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Joe Putnam

Jun 15 • 8 tweets • 2 min read

Cash flow management can make or break your DTC eCommerce store growth. 💰

Here's why... 👇👇👇

#marketing #growth #DTCeCom

First off, eCommerce stores are CASH HUNGRY.

You need cash to purchase INVENTORY and you need cash to pay for ADS.

In a given month, you may need $50k to buy more inventory and another $25k+ in ad spend, while also needing additional money for operations.

Good news = you'll make the money back when you sell the inventory.

Bad news = you need more cash to buy more and more inventory which means you have less cash on hand even though you're making more.

I highly recommend reading Shoe Dog by Phil Knight to understand this better.

So what do you do?

First, you need to negotiate the best terms possible from suppliers.

I'm not an expert here, but you want to do anything you can to not pay for all of your inventory up front while you're waiting for it to be delivered.

Next, you're going to need a line of credit to pay for your inventory.

Some people are hesitant to take out loans, which I understand, but short-term capital is necessary so you can buy larger and larger inventory quantities as you grow.

You'll also want to use the Chase Ink Business Preferred card (bit.ly/3zGykJa) for your ad spend (a) so you have 30 days to pay back your ad spend and (b) so you earn 3X points for every dollar you spend on ads.

There's obviously a lot to learn here, but the tl;dr version is that (1) eCommerce stores are cash hungry and (2) you'll need to get comfortable managing your cash flow in order to grow.

Now, over to you...

What cash flow strategies have you found to be the most helpful for growing your eCommerce store?

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More from @JosephPutnam

Joe Putnam

@JosephPutnam

Jun 17

To grow a Shopify store, you don't need super complicated funnels. You just need to

✅Go hard on 1 social channel, probably IG or TT
✅Run paid ads on 1-3 channels (FB/IG, Google, TT)
✅Build out automated email + SMS flows
✅Send 1-2 new email + SMS campaigns per week

Store owners mess up when they try to do everything and then end up not doing anything well.

You're not going to be able to do Instagram AND TikTok AND Youtube...until you have a team.

So until that happens, keep it simple, pick 1, and go hard.

You're also not going to be able to do paid ads and PR and influencer outreach and SEO and giveaways.

So you need to stick with what works, i.e. paid ads, email, SMS, and organic social.

Then, when you grow, you can start doing influencer outreach, etc.

Read 5 tweets

Joe Putnam

@JosephPutnam

Jun 1

@shopify

Have you ever wanted to rank your @shopify store higher in search engines to get more FREE traffic from Google?

If so, here's exactly how to do it... 👇👇👇

First, start by using kwfinder.com to find out what people are searching for.

Type in "baby wrap" for example to find out people are searching for things like "best baby wrap carrier," "fabric baby carrier," etc.

Now that you know what people are searching for, make a list of terms you want your core pages to rank for.

The key here is to go a little more broad than you might initially think.

Let me explain...

Read 15 tweets

Joe Putnam

@JosephPutnam

May 31

Is your #eCommerce store making as much as it could from email + SMS marketing?

If not, here are 5 ways to make MORE from your email + SMS marketing this year... 👇

@PostscriptIO

#1: Use a Pop Up to Grow Your Email + SMS Lists

First up, make sure you're using a pop up to grow your email + SMS lists.

We prefer the @PostscriptIO pop up for this to collect emails and phone numbers.

#2: Make Sure You're Doing SMS Marketing

I'm shocked at how many brands aren't doing SMS yet b/c SMS open rates are 90%+ and you can make 20% of your revenue from SMS marketing.

Make sure you start SMS right away if you're not already doing it.

Read 7 tweets

Joe Putnam

@JosephPutnam

May 20

@Shopify

Pro Conversion Rate Optimization Tip (#CRO) for @Shopify Store Owners

Make sure you pay attention to where you experience a drop off (or improvement) after you make changes to your site, in order to improve conversion rates.

Here's how... 🧵

@Shopify

Let's say you raise your price or stop offering FREE SHIPPING in your banner.

Whatever it is, you'll want to pay attention to this section in your Analytics tab in @Shopify. 👇

Let's assume conversion rates go down.

Are fewer people adding products to their cart, are fewer reaching checkout, or are fewer completing their checkout?

Read 10 tweets

Joe Putnam

@JosephPutnam

May 18

@simonsinek

We've all heard about @simonsinek's Ted Talk about starting with WHY.

But how many DTC eCommerce brands are starting with their WHY?

Sure, you want to make money.

That's great.

But WHY are you bringing your brand into the world.

What's your goal?

What impact are you looking to have?

What's your purpose?

What's your cause?