How to Scale an eCommerce Business
Less than 20% of eCommerce businesses succeed today.
Some top reasons for this are a lack of competitive advantage, poor marketing, and no unique offering.
We’re going to lay out the main strategies needed not just to build a competitive online store but also to scale it up.
Read on to discover what our experts recommend to scale up your eCommerce business.
1. Have a strategic plan
Every successful business needs a roadmap.
In fact, everything starts with strategic planning.
But 60–90% of strategic plans never fully launch.
Only clear objectives can help you define a practical strategy to capture a market.
Some of the key questions to ask when planning your next steps include:
- Are you focusing on increasing revenue or cutting costs to maximize profit?
- How does your current budget align with your goals for expansion?
- Do you need to adjust your pricing, marketing, or inventory strategies?
2. Refine your business model
The global retail e-commerce sales are projected to grow during the next years and surpass 8 trillion dollars by 2027.
However, to be trendy, you must revisit your business model. It must adapt to eCommerce trends.
The model that brought you success may not support long-term growth.
Consider which elements of your business need adjustment:
- Revenue Streams: Is there room to add new products or services?
- Customer Acquisition: How are you reaching new customers? Are you relying too much on paid advertising, or can you increase organic growth?
- Logistics: Are there ways to improve fulfillment times or reduce shipping costs?
The right strategies can be the difference between stasis and progress.
And, to corner the market, you’ll need to optimize some processes to reduce their time-consuming nature.
3. Optime technology for efficiency
Tech plays a huge role in scaling eCommerce. That’s a fact!
Think about how automation and AI tools can boost productivity. They can help with inventory management and customer service.
Here’s how implementing technologies properly can benefit your eCommerce store:
- Automation: Streamlining tasks like order processing, customer inquiries, and inventory tracking allows you to free up time for strategic work.
- Customer Relationship Management (CRM): Managing customer data and automating marketing can boost retention and ROI.
- Inventory Management Software: Prevent stockouts or over-ordering with smarter systems that provide real-time updates on inventory levels.
Keep in mind, that tech upgrades often come with a learning curve.
So make sure your team is always trained and follows the latest trends.
4. Expanding your product line & services
One of the easiest ways to grow an eCommerce business is by expanding your product line.
But this doesn’t mean simply adding random products.
First, you should know customer needs.
Then, offer products that satisfy them. Do some research, for example.
Alternatively, find the best-performing items and improve them to better satisfy your customers.
Expanding beyond physical products can also help.
Consider adding services such as:
- Subscription models
- Product customization
- Extended warranties
- Exclusive memberships or loyalty programs
These offerings can boost customer loyalty and revenue per transaction.
They can also reduce the need to find new buyers.
5. Leverage data & analytics
Analytics tools are invaluable when it comes to scaling up an eCommerce business.
Focus on KPIs (key performance indicators) that align with your business goals. It will help you improve and make budget-friendly decisions.
For example, if you want a higher ROI, check your ad spend. Compare it to the revenue it generates.
Some crucial metrics to track include:
- Customer acquisition cost (CAC)
- Customer lifetime value (CLV)
- Total traffic channels
- Conversion rates
- Shopping cart abandonment rates
- Average order value (AOV)
6. Enhance your brand positioning
If you’re thinking about how to scale an eCommerce business, start with brand positioning.
A strong, trusted brand can help you stand out and win loyal customers.
As eCommerce grows, customers have more choices than ever.
So, a strong brand identity is key.
A clear, consistent message is crucial across all platforms. This applies to both seasoned and novice entrepreneurs.
This could include:
- Consistent Branding: Use the same colors, fonts, and tone across your website, social media, and marketing materials.
- Content Marketing: Blogging, videos, and social media posts help create an emotional connection with customers and show you’re an authority in your niche.
- Email Marketing: Regularly communicate with customers to keep them engaged and encourage repeat purchases.
Strong branding can help you build trust. This is vital for new or growing businesses.
Customers are more likely to buy from brands they recognize and feel connected to.
7. Improve customer service
Customer service is important in eCommerce. 96% of consumers will leave a brand for a poor customer service experience.
But since your business grows, it can be hard to maintain high standards. With the growing scale, it’s not that simple.
For many companies, poor customer service can stop growth in its tracks.
It’s important to invest in scalable solutions. They will ensure customers get timely, effective support.
Options include:
- Outsourcing: Hiring a customer service agency frees you to focus on growth.
- Self-Service Solutions: FAQs, chatbots, and tutorials can quickly solve common issues. They can reduce your customer service team’s workload.
- Feedback Loops: Use surveys and reviews to gather customer insights. Use them to improve your offerings.
Good customer service ensures buyers return. This is key to steady revenue.
8. Manage finances with efficiency
Scaling means spending. Most eCommerce businesses must balance a bigger budget with higher profits.
Strategic financial management is important during this phase.
So review the cash flow, profits, and investments. This will help them avoid common mistakes.
Some key tips for financial management are:
- Reinvesting Profits: As profit grows, reinvest it in marketing, product development, and tech. This can drive further growth.
- Controlling Costs: Be mindful of expenses. It’s easy to overspend when scaling. But, cutting corners can help. Reducing waste or negotiating better contracts with suppliers can maintain profits.
- Seeking Funding: Some businesses may require external funding to fuel their expansion. Options like business loans, venture capital, and crowdfunding can fund growth.
9. Build a strong team
As your business scales, you’ll likely need to grow your team.
But simply adding more employees won’t necessarily improve efficiency.
It’s principal to hire strategically since each new team member must add value.
Consider the following:
- Outsourcing vs. In-House: It can make sense to outsource roles like marketing, development, or logistics. But some positions are better handled in-house.
- Hiring Specialists: As your business expands, generalists might not cut it anymore. Hiring specialists in marketing, IT, and customer service can boost growth.
- Training and Development: Ongoing training helps your team meet scaling challenges. Providing learning opportunities increases employers’ satisfaction and productivity as well.
10. Expand into new markets
One way to significantly increase revenue is by expanding into new markets.
This might involve selling internationally or targeting a new demographic group.
Nevertheless, expanding globally has its challenges. You must understand regulations, shipping costs, and cultures.
So the payoff can be worth the investment.
For those interested in breaking into international markets, here are a few tips:
- Localized Marketing: Tailor your marketing to the new audience. It must be relevant and appealing.
- Currency and Payment Options: To boost international sales, offer local currencies and many payment methods.
- Logistics: Research shipping providers and ensure your fulfillment process can handle global orders.
11. Use strategic partnerships
Partnerships can help scale your eCommerce business. They can expand your reach or provide new resources.
The right partnership can boost your growth. It can come from teaming up with influencers, similar businesses, or wholesalers.
Some potential strategic partnerships include:
- Affiliate Marketing: Partner with bloggers or influencers. They can promote your products for a fee.
- Retail Collaborations: Team up with brick-and-mortar stores to create a hybrid online-offline presence.
- Supplier Negotiations: Build long-term ties with suppliers for better terms or bulk discounts.
12. Stay agile & ready for changes
Finally, scaling a business requires agility. The eCommerce landscape changes rapidly, and what worked yesterday may not work tomorrow.
Staying adaptable will help your business thrive in the long term.
Some decisions may feel uncertain.
But, it’s crucial to be ready to pivot to shifts in market trends, customer preferences, and the economy.
Here are some strategies to maintain flexibility in your operations:
- Continuous Learning: Encourage a culture of learning within your team. Staying up to date on industry trends and new tech lets you stay ahead.
- Regularly Review Goals: Set up regular check-ins. Assess if your business goals still align with the market and your team’s abilities. This will allow you to adjust as necessary.
- Get & Implement Feedback: Use customer feedback as a compass for your business. Their insights can guide product development, customer service improvements, and marketing strategies.
13. Implement marketing strategies
Marketing plays a vital role in scaling any eCommerce business.
Without effective marketing, even the best products may go unnoticed.
Especially during the Black Friday days.
Here are some effective marketing strategies to consider:
- Content Marketing: Quality content can boost traffic and make your brand an authority. Consider a blog, how-to videos, or webinars to educate and engage potential customers.
- Social Media Advertising: Facebook, Instagram, and TikTok are great for targeted ads. Tailor your ads to reach specific demographics based on interests, behaviors, and location.
- Email Campaigns: Regular newsletters can keep your brand top-of-mind for customers. Use email marketing to share promotions, new product launches, and valuable content.
Effective marketing enhances visibility and drives traffic to your online store. This, in turn, raises revenue potential.
14. Build customer loyalty
Customer loyalty is significant for sustained growth.
In fact, 72% of shoppers stay loyal to retailers that offer free returns.
To nurture loyalty, focus on building relationships instead of transactions alone.
You can implement some of the following customer loyalty strategies:
- Personalization: Tailor experiences based on customer data. A customized approach, like targeted emails and product recommendations, makes customers feel valued.
- Loyalty Programs: Create incentives for repeat purchases through loyalty programs. Offering points, discounts, or exclusive access can encourage ongoing engagement.
- Quality Assurance: Consistently delivering high-quality products and services helps build trust. If customers know they can rely on your brand, they’re more likely to return.
Focusing on customer retention can boost profits. It’s often cheaper to keep existing customers than to acquire new ones.
15. Prepare to scale up the infrastructure
As your eCommerce business grows, your infrastructure must follow the growth as well.
Inefficient systems can quickly lead to overwhelmed teams and frustrated customers.
Here are some infrastructure recommendations:
- Scalable Website: Ensure your eCommerce platform can handle increased traffic. Choose a host that can scale. Use CDNs to improve load times.
- Inventory Systems: An efficient inventory management system is critical. Choose software that tracks in real-time and integrates with your eCommerce platform smoothly.
- Support Systems: Invest in a robust customer support system to manage inquiries efficiently. For example, tools like live chat, help desks, and ticketing systems can help you here.
An effective infrastructure will help you maintain satisfied customers and increase your revenue
How Onyx8 can help you scale up your business
Scaling an eCommerce business requires strategic planning, effective marketing, and a focus on customer satisfaction.
Hiring a professional digital agency gets you a team of experts ready to help you grow your brand.
Onyx8’s experts have skills your eCommerce brand can benefit from, including:
- Custom website design
- eCommerce SEO services
- End-to-end website development
- eCommerce website development
Have an eCommerce project in mind?
Contact our team to schedule a consultation and tell us your project requirements. We’ll help you create a memorable brand and deliver measurable results.
