Store launched 10 weeks ago.
No Amazon or other large marketplaces in our market.
Niche: consumables (FMCG). The market is fragmented. If it was sodas (which it isn't), you would have a supermarket brand carry only Pepsi, another one carry only Coca Cola and a third one carries only Fanta. Plus, the producers place only one or two flavours of each on the local market when the wider market has more choices. So we do parallel imports (it's legal and encouraged in my market) and bring almost every possible flavour and variations. We are the only one in the market doing this.
Growth: March (300% - compared to Feb), April (300% - compared to March) - but numbers are still small and I know this growth rate is not sustainable long-term).
Service: the only shop, physical or ecom, in our market that directly offers delivery in 24 hours or less. Others require 3-5 days to prepare the delivery and charge service fees and packing fees on top of the delivery fee. We deliver for free (once you hit a low minimum order) without service fees and packing fees. Our delivery partners are instructed to accommodate the customers and deliver at a time convenient for them - even delivering at 22:00 if the customer is working a longer shift and won't be home. It doesn't cost us any extra due to the good relations with the logistics company. The competition (FMCG shops) does the opposite: they use regular services and the customer has to adapt to the logistics partners' schedule.
Add to cart rate: 7%
Abandoned cart recovery rate: 60%+ (we can't send them a reminder if they haven't entered their email anywhere - that's why the discrepancy with the conversion rate)
Conversion rate: around 2%
Return customers: 8% - 2nd order, with one customer ordering a 3rd time.
Our profit margin (after shipping and product cost) is 25-40%. Which I think is amazing.
Hit €1,000 in sales in April after 9 weeks. I keep reading that for the first year, the average ecommerce store makes $1,000-2,000 a month.
But getting hammered by CAC and I don't understand why. For April it was around €9/customer. This month it went up to €20/customer.
If people walk into a physical store, they need to spend time and fuel and waste time going through the aisles to buy what we sell. And again, they will be limited to one or two flavours. We give them (on average) better prices, fee free deliveries, help them save time and more choice. We stock brands they already know about along with several new ones. We are not trying to generate a demand for a brand or a product. We can supply what they already buy at much better conditions, with more choice. Shouldn't CAC drop as people become more familiar with the brand?
How would you interpret this data? Is this to be expected?