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Ecommerce is freaking hard. Get back to basics with these 10 steps.

Ecommerce is freaking hard. Get back to basics with these 10 steps 

038 / Sunday 08th July 2024 / Read time: 4 minutes 

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The direct-to-consumer (DTC) world has undeniably gotten tougher. Gone are the days when you could simply toss a product on a white background, run an ad, and sit back to enjoy a 14x return on ad spend (ROAS). That was a golden era, and we didn’t even know it.

(To those who did and made the most of it – I salute you.) 🫡

But here we are in 2024, navigating through a swamp of outdated info – articles, forums, YouTube “gurus,” documentation, and an ever-growing list of acronyms. Grab your bingo card and check off nCPA, CAC, CPC, CTR, GLTV, NPS, PMF, RFM, DCT, A+…

Feeling lost yet?

Me too.

It’s like Wall Street invaded our industry, making it as opaque as possible just to sell us more complicated solutions.

Yes, these acronyms are real (and yes, I use them daily... lord help me), but they obscure the fundamentals of what ecommerce and DTC were built on.

Ecommerce was meant to democratize commerce by empowering entrepreneurs, cutting costs, and giving consumers more choices. It was about making life better through convenience, innovation, and financial freedom.

So, let’s get back to the darn basics.

It took me years to refine my own process. Silly as it sounds, every time I launched a new brand or worked with a new client, I ran a similar internal playbook without realizing it.

(Not a humble brag, I promise. I was young and naive.)

If you had access to the first course I put out while building EBA (probably terrible – apologies to those who endured it! Although I still get emails about how it helped, so thank you), you saw this process in action.

Fast forward 3-4 years, and I’ve fine-tuned my process. Here’s how you can build an ecommerce-first brand in 2024, using the playbook I’m employing for my next brand this year:

 

My 10 Steps to Building a DTC Brand in 2024:

 

1. Identify a Niche and Market Need:

Find a niche market where you can solve a specific problem or meet a unique need. This sounds simplistic, but too many entrepreneurs invest in what they think is hot or try to create a new category when the market isn’t interested.

Research potential markets and understand your target audience's pain points. Start with WHO, not what. What demographic is growing? What journey are they on? Do they have disposable income to spend on a solution?

 

2. Develop a Product Concept:

Create a product that addresses the needs of your WHO. Focus on quality and differentiation. Have 2-5 product ideas for the same PERSON you identified.

For example, imagine a 35-year-old dad learning gardening with his kids. Think about their journey: clearing land, planting, protecting seeds, maintaining their garden… Become their guide, teaching them step-by-step, and providing the tools and resources they need. There’s enough content here to last a lifetime.

 

3. Validate the Product Idea:

Validate your product idea before fully investing. Use surveys, crowdfunding, or pre-sales to gauge interest. Talk to real people. Dive into forums, social media comments, and Amazon reviews to see what people want and what’s missing in the market.

A small improvement in product quality and customer service can make a huge impact. You don’t need to reinvent the wheel. Simply choose your WHO and serve them well. They’ll tell you what to sell as they progress.

 

4. Create a Brand and Build an Audience:

Establish a strong brand identity with a memorable name, logo, and brand aesthetic. Build an audience early with valuable content and social media engagement.

Authenticity over polish. Look at Instagram – thousands of brands have 500k+ followers but get 6 likes per post. Don’t waste time emulating them. You’re not Apple or Nike. Lean into your advantage: document the real, nitty-gritty journey. Bring your customers along for the ride in a no-BS way and celebrate their wins with yours.

 

5. Launch the Product:

Generate buzz and excitement for your product launch. Use influencer partnerships, social media ads, and email campaigns to drive traffic and sales. Obsess over getting those first 100 reviews like a crazy person. Turn those reviews into ads.

 

6. Optimize and Scale:

Continuously optimize your product, marketing strategies, and customer experience based on feedback. Scale by expanding your product line, entering new markets, and improving efficiency.

Your advantage as a small, new business is that you can adapt quickly. Big corporations cannot; there’s too much bureaucracy. That’s why so many big brands die when they refuse to adapt or take risks. (Remember Blockbuster? I miss it too…)

 

7. Build Systems and Processes:

Create robust systems and processes to manage your growing business, including efficient supply chains, task automation, and building a capable team.

Focus on WHO, not HOW (side note: great book). Delegating tasks is essential if you're going to grow. Better to have someone do a task 80% as well as you can than try to do everything yourself and only manage to tick off a fraction of tasks effectively.

 

8. Focus on Customer Experience:

Deliver an exceptional customer experience with top-notch service. Engage with your community and improve products based on feedback. Treat people well and they’ll promote your brand to the high heavens.

I can’t tell you how many brands get this wrong. It’s like they forget negative word of mouth exists.

    • How many bad movies have you warned friends off seeing? – “Don’t waste your time!”
    • Or a restaurant that served cold food, forgot the drinks and still expected a 20% tip – “Urgh, don’t go there! The service is terrible.”

Treat people poorly, and they’ll go out of their way to ensure others don’t experience the same. Treat people well, and they’ll SHOUT about how great you are. You can’t buy that kind of ROAS. Go full woo-woo with your gut on this one.

 

9. Plan for Long-Term Growth:

Think strategically about your business's long-term growth. Set clear goals, track key performance indicators, and stay adaptable to market changes and new opportunities.

Choose the right audience—one that is growing and has the capital to buy what you're selling. Avoid targeting customers who are primarily looking for low-cost options unless you have already established a strong market presence and/or have deep pockets. Competing on price is often a losing game against major retailers. 

Don't focus on the immediate profits. Be relentless, consistent and serve a select group of people ridiculously well. 

Ask yourself: "If it took me 5-10 years to sell this business for $x million, would it have been worth it?" (I hope you know the answer)

 

10. Consider Exiting or Reinvesting:

Plan an exit strategy or reinvest in the business for further growth. This could involve selling the business, merging with another company, or using profits to fund new ventures.

Don't date your business – marry it and commit.

Once you've scaled your business into a cash-flowing powerhouse, you'll have the ability to invest in other new businesses. However, this is only achievable when you become a true owner—where the business grows in your absence and employees solve problems without always turning to you.

Commit to the process, stop flirting with the side interests and take the long-term view. You'll be amazed at what you can build, launch, grow, scale and eventually sell in your lifetime. 

 


 

This may all sound glaringly obvious and basic – and it is. That’s the point.

Too many entrepreneurs are getting distracted by what’s shiny and what the top DTC Darlings are doing while forgetting those brands only exist because they nailed the basics first.

Appreciate you, appreciate your time, and I hope this helps.

P.S. Yes, this is sponsored – it covers my time, the hosting, editorial, and everything else that comes with it – but I only work with sponsors I can personally vouch for. Recart is the real deal on this one. I’ve used them for years and highly encourage you to check them out as an SMS solution. They do both the basics and the more advanced AI solutions well.

Now go build!

Love you, bye.

 

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