The Complexities Of Building An E-commerce Business

Supply Chain
Written By Rick Watson

Sometimes I get asked - do you ever get bored in e-commerce? I can honestly say I never have.

Building e-commerce businesses is so different each time - there can be no cookie-cutter.

You have to start with the brand and what it is. Then you move to the experience you want to create. Then you need to get creative. Brainstorm. THEN start talking about technology. Too many people start in the opposite direction.

There are a variety of factors that can completely change the complexion of a business and how you plan to make money from one brand to the next:

  • brand experience

  • average selling price

  • return rate

  • repeat customer purchases

  • partners needed

  • logistics

  • marketplace vs drop ship vs owned inventory

  • initial investment

  • Board payback period needed

All of these things make one brand quite different from the next, and the nuances add up. Never mind the fact that every few years the entire game changes. Just think about this:

Sometime in 2015-2016, Amazon delivered its own parcels for the first time (I'm talking about Prime Now in Los Angeles - not just FBA). In 2019, Amazon delivered 2.3 billion packages in the United States. This was pre-COVID.

So yeah, it's a fun space to be in.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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