7 Underrated eCommerce Learnings
Some controversial but all experiential takes on everything eCommerce
Hey You,
I could be cliche and say I’m back. But I’ll let you imagine that in your head.
Almost a year of silence and after several half attempts later, I’m trying to be consistent from here. So if you’re receiving my newsletter for the first time, check out some of my previous editions. If you still remember me from your inbox: HEY 👋
If you’ve been added by a well-wisher or you’ve signed up yourself, it’s going to be a fun journey from here on. You are part of avid readers of experiential (read: tactical) content on product, design & content. If you’re interested to read more about me, here’s my LinkedIn. No ads here I assure.
I’ll drive straight into today’s really simple edition.
7 experiential reflections on everything eCommerce
Lets go.
1. A better product over better distribution (in dtc)
In almost all cases, a better product will help evangelise faster, better and deeper. The power of customer evangelism is severely underrated. One happy customer can convert their peers from your competitors to try your product.
This isn’t to say that great distribution wont help you solve for acquisition. Most creator-led brands are built on the premise of distribution.
So it finally boils down to what works for you, which sector you’re in and how competitive is your product to its competitors. First time founders should always pick better products; second time founders and creators already have great distribution / network.
2. To capture market share: one kickass hero product over 5 average products
If you’re a dtc / consumer business, you would assume that people know you for a category, in their mind. But they actually identify you with ONE product. Shampoo, diapers, condoms, chocolate, energy bar, etc.
So until you’ve established a solid traction and some repeats (at least 30% to 45%; which showcase some level of PMF), it’s pointless diversifying across multiple products in the same category.
A bunch of founders come to me with this argument “what if the customer just recognises us for this one product that we’re selling today? How would we build a big brand?”
Total bs. You don't have a brand as yet. A brand is built over several years of consistent effort. It’s a scale challenge. Focus on it when you get there: revamping your image in the customer’s mind to stand for a broader share of the category.
3: “Blended” is the death of strategy
Blended ROAS, blended retention, blended returns. Anything blended is garbage.
Your hero product maybe at an ROAS of 3 whereas a new product at 1. Your blended ROAS at 2 would give you an incorrect signal on your marketing efforts.
4. Returns, Cancellations & Tracking builds trust
On your own website, so many brands focus on acquiring the first customer, but not the 2nd customer. Your 2nd customer is not just coming to you because they found your product worthy; they’re also coming to you because they could return their previous product or track it’s shipping.
Make is SUPER convenient for your customers to return, cancel and track orders.
5. A loyal & disgruntled customer: both teach a lot
When you sell your product to a customer, segment them into 2 buckets:
One’s who love your product: You would learn: what works in your products, how they refer your product to their friends, how would they purchase again, platforms, do they like your content.
One’s who hate / dislike your product: You would learn: what’s not your demographic and thereby help you sharpen your communication and also figure genuine challenges that you can fix.
6. Channel market fit doesn't get spoken about enough
The strategy that works for one channel, will most likely not work for other channels. This is true for performance ads, community building, and sales strategy.
Take this newsletter for example: If I post this on LinkedIn, it’s too long for the channel. And this content may not work on Instagram.
Every channel has its own tenets, what works and what doesn't; How you place your ad on Instamart / Zepto is very different from Amazon. It’s ideal to even tailoring your SKU’s to match the channel’s ability to drive sales. A smaller SKU might be a better starting point for Instamart vs Amazon.
7. Micro-copy is an underrated weapon
A website error message, your 1st whatsapp message, a leaflet that comes with every package, email newsletters: all of these are underrated real estates for your customer to know your brand better. Use it wisely.
And most brands speak like a brand or an organisation; I usually recommend them to add a name in every communication and let it be more humane. That’s what people connect to. If you’re not a brand as yet, be human.
That’s it from me.
I launched (Season 2) of my podcast : In The Haus. This season focuses on building for India. Have recorded some crazy episodes and can't wait to publish them. For now, here’s one with Ishan Sukul, who’s building a gaming tech-startup in India, Kreo, and has seen 100% growth every quarter. Fortunately I’m an investor in Kreo, alongside some stellar VC funds like the Chona Family Office & Sauce VC.
Episode 👉 Ex Bain founder disrupting gaming tech in India | Ishan Sukul | Kreo Tech | In The Haus by Saksham
Dot forget to subscribe to my channel for the next few episodes.
Until next time,
Gratitude,
Sak.