Not all ecommerce businesses are built the same, and some are dramatically easier to scale than others.
In this episode, Mark and Ian Hammersley break down the five different types of ecommerce businesses and rank them from easiest to hardest to scale.
The five types are:
- Compounders
- Volume Retailers
- Need-Driven Suppliers
- Seasonal Specialists
- High Ticket One-Timers
Each model behaves completely differently.
A strategy that works brilliantly for a supplement brand could be disastrous for a furniture company. A business selling spare parts needs a completely different advertising, stock, and customer-acquisition strategy than a fashion retailer.
Mark and Ian explain why understanding your ecommerce type changes the numbers you should look at, the ROAS you can afford, how aggressively you can acquire customers, how much stock you need, and, ultimately, how quickly the business can grow.
They also discuss why some of the least exciting ecommerce businesses can quietly create enormous wealth.
Need-driven businesses selling things like replacement parts, shelving and specialist products can sometimes dominate markets because competition is lower and the customer already knows exactly what problem they need solving.
Meanwhile, Compounders such as supplements, skincare, and consumable products can scale incredibly quickly because repeat purchasing creates a high lifetime customer value. But they can also be brutally competitive and disappear almost as quickly as they grow.
The episode covers:
- The five ecommerce business models
- Which ecommerce model is easiest to scale?
- Why repeat purchase businesses can grow so quickly
- Why boring ecommerce businesses can be incredibly profitable
- Customer lifetime value and repeat purchasing
- New customer acquisition
- ROAS and advertising strategy
- Margins and scalability
- Stock forecasting and cash flow
- Seasonal ecommerce businesses
- High-ticket ecommerce
- Why one ecommerce strategy does not work for every business
If you’re trying to scale an ecommerce brand, understanding which type of business you actually own could completely change how you approach growth.
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#Ecommerce #EcommerceBusiness #EcommerceGrowth
P.S. Whenever you’re ready… here are 3 ways Ian and I can help you grow your ecommerce business:
1. Talk to us. Book a call with us and let’s talk about accelerating your growth – https://go.hammersleybrothers.com/apply-now/
2. Grab a copy of our book – https://gohigh.hammersleybrothers.com/get-the-book
3. Follow the Hammersley Brothers on Instagram and connect with e-commerce owners who are scaling too –
https://www.instagram.com/hammersleybrothers
