Effective Strategies to Reduce Cost Per Acquisition For eCommerce Store

A Leading e-Commerce client in the apparel space built on the Shopify platform was facing the problem of high Cost Per Sale at 50% of the net order value for all online orders. The customer has been running a profitable offline apparel stores.  The client had a target of 20% Cost Per Sale to make the business profitable.


The first objective was to ensure that tracking and attribution was working properly. 

As a first basic step, we ensured that Google Analytics and Tag Manager were setup properly to enable correct tracking. We also setup dashboards for all metrics using Google Datastudio. 

Based on internal data and competition analysis, we created a detailed plan covering all digital channels both Paid and Non-Paid. 

Solution  — Integrated Marketing Planning

In the case of Non-paid media we made a plan covering SEO both On-Page and Off-Page, Social Media Channel optimization across Youtube, Facebook, Instagram, Pinterest and Linkedin. 

For Paid Media, clear rules were defined to allocate budget based on defined metrics. Also rules to identify opportunities to re-allocate budget at the right time. 

Leveraged on site optimization tools like Sumo,and also creating a sense of urgency and scarcity we were successful in increasing visitor conversion rate. Apps like sweetupsell & Bold Bundle to improve average Order Value.

Setup Marketing automation integrating eMail, SMS, Push Notification and Display advertising to convert abandoned cart users to sales and hence better ROI. 

Result :

Within Six months of daily monitoring and extensive analytics, we successfully  brought down the Cost per sale to 20% of the sale value. 

Also the average order size went up by 30% and average basket size went from 1.2 to 1.6.

The increase in Average basket size reduced the cost of logistics further improving the overall margins.

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