When growing your business from 7 to 8 figures, there are two important things to consider. The first is your digital marketing strategy. How can you improve it in order to drive more sales? The second is your operations. How can you streamline them in order to support an increase in sales?
The Importance Of Growing Strategically
Growing your business can make it stronger, more flexible, and long-lasting. But, if you grow your business without accounting for increased demand, that can lead to unhappy customers. Imagine a customer waiting weeks on end for their product with no update from you.
Key Strategies for Growing Your eCommerce Business
Let’s dive into some actionable steps to achieve growth.
Improve Your Digital Marketing Strategy
There’s a variety of ways to strengthen your digital marketing strategy beyond the obvious.
Create A Subscription Product
Subscription products are goods or services that a customer agrees to purchase on a recurring basis. This could be weekly, monthly, quarterly, or annually. The customer typically pays a recurring fee for the duration of the subscription.
Subscription products offer a steady stream of revenue and build customer loyalty. This provides reliable, recurring income.
First, pick a product or service that fits a delivery model. This can be anything from a monthly delivery of your best-selling product to exclusive content or services. Make sure the product offers real value so customers keep their subscription.
Next, set the pricing and delivery frequency. Match the delivery frequency with the product's usage rate so customers don’t run out. Highlight your subscription product on your website and all marketing channels. Emphasize the benefits of subscribing like convenience, cost savings, or exclusive access.
Provide fantastic customer service on this model. Include easy subscription management, fast customer support, and a smooth unboxing experience. Keep your subscribers satisfied to reduce churn and increase customer lifetime value.
Move Into Untapped Marketing Channels
Explore new marketing channels to boost business. Try influencer marketing and podcast advertising, which are growing fast. Influencers can get your product seen by more people. Podcast ads let you talk to customers in a personal way.
Content marketing, though not new, is underutilized. Make interesting blogs, videos, or infographics to keep your audience’s attention. Or use affiliate marketing, where partners advertise your products for a share of the profit.
Even with social media, email marketing is still powerful for talking directly to customers. Make a community for your brand, like a Facebook group or a forum, so customers feel more connected. Host virtual events like webinars or product launches to get people excited about your brand.
Leverage Your Existing Customer Base
Get more value from existing customers by selling them more expensive or additional products. This makes the amount they spend on each order go up.
Start a rewards program that rewards customers each time they buy from you. A good reward program makes customers want to spend more and buy more often. You can also start programs that reward customers for telling their friends about your business.
Streamline Your Business’ Operations And Logistics
Operations and logistics need to evolve alongside your business. Streamline these processes to improve efficiency, save time and money, and ensure timely delivery of orders to your customers.
Automate & Optimize The Process
Start by automating your order fulfillment process. Automation reduces manual errors, speeds up order processing, and lets you handle a larger volume of orders without additional manpower.
Next, optimize your supply chain. Work closely with your suppliers to ensure a steady flow of inventory, negotiate better terms, and reduce lead times. Use inventory management software to track stock levels in real time, predict demand, and prevent stockouts or overstocking.
The last step is evaluate your delivery and returns process. Partner with reliable shipping providers to ensure fast and efficient delivery. Make returns easy and hassle-free for your customers, and resolve any issues promptly.
Streamline Fulfillment To Manage Increased Demand
As your eCommerce business expands, the demand for your products rise. To manage this surge, adopt a systematic approach to fulfillment.
Optimize your picking and packing process, particularly if you have a hero product that constitutes the majority of your orders. Consider having a specific section in your warehouse where this product is pre-packed and ready for dispatch.
Implement a barcode system for all items in your warehouse to expedite the order fulfillment process. By printing labels in batches for orders of the same product, you can further streamline operations and meet the increased demand efficiently.
Perfect Customer Service To Maintain Quality & Satisfaction
It's crucial to perfect your customer service process. You don’t want to lose customers on account of poor support.
Establish a comprehensive FAQ section and template responses to common queries. This provides immediate assistance to customers and reduces the workload of your customer service team.
Set up a help center and a chatbot with preformatted responses to offer round-the-clock support. Improve response times to customer queries.
Remember, customers will reach out to you through various channels - Instagram DMs, Facebook ad comments, and more. To manage this, use a centralized platform that allows you to respond to queries from all these sources in one place.
Managing Your Business’ Sales Tax
Understanding and properly managing eCommerce tax laws is necessary for any business looking to scale.
How Proper Tax Management Supports Growth
Managing your taxes allows your business to maintain financial health. With the right strategy, you can optimize your tax strategy to minimize your tax liability. This leads to maximized profits. Use methods like tax planning, tax-efficient structuring, and utilizing tax credits and deductions. By managing your tax obligations, you can reinvest those saved funds back into your business.
Important eCommerce Tax Laws
Here are some steps to help you get started.
- Identify Your Nexus: Determine where you have a tax obligation. This could be any state or country where you have a physical presence or significant sales. Each jurisdiction has its own rules for what constitutes a nexus, so research is key.
- Understand Sales Tax: Sales tax varies by location. Some states require tax on physical goods but not digital products, while others tax both. Familiarize yourself with the sales tax rules in your nexus locations.
- Know the VAT/GST Rules: If you sell internationally, you may need to comply with Value Added Tax (VAT) or Goods and Services Tax (GST) regulations. These are typically destination-based taxes, meaning they apply where the customer is located.
- Use Tax Automation Software: Tax automation software calculates, collects, and remits taxes for you. This is a lifesaver, especially if you sell to multiple states or countries.
- Stay Updated: Tax laws change frequently. Make it a habit to stay updated on the latest tax laws affecting your eCommerce business. Subscribe to tax law newsletters or blogs.
- Consult a Tax Professional: eCommerce tax laws are complex and mistakes can be costly. Consider consulting with a tax professional who specializes in eCommerce. They provide personalized advice and ensure you're in compliance with all relevant tax laws.
Your Roadmap to eCommerce Success
Scaling to 8 figures in eCommerce isn't just about more sales. It's about enhancing your digital strategy, optimizing operations, and staying tax compliant. Boost revenue with subscription products, new marketing channels, and leveraging existing customers. Streamline operations to handle increased demand. Stay on top of eCommerce tax laws for financial health.