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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. 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 since 68% of millennials are unlikely to purchase from companies without favorable loyalty programs.

Minimize Cognitive Load and Publish Quality Promotion Content

COPYRIGHT_WI: Published on https://washingtonindependent.com/strategies-to-establish-a-recession-proof-ecommerce-business/ by William Willis on 2022-11-23T05:58:01.203Z

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 by creating interesting content to 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 recession than 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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About The Authors

William Willis

William Willis - William Willis is a freelance writer and social media manager who specializes in assisting finance professionals and Fintech entrepreneurs in growing their online audience and attracting more paying customers. William worked as a bank teller and virtual assistant for financial firms in the United States and the United Kingdom for six years before beginning her writing career. William is a strong force in the workplace, inspiring others to work hard and excel with his optimistic attitude and boundless energy. He enjoys hiking, crocheting, and playing video games with his children in his spare time.

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