Boosting Profits in Your Craft Business: 5 Strategies to Manage Transactions
Thanks to the many specialized marketplaces available today and the ease with which you can start your own eCommerce business, the opportunities to make money out of art or crafts are endless.
However, as an artist looking to turn your passion into an income stream, you’ll need to understand how to optimize transactions and manage your business’s cash flow. Achieving financial success requires strategic management, and this contributed guide will explore five practical strategies that can help make your craft business more profitable.
Offer Multiple Payment Options
When it comes to enhancing your art or craft business, the first aspect to look into is the type of payment methods your customers prefer. This varies significantly across industries and regions! For example, according to a survey from the Federal Reserve, 57 percent of US consumers prefer credit cards for online payments, due to the added protection this method offers. However, in other areas, suitable payment methods include cash on delivery, digital wallets like PayPal or Apple Pay, or debit and prepaid cards. By accepting multiple methods, you cater to a wider audience and reduce the chances of losing a sale due to limited payment options!
Invest in a Payment Processing System
Efficient payment processing is crucial—and, unfortunately, this isn’t something that just any system can manage. If you have created your own business websites or you have opened a physical store, you will need to invest in a payment processing software to ensure smooth, secure transactions.
When shortlisting the right option, it's important to consider options that fit your business model. For instance, payment solutions available from North.com offer user-friendly systems that streamline transactions and minimize errors. Investing in such technology not only saves time but also builds customer trust by offering a secure payment environment!
Implement Clear Pricing and Policies
Clarity in pricing and transaction policies is essential. Potential customers are more likely to purchase when they understand costs upfront. Did you know that, according to statistics, over 40% of cart abandonment happens because of delivery fees that were too high and only showed before checkout?
To prevent this from happening and better manage customer expectations, be sure to display prices up front. If you are going to apply any additional fees be sure that these are clearly stated before checkout.
Some of the additional costs you may want to make your buyers aware include:
Fees for returns and exchanges
Shipping and delivery costs
Additional tax (if customs are involved and they depend on the customer’s location, specify that these costs can vary)
Fees for different payment methods
Packaging or wrapping costs
Monitor Your Cash Flow
When it comes to keeping your business profitable, cash flow is king. Managing your cash flow allows you to always have enough money to pay your suppliers, enlarge your business, and support innovation—which are critical aspects to guarantee the longevity of your organization in years to come.
Fortunately, accounting software and payment processing systems leverage automation to streamline cash flow management. These systems allow you to track transactions, manage invoices, gain control over your inventory, and generate reports.
Seek Customer Feedback
Last but not least, be sure to listen to your customers! Run surveys and focus groups, and manage your online reviews to ensure that your company is meeting your audience’s expectations regarding payments and costs!
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