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eCommerce: A VC Story [guest post]

VC Cafe

While some VCs that I met seemed to be rightfully bullish about everything that had to do with eCommerce, some seemed to be missing the point. To put it bluntly, on more than one occasion I encountered a VC saying that the eCommerce model doesn’t have a “VC feel” to it. The ripples of eCommerce are tangible. Here’s why ….

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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

In an eCommerce or Internet Services business it is often the marketing costs (if purchased online) and in an enterprise software company it is often marketing plus enterprise sales reps. So if you paid $100 for a customer who converted via a Facebook ad or Google search ad (SEM) that is not your CAC. The first input is CAC.

Metrics 150
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How to Use Growth Hacking to Increase Revenue 20x in Just 12 Months

Up and Running

For ecommerce, this is based on transaction size, commission, and chances of the user returning. It’s significantly easier to get a press mention from smaller bloggers or internet evangelists (Youtube, Scoop.it). Google AdWords or SEM (expensive). In a SaaS business, this is calculated based on churn. Display ads (cheap).

Revenue 60
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Knowledge

Occam's Razor

I Got No Ecommerce. PPC / SEM Analytics: 5 Actionable Tips To Improve ROI. Tip #14: Measuring Value of Ecommerce Sales Tools. Tip#4: Make Your Analysis/Reports "Connectable" Tip#3: Turbocharge Your SEM/PPC Analysis. Market Motive: Internet Marketing Knowledge On Tap. How Do I Measure Success?

Analytics 124
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What is A/B Testing? The Complete Guide: From Beginner to Pro

ConversionXL

For conversion optimization , the main difference is the variability of Internet traffic. The Internet is full of case studies steeped in shitty math. Here’s an example from an ecommerce site: First couple of days: Blue (variation #3) is winning big—like $16 per visitor vs. $12.50 External events. for Control.

Analytics 127
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113 of the Best Lead Generation Tools and Resources

Duct Tape Marketing

Further Reading: The Ultimate Guide to eCommerce Email Marketing. SEM Rush – Find profitable key words. SEO 2016: Learn search engine optimization with smart internet marketing strategies. ActiveCampaign – Fully integrated solution for intelligence-driven marketing and sales. Email Design Best Practices.

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A/B Testing Mastery: From Beginner To Pro in a Blog Post

ConversionXL

The main difference, however, lies in the variability of internet traffic. The internet is full of case studies steeped in shitty math , and most of it (if they even release full numbers) is because they judged a test on like 100 visitors per variation and 12 vs 22 conversions. PPC/SEM campaign. for Control. End: no difference.