How Ecommerce Businesses Can Beat Rising Ad Costs

The best way to pass safely through a storm is often by being prepared before it hits. In the case of ecommerce startups, that means bracing for rising advertising costs, inventory delays and expensive capital. Jamie Dimon, the CEO of JPMorgan & Co, suggests building a “fortress balance sheet,” one capable of withstanding these economic and industry shocks, is an absolute must for surviving the storm.

However, the wiser would argue building a fortress “offer model,” one able to withstand fluctuating ad costs, purchase behavior and cash flow is another one of those necessities ecommerce owners, founders and marketers need to include as part of their strategy.

Related: 3 Ecommerce Trends You Need to Know in 2023

The basics

An offer model is a framework that outlines your product or service’s value proposition (i.e., benefits you’re delivering on), features (i.e., what’s special about your product), pricing (i.e., the cost and discount) and guarantee (i.e., returns and warranties). This is how brands communicate their messaging on their website and ad creative to capture the interest of their target audience.

An offer model should capture the customers’ attention with a unique value proposition, educate the customer about the product and its differentiators, drive urgency with an incentive to purchase and alleviate any last-minute concerns with a money-back guarantee.

Why YOU

What to include in your offer model will depend on your customers. That requires some research. Dig through your customer reviews, your competitors and your competitor’s customer reviews. You’d be surprised that many customers will just tell you why they decided to purchase the product and the parts of the offer model they liked most.

Having an offer model that’s “unique” is something you need to prove, show and/or quantify. If you’re not offering a unique solution to a problem, then the…