In today’s competitive landscape, understanding the metrics that impact business growth is crucial for ecommerce store owners. Metrics such as CPA (Cost-per-action or cost-per-acquisition), ROAS (Return on ad spend), ACOS (Advertising cost on sales), ROI (Return on investment), CPC (Cost-per-click), average cart value or average order value, and CLV (customer lifetime value) provide valuable insights into the effectiveness of marketing strategies and overall business performance. To ensure sustainable success, it is essential to follow a well-structured sales funnel that maximizes conversions and nurtures potential customers.

Before diving into the intricacies of the funnel, it is important to acknowledge that in any industry, only about 3% of customers are instant buyers. Many sellers mistakenly assume that launching an ad campaign will result in immediate purchases. However, the reality is that only a small fraction of those who click on your ad will make an immediate purchase. Moreover, given that your competitors are also targeting the same pool of instant buyers, it becomes evident that relying solely on this 3% segment is not a viable long-term strategy.

To generate sustained profitability, it is essential to grasp the entire customer journey. Rather than solely focusing on instant sales, sellers should also invest efforts in educating and nurturing potential customers. This requires building relationships and engaging with the remaining 97% of the market, who fall outside the instant buyer category.

Email marketing emerges as a powerful tool to establish and nurture relationships with potential buyers. By leveraging email campaigns, ecommerce stores can recover lost sales and generate new ones. Now, let’s explore a step-by-step breakdown of an effective sales funnel.

Step 1

Run Conversion Ads with Quantity Breaks Capture your customers’ attention by running conversion ads that offer quantity breaks. By offering discounted prices for larger orders, you incentivize customers to make immediate purchases.

Step 2

Redirect Customers to Product Pages with Upsell Opportunities Once a customer clicks on your ad, redirect them to a product page that showcases related products or offers upsells. Upselling involves presenting higher versions or complementary items to the product they are interested in. This strategy is widely employed by successful ecommerce giants like Amazon and Flipkart.

Step 3

Build a Customer List for Remarketing Build a customer list and upload it to platforms like Facebook for remarketing purposes. Target these customers with higher-value products, coupled with enticing discounts, warranties, or guarantees. By capitalizing on the familiarity they have with your brand, you can increase sales.

It is crucial to maintain an average cart value or average order value that allows for profitability. Consider bundling products or offering kits to increase the average cart value. Additionally, leveraging the “Quantity Breaks” strategy can also be effective at this stage.

Step 4

Utilize Email Marketing for Abandoned Cart Recovery and New Sales Implement email marketing campaigns to recover lost sales from customers who have abandoned their carts. Keep the emails simple yet persuasive, providing discounts, coupons, or creating a sense of urgency using FOMO (fear of missing out) tactics. By nurturing these leads, you can drive conversions and boost sales.

While the above four steps form a solid foundation for a successful sales funnel, it is important to continuously iterate and refine your approach. Over time, you can introduce additional steps or strategies to further optimize your ecommerce business for profitability.


Implementing a well-designed sales funnel, coupled with strategic email marketing and a focus on customer relationships, can empower ecommerce businesses to unlock their full potential. By understanding and optimizing the key metrics that impact growth, business owners can navigate the dynamic ecommerce landscape and achieve long-term success.

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