Profitable growth follows a formula.
Every decision we make traces back to four levers. Understanding them changes how you think about your entire business.
The Ecommerce Profit Formula
This isn't theory. It's the operating system behind every sustainably profitable store.
Each variable multiplies the others. A 10% improvement across all four creates 46% more profit—not 40%. This is the power of compounding.
Where Focus Gets Lost
The formula is simple. But growth creates complexity that obscures it.
Over-optimization
Chasing one lever—usually traffic—while others erode quietly in the background.
Tool addiction
Adding apps to solve symptoms instead of fixing the underlying systems.
Complexity creep
Processes that made sense at $1M become constraints at $5M.
Usually, the business isn't broken. The formula has just been forgotten.
The Four Levers
Each lever is a system, not a tactic. Here's how we think about them.
Traffic
Quality over quantity
Traffic isn't just about volume. It's about attracting visitors who are ready to buy, at a cost that makes sense for your margins.
Common symptoms
- — Spending more to acquire the same customers
- — High bounce rates despite increasing spend
- — Diminishing returns on paid channels
- — No clarity on which traffic actually converts
Our approach
- → Focus on customer acquisition cost relative to lifetime value
- → Identify and double down on high-intent traffic sources
- → Build organic channels that compound over time
- → Reduce dependency on any single traffic source
Conversion
Clarity creates confidence
Conversion isn't about tricks or manipulation. It's about removing friction and building trust so the right customers can buy with confidence.
Common symptoms
- — Low conversion despite decent traffic
- — High cart abandonment rates
- — Customers need multiple visits to purchase
- — Unclear value proposition or differentiation
Our approach
- → Simplify the path to purchase
- → Address objections before they become barriers
- → Build trust through transparency and social proof
- → Optimize for the entire journey, not just the checkout
Average Order Value
Structure, not discounts
Increasing AOV isn't about pushing products people don't need. It's about smart merchandising and bundles that create genuine value.
Common symptoms
- — Relying on discounts to drive volume
- — Flat or declining order values
- — No bundle or upsell strategy
- — Pricing that doesn't reflect true value
Our approach
- → Create bundles that solve complete problems
- → Implement tiered pricing and smart upsells
- → Use thresholds that increase value, not just spend
- → Price based on value delivered, not just cost-plus
Purchase Frequency
Systems, not campaigns
Retention isn't about sending more emails. It's about building systems that bring customers back because they want to return, not because you reminded them.
Common symptoms
- — Constantly acquiring new customers to hit targets
- — Low repeat purchase rates
- — Email campaigns that feel spammy
- — No real lifecycle or retention strategy
Our approach
- → Build automated lifecycle journeys
- → Create genuine reasons to return
- → Develop loyalty through experience, not just points
- → Make reordering effortless for consumable products
The Power of Small Improvements
Chasing a 50% improvement in one lever is hard, risky, and often unsustainable. But 10% across four levers? That's achievable—and it compounds.
Same result. Lower risk. More sustainable. And the improvements compound year over year.