The Background of an Industry Without Accountability
Remove the noise and eCommerce is about TRADING to make PROFIT. That profit comes from a combination of Tactics, Services and Technology - but what it really comes down to is some basic MATHS that matches all forms of retail.
eCommerce Success = Net Profit
If you want a job where you can earn well - start a Digital Marketing Agency. Claim expert status - Google, Tiktok and Facebook will back you 100%. The more inefficient you are with a Merchant's money on advertising - the more Facebook and Google will make in advertising Fees. They have your back!
Keep things vague, pepper conversations with abstract terms like SEO as required & make sure to keep Sales Attribution as complex as possible. When results look BAD or a Merchant is questioning profits - suggest replacing technology. Tell them campaigns will "kick in"….. hold on tightly and hope they keep paying your bills...
Most problems in eCommerce originate from the invisibility of Net Profit and that Good Agencies and Good Teams struggle to differentiate themselves. But can it be fixed? Can we bring some happiness to eCommerce?
Services Largely Determine eCommerce Profit
The Five Steps to eCommerce Happiness
IRP solves visibility of eCommerce performance through DATA. HOW?
1. When you MEASURE costs and sales you can COMPARE
When you accurately measure costs and sales universally for Merchants in all channels with a standard attribution - you can compare the costs and sales generated by each Service Provider. With that dataset - on every Single Provider and every single service - you now have the logical starting Dataset to measure eCommerce.
2. When you COMPARE you know RELATIVE PERFORMANCE
In an industry that currently compares apples with oranges, when you simply compare apples with apples it reveals the core performance data. This creates transparency where everyone’s performance is measured, known, compared and ranked. Relative performance is then known by all creating transparency.
3. When you know RELATIVE PERFORMANCE you can select the best TEAM
Universal measurement means that Team and service comparison is consistent across the entire market. When everyone's performance is known by all with total transparency you know how good your Team is versus their peers doing the same job. Selection of services like PPC can be based on the basis of performance.
4. When you select the best TEAM you make PROFIT
When you have selected the best Team Players and Service Providers - your results will be better than your competition. You will take market share, create sales growth, control costs and make profits. The Data and Service Marketplace that IRP offers provides a foundation for profit... and creates the basis for your Happiness.
5. When you make PROFIT you are HAPPY
This final step of HAPPINESS is the one that is not guaranteed. However by building the right team and strategy based on DATA it will lead to Net Profits and that Net Profit - of all eCommerce metrics - is the one that should lead to Happiness.
For those with time to read the maths behind profits you can find these here and here.
eCommerce is Simple - Happiness comes from your Net Profit.
Conclusion
Comparison, measurement and Data bring Clarity. The above steps will deliver more than sales - they will deliver Net Profit - and Net Profit is the secret to Happiness in eCommerce.
In IRP the Trading Terminal and Service Marketplace will highlight what is contributing to Merchant Net Profit. This includes performing Agencies and Services but it also includes channel performance all down to the Sku level. IRP can calculate the Net Profit in realtime so there are no surprises.
eCommerce happiness is not complicated. It’s very simple, happiness comes from your Net Profit.
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