Here's what are by far the most important things ecomm owners should know.
One thing I know, as soon as you start thinking you have nothing left to learn, your business is in trouble.
1. Know Your Numbers
As I've mentioned not once or twice, before start working with us most of our clients don't know their AOV (average order value), CLTV (client lifetime value), website CR (conversion rate), CPP/CPA (cost per purchase/acquisition), CTR (click through rate), CPC (cost per click), etc. Which cripples their ability to make data-driven decisions and use paid advertising and really grow and scale their business.
Your lifetime customer value is one of the most important metrics in your business. That 's a crucial metric not only because it impacts your bottom line, but it also shows how loyal your customers are to your brand. And brand loyalty and differentiation are what help small ecomm sores to compete with huge multi-billion brands.
2. Know Your Story
Story is a huge thing. You need to be able to share the story behind who you are. And even if you’re not the face of your brand, share a story about why that product is so important in people’s lives.
We recently started working only with as I call them "Ethical Ecommerce Businesses". Why? Because we want to help businesses that improve people's lives, solve problems, and have a mission. Not those that are out there for the quick buck.
The nameless, faceless brands are dying (or they’re only on Amazon). You need to understand how to leverage mission, story and purpose to engage an audience is now fundamental to building a scalable brand. Building a community around your brand is mandatory to reach people easily and tell your story. Without a story, you’re just another anonymous internet store selling an anonymous product.
3. Think Long-Term
There are so many "gurus" and courses out there that give us this flash idea like you can just do something and make a lot of money. But really it’s this long game that you’re setting up that’s creating a lot of the success that you see.
Building strong, lasting ecommerce brands take time. If you fall into the trap of short-term thinking you might lose a $100 million idea before you even knew you had it.
4. Know Your Margins
Focus on something where you have a healthy margin but also a big margin because the product is more expensive. That way you can actually invest into ads, a team, web design — everything you actually need if you want a business that’s going to scale over the years.
While dropshipping is how many retailers get their start, it’s not a sustainable business model. If you want to scale, you need to start developing your own products and putting some energy toward building a brand and expanding your product catalog.
That's all. I hope you enjoyed it.
If you are one of those "ethical" businesses and need any assistance in boosting your eCommerce store click HERE and schedule a Free strategy 1-on-1 call with one of our experts!