E-commerce has exploded in the last few years—accelerated by the COVID-19 pandemic, shifts in consumer behavior, and just generally, an explosion of DTC brands that filled a void in consumer lives.
But that success has only made the landscape that much more competitive and crowded, making it difficult for new brands to stand out in the crowd. Increasing advertising costs, decreasing ROAS, iOS changes, death of the cookie, etc. are all trending headlines that can keep an e-comm marketer up late at night. Combine that with inflation & receding profit margins—and you’ve got a downright horror movie on your hands.
The good news? Free cash flow isn’t only for the big boys & it definitely doesn’t have to come from a traditional bank that won’t understand the nuances of the e-commerce business model. Check out some tips from our partners over at Clearco (formerly Clearbanc)– an equity-free capital provider for e-commerce founders looking to scale.
2022 Trends That Demand Cash Solutions
We’re all well aware of the iOS14 updates that have made ad targeting more difficult and diluted returns on spend. The need for investment into quality zero and first-party data collection is the key to maintaining a positive ROAS for retargeting campaigns once you’ve effectively collected lead information and can target/personalize campaigns to more effectively reach them, with their consent. Make smarter decisions with your ad dollars, rather than relying on anonymous traffic that may or may not ever convert. Using a platform like Justuno can make the difference you’ve been looking for in your ad campaigns, through Audience Sync for improved re-targeting and prospecting in addition to data collection through hidden fields, quizzes, and zero-party data indicators, and more.
But even more pressing than the rising cost of ads and removal of cookies? The supply chain woes have continued to plague brands since the start of the pandemic. Shipping delays have been a major impediment to the supply and demand flow of business—forcing those who are importing goods to wait increasingly longer times (which in turn is frustrating to consumers), pay higher shipping fees to receive their products, and then the inflation on the goods/materials themselves.
All of these additional costs add up, lowering profit margins and increasingly forcing businesses to play a delicate dance between ordering, fulfillment, and shipping to keep customers happy with normal delivery time without overextending themselves on inventory and trying to stay one step ahead of the constantly evolving landscape.
The solution to these 2022 problems? More free cash to solve problems. Using a provider like Clearco, your brand could receive non-dilutive capital to use for things like ads or inventory—without strenuous rules like credit checks, equity, personal guarantees, etc.
Their revenue-based financing model simply requires businesses to connect marketing and sales platforms to get started, then using a proprietary algorithm to generate funding offers in 24-48 hrs.
Not only does it make life easier for founders, but removes the inherent bias that comes with traditional funding and financial choices, with Clearco backing 25x more women-led businesses than traditional VCs. They’re the largest e-commerce investor in the world with $3.2B invested in 7,000+ brands.
Justuno and Clearco have partnered together to provide our customers with more opportunities to scale their business with effective CRO strategies, zero/first-party data collection, and rapid funding support for all your brand’s needs.