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It is difficult to scale an online store. Why? Because of the customer who buys only once.
The one-time buyer problem has two characteristics:
- First, most of your customers buy only once and never buy again. The so-called one-time buyer.
- Second, these customers (one-time buyers) do not generate much profitability for your store on the first purchase.
Combining high acquisition costs (CAC – Customer Acquisition Cost) with customers who never return, your e-commerce ends up not generating enough revenue to stay afloat.
This means that without sufficient revenue, it is not possible to fund the acquisition of new customers. Without acquisition, growth stops.
“But our e-commerce is profitable from the first order!”
How does CAC influence your profitability?
Are you sure? Most online retailers do not take CAC (acquisition cost) into account when calculating profitability:
| First Order | |
| Revenue | R$ 120.00 |
| Free Shipping | -R$ 18.00 |
| Taxes | -R$ 13.80 |
| Product Cost | -R$ 42.00 |
| Acquisition Cost | -R$ 25.00 |
| Operating Profit (R$) | R$ 21.20 |
| Operating Profit (%) | 17.67% |
Even with a very high markup, the acquisition cost still significantly compromises the profitability of an e-commerce operation.
So how can I increase the profitability of my e-commerce store?
Get your customers to buy again. If your customers opt to subscribe to your email list, communicate with them and deliver a great experience. It could be an email campaign or a custom audience on Facebook, so bring this customer back to your store and sell to them again:
| First Order | Second Order | |
| Revenue | R$ 120.00 | R$ 120.00 |
| Free Shipping | -R$ 18.00 | -R$ 18.00 |
| Taxes | -R$ 13.80 | -R$ 13.80 |
| Product Cost | -R$ 42.00 | -R$ 42.00 |
| Acquisition Cost | -R$ 25.00 | R$ 0.00 |
| Operating Profit (R$) | R$ 21.20 | R$ 46.20 |
| Operating Profit (%) | 17.67% | 38.50% |
Now calculating the difference: 218% growth!
I also want to know how to do it.
First, you need a marketing system that sends emails and other notifications, as well as creates audiences, segments, and automations. If you already have one and are not yet taking advantage of these features, you are losing money, so get to work. Below is a list of marketing systems you can use for your e-commerce store:
- Brazilian
- All iN
- Dito CRM
- Dinamize
- Enviou
- International
- MailChimp
- Omnisend
- Klaviyo
- Active Campaign
