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Navigating the ecommerce landscape these days feels like trying to master a high-stakes chess game, with ever-evolving rules and intense competition. But in a Growing Ecommerce podcast episode host Mike Ryan of Smarter Ecommerce sits down with Stefan Wenzel, co-CEO of OnQuality Group, dropped some knowledge bombs that can help companies stay ahead in the digital game. Drawing on experience from eBay Germany, Otto Group, and McLaren, Stefan laid out ecommerce strategies that businesses can use to stay relevant and profitable.
Chinese ecommerce giants like Temu and Shein have disrupted global markets through innovative models and aggressive strategies. Here are some actionable insights and tips for companies looking to compete or differentiate themselves in this rapidly changing landscape.
Table of Contents
1. Build a Brand, Don’t just sell
Too many retailers still see themselves as just that—retailers, selling other brands’ products. Stefan makes a bold suggestion: stop thinking of yourself as a reseller and start thinking like a brand. That shift isn’t just about slapping your logo on a product; it’s about cultivating a strong identity that resonates with customers.
Tip: Establish your “Halo Effect”
To set yourself apart, think about what makes your brand distinctive—whether it’s a killer customer service experience, compelling storytelling, or unique product features. Use these elements to create a “halo effect” around your brand that extends beyond the products themselves.
Strategy: Consistent brand messaging
Create a long-term brand-building plan that ensures your messaging stays consistent across all platforms. Use every channel at your disposal—branded content, social media, personalized outreach—to engage customers and build loyalty. Remember, a strong brand isn’t built overnight; it’s an ongoing effort.
2. Data: Your new best friend
If you’re not leveraging customer data to guide your decisions, you’re leaving money on the table. Stefan emphasizes the need for a data-driven approach, using analytics not just to track sales, but to understand shifting consumer behavior and trends.
Tip: Leverage analytics for smarter decisions
Track purchasing habits, customer preferences, and feedback. This allows you to refine your product offerings and marketing strategies in real-time, keeping pace with demand and minimizing waste.
Strategy: Invest in robust CRM tools
Don’t settle for basic customer data. Use a sophisticated CRM to capture behavior data and act on it by segmenting customers based on their habits. But here’s the kicker: don’t rely too heavily on paid acquisition—tap into that data goldmine to drive organic, repeat purchases.
3. Rethink paid acquisition: Retention matters more
Sure, paid traffic helps fill the top of your funnel, but retention is where the real magic happens. Stefan warns against blowing all your budget on customer acquisition without a solid retention strategy in place.
Tip: Make retention your priority
Strategies like personalized email marketing, loyalty programs, and top-notch post-purchase support aren’t just nice-to-haves; they’re essential for keeping customers coming back.
Strategy: Map out the customer journey
Identify where you can engage customers after their initial purchase. Offer personalized incentives, such as discounts on their next order or recommendations for complementary products, to keep them engaged. The goal is to decrease customer acquisition costs over time by maximizing the lifetime value of each customer.
4. What you can learn from Temu and Shein
Brands like Temu and Shein are rewriting the ecommerce playbook with their speed and flexibility. They’ve mastered strategies like cutting out the middlemen and launching new products based on real-time social media trends.
Tip: Adopt agile production practices
Can you reduce your product cycles or cut down shipping times? Partner with local manufacturers or find ways to speed up your logistics. The idea is to stay as responsive to market trends as possible.
Strategy: Streamline your supply chain
Whether you sell physical or digital products, work closely with your suppliers or developers to minimize turnaround time. Faster iterations mean you can respond to consumer demand and outperform competitors.
5. Gamify your User Experience
What do Temu and Shein also get right? Gamification. Their strategies keep users coming back for more through micro-rewards, interactive pop-ups, and time-sensitive offers. This isn’t just about fun and games—it’s about boosting average order values.
Tip: Make shopping fun again
Incorporate gamification techniques like rewards programs, badges, and interactive pop-ups that offer discounts or exclusive deals. These tactics can trigger dopamine responses and encourage customers to make impulsive purchases.
Strategy: Reward engagement
Implement a point-based rewards program or use interactive elements to incentivize actions like sharing your site or writing reviews. Think of it as creating a mini-game around your ecommerce experience—customers win, and so do you.
6. Amplify your Social Proof
Shein’s rise is partly fueled by an army of micro-influencers who flood social media with #SheinHaul content. This isn’t just a trend; it’s a way to create social proof and pull new customers into the brand’s orbit.
Tip: Partner with micro-influencers
Big-name influencers are costly, but micro-influencers offer authenticity and can connect with niche audiences. Partner up and encourage genuine reviews and content that feels organic.
Strategy: Create an ambassador program
Develop a referral system where influencers earn rewards for driving new customers. The more user-generated content you can encourage, the stronger your brand’s social proof will be.
7. Customer Experience: Don’t skimp here
At the end of the day, no discount or clever marketing trick will make up for a lousy customer experience. Stefan reminds us that customer experience should be your North Star.
Tip: Ensure consistency in service
From the first click to the final delivery, ensure that your service is smooth and dependable. Anything less can undermine even the most aggressive pricing strategies.
Strategy: Deliver exceptional post-purchase support
Flexible return policies, responsive customer service, and personalized follow-ups can turn a first-time buyer into a lifelong customer. Plus, you’ll gather valuable feedback to help improve your processes continually.
Wrapping it up
In today’s hyper-competitive ecommerce landscape, survival means being nimble, data-driven, and customer-obsessed. Stefan Wenzel’s advice isn’t just a series of tips; it’s a blueprint for thriving in an environment where the rules are constantly changing. By prioritizing brand-building, embracing data, and focusing on customer retention, companies can set themselves up for sustained growth.
Listen to the full episode of the Growing Ecommerce podcast below:
For more episodes, head to the podcast on Spotify. And remember, you don’t have to do it alone. Partnering with the right tech and experts can make navigating these strategies a whole lot easier.
