Ecommerce: The Hammersley Brothers Ecommerce Podcast

← Ecommerce: The Hammersley Brothers Ecommerce Podcast16. Juli · 40 Min.

The 1 Million to 5 Million Ecommerce Trap That Kills Your Profit

The 1 Million to 5 Million Ecommerce Trap That Kills Your Profit16. Juli40 Min.

This week on the Hammersley Brothers Ecommerce Podcast, we continue our five-part series on the stages of ecommerce growth.

In part four, we explain what really changes when an ecommerce business grows from 1 million to 5 million per year.

This can be one of the most exciting stages of growth, but it is also one of the most dangerous. Hiring larger teams, working with more agencies, expanding into new countries, adding products, and increasing fixed costs may cause revenue to rise quickly while profit quietly disappears.

In this episode:

Why businesses get stuck between 1 million and 5 million

How hiring expensive experts can reduce profit instead of increasing it

Why every employee, agency, and supplier should follow the same number

The danger of expanding into new countries too early

Why adding more products can damage cash flow and stock management

How to calculate the true cost of a new warehouse or team member

Why growing revenue does not always increase the value of your business

How better supplier relationships can improve margins and payment terms