[ad_1]
Inflation is up and consumer confidence is down, which is why e-commerce startups hoping to weather the ongoing recession need to expand their product offerings.
Does this seem counterintuitive?
“The more comprehensive your catalog and the more products, the higher your cart size and the more likely the customer will return,” says Bennett Carrocchio. Before founding Channel, he worked with hundreds of companies as a consumer investment partner at Andreessen Horowitz.
Full TechCrunch+ articles are available to members only.
Use discount code TCP PLUS ROUNDUP Save 20% on a one- or two-year subscription.
In a post for TechCrunch+, he identified two cost centers that are easiest to control (user acquisition and product R&D) and shared three methods to “avoid a brand-apocalypse.”
“Margins are everything” and consumers are more skeptical than ever, so it’s the wrong call to call when you’re cutting your marketing budget.
Instead, look for ways to increase LTV with a larger catalog and use third-party vendors to lower the cost of the items you sell.
Landing a new customer is many times more expensive than keeping an existing one, and “that number is growing as acquisition costs continue to rise,” Carroccio said.
Thanks for reading!
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
Image Credits: PATRICK T. FALLON/AFP/Getty Images
Last week, the world’s largest retailer announced plans to enter the healthcare sector by buying a medical services provider.
Three members of the TC+ team shared their thoughts on the deal’s impact on patients and Amazon’s operations.
- Walter Thompson: Amazon is the black hole created by the death of high street retail.
- Miranda Halpern: Following a logical progression
- Alex Wilhelm: What happened to the cost of attention?
Image Credits: Getty Images
“Titanic” was released in 1997, but people still argue about whether there was enough room for Rose and Jack on the floating door that she used to stay alive.
That temporary valley had room enough for both lovers—the thing was floating: when two people were on board, neither of them would be protected from the icy water.
Investors can afford to offer bridge rounds to founders struggling to keep their heads above water, but metaphorically speaking, everyone will still be wet, reports Rebecca Skutack.
“I think you have to make sure you’re building the bridge with these roadblocks of bridge financing investors,” said one founder who recently closed a round.
Image Credits: Ivan Bajik (Opens in a new window) / Getty Images
Startups hoping to work with venture capitalists should be prepared to undergo rigorous due diligence that examines everything from revenue to diversification.
In a TC+ guest post, Luisa Rubio Arribas, Head of Telefónica’s Digital Innovation Center WayraX, shares her advice on how founders should approach negotiating with CVCs and what to expect.
“When an angel investor or traditional VC backs a company, their main interest is to get a good financial return,” she writes.
“But CVCs don’t just want financial results, they want to tap into the innovation and disruption you bring.”
Image Credits: Joseph Giacomin (Opens in a new window) / Getty Images
Everyone wants to get their company off the ground, which is why finding an investor who shares your values and vision is so important.
It’s especially tempting to accept the first offer that comes along, but “picking the right partner for the right stage of your business can make the difference between building a billion-dollar company and losing control.”
Partners Evan Kiperman, Paul Hughes, and Len Gray at the law firm Wiggin & Dana shared a post with TC+ that explores the finer points of working with institutional investors, angels, friends and family, and other venture capitalists.
“As funding becomes more difficult, your risk tolerance may change, but your process for evaluating investors should not.”
[ad_2]
Source link
