5 trillion by 2023. In addition, about a quarter of all these sales came and will come from dropshipping stores.
What does this mean for you?
These stats show that eCommerce is a fast growing trend. For this reason, everybody wants to get a slice of the cake which leads to a lot of competition.
The best way to realize how big of a trend eCommerce actually is to start from yourself. How often do you buy online?
Probably a lot. Me personally, almost everything that I buy I do it online, whether that’s clothes, books etc.
Online shoppers are constantly looking for better shopping experience. Survey by Yieldify discovered that 66% of millennials are willing to exchange their personal data for receiving better, more personalized shopping experience.
In this post, I am going to cover why most of general stores online don’t provide a great shopping experience for consumers and how you can fix that issue by implementing sales funnels into your business.
- What is a Sales Funnel
- Why Implement Funnels
- How to Build a Sales Funnel for eCommerce
- How Should a Good eCommerce Sales Funnel Look
This is going to be a bit longer one so sit back, grab some popcorn and enjoy the content!
What is a Sales Funnel
Sales funnel is a process or a collection of steps that your target audience goes through. It starts with a person entering that funnel without knowing you or your brand and then exiting as a customer of your’s.
The word ‘funnel’ explains it itself. A bunch of people enter in but only a few get out at the end but those who do are the most valuable people to your business.
They have been there for a long time but really started to trend in the digital age. However, most of people know about funnels today thanks to Russell Brunson and his company, Clickfunnels.
Or at least, that’s the case for me. 🙂
Beauty of sales funnels is that, unlike what’s the case with most of websites and general stores, you don’t get sold to right away.
Did you know that over 90% of people who visit your site for the first time aren’t ready to buy anything yet? Reasons for this vary, with some of them being price comparison, not knowing/trusting your site or simply wanting to just browse through and not buy anything.
This is the reason why most of Shopify stores have only 1%-2% conversion rate. Simply because most of new visitors aren’t ready to buy yet.
The good news is that you can fix this. Later on, I’ll explain how but let me first do a more in-depth comparison between general stores and sales funnels.
Why Build a Sales Funnel
Funnels vs Shopify stores, let the battle begin!
Alright, in all seriousness, why do so many people fail at eCommerce?
In fact, every 4 out of 5 eCommerce businesses flop. That’s 80% failure rate. You’re probably wondering why this is.
In most of cases, people fail because they spend all of their money on ads that don’t bring any significant results.
Since this business has a low barrier to entry, it quickly got oversaturated leading to higher ad costs.
Store owners also have to constantly compete with their prices with other stores to keep their business running.
The only way to win this battle is to have the lowest price on the market. You can’t be second or third, you have to have the lowest priced store out of all competitors in order to win the price battle.
Even if you manage to achieve this, it will leave you with little if any profits.
As I’ve said, Shopify stores have a terrible conversion rate. You’d be lucky to get a 2% conversion rate with your store.
There are numerous reasons for this:
- It takes a lot of clicks to complete a Shopify purchase
- It’s easy to click away from the product page
- Overwhelming storefront
- Price comparison
The list goes on and on…
Even when your visitors come to your store and add a product to cart, they often abandon that cart. In fact, in 2019 the cart abandonment rate is over 75%.
This is something not just Shopify store owners struggle with but people from various other industries.
Now, I don’t want to make it sound impossible to succeed with a Shopify store.
In fact, even in today’s world of oversaturated online marketplace, you can still make it with a traditional online store. However, in order to do that, you need to be able to invest a ton of money into your marketing.
I am talking about outspending the most of your competitors and coming up with a different, creative approach when speaking with the same audience.
I also want to note that I am not for ditching Shopify entirely. For a long-term business and branding, you should definitely have a store with all of your products.
But what I want to talk about in this post is acquiring new customers. Why send a bunch of people to a page knowing that only less than 2% of them will actually buy something?
There is definitely a better way to approach converting cold audience into a warm group of loyal customers.
Here I want to start talking about sales funnels.
As I’ve said, when it comes to cold traffic, 9 out of 10 visitors will leave your site after landing on it for the first time because they simply aren’t ready to buy from you.
This is why the first step of every funnel is not throwing a bunch of products on your visitor. Instead, it’s making them a free offer.
You see, everybody loves free stuff. You do, I do, our families do… people enjoy free gifts, no matter how big or small they are.
What do you think, what would the outcome be if instead of throwing a bunch of products on your visitors, you offered them a free gift?
They wouldn’t run away. You wouldn’t lose on so much cold traffic.
The free gift I am talking about is called a lead magnet and you’re not really giving it in exchange for nothing. Instead, the only thing you will ask from your visitors in return is a subscription to an email list.
The best lead magnets for eCommerce are discounts, coupons, educational products and of course, free shipping!
Understand that your lead magnet can’t be random. It has to fit your audience’s needs/wants and it has to be valuable. Don’t think that you can get away with anything you put up just because you’re giving it away for free.
If your lead magnet is f.e. an information product around a certain topic, make sure that the information it contains is actually helpful and not some junk you outsourced from cheap freelance marketplaces.
Value can’t be faked. People can smell a sleazy salesman from miles away. If your product doesn’t fulfill a want/need or if you don’t care about your customers’ experience, they will know that and you’ll ultimately fail.
With that being said, once you come up with a lead magnet that will attract people to your funnel, it’s time to build that funnel.
There are dozens of funnel building software on the market right now. If you already have a Shopify store and want to know if there is an app you can add to it for this purpose, check out GemPages.
However, for this tutorial, I’ll stick with one of the most reputable names in the funnel software market, Clickfunnels.
Although more expensive, Clickfunnels offers numerous benefits to funnel builders such as free coaching, free funnels and a very user-friendly interface which is really important for someone who knows nothing about funnels.
Read my full Clickfunnels review to find out more. And in case you’re wondering, yes, Clickfunnels can integrate with Shopify pretty easily.
So without any further to do, let’s get into the geeky stuff – building an eCom sales funnel.
How to Build an eCommerce Sales Funnel with Clickfunnels
Okay so where to start?
The first step of every funnel is getting leads. This is where our lead magnet comes in. Using our lead magnet as a free offer, we don’t ask for money but only for people’s email addresses in return.
We’ll use their email addresses to build an email list of people we can continuously market to.
You see, your email list is truly an asset. Once someone subscribes to your list, you no longer have to spend money to advertise to that person because they’ve agreed to receive updates, offers and information from your business via email. In other words, you can market whenever and however you want to your email audience.
Clickfunnels has an app inside it’s platform called Actionetics that can be used for email marketing. Read my article on it to see how it works.
Anyway, let’s proceed.
Step 1 – Create a Clickfunnels account and log in
Click here to start your Clickfunnels free trial. After you’re logged in, navigate to the Clickfunnels button on the header.
Select Build Funnel. You’ll also see other buttons such as Funnels, Contacts, Sales and Funnel Marketplace.
Funnels button sends you to the page with all of the funnels you’ve built, Contacts shows you all of your leads, Sales, well, it’s obvious. This is where you can see all of your sales and how much money you’ve made. And Funnel Marketplace is a place where you can buy other people’s funnels and use them for your business.
After you’ve selected Build Funnel, select your funnel’s goal.
This is the white box that will appear on your screen. Click on Sell Your Product. After that, select a Sales Funnel.
After that, just name your funnel and it’s done.
Congrats! You’ve created your sales funnel. Now it’s time to pick a template and edit it.
After that, you’ll be asked to select a template for every single one of your pages. Pick the template you like the most.
On the left side, you’ll see your funnel steps. On the navigation bar, besides Steps, you’ll also see Stats (showing you the percentage of people that have committed a certain action f.e. entering an email compared to the total amount of visitors), Contacts where you can find a list of your leads, Sales and Settings.
Funnel steps can be easily edited and changed. For example, if you want one step to go before another, not after, simply grab it and put it where you want it to be.
Want another step? Simply click on Add New Step.
Now, the process of editing all pages is the same. Doesn’t matter what the goal of the page is (getting an email, selling a product). I’ll show you some basics but there are tons of videos inside Clickfunnels membership area to help you out if ever get stuck.
Plus you have live chat where you can ask them questions. And to top it off, you have a free 30 min coaching call with an expert once you sign up.
And if you really want a step-by-step guidance on how to build a successful sales funnel, check out the One Funnel Away Challenge.
The challenge isn’t free but it’s only $100 and what you get for that price is really valuable.
30 day step-by-step coaching by the CEO of Clickfunnels, Russell Brunson, where he, with his two colleagues, guides you throughout the entire process of building a funnel. It’s the best program I’ve ever invested in personally and you can read my One Funnel Away Challenge review if you want more details.
Editing with Clickfunnels is really simple. I won’t cover everything because you have videos that explain it better and a lot of it is self explanatory anyway.
After you’ve selected a template you want to use for your page, click on Edit.
Once inside the editor, you’ll probably be a little bit intimidated. But don’t worry a lot, Clickfunnels is a fast learning curve and if you devote some time to it and watch the training videos, you’ll have your funnel up fast.
Elements themselves are easily edited. Select the element you want to edit and change what you want.
For example, if you want to edit the text, just double click on it and you can change it. If you want to change the background image, select it and change the Image URL or upload.
To add element, navigate to Elements on the header and click Add Element.
How Should an eCommerce Sales Funnel Look
Enough about the features, time to get into the stuff you’re all here for. I’ll now cover how a successful eCommerce sales funnel looks.
The first thing I’d like to point out is upselling. This is something that is very difficult to do with Shopify effectively, yet with software such as Clickfunnels, it’s incredibly easy to set up.
Upsells are crucial for increasing Average Order Value or AOV. They help you make more money out of every customer – since only people that have bought your main product would be upsold – and they have very high conversion rates.
They work so well because, at this phase of a purchase, the customer has already entered their credit card information. Now, they don’t have to enter that same information again. If they click YES, they’ll automatically be charged.
I’ll get back to them in a minute. Let’s now cover the first step of every funnel – landing page.
Your landing page should have an either totally free or a low-barrier-to-entry front-end offer.
If you’re selling inexpensive, low-end products, you could offer that product for free and ask your customers to only pay for shipping costs. This way, you’d charge your shipping so that you’re still left with a profit but you wouldn’t mark it up as much as you would normally.
You could also use a discount as your lead magnet. After they’d entered their email, you’d offer them a discounted product or a discount for buying more of a same product.
Your order form page is where you’ll actually be selling your product. However, there is no cart here. Customer will be asked to immediately enter all information required to make a purchase if they like the product.
The rest is pretty much the same. You should have an image/video of the product where a customer will clearly see what they’re buying, description and testimonials are also recommended.
Another thing that really helps increase AOV is an order bump. Order bumps are usually small products that go hand-in-hand with your main product, offered only once at a low price.
They serve as fries offered with burgers at McDonald’s or as toothbrushes being offered when buying a toothpaste.
And all the customer has to do to buy an order bump is just check a box next to it. That’s it!
Clickfunnels doesn’t have an usual shopping cart you’re used to seeing. It has an order form that can either be one-step or a multiple-step kind of form.
After a customer enters their credit card details, this is where the real money is made. You see, at this point, the customer is already sold on your product. You don’t have to spend any more money on advertising to them.
In other words, after a customer decides to purchase a product, you have a chance to make them a kind of offer they’re already sold on. You don’t need to create a long sales page again.
And all they have to do is just click a button if they want that product. Nothing more.
Your upsell should correlate to your main product. It can also be more expensive since the customer is already sold on the niche.
In addition, another type of upsell you could offer is more of your main product, at a quantity-break discount. At this phase, you could lower your prices but still profit since this offer is free to make. For your main offer, you needed to spend money on ads.
Also, depending on the product itself, shipping costs can stay the same if they order more of that same product if that product itself is small enough. At this point, you’d have to do your own calculations.
Another type of upsells that work so well are digital products. Here, your profit margin will be much higher because you don’t have to ship anything.
Types of digital products you could sell are courses, eBooks or even memberships. This all depends on your specific niche.
This is an eCommerce funnel in a nutshell. For technical side of things, Clickfunnels has a bunch of tutorials on their blog on how to add a product to your funnel and make all the necessary integrations.
To end this post, I’ll now quickly go over one of the best practices of eCommerce sales funnels I’d seen.
Trey Lewellen is a 8-figure dropshipper but back at the beginning, he was just like most of people in the industry.
He had a few Shopify stores running but none of them worked. Then he was introduced to sales funnels.
He went out to build the funnel you see below and made over $20 million in six weeks selling flashlights.
His story was featured at Russell’s speech at 10x event by Grant Cardone.
“He had a bunch of Shopify stores set up, one of which was selling flashlights. And it was one of his duds, it wasn’t working!
He was moving offices and they had a whole closet full of these flashlights and he told one of his guys to just throw it up on Clickfunnels, build a funnel and let’s see what happens.
He took this, threw it up on Clickfunnels, shifted it from eCommerce store front to like buy the flashlight, upsell battery packs and upsell warranty. This funnel did $20 million in the first six weeks after it launched.
That crazy? Right now he’s got a record for the fastest growing funnel inside of Clickfunnels and it was all selling flashlights.” – Russell Brunson
It really doesn’t matter what type of product you sell, you can create a funnel for it.
Hope that this post has helped you realize the importance of having a sales funnel for your products. Again, you don’t have to entirely ditch your already-existing store – if you have one – but what you should is consider taking a different approach than everybody else’s.
In today’s eCommerce world, it’s especially common to see stores copying other stores and it’s why it got so saturated so quickly.
Coming up with an unique offer will help you stand out and improve your brand. It will also help you make the most amount of money out of every customer.
That’s it for this post! If you have any questions, make sure to leave a comment down below. I’ll get back to you as quickly as I can. Other than that, have an awesome day!