10 tips on running a successful eCommerce business
After 400+ store builds and a decade in the industry, here are the ten things that actually matter — and the ones that don’t, regardless of what gurus tell you.
Ecommerce isn’t complicated. It’s just hard. The fundamentals haven’t changed in a decade. Here’s what works.
1. Pick a profitable niche
Wide niches are crowded. Narrow niches let you dominate. ‘Pet food’ is impossible. ‘Raw food for senior dogs’ is winnable.
2. Margins matter more than revenue
R1M revenue at 10% margin (R100k profit) is worse than R500k at 40% margin (R200k profit). Always solve for net, not gross.
3. Email is your most valuable asset
You don’t own your social followers. You don’t own your Google rankings. You own your email list. Build it from day one.
4. Repeat customers are everything
Acquiring a new customer costs 5-7x more than retaining one. Spend equally on retention as on acquisition.
5. Fast is better than perfect
Ship the first version. Get real customers. Then improve based on actual data, not your assumptions.
6. Customer service is marketing
Every customer service interaction is a chance to create a fan or lose one. Reply quickly. Be generous. The cost of a refund is less than the cost of a bad review.
7. Track the right metrics
Forget vanity metrics. Track: customer acquisition cost (CAC), lifetime value (LTV), gross margin per order, repeat purchase rate.
8. Brand beats price (eventually)
If you compete only on price, you’ll always lose to a bigger competitor. Build a brand people trust, then price isn’t the only lever.
9. Don’t outsource everything
Outsource design, dev, ads — fine. Never outsource customer service, brand voice or product decisions. Those are your business.
10. Cash flow > profit
A profitable business can die from cash flow problems. Always have 3+ months of operating costs in reserve. Don’t tie up cash in slow-moving inventory.