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TRANSCRIPT
Sean Percival @percival Venture Partner, 500 Startups
Top 5 Ways to Crash an Ecommerce Business
Passion Out Strips Experience 1
Pro Tips
• Constantly be hiring smarter people than you • Know your arrogance is going to be expensive • Get some serious industry BFFs
Shipping Fails 2
Customer Happiness Over Time
Order Placed Week 1 Week 2 Week 3 Week 4
L --
- Hap
pine
ss -
-- J
Stoked
Concerned
Pissed
You Ruined Christmas
Happy
Out for blood
We both said things we didn’t mean
Pro Tips
• Go to a 3PL ASAP • Fight with your vendors more • Set good expectations with customers • It’s worth discounting when you screw up
Margins You Can’t Fix 3
Pro Tips
• Test upfront (then test more) • Avoid discounting • Make the tough price switches early • Find secret unsexy revenue
Fundraising Screw Ups 4
Pro Tips
• Ecom words to never use with a VC: • Subscription commerce (or the trend of the moment)! • Lifestyle brand! • Curated artisanal experience! • Celebrity endorsement! • It’s Pinterest for…..!
• Never go out in Q4 • Know your numbers
You Suck at Marketing 5
Pro Tips
• You have try 10 things to get 1 that works • Learn to ankle bite the big dogs • Assume 100% of sales come on a 2nd visit
Thank You