Online Marketing Strategies for Better E-Commerce Performance

Marketing is the act of promoting, selling or buying goods and services. The e-commerce industry has its own online marketing strategies that are different from those used to sell products in traditional brick-and-mortar stores.

This article will teach you e-commerce marketing strategies to help you better engage with your customers through various digital channels. You can use these tips for any e-commerce business, whether it’s an online store or a marketplace platform.

What is the common way to increase e-commerce sales?

By using market penetration approach, you will be able to capture more customer in the existing market, sales promotion is an effective way to increase the revenue. However, not a good way to increase your profit.

Before everything – Segmentation, Targeting and Positioning

Before starting to dig into the market. You will need to find your best-fit market. To do this, we can adapt the segmentation, targeting and positioning concepts from marketing.

The segmentation process involves identifying different e-commerce market segments and determining which ones are most likely to become your customers.

This is a business technique that can help you target your e-commerce audience more accurately, ensuring a higher conversion rate in the long run.

You need to understand what e-commerce services or products are e-commerce customers looking for at specific times.

After that, you will undergo the targeting process . To do this, you will need to choose e-commerce marketing channels and decide which ones are the most effective for your e-commerce business.

You want to use e-commerce platforms that can bring in a high ROI for your e-commerce store.

Finally, we’re ready for positioning. Positioning is defining what makes your e-commerce business unique and different from the e-commerce competitors.

You need to develop a strong e-commerce brand that can help you win your target e-commerce customers over.


Growing Stage – Ansoff Matrix

Of course, there are several marketing concepts that may be applied to company management and planning, however in this case it’s not as simple. We can’t alter the product R&D procedure or the branded items’ packaging. However, we do have a lot of flexibility when it comes to differentiating ourselves from our rivals using Ansoff matrix.

Ansoff matrix or growth-share matrix, developed by Igor Ansoff in 1967, is a popular business management framework. By applying the matrix spot the market and discover the way-out in the current competitive landscape :

Market penetration strategy

The business will try to increase their current market share through existing customers and capture new ones. The typical way to adopt the market penetration strategy is by price decrease, increase the marketing promotional efforts.

Market development strategy

The company tries to explore a new market, by using existing product. For e-commerce business, it means targeting to a new countries or new market group. The market development can be done by cross-border e-commerce, just like Amazon is having United States site, Canada site or even an Indian version.

Product development strategy

The aim of the firm is to develop a new product or service in order to take over an existing market. This involves broadening the company’s current product line to include additional goods to serve the current market.

It is a classic way to do it in e-commerce market, by adding package or accessories of the category. For example, you are serving gaming market, you will widen your product line by selling gaming laptops and also selling streaming web cam for the existing customer.



Diversification Strategy

Businesses will expand into new areas by introducing new items, which is a high-risk strategy since market and product development efforts are required.

There are 2 types of diversification approach – Related & Unrelated :

Related diversification means there is a relationship and, therefore, potential synergy between the firms in existing business and the new product/market area. Whereas, unrelated diversification is also known as conglomerate growth, a group of businesses with no connection to one another.


Winning the game :


Porter’ generic strategy can be applied to general industries for product or service. Basically, there are 4 aspects : Cost Leadership, Differentiation, Cost focus and differentiation focus.

Cost leadership

A company is cost-leadership when it provides goods of equal quality at lower prices than its competitors. This allows the business to experience benefits like increased market share and market growth. This strategy aim at a board market, IKEA is an obvious example as cost leader in market.


Differentiation happens when a company distinguishes itself from its competitors by providing better quality products, better customer service in board market. Companies that are successful at this often have competitive advantages over their rivals, Apple’s product in computer industry is a good example, by offering their own operation system to win competitors.

Cost Focus

Cost focus strategy is usually employed by e-commerce businesses that want to be the low-cost producer by focusing on a niche to gain economic of scale. Shein is a great example in online fashion industry, by focusing on doing fast fashion with different Chinese factories to win the competition in the intense fashion market.

Differentiation Focus

Differentiation focus strategy is often used by e-commerce businesses that want to distinguish themselves from other players in the e-commerce market through providing better customer service and/or more goods than others in a very niche market.

It often consists of unique or customised service, in e-commerce Print-On-Demand is a great example to create tailor-made or fully customised product for customer.


In conclusion, e-commerce entrepreneurs need to take a look at their online marketing strategies and use marketing theories to achieve better e-commerce performance. Digital marketers need to incorporate these e-commerce marketing strategies into their own e-commerce business plan. In the e-commerce world, it is important for digital marketers to have a clear understanding of marketing theories that can be applied to e-commerce business.

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