As you know, we work with many high volume sellers, and wanted to share with you some of the trends that we’re seeing our most successful clients do. We obviously value our client’s privacy and will only share broad concepts with no proprietary information. Hope that you find value in our list!
- Branded U.S. Fulfillment – About 60% of our current CFO client base are Dropshippers – and all of these sellers are very very successful. Dropshipping is a fantastic business model, but our most successful clients, in terms of long term sustainable revenues, dropship to test until they find their “evergreen” product. Dropshipping at scale for a long period of time can lead to payment processing issues and lack of repeat customers. If your goal is to grow and maintain a long term brand, consider starting a plan to move towards US fulfillment.
- Organic Traffic – We notice that our top sellers (in terms of margins) seem to all have organic traffic figured out and scaled. This can be in the form of email marketing which is very common with tools like Klaviyo and Active Campaign. One of the more lucrative trends that we’re noticing is organic traffic from TikTok specifically.
- Monitoring Cash Flows – Perhaps we are biased here but knowing your numbers is likely the most important item on this list. Many sellers are good at configuring their ROAS but very few keep a close pulse on their profits and cash flows. We highly recommend doing 4 things to keep a pulse on your cash flows:
- Cash Basis Bookkeeping using a tool like Quickbooks
- Accrual Basis Accounting using an automated tool like order metrics
- Regularly monitoring cash reserves and timing of payouts with payment processors
- Auditing your invoices from your suppliers and or 3PL companies to confirm that they are not overcharging you. Also note, that many suppliers will share your refund risk with you. Consider asking your supplier if they will do this if they are not already.