Ecommerce Archives - Elemerce

Pinterest announces multiyear ads partnership with Amazon

Have you heard the news about a multi-year partnership between Pinterest and Amazon, two of the biggest names in the e-commerce industry. This partnership brings together the visual discovery power of Pinterest with Amazon’s robust advertising platform, providing businesses with an opportunity to reach millions of potential customers in a new and engaging way.

Amazon’s advertising platform is already one of the most effective ways for businesses to reach potential customers on the platform, with millions of daily active users. Now, with the addition of Pinterest, businesses can tap into the platform’s 450 million monthly active users, who are actively seeking new ideas and inspiration for their purchases.

What does this partnership mean for businesses?

By leveraging Amazon’s advertising platform and Pinterest’s visual discovery capabilities, businesses can create more engaging and personalized ads, which can help them stand out in a crowded marketplace. Businesses can use Pinterest’s data and insights to target their ads to specific audiences and demographics, allowing them to reach the right people at the right time.

In addition to creating more effective ads, businesses can also benefit from the increased visibility that comes with partnering with two of the biggest names in e-commerce. By appearing on both Amazon and Pinterest, businesses can increase their reach and exposure, potentially leading to more sales and revenue.

How will this partnership work?

The partnership will enable businesses to create and manage their campaigns directly through Amazon’s advertising platform, using the platform’s powerful targeting capabilities and tools. Businesses can also leverage Pinterest’s audience insights and data to create more personalized campaigns and target specific audiences.

In addition to the partnership with Amazon, Pinterest is also expanding its shopping capabilities, making it easier for businesses to sell directly on the platform. By adding new features such as catalogs and shopping ads, Pinterest is becoming an increasingly important player in the e-commerce industry.

What does this mean for consumers?

For consumers, this partnership means more personalized and engaging advertising experiences. By using Pinterest’s visual discovery tools and Amazon’s robust advertising platform, businesses can create ads that are more relevant and useful to consumers. This can help consumers discover new products and ideas that they may not have found otherwise.

In conclusion, the partnership between Pinterest and Amazon is a game-changer for businesses looking to reach more customers and increase their revenue. By leveraging the power of visual discovery and targeted advertising, businesses can create more engaging and effective campaigns that stand out in a crowded marketplace. With Pinterest’s expanding shopping capabilities and Amazon’s massive reach, this partnership is sure to have a significant impact on the e-commerce industry in the years to come.

Is Your Business Ready For Prime Day?

Amazon Prime Day is a massive business opportunity for anyone selling products on Amazon. Make sure your business is prepared so you don’t miss out on all the money to be made.

What is Prime Day?

Prime Day is a huge 2-day sale across Amazon available to new and existing Amazon Prime members. Price cuts will be available across a wide variety of products from all sorts of different industries. From kitchen tools to smart tech, tons of customers flock to Amazon for a deal.

When Is Prime Day?

July 12-13 2022. Early sales on Amazon products begin June 21, 2022.

Why Should You Be Prepared?

The great deals across a vast array of product categories is going to bring a whole lot of potential customers across your listings. Customers are going to be on the hunt for deals, and if you haven’t prepared an offer for the special occasion, your listings could miss out on making good money. If you sell on Amazon, Prime Day is a chance for you to bring in a serious boost in sales, but you have to be prepared. Ensure your listings have an enticing offer with convincing copy to secure your sales potential on Prime Day.

The #1 Way to Crash Your E-Commerce Business Before 2023

We’re now living in the 20’s! But they won’t be so “roaring” for your business if you’re still stuck in the old, traditional way of marketing. If you’re still wasting time and money on billboards, print ads, and cold calling, this is your wakeup call.

Look around you! The world isn’t “going digital”. It already IS digital. Virtually every process, communication, activity, and transaction relies heavily on computers. The average American now officially spends more time each day on mobile apps than they do on TV. Thus, businesses are quickly making the necessary adjustments to become a competitor in the digital marketplace — as should you!

However, getting your business online is only a fraction of the solution. If you want your business to truly thrive in the years to come, you must adopt a completely new way of marketing. To be more specific, you must implement a calculated, ever-adapting digital marketing strategy. This strategy can include anything from SEO, to PPC, to social media campaigns, to email marketing. And we suggest that this strategy must include:

  • A clean, functioning website
  • An influence in the digital marketplace
  • Quality content marketing

But the purpose of this article isn’t to tell you what digital marketing strategies you should adopt. Nor is it an attempt to explain how to put together a proper digital marketing plan. The purpose of this article is to convince you of why the very survival of your business hinges on your ability to market in the digital world. To do so, we are going to speak in terms of advantages. Here is a short list of the greatest advantages going digital will give your business:

Greater Reach = More Sales

There is no TV commercial, no highway billboard, no magazine ad that could ever compete with the millions of views digital ads can get on the World Wide Web in the matter of MINUTES. You can only hope people are watching the right tv channel, or driving down the right road, or reading the right magazine in order to see your advertisement. But with a digital advertisement, you can be confident that your target audience will be looking at their screens… every day. Speaking of your target audience… that brings us to the next advantage.

Precision = Higher ROI

Perhaps the greatest feat of the marketing universe is the use of complex algorithms to pinpoint the target audience with a precision and accuracy only a computer could pull off. Other algorithms are built into platforms to learn everything about everybody. Their age, their race, their relationship status, their favorite color, their taste in music, their personality, and most importantly, their buying patterns. In digital marketing, you gain access to these algorithms and data. And with this power, you can identify and choose exactly who sees your advertisements (and who’s engaging with them). Consequently, your ROI can be exponentially higher than it would ever be through traditional ways of advertising.

Personalization = Increased Trust and Loyalty

Imagine trying to create a personalized billboard for everyone on the road. That would be quite the undertaking. But with digital marketing, this way of advertising is all too easy. That’s because there are features built into marketing platforms that will automatically personalize your emails, messages, etc to address the individual recipient. This type of personalized advertising increases trust and loyalty from your customers, as they feel that your business truly knows and cares about them.

Enhanced Measurability = Enhanced Malleability

With computerized tracking and reporting, you can clearly see who is reacting positively to your content. As stated earlier, there are algorithms in place to identify exactly who your customers are. You can also see which advertisements worked, as well as which ones didn’t work.You can experiment through trial and error to see which words, which images, which colors gain the most attention. You have unlimited access to data that will help you make the tweaks and adjustments necessary to optimizing engagement and traffic to your website. With traditional print or tv advertisements, it’s much harder to measure the success of your advertisements.

Ease of Automation = Effortless Timeliness

The amount of time, energy, and resources spent on creating and distributing a marketing campaign is easily cut into a hundredth. With print advertisements you need suppliers, you need printers, you need ink, you need trucks, you need ladders, etc. With digital advertising, all you need is a keyboard and a mouse. Additionally, the work put into scheduling and delivering advertisements becomes effortless. Marketing platforms have the ability to automatically publish your content on time and in order, for whatever period of time you tell it to.

An Abundance of Options = Unlimited Possibilities

Lastly, perhaps the most glaring advantage of digital marketing is the plethora of modes and mediums available at your disposal. With the creative power of digital graphics, videos, social media, blogs, emails, websites, mobile apps, podcasts, and so much more… your imagination truly becomes the only limit to what you can produce and how you present it.

Planning and executing an effective digital marketing strategy isn’t simple. But it is necessary if your business is to survive the coming decade. As the digital marketplace becomes increasingly crowded, it becomes increasingly difficult to get ahead of the competition. This is your wake up call to act now.

For a free evaluation and consultation contact us here.


Why Merchants Are Investing in Multichannel Selling (While Still Working With Amazon)

As the leading online marketplace, Amazon has become a must-have for most businesses, including small and midsize businesses (SMBs). However, the growth of ecommerce across multiple marketplaces and social media has many merchants asking themselves:

  • Is the success of my business overly reliant on Amazon metrics like customer reviews and search rankings?
  • Am I being forced to compete on price because of Amazon product comparisons?
  • Am I missing out on exposure and sales by being in just one online marketplace?

What are the benefits of being in multiple online marketplaces?

To hedge the bet on Amazon, savvy SMBs are looking into multichannel selling in four key arenas:

  1. Other online marketplaces
  2. Their own branded ecommerce store
  3. Social Media
  4. Google Shopping

As the American — and world — economy has begun to recover while balancing concerns over public health, ecommerce keeps people feeling safe while also buying the products they love. Purchasing online has become much more normalized over the past year and a half, and as more Americans start to spend again, ecommerce is recovering twice as fast as brick and mortar.

So, if Amazon is the go-to option for those who buy online, why not double down?

According to a recent report by multichannel selling software Sellbrite, merchants listed on 3 or more marketplaces make an average of 156% more sales than merchants listed on only one.

4 Online marketplaces and how they differentiate from Amazon

The first step most merchants take into a multichannel selling strategy is to launch sales on additional marketplaces. Below are four of the top ecommerce marketplaces for sellers looking to supplement their Amazon channel:

  • eBay — With its Fast & Free program, eBay competes directly with Amazon. Merchants love that eBay doesn’t compete with sellers the way Amazon does by showing side-by-side comparisons with their own Amazon brand items. However, eBay does not have an in-house fulfillment option like Amazon’s Fulfillment By Amazon program: you must provide your own fulfillment solution.
  • Walmart Marketplace — The hallmark bargain store has moved into the digital age with a distinct advantage: it’s existing brick and mortar ground cover. With its own loyal customer base, Walmart is now offering a ‘Buy Online Pick Up In Store’ option along with direct-to-doorstep.
  • Newegg — Originally a marketplace for tech aficionados, Newegg is still a go-to online marketplace for the tech-savvy, but has recently expanded its product offerings. Their Premiere loyalty program also gives merchants more time for deliver, with a 3-day standard as opposed to Amazon’s 2-day.
  • Overstock — Similar to NewEgg, Overstock was founded with a niche market in mind: homemakers on a budget. However, they too have recently expanded their product offerings.

Making the most of a branded ecommerce store

A Ware2Go survey in September 2020 revealed a trend in ecommerce: 35% of surveyed merchants opened an online store for the first time.

The benefits of using an ecommerce plug-in like Shopify, BigCommerce, or WooCommerce include::

  • Eluding competitors by driving traffic to your site with SEO and digital marketing 
  • Re-targeting customers with digital ads
  • Creating opportunities for new and return business via email marketing
  • Maintaining full brand control 

How YBell Fitness pivoted from B2B to D2C with ecommerce

From their founding YBell Fitness, a seller of gym equipment, positioned themselves as a large volume business that sold to gyms and fitness centers. However, mandatory gym shut-downs in 2020 threatened to slow their go-to-market strategy to a near halt. The solution? Selling directly to customers. 

With a new online store, YBell found a new online sales channel, driving traffic directly to their site. With a user-friendly ecommerce platform and a fast, reliable ecommerce fulfillment solution, YBell was able to pivot effectively while also having peace of mind over the logistical shifts needed to meet customer expectations, like 2-day shipping.

‘Passive Purchasing’ opportunities on Social Media & Google Search

The old adage goes that ‘no one likes to be sold to, but everyone likes to buy’. This idea has led to another growing trend: passive purchasing. This strategy is built around removing friction from the buying process by integrating into social media and search, often reducing the number of clicks it takes to ‘buy now’.

What does passive purchasing look like?

The two sales channels for passive purchasing are social media and Google search a la Google Shopping

While social media platforms like Facebook and Twitter have long offered targeted ads and promoted posts, these have become more actionable over time with call-to-action buttons. Likewise on Instagram stories, followers can simply ‘swipe up’ to buy. 

The more recent tactic of product placement with social media influencers is also evolving. In the past, influencers would simply include a product mention or tag a company’s social media account. This required followers to take an additional action, but now buying is becoming more streamlined with YouTube’s new shopping features that allow for tagging products in-video for purchase opportunities.

Meanwhile, shoppers often ‘Google it’ as a first step on their journey to making a purchasing decision. Similar to previewing images and videos that may apply to searches, Google Shopping provides a preview where customers can go straight to buying from their Google search. While digital marketing tactics like SEO remain important for SMBs that want to be at the top of the modern-day phonebook, Google Shopping has introduced ‘Smart Shopping’ campaigns based on a PPC model, similar to Google AdWords.

Multichannel selling software can create ROI for SMBs 

Multichannel selling has been proven to increase sales for SMBs, but what happens when those channels are siloed? Without unifying sales channels, SMBs could see inventory shortage or shipping delays, and not be able to spot them until it is too late. Disjointed online sales channels also lead to manual aggregation, which takes a lot of time and effort while increasing the potential for human error.

To make the most of multichannel selling — and their margins — SMBs are looking to technology to simplify ecommerce and fulfillment across all ecommerce channels.

Multichannel selling software:

  • Builds effective COM (Commerce Operations Management)
  • Consolidates all metrics into a single dashboard
  • Improves strategic, data-driven decision making 
  • Helps launch new channels and products quickly
  • Syncs sales channels with fulfillment operations

Ware2Go has all-in-one solutions that help SMBs ensure they get the most ROI from multichannel selling and deliver on their promises to customers. To learn more about how Ware2Go is working with SMBs to meet the current demands of ecommerce and fulfillment, reach out to a specialist today.


E-Commerce Marketing Tips 2021

The Top 4 Strategies to Utilize 

E-commerce is digital marketing. This is because every aspect of online shopping needs creative visuals and copy to thrive in the competitive marketplace of e-commerce. Creative assets create impressions, and impressions lead to interest. Interest then leads to investigation, and investigation has the potential to lead to sales. 

In this ever-developing era of digital dominance, virtually everything that comes across a consumers’ screen can be leveraged to sell a product or service. This is where knowledge, strategy, and budget come in. There are a plethora of tools and avenues through which a product or service can be advertised online. The question is, which ones should you use? How? When? Of course, there are no simple answers to these questions. The digital landscape is constantly evolving, and every market is unique. However, we are confident that if you will focus on these strategies for your E-commerce marketing plan, you will be off to a successful start.

 1. Market Research

Research accounts for over 50% of any successful marketing strategy. And yet, it is all too often overlooked and poorly executed.

While there are hundreds of varying formulas out there of how to conduct proper market research, there is ultimately one primary goal: Determine EXACTLY what your customers need/want from you.

To reach this conclusion, you must thoroughly understand three things:

  • The Industry
  • The Consumer
  • The Competition

Analyze Your Industry

The industry market research should describe your industry’s current size, growth rate, and trends. When analyzing your industry, you will find information that adequately portrays the latest trends and provides insight on how to optimize your business to exceed the industry’s standards.

To get started on market research, here are some helpful resources that are updated annually:

  • Nielsen
  • Pew Research Center
  • US Census Bureau

Understand Your Consumer

Once you have a firm grasp on the size, trends, and future of your industry, it’s time to get to know your consumer. This necessitates an understanding of the key demographics of the consumers in your market. 

A word of caution: Be sure to pinpoint the correct market. Your specific niche matters. For example, researching the internal makeup of consumers buying “exercise equipment” will produce far different results than researching consumers buying “weightlifting equipment”. If you proceed with researching consumers of a different market, your research will be useless, and your marketing strategy will render ineffective. Identifying the correct market is key to identifying and understanding your consumer.

 You must identify everything about the consumer in order to know how to best market to them. This includes their age, race, geographical location, socioeconomic standing, personal preferences, and even their past buying patterns.

     Here’s are some ideas to gather this information:

  • Consumer Surveys
  • Consumer Reports
  • Facebook Audience Insights & Other Platform Insights 

Research Your Competition

There will always be competition. And that’s a good thing! When properly researched, your competition will provide insight into how your company can improve processes, enhance designs, and increase overall productivity. To properly research your competition, you must begin by asking yourself these 5 questions:

How many competitors are in my market?

Who is the clear leader in my market?

How is my product/company different from its competitors?

What are my competitors’ strengths?

What are my competitors’ weaknesses?

Based on your findings, brainstorm with your team a long list of product ideas that you think would 1) serve customers better than the current competition, and 2) compel customers to switch from top competitors to your product.


2. Customer Experience – Make them say “WOW!”

  Online marketplaces are becoming exceedingly crowded. One key way brands can stand out is by building customer trust and confidence in your brand, while making their visit to your online store memorable.

  Exceeding customer expectations is no longer negotiable. It is absolutely necessary to “wow” your customers for your business to survive in the competitive waters of ecommerce. But the “wow” of your website doesn’t come from content overload, 10-step checkout processes, or making promises you can’t keep. Instead, focus on your message, your presentation, and your offers – they need to be enticing! Ultimately, your customers can drive your business if you listen to what they want and let them take charge with their feedback. 

Keep things clean, organized, and simple for your customer.

  According to a survey conducted by Small Business Trends, 94% of consumers say easy navigation is the most useful website feature. SBT continues, “A site which is easy to navigate allows users to find the content they’re looking for much faster. This means having a clear menu structure and the ability to navigate between pages quickly and efficiently.”

  In addition to making your online store easily navigable, the checkout process should be just as straightforward. According to a study, 46% of abandoned carts happen on the checkout page. Of that 46%:

  • 56% said it was because of unexpected shipping costs.
  • 25% said that navigating the website was too complicated and they didn’t know how to continue (or they no longer wanted to).
  • 21% said the process was simply taking too long and they left in frustration.

  These statistics shouldn’t be taken lightly. Be sure to simplify your customer’s UX experience. This will make your marketing assets more appealing and easier to grasp for the consumers

  Quick response time is critical. 

In today’s digital world of immediate search results and superspeed processing, it can be a major turn-off for consumers if they have to wait any more than 5 minutes for a response from customer service. There are all sorts of AI autoresponders out there to handle common support requests, and live chat add-ons that integrate with your website and social platforms. Find the software that works best for your company’s needs.


3. SEO

  Thorough research and a user-friendly website are absolutely worthless if you aren’t getting any traffic.

  SEO – Search Engine Optimization – is the practice of organically increasing traffic to your site through search engine results. The keyword here, of course, is “organically”. You don’t have to pay for SEO (like PPC). But instead, be clever with keywords to organically appear in searches. The most effective SEO tactics involve simply using the right words to promote your product or service. You can use analytics tools such as Google Analytics or Amazon Brand Analytics to find out which keywords are searched the most to find products in your market. Then, inject these keywords into your site or listing’s titles, product descriptions, photo captions, and URLs.

But don’t overdo it. Most online marketplaces will flag listings that appear to be fake or spammy.

4. Content Marketing

  Nothing beats killer content. Especially well-produced videos.

  According to a study conducted by Wyzowl, 93% of marketers who use video say that it’s an important part of their marketing strategy. 86% of video marketers say video has increased traffic to their website. 78% say video has directly helped increase sales.

  For brands selling physical products, we highly recommend putting together a well-illustrated “how-to” video. Unboxing videos are also effective in helping the viewer imagine what it would be like to acquire your product and make for good hype videos on social media.

For selling services, testimonials and step-by-step explainer videos are perfect for increasing consumer confidence.

  Whatever videos you make sure, make sure to embed them in your product page, and take advantage of the power of social media.

  But Video is only one type of content. There are all sorts of ways to convey your product or service to consumers. These include pictures, graphics, blogs, promotional ads and pop-ups, gift guides for the holidays, clear product descriptions, bulleted lists of features and benefits, comparative research of your product versus others like it, and more.

To Wrap up…

 Every business has unique marketing strategies they must implement to be successful. There are dozens of tools out there to give your brand more exposure and drive traffic to your website. You just need to find what works best for your company. It will undoubtedly take some dedicated time, resources, and research. But this process will be made simpler if you will focus on these 4 basic topics for your ecommerce marketing plan. For a free consultation on which strategies would work best for your business, contact Elemerce! 

Yours Truly,

The Elemerce Team

How To Take Your E-Commerce Business To The Next Level

Traditional commerce has been around for ages, but thanks to the internet, the expansion of eCommerce has become global. E-commerce gives people unlimited access to sell and purchase online, anywhere, anytime with a click of a button. 

Launching an e-commerce business may seem like an easy task, but it comes with its challenges if you want to succeed. You start with a product,  a theme, and boom, you can start selling. The tricky part, however, is building your following and finding the right customers. To take your e-commerce business to the next level, this is where this comes into play.  

Here is how to take your e-commerce business to the next level: 

If you are an e-commerce business owner, then you probably have gone through ups and downs with your sales. When you first launch, it is unpredictable what the outcome might be. There could be an influx of sales from acquaintances or special promotions. Then your e-commerce business slowed down, which is natural. 

The best way to take your business to the next level is by focusing on increasing sales and establishing a presence online. You can accomplish this through digital marketing and advertising.  For an e-commerce business, driving traffic to your site increases brand awareness, and brand awareness helps generate sales.  The more you diversify your presence on various online platforms, the more you can succeed. 

To get started, do market research to establish your audience. Then, build your advertising using best marketing tactics to reach your audience. There is so much more on how to use digital marketing and advertising to grow your e-commerce presence. This may be overwhelming at first, but that is okay because Elemerce is here to assist clients in growing their e-commerce brands. To get started, contact us today for a free consultation. 

Upgrade Your Checkout Experience

The Easier It Is – The More Money You Make 

If you are an e-commerce store owner, you may see stats that show your ads are converting by getting clicks and even add to carts – but then those buyers drop off. Abandoned carts are an incredibly common occurrence in the e-commerce world. However, that doesn’t mean there isn’t anything you can do about it. By upgrading your checkout experience, you can convert more sales and ultimately make more money. 

Here are some tips on upgrading your checkout experience. 

Consider your website design and layout 

User-focused web design is so crucial for online sales that there are now entire college degrees focusing on it – UX and UI Design. UX stands for user experience, and UI stands for User Interface. These two terms often coincide together because they both basically mean web design focused on user behavior. Using research and data, these specialty web designers analyze how to create the best design that is best fitting for users and generating more sales. 

Even if you are not a UX designer though, you can use the basic principles to create a user-friendly interface that allows customers to easily convert to your website. This often means more ‘ADD TO CART’ buttons, an easy scrolling interface, and ‘continue shopping’ links. 

There are other things you can add to make your customer experience even easier such as ‘save for later’ or making their cart available even if they exit out of the screen. Overall the goal should be for your customer to not have to overthink the buying process. You want users to seamlessly click through your site and convert them into a sale. 

Optimize your product listings and information 

On your product listings, you want to give your potential customers all the info they need to make the purchase. This includes shipping details and times, product availability, color options, and more. You should also suggest similar products so they can see what else you offer. 

It is also suggested to include credit card icons and trust icons so users know your check-out process is verified safe. Reviews are another great thing to include on a page so potential buyers can see what your customers have said. 

Overall, by considering your checkout experience, and testing it yourself, you are setting your online store up for more success with sales. 

Elemerce is an e-commerce partner, so if you own an online shop and want help to improve your sales, contact us today


Save The Sale: Retargeting Marketing Tips 

Using Retargeting To Bring Back Lost E-Commerce Opportunities

E-Commerce has truly changed the traditional shopping experience where a customer would go to a specific store to browse or in search of an item. Nowadays, we constantly scroll through content on our electronic devices making the online shopping experience a 24/7 game. Because of this, the sales funnel has evolved and so have marketing initiatives. Ecommerce brands should be using retargeting and remarketing strategies to turn viewers into buyers. 

The path to purchasing is much different online than in a traditional store setting. Traditional settings think about things like aisle displays, but online sales go through a web of social media ads, blogs, influencers, emails, and more. This web of various digital advertising and strategies all lead to someone eventually creating a cart and making an electronic payment. 

Traditional Advertising Methods No Longer Work

It used to be that traditional advertising such as television or print ads is no longer a viable source of information. Today consumers read reviews, search for videos online, and read blog posts from purchasers. Consumers also search for competing brands to compare pricing, quality, and options. 

For marketing efforts, you must consider the new age thinking: Budget, Authority, Need, and Timeframe (BANT). The beginning of any online shopping experience is usually just brand awareness. Over time, users will keep seeing your digital marketing efforts and find a need. 

Turn Abandoned Shopping Carts Into Sales

It is said that 75% of shopping carts online are abandoned. That means users adding products to their cart but did not actually purchase. By using retargeting, you can bump those customers to remind them of their desired purchase that they did not make. 

Retargeting is happening on the internet all around us. You find a pair of sunglasses you like, you put them in your cart, decide to wait, and then the next day those same sunglasses are popping up as ads on your social media, display ads on websites, and even in your gmail. This is not a coincidence; this is retargeting. Retargeting is when you show ads to someone because of their browser history. 

You can also use old customer data to remarket 

There is also a similar term to be aware of: remarketing. Remarketing involves collecting customer info such as emails or phone numbers and sending them marketing promotions and updates. The overall goal with both is to convert those customers – both old and new – into a converting sale. 

If you are an e-commerce store and you are not using retargeting or remarketing strategies, it is time to get on it. There are many tools and resources out there to use this online sales tactic to show your ads to the RIGHT customers – converting higher sales! 

Elemerce was created to empower ecommerce brands for growth. Contact us today to see how we can help you reach your online sales goals. 

State Sales Tax Requirements By State For E-Commerce Companies

If you are an online seller, economic tax nexus is an important term to be familiar with.

Sales tax nexus was originally defined in the Supreme Court case Quill v. North Dakota saying that a retailer must have a presence in a state before that state can require the seller to collect sales tax from buyers in that state. More recently though, the Supreme Court ruled in South Dakota v. Wayfair that the precedent set in the Quill v. North Dakota case has been overturned. 

Physical presence, which means location, an employee, or inventory, in a state is not the only thing that creates a sales tax nexus anymore.

Introducing Economic Nexus Laws – the latest addition to sales tax nexus

Now, if a business has an economic presence in a state, they are responsible for paying sales tax. This means if you surpass a certain revenue in or the number of transactions in a state, you are now legally required to collect sales tax and give to that state. 

This change in the law was directed at e-commerce giants like Amazon and Wayfair, but the threshold varies state by state. Since the ruling, more than 40 states now have enacted economic nexus laws of their own. 

Some state thresholds are only $10,000 and some are $500,000. As a retailer, it is important to know about state tax nexus laws so you can be prepared in case your online sales pass the threshold. 

Because of this new ruling in the Wayfair v. South Dakota case, online retailers with sales surpassing $100,000 must now pay nexus tax to South Dakota. The ruling of the case can impact any online retailer doing well in certain states, and can increase taxes by causing retailers to pay out more states than before. 

Currently, there are only a few states that do not collect sales tax in accordance with economic nexus laws, which are Missouri, Oregon, Delaware, Montana, and New Hampshire. You can read more on specific states

Moving forward, there is a chance that Congress could step in and change these laws on a Federal level regulating state sales tax. Until then, it is important to familiarize yourself with the economic tax nexus to avoid surprises during tax season. 

Elemerce is here as a resource for everything E-Commerce. Contact our team today to discuss your online retailer needs.

Zack Propst

What iOS 14.5 is and How it Will Affect Facebook Ads

The Apple update that Facebook has been dreading will soon be in the pockets of millions of Americans sometime next week. iOS 14.5 will come with new features along with an adjustment to Apple’s privacy policy, which will require applications and advertisers like Facebook to follow Apple’s new App Transparency Tracking Guidelines.

What is App Transparency Tracking?

App transparency tracking is a new set of rules requiring apps that use IDFA for ad targeting to request user data before collecting it. Basically, right after a user downloads the update and goes into an app like Facebook, they will be asked to consent to share their data with the platform. It’s important to note that this set of rules only applies to applications that use IDFA to personalize ads. IDFA, or Identifier for Advertisers, is Apple’s unique software ID on every iOS device that advertisers like Google and Facebook have been using for years to personalize ads.

In preparation for this update, Google actually started using SKAdNetwork instead of IDFA for its personalization. Since SKAdNetwork isn’t as robust as IDFA and has time limits on how long it tracks users, it’s not targeted by the ATT. Google’s ads will continue uninterrupted.

How iOS 14.5 Will Affect Advertisers

At face value, this is concerning news for anyone who uses Facebook and Instagram to deliver ads. In the past, Facebook users had to go into their settings and turn off data sharing in order to stop their information from being shared. This was something only 25% of iPhone users ever did. With the new update, however, users will have to consciously consider allowing their data to be tracked by advertisers. Although some polls suggest only 20-40% of users won’t consent, according to Hootsuite, 47% of Facebook users don’t trust the platform to protect their data and privacy.

Given these stats, it’s safe to assume advertisers will slowly stop getting updated data from users once this update is rolled out, and Facebook and Instagram ads will see a slow but significant drop in reach. How much, specifically? That’s yet to be determined.

The End of Facebook Advertising?

Not by a longshot. As mentioned before, Google has already moved over to SKAdNetwork to exempt themselves from the ATT rules and Facebook already has plans in place to do the same. When this is implemented, Facebook ads will still have similar reporting and reach as they do now, but the data won’t be as accurate as it was when using IDFA.  If you are concerned that this will impact your business, however, it’s worth considering how much money you put into Facebook ads in the future.

How to Prepare for the Update:

First off, don’t panic. Facebook ads aren’t going anywhere. The data they provide might not be as in depth and in real-time as before, but it will still be much more accurate than throwing up a billboard on a highway.

Additionally, although Facebook might seem like the center of the world when it comes to digital marketing, it’s only a small piece of the overall pie. Google and their robust advertising suite will be unaffected by the upcoming update, and their PPC and Display Network ad services will continue without interruption after this update is rolled out.

If you do have concerns about the constant changes to online advertising, selling and advertising on Amazon worthwhile move you can take. Since all of their advertising functions are tracked and executed natively, they will never come under the crosshairs of phone updates. (And Amazon has much higher conversion rates than both Google and Facebook!)

If you have any questions or concerns about how your online advertising is going to be affected by iOS 14.5 we’d be happy to help. Contact us Here!