Want to know how to scale an ecommerce business?
Ecommerce refers to sales of a product or service that happens online, or digitally.
Common ecommerce businesses include those that operate digital storefronts like Amazon, Shopify, eBay, etc. However, anyone that trades goods or services primarily online is considered an ecommerce business.
If that’s you, today we’re going to explore how you can scale your efforts. We’ll discuss the benefits and challenges of scaling as well as what that process looks like generally and with virtual assistants.
Without further ado, let’s get started!
Understanding the Need for Scaling
Signs Your Ecommerce Business is Ready to Scale
There are certain indicators you should look out for that tell you when it’s time to scale your business.
- Consistent and stable profit margins and growth in revenue
- High demand for your products or services or you don’t have enough supply to meet demand
- You have the time, energy, and resources to grow due to streamlined processes
- You see a growth in your customer base or a clear opportunity/trajectory to expand.
What are the benefits of scaling your ecommerce operations?
- One obvious benefit is increased profit margins and more revenue.
- Scaling gives you the capacity to handle more business. This includes growth in your current line of business and exploring new markets or target audiences.
- Scaling allows you to improve your offerings, allowing you to provide better products and services. This can improve your reputation.
- As you grow, you gain more of a competitive edge.
- A larger marketing and sales budget can lead to drawing in new customers, and drawing away from competitors.
Challenges in Scaling an Ecommerce Business
We can’t discuss how to scale an ecommerce business without also discussing the common obstacles you might face during this process.
Challenge #1
One of the most common is a lack of resources. Scaling is not a cheap endeavor, and that’s one of the biggest hurdles for businesses looking to expand.
Strategy
Creating a budget plan and analyzing your cash flow are ways you can combat this challenge.
Challenge #2
Another challenge involves scaling too quickly to meet the new demand. A lot of people are so excited to bring more people in that they forget to create processes to maintain quality service.
For instance, they may not have a good customer service plan or a way to store all the customer data properly. They also may not have a scalable back-end for processes like bookkeeping.
Strategy
The solution to this challenge is planning properly. Setting goals and objectives can also help you anticipate the potential problems you might face.
Challenge #3
A third challenge is not having an outsourcing or remote team management strategy. Businesses may recognize the value of outsourcing but not have an idea as to how to manage it.
Strategy
Do your research before outsourcing. Feel free to browse our library of posts on all things virtual assistant, remote team, and outsourcing-related.
Preparing for Growth
Setting Clear Business Goals
Before you even think about how to scale an ecommerce business, you need a clear vision. Your vision doesn’t just include the finish line goal. It also involves the smaller objectives along the way.
That’s why it’s very useful to create a roadmap for scalable growth.
This roadmap includes:
- overarching goal
- long-term and short-term goals
- milestones and objectives
- timelines and schedules
- can also include personnel in charge
Optimizing Your Operations
Streamlining processes and improving efficiency is the key when learning how to scale an ecommerce business. A common mistake businesses make is expanding their teams, technology, and scope before refining and strengthening the foundation.
SOPs
Before you operate, update your operating procedures. Think about what could go right and wrong. Create contingencies and backup plans. Are there any gaps in terms of management or communication?
Technology and Software Assistance
There are countless tools and software you can use to enhance your operational productivity.
These include:
- Content creation tools like Canva and Yoast SEO.
- Marketing tools like MailChimp.
- Analytics tools for data like Google Analytics.
- Sales and logistics tools like ShipBob.
- Customer service tools like Zendesk.
Financial Planning and Management
Premature financial planning prior to a growth move can be devastating.
You have to consider that scaling is an expensive process. You have to consider the costs of the goods you are selling or the manufacturing. However, there are other costs related to outsourcing and investments in equipment or larger storage facilities. You need to factor in high utilities expenses and labor costs (not to mention potential costs related to taxes).
Financing is another thing businesses consider when growing. But without a concept of how they will pay those debts, you’re setting yourself up for failure.
Your scaling efforts could lead to increased complexity on the accounting and bookkeeping side. Your scaling could mean having to hire more people to your current team.
Consider all the costs, run the numbers, and consult financial advisors for a robust financial plan. This can help you better manage your cash flow and consider other investment opportunities to fund your growth.
How to Scale an Ecommerce Business: Leveraging Virtual Assistants for Scaling
Identifying Tasks to Outsource
“Do what you can do well, outsource what you can’t” is a simple rule of thumb for those just starting out.
Here’s a non-extensive list of processes and tasks that can be effectively outsourced:
- Manufacturing
- Customer service and other CRM roles
- Sales, Advertising, Marketing, and Market research
- Accounting, Bookkeeping, and Payroll
- Administrative tasks (calendar management, data entry, storefront management, communicating with suppliers etc.)
Outsourcing is beneficial for ecommerce businesses because it allows to to operate with more efficiency and flexibility. Owners can focus on core tasks like product development and business growth strategies.
Finding and Hiring the Right Virtual Assistants
“Where can I find qualified virtual assistants?”
Freelance marketplaces are becoming incredibly popular. Places like Upwork, Freelancer, and Fiverr are a melting pot for global talent.You can also try business social platforms like LinkedIn or hire referrals from those you trust.
Here are some tips for selecting and interviewing candidates:
- Make sure you check resumes, ratings, and clients reviews.
- Create your interview questions ahead of time.
- Ask them questions to gauge not only their skill level but also their ability to communicate, adapt to company culture and ability work well with others
- Go through multiple rounds of screening if necessary.
Training and Onboarding Virtual Assistants
Though virtual assistants are already skilled, there are still areas where they may require specific training. This can be regarding certain SOPs or software you use. Effective training methods involve creating videos using tools like Loom and guided by a training manager.
One of the keys to success with virtual teams is a comprehensive remote onboarding and orientation process. These processes ensure smooth integration into their roles, team, and the company culture at large.
Managing and Communicating with Your Team
Managing remote teams can be tricky. This is especially true if they come from different cultural backgrounds and time zones.
So, what are some of the best practices for managing virtual teams?
- Learn about the cultures you’re hiring from
- Hire a manager to take point who has experience with remote teams
- Meet with your team regularly and conduct temperature and progress checks
- Build a remote team culture that encourages rapport building
- Use communication and collaboration software
Here are some tools for effective communication and collaboration:
- Asana is a great tool for managing teams and projects.
- Slack is a popular communication platform.
- Trello allows you to create boards to organize daily tasks.
Frequently Asked Questions
What are the first steps to take when planning to scale an ecommerce business?
Have a clear goal in mind and create actionable, measurable, and attainable steps or objectives to reach it.
How can virtual assistants help in managing customer service for ecommerce?
They can answer customer inquiries during “off-hours”. They can also help create FAQs. Some ecommerce businesses invest in a live chat feature which allows virtual assistants to assist customers in real time.
What are the common mistakes to avoid when scaling an ecommerce business?
- Scaling without a clear goal or overall plan
- Not having a financial plan or organized back-end.
- No SOPs or training in how to manage virtual teams.
- Not analyzing or understanding your cash flow beforehand.
How can I ensure the quality of work from virtual assistants?
- Hire them based on previous work they’ve already done.
- Do a test project/trial period and see if they fit your needs well.
- Regularly check on their progress
What are the best tools for managing an ecommerce business with a remote team?
Project management, collaboration and communication software make managing a remote team a lot easier. Asana is one of the best ecommerce tools for collaboration because you can assign tasks, review progress, and share files.
What Is Outsource School?
Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.
This is the exact system Outsource School’s founders, Nathan Hirsch and Connor Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019.
Since being founded in 2020, Outsource School has helped 1,000+ business owners hire 2,000+ virtual assistants for their companies.
Schedule a free sales call to learn more
Free resources you might like:
- Outsource School Case Study: How We Scaled to 45+ VAs and 8 Figures in Revenue
- Free VA Calculator | See How Many VAs You Can Afford
- Free Training on 5 Keys to Working With VAs
- Learn Outsourcing 101 | Guides, Downloads, and Checklists
Conclusion
Learning how to scale an ecommerce business can take a lot of elbow grease. Every scaling effort will look a little different depending on the products and services you sell. The important part is setting clear goals for yourself and clear expectations for your virtual teams.
