The Andrew Faris Podcast cover image

The Andrew Faris Podcast

7 Ways You're BLOWING Money In Your Ecommerce Business

Jan 21, 2025
Discover how e-commerce businesses can save big by rethinking their expenses. Learn about common pitfalls in advertising that can drain your budget and the importance of optimizing prices for better profit margins. Dive into cost-saving tactics like supplier negotiations and exploring multiple shipping options. This insightful discussion emphasizes experimenting with pricing and engaging virtual professionals to streamline operations—all aimed at maximizing your e-commerce success!
27:49

Podcast summary created with Snipd AI

Quick takeaways

  • E-commerce brands can significantly improve profit margins by minimizing operational expenses and adopting lean operations with fewer resources.
  • Engaging with multiple manufacturers allows brands to negotiate better terms, potentially reducing costs by over 20% while enhancing product quality.

Deep dives

Excessive Spending on Operations

Many e-commerce brands incur unnecessary costs due to high operational expenses (OPEX), often referred to as being 'fat.' Spending more than 15% of revenue on salaries and fixed costs can indicate inefficiency, particularly for businesses generating over $3 million. To maintain strong profit margins, brands should focus on minimizing unnecessary expenditures and streamline their operations with fewer resources. This approach allows brands to be significantly more effective and profitable, especially for those with revenues below $20 million.

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