Ecommerce businesses can grow slowly or exponentially. During this period, the company will experience traffic and operation influx and must adjust its infrastructure to meet the growing demand. Seeking working capital for Amazon sellers or outsourcing content and customer service are a few examples of steps involved in scaling a business. 

Scaling will optimize growth, but no standard procedure suits every venture. Ecommerce sellers need to focus on their unique business needs and characteristics. Leveraging modern tools and efficiencies can ensure seamless scaling, so businesses should keep tabs on trends. Here are three top changes in the ways eCommerce sellers scale their business today:

1. Monitoring Analytics and Intelligence

There are various ways to monitor business performance and speed of growth. Ecommerce sellers can use business software, universal databases, national stats and projections, and other tools. Workforce intelligence and analytics also track business employees and processes to gather actionable insights. Some of the metrics to track/analyze include:

•    Sales Performance: Sales performance is the most critical indicator for scaling a business. A strong sales performance, highlighted by positive/growing metrics, indicates future growth and the need to scale.

•    Ecommerce Conversion: Business customers come from various places, including online and offline. Analytics will reveal where the most conversions happen and what products customers are spending money on. Sellers can use this information to scale the right processes.

•    Product Performance: Monitoring product performance involves identifying the top and bottom selling products across all selling platforms. This information is vital for inventory management and pondering the potential for expanding the product line. 

•    LTV/CAC: LTV (lifetime value) and CAC (cost per acquisition) are critical metrics to track when scaling your eCommerce business. They involve analyzing your marketing efforts. The cost of acquiring customers should be worth pursuing.

Monitoring and analyzing data gives businesses insights into various processes. Also known as business intelligence, tracking the metrics will make it easier to determine when to change things and what you need for growth. Analytics also help track performance to gauge if deployed systems and frameworks are successful and worth the investment.

2. Using Scalable Technology From the Beginning

Ecommerce sellers should find ways to integrate existing systems with new technologies and efficiencies. The goal is to automate the business, making it easier to scale up or down. If you can’t integrate your systems, migrate to another system with better features and scalability. Investing in a scalable platform significantly reduces the cost when expanding.

Business owners should plan early on to prevent costly migrations and investments when it comes time to scale up the business. One best approach is to choose a scalable platform and the right tools from the beginning. If you already have a website, you can build on existing infrastructure to up the business.

Review all business aspects, including data plans, communications, servers, traffic, and interactions. Ecommerce sellers can also leverage platforms like Shopify and third-party marketplaces like Amazon and eBay. Such platforms are built for eCommerce websites selling products independently and offer a significant market share for reaching more customers.

Technology is everything when it comes to scaling an eCommerce venture.

Ecommerce sellers should review their online platform, shipping and fulfillment, human resource, and other systems during the planning phase. The goal is to determine what technology can automate and how the business can benefit from existing tools and methods.

3. Alternative Resources and Outsourcing

Businesses require various resources, including human and technical resources. Modern eCommerce sellers can leverage outsourced services, such as remote content/SEO management and customer service. Outsourcing some responsibilities will relieve your teams, allowing the business to focus on meeting its expanding demands. 

The modern eCommerce seller has various alternatives to traditional solutions. Chatbots can take care of customer inquiries, while social media pages offer a goldmine for marketers. When it’s time to scale, sellers should review alternative resources. They also need to check performance for all new systems and solutions to ensure ROI and value. 

Ecommerce sellers aren’t limited to specific solutions, but not all alternatives are worth investing in. When reviewing options, it’s crucial to focus on how the system will impact operations and results. Some solutions provide short-term gains but are expensive in the long term, while others come with colossal upfront investments but long-haul affordability. 

Instead of investing in expensive custom-built websites and programs, eCommerce sellers can leverage existing marketplaces and free tools. Most platforms have standard features, including automated email marketing, shipping and fulfillment, and payment solutions. You can use such systems to scale the business as you plan for internal expansions.

Working Capital for Amazon Sellers

Scaling a business often involves a significant investment, especially when there’s growth. Downscaling may not require additional resources and funding, but scaling up will need capital for the new expansions. Sellers will spend more on technology, data plans, insurance coverage, logistics, security, and more depending on the growth.

The business ecosystem faces new challenges because of ongoing evolution and advancing technology. At Sellers Funding, we pride ourselves on changing how eCommerce sellers scale their businesses. We offer working capital, analytical solutions, and payment solutions for sellers looking to scale their businesses.

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