What your ecommerce strategy should include in order to grow? Mid- and long-term vision resources for the online store manager.
Alright, online stores can be categorized in many different ways, but what concerns us today is the following division.
Some online shops are created to push some stock, make some money and get flipped or closed. The owners typically move on to the next niche and open the next store for another 1-2 years, then move on again.
Such store usually sell mass products like dropshipped clothes, kitchenware, baby products, imitation jewelry, which are widely sought online and barriers to entry are low.
Ecommerce is a wonderful field – anybody can start and succeed.
The community is huge and you can ask for advice people with all kinds of experience and background.
But I see in many discussions among ecommerce entrepreneurs is that some still believe the simple guiding rules some guru wrote long ago, when commerce was young and competition was smaller.
“Just put $5 there and it’ll start pouring.” or “Find a Chinese supplier, put up a site and never work again.” BS.
Customer lifetime value in ecommerce is not interesting to look at every day.
Busy with day-to-day tasks, we often forget that, however, it is powerful enough to make or break the business.
In this article, we explain why customer lifetime value should be part of your long-term ecommerce strategy.
In order to talk about LTV, let’s take a look at the bigger picture first.
eCommerce is obviously booming. More and more people are jumping on the online retail wagon and this is all good because it pushes the whole industry forward.
But there’s the downside that almost no-one talks about, although everybody’s struggling with it.
It’s the fact that more and more businesses are fighting for the customer. Which leads to one thing – increased CAC (customer acquisition costs).
It’s obvious that it’s never been more expensive to acquire a customer. But the reality is it’s never going to be cheaper to acquire one, either.
High CAC is not the issue, though. Low LTV is.
Magento is one of the most popular platforms for medium and big eCommerce businesses, and for a lot of reasons. Being one of the most flexible eCommerce solutions, it allows you practically any kind of integrations and adding any features that come to your mind.
While working with Magento, you may stumble upon different challenges and being prepared for them will save you lots of time.
Let’s dive in some of the most common ones and how to solve them!
There’s an emerging change in the retail and services industry. Before you get too excited and start scratching your head, let me tell you it’s nothing new.
It’s the Direct-to-consumer movement, and it’s the darling of the investors.
While it is not a new or a groundbreaking business model, in recent years more and more entrepreneurs and brands in the industry are changing as they see a way to keep their margins for themselves and not share with anyone else (distributors, marketing agencies, etc).