July 7, 2025

The Complete Guide to Ecommerce Revenue Optimization

Arrow pointing left
back to blog

about

In this guide, we cover everything you need to know to optimize your ecommerce revenue and grow your brand.

the author

Angela Sokolovska
Ecommerce expert

share this post

Ecommerce revenue isn’t just about getting more traffic or running discounts. It’s the result of a finely tuned system where traffic, pricing, conversion, support, and retention all work together. In a landscape where customer acquisition costs are rising and consumer expectations are higher than ever, optimizing your revenue isn’t a bonus – it’s survival.

In this guide, we’ll break down each lever that affects your revenue, with actionable insights and real-world examples you can use right now. Whether you’re a growing brand on Shopify or scaling on BigCommerce, these strategies will help you convert more visitors, increase lifetime value, and build a brand that lasts.

Table of Contents

Turn More Clicks Into Revenue

Run A/B tests directly in Shopify and improve conversion rates with Shogun.

Start Optimizing with Shogun

Key Elements of Revenue Optimization

Ecommerce revenue optimization isn’t about doing more. It’s about doing the right things… better. Every touchpoint in your store either increases or leaks revenue. Below are the six core levers you need to tune to drive long-term, profitable growth:

1. Traffic Generation

Traffic is your starting line. No visitors = no revenue. But it’s not about driving more traffic, it’s about driving the right traffic. Revenue-optimized stores focus on channels that bring in high-intent shoppers, whether through SEO, paid ads, influencer partnerships, or owned lists like email and SMS.

Why it matters: All your other revenue levers are useless without consistent, high-quality traffic.

2. Product Pricing

Your pricing isn’t just a number – it’s a signal. It shapes how customers perceive your value, determines your margins, and influences conversion. Smart pricing considers cost, competition, and perceived value – and evolves based on customer behavior and A/B tests.

Why it matters: The wrong price loses sales or kills profit. The right price multiplies both.

3. Conversion Optimization

Once you have traffic, your job is to convert it. CRO focuses on turning visitors into buyers through tactics like A/B testing, page speed optimization, clear CTAs, and personalized experiences. Think of it as removing friction at every step in the buying journey.

Why it matters: Even a 1% lift in conversion can lead to thousands in extra revenue per month.

4. Cross-Selling, Upselling, and Subscriptions

Don’t just sell once – sell smart. These tactics increase your average order value (AOV) and lifetime value (LTV) by anticipating what your customer will want next. Done right, they feel helpful – not pushy (and boost profit without increasing traffic.)

Why it matters: It’s cheaper to grow revenue from existing customers than to acquire new ones.

5. Support

Most brands treat support reactively. Revenue-optimized stores treat it as a profit center. Fast, accurate, and proactive support reduces returns, increases trust, and creates repeat customers. It also lowers support costs through smart documentation and automation.

Why it matters: Good support keeps customers happy. Great support protects your margins.

6. Retention and Brand Building

The most profitable stores don’t just get customers – they keep them. Retention is about post-purchase communication, loyalty programs, brand storytelling, and creating experiences that turn one-time buyers into lifelong fans. This is what makes brands scalable (not just sellable.)

Why it matters: Sustainable revenue doesn’t come from acquisition. It comes from belonging.

Traffic Generation

Traffic is the starting point of all revenue optimization – yet most merchants treat it like a volume game. They throw money at ads, chase SEO rankings, or boost influencer posts without aligning traffic with buying intent. But traffic that doesn’t convert isn’t just useless, it’s expensive.

Let’s break down how to drive high-quality traffic that fuels profitable growth.

1. Paid Campaigns: Optimize for Buyer Intent, Not Clicks

Ad costs are up across platforms. Meta’s average CPM rose to approximately $12.74 in June 2025 – compared to around $8-9 in prior years, marking a clear upward trend. The only way to make paid traffic ROI-positive now is to go deeper than demographics and optimize around intent.

  • Retarget with purpose: Dynamic product ads to cart abandoners yield some of the highest ROAS – often 3-5x higher than cold traffic.
  • Segment by funnel stage: Don’t run the same creative to top-of-funnel and bottom-of-funnel audiences. Use educational content early, and high-trust UGC closer to purchase.
  • Test offer-first ads: Free shipping, bundles, or gift with purchase promos often convert better than product ads – especially on TikTok.

Try this: Pair Meta’s Advantage+ Shopping campaigns with post-purchase survey tools like KnoCommerce to validate attribution.

2. Influencer Marketing: Ditch Vanity Metrics

Influencer traffic can be a goldmine – when you ignore follower counts and focus on fit. Micro-influencers (under 50k) in niche spaces consistently drive higher conversion rates than celebrity endorsements. Why? Because they’re trusted.

  • Micro‑influencers drive high ROI: Studies show campaigns using influencers typically deliver $5–$6 in revenue for every $1 spent.
  • Smaller creators outperform mega‑influencers: Bazaarvoice research found everyday social users are more trusted than celebrities, and their content often drives better engagement and conversions.
  • Case in point: A beauty brand featured in WTM Digital’s case study saw influencer efforts boost website traffic by 35% and drive a 25% increase in sales.

Best practices to follow:

  1. Prioritize creators who already use similar products – they bring authenticity and trust.
  2. Provide affiliate codes with tiered commissions – performance-based incentives align interests.
  3. Whitelist top creators’ content and use it in paid ads – it amplifies reach and conversion impact.

Tool tip: Use Modash or Upfluence to filter creators based on your ICP’s interests—not just keywords.

3. SEO: Shift From Keywords to Conversion Topics

Ranking for broad terms like “eco-friendly water bottle” won’t drive revenue unless your offer matches what the searcher actually wants. Ecommerce SEO today is about topic clusters with commercial intent.

Instead of this:

  • “Best water bottles” → high competition, low conversion

Try this:

  • “Glass water bottles that fit car cup holders”
  • “Leak-proof gym bottles with straw”

Build landing pages for each cluster with keyword variations, rich media, and product filters.

Try this: Use Google Search Console to identify high-impression, low-CTR queries. These are low-hanging fruit for traffic improvement through copy or metadata tweaks.

4. Email & SMS: Your Highest-Converting Channels Are Free

While paid traffic gets the hype, owned traffic does the work. Email and SMS typically account for 25-40% of total ecommerce revenue, and the ROI on email alone can hit $45 for every $1 spent for the ecommerce industry.

ROI by Industry
  • Welcome flows convert best when personalized by behavior (e.g. product browsed)
  • SMS outperforms email for time-sensitive offers like flash sales or restocks
  • Segment by purchase history, AOV, and engagement levels

Tool tip: Use Klaviyo’s predictive analytics to anticipate next purchase dates and send replenishment reminders automatically.

5. Offline Channels Are Back (Yes, Really)

With digital saturation at an all-time high, physical mail is having a moment. Tools like PostPilot let you trigger postcards based on site behavior – cart abandonment, product views, even loyalty milestones.

  • Higher trust factor than email
  • Works especially well for high-AOV and older demographics

Test this: Send a personalized card to first-time customers with a 10% off incentive for their second purchase. Track lift in repeat purchase rate.

Product Pricing

Most ecommerce stores treat pricing as a static decision – set once, forget it. But in reality, your pricing is one of the most powerful levers you have to optimize revenue. It influences perception, impacts conversion, affects profitability, and even shapes brand positioning.

Here’s how to treat pricing as a growth strategy, not just a math problem.

1. Don’t Just Compete – Position

Many brands default to competitor-based pricing: “Let’s just be slightly cheaper than Brand X.” But this race to the bottom erodes margins and rarely wins long-term.

Instead, use value-based pricing: price according to the transformation your product creates for your target customer.

Example: Oura Ring doesn’t compete with Fitbit on features or price. It positions itself as a premium sleep and recovery tool – and charges accordingly.

Oura ring brand positioning

Ask yourself: What is the outcome my customer is buying? Price for that—not the product itself.

2. Use Price Anchoring to Frame Perception

Price anchoring is a cognitive bias where people rely on the first piece of information they see. Smart merchants use it to shape value perception.

How to apply it:

  • Show a higher-priced product first to make others seem more affordable
  • Offer a “decoy” option that pushes shoppers toward a middle-tier plan
  • Use strike-through pricing (“Was $129, now $89”) sparingly for true offers

Example: Brands like Brooklinen use bundles to make single items feel like less value per dollar, subtly guiding buyers toward higher AOV packages.

Brooklinen's bundles page

3. Consider Dynamic or Regional Pricing

If you sell internationally, using the same pricing everywhere leaves money on the table. Consider:

  • Local currency pricing with rounding (e.g., €29 instead of $31.47)
  • Pricing tiers based on GDP or purchasing power
  • Geolocation-based pricing to stay competitive in specific regions

Tool tip: Use Shopify Markets or BigCommerce’s multi-storefront feature to display country-specific prices. Then use Shogun to create localized versions of your landing pages to match.

4. Monitor Pricing Elasticity Over Time

Track how changes in pricing affect sales velocity, AOV, and LTV. If raising prices doesn’t reduce unit sales – or if it improves repeat purchase rate – it might be time to shift permanently.

Key metric to watch:

  • Price elasticity = (% change in quantity sold) / (% change in price)
  • If the number is <1, your product is inelastic – meaning you can raise prices without losing too many sales.

Conversion Optimization

You’ve done the hard work: You brought traffic to your store and priced your product well. But if your storefront doesn’t convert, every dollar you spent getting people there is wasted.

Conversion optimization is about removing friction at every stage of the buying journey. The goal isn’t just to increase conversion rates – it’s to make it as easy and compelling as possible for customers to say yes.

Let’s break down how to build a high-converting storefront that maximizes revenue.

1. Speed Isn’t Optional, It’s Expected

Akamai data shows that just a 1-second delay in page load leads to a ~7% drop in conversions – and Portent confirms that conversion rates decline sharply with each extra second of loading.

  • Compress images without losing quality using tools like TinyPNG
  • Limit third-party scripts that slow down performance
  • Consider loading mobile-first designs to meet mobile shoppers where they are

Actionable tip: Use Google PageSpeed Insights to identify elements killing your load speed – especially on mobile.

2. A/B Testing

Every ecommerce brand has assumptions about what works – but only testing can confirm them. Use A/B testing to experiment with:

  • Product titles (simple vs. benefit-driven)
  • CTA button text and color
  • Hero image type (lifestyle vs. product-only)
  • Reviews placement (above vs. below fold)

Example: Clear Within, a clean skincare brand, used Shogun’s A/B testing to test different layouts on product pages – and achieved an 80% increase in add-to-cart rate.

Shogun A/B testing helped increase Clear Within's conversions by 80%.

Pro tip: Focus on one variable at a time per test to isolate true impact.

3. Personalization = Higher Relevance = More Revenue

Personalized experiences can lift ecommerce revenue by up to 15%. Shoppers expect brands to recognize and serve them relevant content based on location, behavior, or stage in the buying journey.

  • Show local shipping info based on geolocation
  • Recommend products based on browsing history
  • Surface category-specific promotions on landing pages

Example: A footwear brand could show winter boots to shoppers in New York and sandals to those in Florida – all on the same URL, using Shogun’s personalization app.

4. Optimize for Micro-Conversions

Too many merchants focus only on the final purchase. But optimizing micro-conversions, like email opt-ins, quiz completions, or product filter usage – builds a more qualified, conversion-ready customer.

Tactics to implement:

  • Add “quick add to cart” buttons on collection pages
  • Use sticky add-to-cart bars for long product descriptions
  • Offer product quizzes to guide indecisive shoppers

Tool tip: Pair Shogun with Octane AI for quizzes that segment users and personalize the product feed accordingly.

5. Build Trust Visually

No one buys from a brand they don’t trust—and trust is mostly visual. Key trust signals include:

  • UGC or customer photos
  • Video reviews or demo videos
  • Secure checkout badges and trust icons
  • Clear shipping and return policies above the fold

Example: Beckett Simonon uses story-driven visuals that emphasize sustainability and craftsmanship, and saw a 5% lift in conversion plus a 237% annualized ROI from A/B testing different layouts.

Beckett Simonon's before and after once they added trust elements.
Turn More Clicks Into Revenue

Run A/B tests directly in Shopify and improve conversion rates with Shogun.

Start Optimizing with Shogun

Cross-Selling, Upselling, and Subscriptions

Acquiring a new customer is 5 to 7 times more expensive than selling to an existing one. That’s why one of the fastest, most efficient ways to grow revenue is to maximize the value of each transaction. Cross-sells, upsells, and subscriptions aren’t just helpful tactics, they’re essential to revenue optimization.

Let’s break down each and how to implement them without harming UX or customer trust.

1. Cross-Selling: Sell the Complete Solution

Cross-selling recommends related products that complement what’s already in the cart.

  • Product page: “Pairs well with” or “Complete the look” sections
  • Cart drawer: Add accessories, care kits, or matching items
  • Post-purchase: Offer add-ons immediately after checkout, when the customer is still in buying mode

Example: A brand selling matcha might cross-sell a whisk set or ceramic mug. These add-ons increase AOV and create a better product experience.

Tip: Don’t overwhelm users with too many options – stick to 1–3 targeted cross-sells max.

2. Upselling: Help Customers Upgrade

Upselling encourages customers to move to a higher-value version of a product or add more units for better value.

  • Offer larger sizes with volume discount messaging (“Buy 2, save 10%”)
  • Add “upgrade” buttons that show product benefits side-by-side
  • Use urgency (e.g., “Only 3 left at this price”) to guide decision-making

Example: Brands like Athletic Greens offer a one-time purchase but highlight the value of a 30-day supply + subscription bundle with free bonuses.

AG1 subscription options

Tip: Use split testing to compare one-click upsells post-purchase vs. upsells before checkout. Often, conversion is higher after checkout due to reduced friction.

3. Subscriptions: Turn One-Time Buyers Into Monthly Revenue

Subscription models create predictable, recurring revenue is key to long-term growth. But retention is just as important as acquisition.

Best practices for subscriptions:

  • Let users customize delivery frequency
  • Make cancelation easy to build trust
  • Include loyalty perks (points, exclusive access, member-only content)

Example: Blume, a skincare brand, uses a simple quiz to pair shoppers with a routine, then offers subscription discounts and reminders before each order ships, minimizing churn.

Blume's quiz

Tool tip: Try platforms like Recharge, Smartrr, or Bold Subscriptions to manage and customize the experience.

4. Where to Place These Offers Strategically

Don’t shove upsells and cross-sells ин too early (or too late.)

High-converting placements include:

  • Just above the cart button
  • Inside the cart drawer (especially for mobile UX)
  • After checkout but before thank-you page
  • Inside email flows post-purchase

Support

Support is often treated as a cost center, but in a revenue-optimized ecommerce business, great support protects profits. It reduces return rates, increases repeat purchase likelihood, and preserves trust when something goes wrong. It’s also a powerful – but underutilized – driver of long-term customer value and experience.

Let’s break down how proactive, efficient support contributes directly to your revenue optimization strategy.

1. Reduce Support Volume With Better Site UX

Many support tickets are preventable. They come from poor product descriptions, unclear shipping policies, or missing FAQ sections.

Fix this upstream:

  • Add size guides, delivery timelines, and return policies above the fold
  • Use accordion dropdowns or tabs on product pages for FAQs
  • Include UGC and product video demos to reduce “how does this work?” inquiries

Example: Electronics brand Metals4U optimized their delivery and returns info, contributing to a 34% increase in sitewide conversion rate.

2. Fast Support = Fewer Cancellations

When customers do need help, speed matters. Nearly 60% of consumers say that fast resolution is the most important part of a good support experience 

What this means for revenue:

  • Slow replies increase cancellation rates and refund requests
  • Delayed responses during high-spend periods (like BFCM) = lost sales
  • Live chat on PDPs can rescue uncertain buyers in real time

Tip: Use a tool like Gorgias to pull customer data into the ticket and reduce time-to-resolution.

3. Automate Without Losing the Human Touch

AI-driven chatbots and autoresponders can deflect 30-50% of common tickets when implemented correctly. But the key is clarity, not complexity.

  • Set up flows for order tracking, shipping questions, and returns
  • Clearly label automated vs. human responses
  • Escalate high-AOV or loyalty customers directly to a human rep

Tool tip: Pair Gorgias with a help center tool like HelpDocs or Zendesk Guide to create searchable documentation that reduces manual tickets.

4. Use Support Data to Find Revenue Leaks

Support tickets are a goldmine for identifying friction in your revenue funnel.

Look for:

  • Repeated questions about product fit → update size charts
  • Refund reasons → isolate by product to spot quality issues
  • “Where’s my order?” tickets → improve shipping visibility or notifications

Pro tip: Tag tickets by issue type and analyze monthly. Turn your support inbox into a CRO research tool.

5. Support as a Retention Engine

The best support doesn’t just solve problems, it also strengthens relationships. Post-resolution follow-ups, apology discounts, and handwritten thank-you cards (even digital ones) can turn frustration into loyalty.

Example: Brands like Chewy send condolence flowers to pet parents after a pet passes away.

Twitter post by happy Chewy customer who received flowers for her dog.

Retention and Cultivating a Following

You can’t optimize revenue without optimizing lifetime value. Customer retention is the most underrated (and highest-leverage) pillar of ecommerce growth. It’s about building a brand that people want to come back to, talk about, and buy from repeatedly.

Let’s break down how to turn post-purchase touchpoints into revenue flywheels.

1. Why Retention Beats Acquisition

Repeat customers are 9x more likely to convert than first-time shoppers. And according to Bain & Company, increasing customer retention by just 5% can boost profits by 25%–95%.

That means every sale isn’t the end of a transaction, it’s only the beginning of a relationship.

2. Email & SMS Flows That Drive Repeat Sales

Owned retention channels still outperform everything else.

Best flows to implement:

  • Post-purchase thank-you with product care tips and cross-sells
  • Winback campaigns triggered after 30–60 days of inactivity
  • Milestone-based offers (e.g. birthday discounts, loyalty tier upgrades)

 Tip: Use behavior-based segmentation in Klaviyo to target customers with messaging that reflects their past purchases or browse history.

3. Turn Buyers Into Fans With Content and Community

Revenue optimization doesn’t stop at conversion, it evolves into connection. Build a brand voice and post-purchase experience that makes customers feel like they’re part of something.

Examples:

  • Create private VIP groups on platforms like Geneva or Discord
  • Run UGC campaigns that invite customers to share how they use your product
  • Feature top customers in your emails or on-site content

Example: UNTUCKit actively encourages customers to share photos of themselves wearing their shirts (“when-worn” photo reviews). They integrate these customer images directly into their product pages.

UNTUCKit actively encourages customers to take pictures of their products and share's them as UGC images directly in their product pages.

4. Use Loyalty Programs to Lock in LTV

Retention is easier when there’s a reason to stay. Loyalty programs incentivize second, third, and fourth purchases by giving customers a sense of progress and reward.

Best practices:

  • Offer points for more than just purchases (e.g. reviews, referrals)
  • Make points redeemable for experiential rewards, not just discounts
  • Use tiers to create perceived exclusivity

Tool tip: Platforms like LoyaltyLion and Smile.io integrate seamlessly with Shopify and BigCommerce to deploy revenue-driving loyalty systems.

5. Brand Consistency = Long-Term Trust

None of this works without a clear, consistent brand identity. Retention thrives when customers recognize and relate to your story.

  • Keep your voice consistent across email, SMS, ads, and on-site copy
  • Use visuals that feel distinct – color palette, layout, packaging
  • Reinforce your brand promise through post-purchase emails and unboxing.

Example: Liquid Death uses its irreverent tone and edgy visuals across every touchpoint – from product pages to shipping notifications – building fierce loyalty (and earning over $130M in funding along the way).

Liquid Death's outstanding graphics along each customer touchpoint.
Turn More Clicks Into Revenue

Run A/B tests directly in Shopify with Shogun to improve conversion rates, pricing strategies, and more—no code required.

Start Optimizing with Shogun

You might also enjoy

Get started for free

Get hands on with everything you need to grow your business with a comprehensive suite of tools.
Start now
Arrow pointing up and to the right Arrow pointing up and to the right