After a merchant has achieved the milestones of $15K/month, $30K/month and $60K/month, there’s one more milestone we’ll show how to attain. Here is the profile of merchants who make $100K a month in an online store.
$100K a month in an online store makes for an annual turnover of more than $1M per year. At that level, an online store is now among the top 5% of all ecommerce businesses.
Today we’ll explain how really simple it is to achieve the elite status which comes with that level of revenue
It’s kind of a well-kept secret among the elite who’ve made it, but compared to breaking through the plateau from $30K to $60K a month, getting from there to 100K/month was actually child’s play!
What is the typical profile of e-merchants who make $100K a month in an online store?
The recommended strategy takes place in 2 phases. Both are fully pragmatic.
Phase 1: Consolidate the achievements of the $30K and $60K stages.
Here’s what needs your attention in this phase:
- Continuous improvement of the internal processes previously implemented (human resources, delegation, logistics, purchasing, after-sales service);
- Continuous work on Emerchandising, to highlight the right products and brands;
- Ongoing, significant increases in the product catalogue and referenced suppliers;
- Consolidate your positions with your SEO agency and find other sources of traffic, especially thanks to new products;
- Have a healthy AdWords campaign, and above all (especially!) without any virus keywords (otherwise, the merchant would not have passed the $30K/month mark);
- Consolidate your presence on eBay, with an eBay store and reach a “Top Reliability” level ;
- Adjust its profitability on the 4 or 5 activated price comparators and open additional ones.
- Avoid having anything to do with Adwords Keyworders or Discount Coders.
- Go further in the partnership with suppliers: ask for feature exclusives, previews, and other kinds of”coups”. For example, at the time we were managing our sound website, a supplier offered to share the cost of advertising one of its products in the sound magazine. It was a win/win: awareness for us, sales for him.
This first phase of preparation is very important and should not be neglected. Some spend a whole year consolidating.
Then what? It’s time for the fun part – Phase 2!
Phase two: “Let the horses run!”
And now we’re having fun! (well…)
Remember: you have passed the $15K, $30K and $60K levels. You had to find the right balance of expenses and the right products and made sure they were well highlighted. You have added to your catalog new products as well as sources of new profits (new suppliers, brands, better purchase prices, etc…)
However, to get to the $100K monthly benchmark, there is no threshold you have to break through this time. And in this respect, this stage is much easier to reach than the three previous ones.
Welcome to the e-commerce “elite lounge,” where everything is simple and fun!
You’ve got the reins in your hands, and the more speed you urge on your horses, the more you will earn.
At this stage, “pragmatism” equates in a new way with “fun”, “expense” and “speed”.
You will only have to follow all the recommendations, take them on board and then keep stepping them up in a methodical manner.
This phase 2 of increasing your investments in marketing may seem daring and risky to you, possibly putting your $100K a month online store in danger.
And yet, to get to this phase 2, you have avoided the pitfalls of web marketing, you have built a privileged relationship with your suppliers, and you have a certain presence in natural referencing and Adwords. So let’s consider it time to have some fun, raking in all that new revenue!
See all the articles in this series:
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