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lessons ecommerce business founders need to learn in 2024

5 Lessons E-commerce Founders Need to Learn in 2024

Calling all founders who launched an e-commerce business in 2020. How's business going for you right now?

Let’s take a moment to rewind to 2020, the year e-commerce truly boomed.

In the wake of a global pandemic, thousands of people found themselves furloughed, made redundant, or working from home. This sudden shift in work-life balance led to a significant change in consumer shopping behavior, and as a result, e-commerce became the go-to solution for both businesses and consumers. People began to shop small, support local businesses, and experiment with new brands, creating a surge of new e-commerce businesses.

Fast forward to today, 2024, and the landscape has shifted once again. We’re now potentially facing a recession and a cost-of-living crisis. It’s estimated that approximately 80% of the brands launched during the pandemic no longer exist. For those that do, maintaining sales and stable cash flow in an increasingly competitive market has become a daunting challenge. The question is: what is an e-commerce business supposed to do to survive and thrive in such an environment?

Interestingly, some e-commerce businesses are not just surviving—they’re thriving. These businesses have consistent sales, are launching new products, expanding into new markets, and their brand presence is growing year on year. So, what sets these successful e-commerce brands apart from those struggling to stay afloat?

In my experience as an e-commerce mentor and retail business consultant, the key differentiator is the founder’s ability to grow and evolve with their business. Those who thrive in this space are the ones who have ridden the waves, pivoted in challenging times, and learned valuable lessons along the way. They recognized that the business they launched in 2020 is not the same business they need to run in 2024.

Here are five crucial lessons that struggling e-commerce brands can learn from my clients who are thriving:

1. Evolve Your Business

If you’re still offering the same products, prices, marketing strategies, and customer experiences as you were in 2020, your business has likely not evolved and is at risk of becoming irrelevant. The e-commerce landscape is ever-changing, and staying stagnant is a surefire way to fall behind. As an e-commerce strategist, my role is to support in keeping your business aligned with current market trends and consumer demands. This might involve expanding your product range, updating your branding, or even rethinking your entire business model. By doing so, you ensure that your brand remains relevant and competitive.

2. Pay Attention to Data

Even if you’re more creatively inclined, diving into the numbers is essential. Understanding your data allows you to make informed decisions about the future of your business. Whether it’s sales figures, customer behavior analytics, or market trends, data offers insights into your business’s true situation and helps you determine your next steps. Many founders who started their journey without a deep understanding of analytics now find themselves overwhelmed. This is where I come in as a business mentor to help guide you through the process of interpreting your data, making sense of your metrics, and using them to drive growth. I also have an affordable online course “Step Up Your Sales” that teaches you how to do this!

3. Re-Stabilize Your Foundations

If your business feels shaky after several years of operation, it’s time to implement standard operating procedures (SOPs) and business blueprints. These foundational elements are critical for providing the stability needed for growth. Many businesses that launched quickly in 2020 did so without laying a solid foundation, which is now causing issues. By focusing on stabilizing your operations, you can ensure that your business is built to last. Fun fact: This is usually the #1 reason why my clients come to me in year 2 of running their business… 

4. Clarify Your Brand’s Direction

The goals you had in 2020 are likely very different from the goals you have today. As your business grows, it’s crucial to reassess where you came from, where you want to go, and how you plan to get there. This means resetting your business dreams and goals to reflect your current situation and future aspirations. Journalling can really help you identify this. I often share prompts for this purpose on my Pinterest!

5. Check In with Yourself as a Founder

Does your business reflect where you are as a founder now vs where you were back in 2020? Have you outgrown any aspects that need to change? Personal growth is just as important as business growth, and as a founder, it’s essential to ensure that your business aligns with your current values, goals, and lifestyle. If you find that certain aspects of your business no longer serve you, it may be time to pivot. This self-assessment is a critical step in the journey of every entrepreneur, and e-commerce business mentoring can provide the support and perspective needed to navigate this process.

It’s Time to Embrace Change for Business Growth

The most dangerous place to be in business is the same position you were in last year. In 2024, more than ever, change is essential for growth. Before diving into your next product launch or setting ambitious sales goals, take a step back and deeply consider the points above. Ensure that your business is heading in the right direction and that you’re not just repeating the same mistakes.

If you’re feeling overwhelmed or unsure of how to implement these changes, I can support you through either my e-commerce mentorship or one of my business audits. I can help can provide you with the tools, strategies, and support you need to navigate the complexities of the ever changing e-commerce world.

In conclusion, the lessons learned from the successes and failures of e-commerce businesses over the past few years are invaluable. By evolving your business, leveraging data, stabilizing your operations, clarifying your direction, and checking in with yourself as a founder, you can navigate the challenges of 2024 and beyond. Remember, the key to thriving in e-commerce is not just about having a great product or a clever marketing campaign; it’s about continually adapting, learning, and growing with your business.

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