The Power of Data Collection in Ecommerce Strategy

– Data collection is recession-proof and can be used to build solutions in ecommerce.
– The cost of doing business in ecommerce has increased, but demand remains high.
– Many ecommerce stores are not effectively utilizing data collection and need help to succeed.Invest in data collection and use it to build a solution for your ecommerce business, rather than relying on traditional methods.Data collection is recession-proof. If you’re in e-commerce right now, your sales are going to drop. The economy is going to stop spending on “things”. A combination of events is making things tough for a lot of businesses. E-commerce isn’t dying; instead, it’s in for a correction. In 2020, when the world shut down, everyone needed to move online. Entire businesses’ digital divisions were thrown into action, and with that, a shift in removing employees from stores and instead pushing a lot of spending into digital. In theory, fewer people spending should drop prices of ads, but they aren’t (this is similar to the gas industry). When people were pushed into digital advertising to compete, prices rose. When Apple released its privacy concerns, Facebook called foul! Yet profits for advertising continued to go up. As much as people complain, they are still spending, and more money by the day for fewer results. Google and Amazon are on a tear with advertising dollars earned. Will this ease up as people go back to shopping in person? Maybe, but not likely. It’s likely to return to the normal curve, but the damage has already been done. The cost of doing business has gone up, the demand is still high, so there’s no need to reduce those costs. Let me be super clear here, this is a trend that will not reverse, yet everyone is treating it like it will reverse. THE PROBLEM IS THAT EVERY E-COMMERCE STORE IS ACTING LIKE A GOLD MINER, WORKING WITH A SINGLE PAN TRYING TO FIND CUSTOMERS. This is bonkers. During the gold rush, it was better to be selling shovels and denim, yet everyone is out there panning by themselves. But Jon, we started a wholesale channel and diversified our ad spend on other channels. This is not a solution; it doesn’t change the things you should have been doing all along. This is still panning by yourself looking for gold while cutting in other people for upwards of 30-50% of your previous realized gain, not factoring increased supply chain costs. To me, it’s pretty clear, but I can’t help but feel like most people don’t understand what’s going on at a macro level. Data collection alone isn’t the solution; I’ve never claimed that it was. Instead, it’s how it can be used to build a solution, and with a new solution, it shouldn’t be overlooked. Data collection provides you with the blueprint to build something different. It’s the equivalent of trading in your single gold pan for a fleet of well designed drones with metal detectors attached. Then having the information necessary to hire people to go dig up your gold for you. Large multi-billion dollar brands are failing at this right now, as a small brand, you don’t have a chance. But what if you had help? What if you found the right partner that could tell you what you needed to do and helped you pull it off? What if we were already working on what others don’t see? #ecommerce #strategy #marketing

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top