Fimarka CEO Mustafa Erol Çakan Explains
Running an E-Commerce Business in the Grip of Algorithms

In this article, we will discuss frequently changing algorithms, one of the challenges e-commerce businesses have faced in recent years, and what they can do to adapt.

Over the past few years, the e-commerce industry has undergone a fundamental transformation both in Türkiye and globally. The changes and developments experienced during and after the pandemic have intensified competition in e-commerce. During the pandemic, many SMEs entered e-commerce and began using advertising platforms. This increased competition and consequently costs across Google and Meta, which are the primary traffic sources for e-commerce businesses. Combined with the rise in the US dollar exchange rate, the already limited profitability of e-commerce businesses began to decline even further. As if these challenges were not enough, changing algorithms across Meta and Google have made conditions even more difficult for advertisers. With the iOS 14.5 update, the transition to GA4, the shift towards a cookieless world, and changing algorithms, a completely new and challenging environment awaits us.

So, what should we do in response to all these developments?

Focus More on Social Commerce

It is an undeniable fact that potential customers spend a significant amount of time on platforms such as Facebook, Instagram, WhatsApp, and TikTok. Considering the increasingly complex algorithms, converting potential customers into buyers while they are still using these platforms, rather than directing them to our websites, can reduce the impact of algorithm changes. It can also help us reach potential customers who abandon their carts on e-commerce sites through multiple communication channels and convert them into customers.

Make Greater Use of Artificial Intelligence

We are not going to tell you to start using artificial intelligence, as we cannot imagine that you have not already done so ?
Integrate artificial intelligence into every stage of your business, including marketing, customer support, content creation, business analysis, and productivity improvement.

Create a Revenue-Sharing Model with Influencers

Influencer marketing is undoubtedly one of the ways to reduce the impact of algorithms and reach new audiences. When working with influencers, adopting a model in which you pay commission based on sales can contribute to creating a sustainable structure. Various applications connect influencers with brands and enable businesses to implement this model.

Do Not Underestimate the Power of Email Marketing

Email marketing is one of the marketing methods that has experienced lower cost increases than platforms affected by algorithm changes while continuing to provide a high return on investment. However, there are also activities that must be carried out continuously. While expanding our permission-based email marketing lists, we should also segment them and seek ways to deliver the right content to the right people instead of sending mass emails.

We should also remember to synchronise our email lists and segments with Google and Meta and transform them into audiences that can be used in advertising campaigns.

Embrace Referral Marketing

The best marketing strategy for an e-commerce site is naturally to create satisfied customers. However, unless we encourage customers to recommend us, it is clear that we will not achieve a high level of referrals. Creating campaigns in which both customers and their friends receive discounts when they recommend your e-commerce site can therefore be highly effective.

Shorten the Customer Decision-Making Process

Because of changing algorithms and increasing competition, the likelihood of a user who leaves your website later becoming a customer is decreasing compared with previous years. You should therefore reduce any processes that may cause customers to hesitate or abandon their orders. These may include slow-loading product pages, complex or inadequate category pages, registration pages requesting excessive information, return policies, high shipping fees, and similar factors.

I look forward to meeting you again in another article. Wishing you strong sales.