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Strategies To Establish A Recession-Proof ECommerce Business

The economy is never static, and market conditions can change overnight, instilling fear of a looming recession.

William Willis
Nov 23, 2022167 Shares2227 Views
The economy is never static, and market conditions can change overnight, instilling fear of a looming recession. Like other businesses, eCommerce brands are not immune to economic recessions. While there are no guarantees that the economy will slump, smart businesses are developing recession-proof strategies to ensure continuity should the economy slow down. Here are a few tips to make your business recession-proof.

Optimize Customer Lifetime Value

Repeat customers are essential in an eCommerce business, and they can determine your profitability. As customer acquisition becomes more expensive, increasing the customer lifetime value is important. In a downturn, the economic conditions may promote the influx of new competitors in the market, which can fragment the existing market share.
It's prudent to determine the most valuable customer segment since your return customers account for a huge portion of total revenue. Besides implementing behavioral-based upselling tactics, you can provide freebies to customers every time they purchase your products to boost sales volume. Similarly, customer-friendly loyalty programs can keep your business afloat since68% of millennialsare unlikely to purchase from companies without favorable loyalty programs.

Minimize Cognitive Load and Publish Quality Promotion Content

While most eCommerce websites have an underperforming user experience, you can differentiate your brand from the crowd by optimizing the overall design of your website and landing pages. One way to accomplish this is by enhancing the mobile experience to make your website seamless when customers search for different products.
Most businesses cut back on their marketing frequency when the economy slows down due to the belief that marketing campaigns are ineffective when revenues decline. However, it is best to continue your marketing strategy since your competition may slow down their marketing efforts, giving you an advantage in capturing new customers.
While the purchasing power of most consumers may be lower than normal, there is still a segment of customers you can sell to regardless of the state of the economy. Businesses that maintain a consistent marketing strategy can reap the benefits. You can keep your customers engaged bycreating interesting contentto educate and entertain your target audience and position your brand as a resilient business.

Build Your Brand Around Customer Feedback and Trust

Customers shopping at your online store may have concerns about the product quality. Customer reviews provide sufficient social proof that gives potential customers the confidence to go ahead with their purchasing decision.
Gathering customer feedback is more important in a recessionthan when the economy thrives. And in online business, listening to customers is the best way to determine if you meet their expectations. However, it may not be appropriate to interrupt the customer journey. Try adding a non-intrusive pop-up to gather opinions and feedback after the customer completes an order.


While most recessions indicate the collapse of some economic metrics, they don't necessarily mean that your eCommerce business will fail. You can take several steps to protect your business from the negative effects of a recession. Whether your eCommerce business is in the early stages or advanced growth stage, you can implement the right measures before the downturn hits to cement your success and resilience.
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