1041079942981391
 

Have you reached 5 lakhs of monthly revenue but hit a roadblock? Try these 5 things

Updated: Apr 29


You have been running your eCommerce store for some time and are making a revenue of five lakhs month on month. You want to scale it further but face certain persistent issues that stall growth. These issues may be symptomatic of a larger problem, and may manifest as follows:

  • Over the months, the revenue generated has not increased beyond a threshold.

  • The return on ad spend at this stage is not correlating proportionately as it used to earlier.

  • At times, high traffic has not led to conversions.

  • There is a general lack of clarity on what to do and where to focus.

These issues can leave you stumped and you may feel helpless.


Is there a way to break this cycle and scale your eCommerce brand purposefully and profitably?


Yes! Here are five things you can do to fix this issue and put yourself back on the growth track.


1. Integrate All Sources Of Data


Often, stagnation is a sign that we do not have complete visibility of the problem. In today’s world of too much data, the issue lies in collecting, consolidating, and deriving insights from the gathered data.


eCommerce brands have tons of data across various platforms such as their own eCommerce stores, advertising channels, payment partners, and other channels of sales as well.


This data is often in silos lying unutilized or underutilized. Integrating such data can provide tremendous insights into how your eCommerce brand is functioning. Further, this data can be used to make holistic plans while accounting for unexpected issues that may crop up from time to time. In this way, changes can be implemented and tracked in real-time with a robust feedback loop.


For example, by integrating data related to inventory and sales with ad spend on marketing, you can adjust the ad spend to account for fluctuating patterns such as pausing campaigns for products that have gone out of stock.


Likewise, if you find that returns of your product line are high and data from delivery partners shows a spike in delivery time and frequent delays, you know that products are being delivered beyond the expected time.


Customers, in the meantime, may have found alternative products. In this case, the issue lies with the shipping partner rather than the product itself.


2. Track Potential Risks And Act On Opportunities


One reason for stagnation could be a lack of awareness and action related to potential risks and opportunities.


Potential risks could come from multiple areas such as technological factors and economics among others. For example, online security breaches pose great risks for eCommerce brands. Going further, even seemingly smaller issues such as low SEO ranking can become roadblocks to achieving growth targets.


At the same time, when we miss out on market trends such as a hyperlocal shift post the pandemic, we miss out on a large chunk of the market cake. eCommerce retail always demands that we have one ear trained to the ground while also being pragmatic about what we’re struggling to perfect.


A thorough SWOT analysis of your eCommerce brand periodically is recommended to stay ahead of your competitors and turn risks into opportunities. Further, keeping a close watch on how competitors are tackling common challenges can help you devise better growth strategies.


For instance, we may gather from the performance of our campaign that some of them do very well, while others struggle to take off. This will tell us where to increase our spending and where to cut it down. The key to a good SWOT review is testing one change at a time- too many changes will make it hard to predict what worked for you in the first place.


3. Leverage Growth Accelerators


At times, being new can hamper eCommerce growth due to a lack of domain expertise. Get expert help when and where needed to avoid shooting in the dark and depleting precious resources. New age growth platforms, with AI-powered data-driven insights, give minute and specific recommendations that remove the guesswork and avoid one-size-fits-all solutions. This enables us to take inventory and sales decisions immediately and capitalize on opportunities that may be missed otherwise. It also helps eliminate confusion regarding actions that need to be taken to drive growth sustainably instead of using unreliable growth hacks for short-term spurts of growth.


For example, the Shoptimize Growth Platform gives real-time insights such as data on cost per acquisition, return on ad spend and average order value, and the precise action you can take to optimize these numbers.


In addition, specific recommendations from the platform such as targeting certain geographies using specific social media channels, reducing or increasing the advertising budget on channels, etc. can help you always stay ahead of the curve, and at the right time.


4. Fine-Tune The Digital Campaigns


Digital campaigns are a great way to drive traffic to your eCommerce store and build your eCommerce brand. However, once a certain revenue threshold is reached, more ad spend does not equal better revenues. This is a nuance we must all understand, and we must recognize that many retail brands do not have the revenue runway required to scale spending on a campaign immediately. Instead, this is the time to get even more laser-focused. With the data already available from your eCommerce store, you can gauge key customer metrics and understand associated factors such as age range, purchasing power, gender, and so on, and how they impact buying behavior. Using these insights can help you design more targeted campaigns to engage your audience better.


For example, if you operate in a category that sells to a niche interest group, apart from your social media advertising, you can use emailers and communities to drive engagement and purchases. Doing so opens up a marketing channel for you that can support organic growth in the future.


5. Up The Ante With New Age Financing Models


We all want stellar growth, but not everyone is prepared for it financially. For achieving growth, your eCommerce brand needs to invest in marketing, product development, technology and other growth-specific areas. This might be above and beyond the working capital you are currently going with. Traditional financing models such as bank loans and venture capital routes come with their own share of issues such as lengthy paperwork, collateral requirement, and dilution of equity.


New Age Financing Models such as Revenue-based Financing enables you to invest in growth through easy and immediate financing options available online at the click of a few buttons. Since these financing options work on future revenue sharing, they do not require any form of collateral or dilution of your eCommerce brand. This allows you to retain full control over the vision and growth of your online business.


At the same time, they automatically account for any unforeseen glitches in growth that may result in lean business temporarily. Such flexibility allows you to invest in the growth of your eCommerce brand by expanding and diversifying your product line and inventory spending instead of firefighting growth hiccups by solely focussing on recurring expenditure. In this way, you can achieve your growth targets whether it is reaching new geographies with existing products or reaching a wider customer base with new product lines.


Exponential growth need not be a pipedream or left to chance actions. With the right methods, tools, and tactics, and by incorporating data-driven insights, you can create a deliberate growth strategy to scale your eCommerce brand. Such emphasis on the core fundamentals will surely make your brand the next big thing in the eCommerce space.