Creating A Sustainable Ecommerce Business Model

Sustainability = Innovation 🌎 Integrating sustainability into business strategy requires continuous advancements in technology, processes, and resource management. At the same time, sustainability challenges drive research, development, and operational efficiencies that lead to new market opportunities and competitive advantages. Resource constraints drive material and process innovation. The need for alternatives to finite or harmful materials has accelerated the development of advanced composites, circular economy models, and energy-efficient production systems, improving cost efficiency and resilience. Addressing sustainability challenges requires systems-level innovation. Reducing emissions, optimizing resource use, and minimizing waste require advancements in supply chain management, product lifecycle design, and industrial processes, reshaping entire sectors. Cross-functional collaboration is critical. Sustainability initiatives require input from engineering, data science, regulatory compliance, and finance to develop integrated solutions that meet environmental targets while maintaining operational and commercial viability. Data-driven approaches enhance sustainability performance. Measuring environmental impact enables companies to identify inefficiencies, optimize resource allocation, and refine business strategies based on quantifiable sustainability metrics. Long-term sustainability targets drive investment in research and technology. Businesses are accelerating development in areas such as AI-driven resource optimization, carbon capture, and next-generation materials to align with regulatory requirements and market expectations. Nature-based solutions provide scalable innovation opportunities. Biomimicry has led to advancements in self-healing materials, passive cooling systems, and regenerative agricultural techniques, improving efficiency and resilience across industries. Sustainability is reshaping business models. The transition to circular economy principles, service-based models, and regenerative supply chains is driving competitive differentiation and long-term value creation. Innovation is fundamental to achieving sustainability objectives. The convergence of regulatory frameworks, technological advancements, and market shifts is reinforcing the role of sustainability as a driver of industrial transformation and business resilience. #sustainability #sustainable #business #esg #climatechange

Every ecommerce leader I know is running on the same hamster wheel: growth targets keep rising, but the rules of the game are being rewritten under their feet. When you place a leader and later sit down with them to swap insights, you’re reminded why the right talent shapes entire industries. I had a great conversation with Julian Exposito-Bader (ex-Amazon, TAG Heuer) about what’s really shaping the future of ecommerce, and he boiled it down to four pillars every executive should have on their radar: 1. Tariffs & Supply Chain Disruption Tariffs are no longer background noise. They’ve reshaped global commerce. Chinese manufacturers are redirecting from the US into Europe, flooding marketplaces with B-brands and copycats. Leaders who win will be the ones who diversify sourcing, master customs optimization, and use bonded warehouses strategically. 2. Sustainability as a Competitive Advantage It’s no longer acceptable to send a small product in three layers of plastic. Lastmile innovation (bike couriers, drones, reusable packaging) is moving from “PR play” to “bottom-line differentiator.” Zalando is pushing hard here. Consumers are watching, and they notice who’s lagging behind. 3. AI-Powered Commerce Revolution Gen Z isn’t Googling “best running shoes”, they’re asking ChatGPT or Alexa. LLMs are the new storefront. The question is: do brands have a strategy to influence those models? Add in 10-minute delivery in Southeast Asia (coming soon to Europe) and AI-driven fraud vs. fraud detection… the entire purchase journey is being re-engineered. 4. Channel Strategy & ROI Focus Social commerce is expensive and messy, but TikTok Shop is where the next generation buys. DTC remains the highest margin, but demands world-class storytelling. Amazon gives you traffic, but only if you’re willing to pour money into ads. And let’s not forget the “lipstick effect”, beauty keeps outperforming even when wallets tighten. The takeaway? Ecommerce leaders aren’t just choosing a channel anymore, they’re orchestrating these four forces simultaneously. For me, it was also a reminder of why the right hire matters: leaders like Julian don’t just react to market shifts, they anticipate and shape them. I’m curious, in your markets, which of these four pillars is hitting hardest right now? #ecommerce #fmcg #trending

It's time to rethink the "move fast and break things" innovation mantra, esp. in #sustainability, write Dave Lütkenhaus and Alison Taylor. They argue that the rapid, consequence-free innovation model popularized by tech giants like Facebook is no longer sustainable. As climate change, social inequality, and eroding public trust become pressing concerns, speed without purpose is not just ineffective — it's irresponsible. Key takeaways: ⏰ Purpose Over Speed: Prioritize the social impact of products before launch to ensure ethical considerations are integrated from the outset. 🤝 Collaboration is Key: Foster cross-functional, systemic innovation that encourages debate and considers societal outcomes. 📋 Accountability Matters: Recognize that breaking things without accountability is not inventive — it’s negligent. This isn't just a philosophical shift — it's a business imperative. Markets, regulators, employees, and customers are demanding more accountability. To stay competitive and responsible, innovation must evolve. Full article here, via Trellis Group: https://lnkd.in/g_MJp6Zx #Innovation #EthicalBusiness #SustainableDevelopment #PurposeDriven #Leadership #Accountability

I am convinced that the textile industry, like many other industries, must undergo a complete system transformation to reduce its carbon footprint. So many processes still rely on fossil fuels, and the entire system is still based on a take - make - waste mentality. Shifting to more sustainable methods and practices will require significant effort across various fronts. While this is challenging, it’s not impossible. We know the main emission drivers and see investments in new technologies and introduction of more renewable energy. These developments, along with shifts in everyone's mindset around consumer behaviors, can move the industry in a positive direction. 🎯 I believe innovation is essential for creating a socially inclusive and planet positive industry. We need impactful new methods and technologies. However, I also think we sometimes define innovation too narrowly, focusing solely on inventions and high-tech solutions. These alone won’t take us all the way. If we broaden our definition of innovation to include new ways of doing things, regardless of their technological complexity, we can better achieve this vision. And ideas about new ways of doing things is definitely something that the industry needs and will need if it is to achieve net-zero by 2050. There are excellent examples of innovations that have impacted, or have the potential to impact, sustainability practices in the industry. One notable example is HKRITA - The Hong Kong Research Institute of Textiles and Apparel Limited’s initiative to transition their scientific solutions from a closed lab to an #OpenLab, creating an innovation hub aimed at collaboration, problem-solving, and showcasing solutions on a larger scale. The impact could be significant if the right stakeholders, brands, retailers, and manufacturers, come together to work collaboratively. Another example is the emerging recycling and sorting technologies focused on textile waste. Previous winners of the #GlobalChangeAward are developing automatic sorting technologies to address bottlenecks, and separation technologies like the Green Machine are enabling the recycling of blended textiles. My most important learning is to avoid viewing the transformation that is needed as a solo effort. Many of these challenges are too large for any one entity to solve alone. Collaboration and partnerships are crucial. Often, a solution in one area depends on system conditions in other areas. Therefore, solid partnerships among industry peers, manufacturers, and those involved in the value chain are critical. It sounds like a cliché, but only together can we drive meaningful systems change of the textile industry and secure a just and fair transition for both people and the planet. 🤝 🤲 At the H&M Foundation we are happy to connect with anyone sharing the same drive to transform and decarbonize the industry, so don’t be a stranger, let’s explore how to join forces!

Every product loses users. Some people cancel subscriptions. Some stop opening the app. Some simply disappear. That’s called customer churn - when users leave your product. Most teams can see that users are leaving. But the real challenge is understanding why. Dashboards tell you who left. Good analysis tells you what went wrong. If you work in Data Analytics, Product, or Growth, finding the real reasons behind customer drop-off is one of the most valuable skills you can learn. Here’s a practical framework for Churn Analysis - 15 ways to find the real root causes 👇 1) Define churn clearly first Decide what “leaving” means for your product: canceled subscriptions, inactivity, no purchase in 60 days, or app uninstall. 2) Segment churn by customer type New users and loyal users leave for very different reasons. Always analyze them separately. 3) Check churn by acquisition channel Compare paid vs organic users to see if targeting or expectations are misaligned. 4) Analyze churn by cohort (signup week/month) Look for specific groups that dropped after a feature change, pricing update, or campaign. 5) Track churn by lifecycle stage Churn during onboarding is very different from churn after months of usage. 6) Find churn spikes over time Plot daily or weekly churn and match spikes to outages, bugs, or policy changes. 7) Measure usage drop before churn Most users slowly disengage before leaving. Track last active date and session trends. 8) Map feature adoption patterns Users who never use key features are much more likely to churn. 9) Build funnels to locate drop-offs Example: Signup → Setup → First Action → Repeat Usage → Subscription. 10) Compare high-churn vs low-churn segments Study what retained users do differently - then try to replicate that behavior. 11) Analyze churn by pricing plan or tier Sometimes users leave because the pricing doesn’t match their needs, not because the product is bad. 12) Study support tickets and complaint themes Group feedback around bugs, usability, slow response, onboarding confusion, or pricing. 13) Look at transaction failures and payment declines Some churn is accidental: card failures, renewal issues, or payment errors. 14) Run retention curves and survival analysis Identify exactly where retention drops sharply - that stage usually holds the root cause. 15) Validate with churn surveys or interviews Ask users why they left and use real feedback to confirm your assumptions. The key takeaway: Customer churn isn’t random. It leaves clues everywhere - in usage data, funnels, cohorts, pricing, support tickets, and payments. Great analysts don’t guess. They connect these signals into clear actions. Save this if you work with customer data. Share it with your product or growth team. This is how churn turns into insight.

Products go through several stages as they evolve, which correspond to the stages of birth, growth, maturity, and final decline. To effectively address the changing needs of a product across its lifecycle, designers, in collaboration with the product manager, must comprehend and anticipate the unique characteristics of each stage. Every product's lifecycle generally consists of four basic stages: introduction, growth, maturity, and decline. Here is a breakdown of how #uxdesign and #research adds value in a product making process (ex. fitness wearable): 👉 Introduction: During this phase, picture a well-known tech business releasing a brand-new fitness tracking wearable. While UX researchers gather information about user preferences for fitness metrics and goal tracking features, UX designers work to improve the device's interface for simple setup and intuitive navigation. 👉 Growth: UX designers scale the user experience to meet increased demand, optimising performance and guaranteeing smooth integration with companion apps, as the fitness monitoring wearable becomes more and more popular and user adoption rises. In the interim, user studies are carried out by UX researchers to find ways to improve the precision of workout monitoring and the features that allow for personalised coaching. 👉 Maturity: Despite competition from other wearables, the fitness tracking wearable establishes itself as a mainstay in the market during this period. In order to keep users engaged, UX designers concentrate on improving the user experience by adding features like nutrition tracking and sleep tracking. To determine preferences for social sharing features and community involvement in the companion app, UX researchers examine user feedback. 👉 Decline: As more recent fitness trackers hit the market, the original gadget eventually reaches this stage. In order to prolong usability for current users, UX designers streamline the user experience by streamlining interfaces and eliminating unnecessary functionality. UX researchers keep an eye on consumer attitudes and industry developments, facilitating the switch to more modern wearable choices while preserving customer loyalty with smooth data migration and aftercare. When planning for the future, it is critical to take the product's lifecycle into consideration. Designers and researchers must work closely together at every level in order to effectively respond to shifting consumer demands and market realities. 🔥 Here is a graph that provides a detailed explanation on how to navigate this journey. https://lnkd.in/gKjP_N8H RethinkingUX

Success in DTC isn't about having more products - it's about understanding which products drive repeat purchases. Here's how we evaluate product performance beyond basic metrics: 1. Initial indicators: → CTR on ads (shows market interest) → Add-to-cart rates (shows purchase intent) → First purchase conversion rates 2. The real gold: → Repeat purchase behavior → Customer lifetime value by first product → Secondary product adoption rates Smart brands pick their acquisition products based on what drives the second, third, and fourth purchase - not just the first sale. Example: We recently analyzed a skincare brand's portfolio. The surprise? Their hero product wasn't their best seller - it was the 3rd product that led to the highest customer retention. Instead of sending 100% of your ad budget towards winning product, you should increase budget towards such hidden gems. These hidden gems may have higher CAC compared to your winning product. What matters more to your brand - immediate sales or customer retention?

The Amazon Retail Purchases dataset in AMC is a goldmine. For the first time in Amazon's history, we have access to five years' worth of order history data. This allows us to move beyond ad optimization and look at each Amazon FBA business from a high level. For sellers with high-ticket products, where customers take more time to purchase, this report is especially valuable. Here are some of the insights you can draw from it: - Repeat purchase behavior: Identify which products generate loyal customers and which ones are “one-off” purchases. This helps you prioritize SKUs with strong LTV potential and prune products with poor long-term retention. - Cross-sell mapping: Discover natural product bundles and complementary products. This helps you create “frequently bought together” strategies, expand into adjacent categories, or design multipacks. - Seasonality & sales cycles: Track order volume by ASIN over multiple years to detect seasonal peaks. This way, you can improve inventory planning, reduce stockouts, and time promotions more effectively. - Price elasticity: Compare units sold vs. average selling price over different time frames. This gives you gata guidance on whether lowering price actually boosts the sales volume enough to justify margin cuts. - Demographic & geographic segmentation: break down purchases by region or shopper segment. This helps with localization, logistics, and tailored ad campaigns. - Product Lifecycle Analysis : find out how long your average product lifecycle lasts so you can plan for new product launches more efficiently. - CLV (customer lifetime value) by SKU: In the report, you can find aggregate purchases across 5 years per unique buyer. This information is valuable to advertisers who want to understand how to allocate their ad budget effectively. The downside of the Retail Purchases dataset is that it’s a premium feature. Without it, you get to receive 12 months of advertising data, but not the entire 5-year purchase history. But for sellers with large catalogs and monthly revenues, getting this information can save thousands of dollars in making the right decisions. 

Improve your store's conversion rate, retention rate, and overall profitability within 30 minutes. No clickbait, I promise. Product performance analysis is one of the least used strategies in DTC marketing. Here are my steps to do product performance data without any additional tools - Using Shopify, Meta & Google Analytics 1. Go into Shopify Analytics and pull "Sales by product" for revenue 2. Download the "Product orders and returns" report for the return percentage 3. Go into GA4 and pull the Ecommerce purchases report for items views, items added to the cart, and items purchased. 4. Go into Meta and pull the Catalog ads product report by ad spent and purchases to find product level CAC. 5. Find the margin on the products, or use the Shopify "Profit by-product" report if the margin was available in the reporting. Merge all the above reports either on SKU or product name to a single report. It should have -  Product name Revenue Gross Margin % Return Rate % Meta Catalog Ads CAC for product GA4 Item View-To-Purchase Conversion Rate GA4 Item Cart-to-View Conversion Rate Remove or fix -  - Least profitable or low-margin products - High CAC products - High return products - Low view to conversion products Promote aggressively -  - High-margin products - Low CAC products - Low return products - High conversion rate products It's best not to look at a single metric but to get to the contribution margin at the product level. Single Product Contribution Margin = (Unit Revenue * (1- Return %)) - (Meta CAC) - (Unit Shipping + Payment Costs) It's a simple formula, you can increase complexity with more variables. The goal is to do a comparative analysis. Using Pareto principles, 80% of sales will be coming from 20% of the products. Use this information to align your inventory and sales projections. Most DTC brands have a higher count of SKUs than needed. Trim your SKU count. You can use ROI Hunter & Reveal by Omniconvert for in-depth product analysis. Both tools have fantastic reports for doing product analysis. In Reveal, you can get the product level NPS, segment performance analysis, and retention rate per product. Again, it's a simple analysis that needs to be done once a quarter. It will help you remove the dead weight. #dtc #ecommerce I am Rahi Jain I use my PCC (Product, Customer, Communication) framework to maximize growth and profitability for ecommerce brands. Have helped generate $34M+ for 50+ ecommerce brands. Built a $20M ecommerce store.