
← Ecommerce: The Hammersley Brothers Ecommerce Podcast16 jul · 40 min
The 1 Million to 5 Million Ecommerce Trap That Kills Your Profit
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