The Challenges of Scaling Subscription Commerce

Imagine trying to run a marathon if the only training you’d done was jog around the block every day. Sure, you might have developed a great rhythm for your daily exercise, but that’s not enough to prepare you to run 26.2 miles in one go.

Scaling a direct-to-consumer, or DTC, retail business works the same way. You can’t rely on the strategies that got you where you are if you want to reach your full potential.

First, you come up with a great idea that meets the needs of your target audience. Next, you acquire the funding and hire the talent you need in order to get that idea off the ground. Through hard work and dedication, you and your team build a business that grows from zero to $100,000 in recurring revenue. Bravo! You overcame the very first hurdle, and it’s a big one.

Growing your company significantly from that point on comes with a different set of problems. You cannot simply do what you have been doing. It’s not that easy. You might have been able to overcome challenges with blood, sweat, and tears before, but going forward, those challenges will grow beyond the point where you can solve them on your own.

OceanX founder and CEO Georg Richter has worked in the direct-to-consumer retail industry for more than 30 years. He has contributed to the success of many brands — and has seen hundreds fail. His experience puts him in a unique position to offer advice on things you need to avoid as you scale your subscription e-commerce or direct-to-consumer e-commerce business.

If you’re looking to grow from a midsize company to a large one, you’ll encounter new challenges, such as the following:

  • Identifying the right time to scale big rather than starting too soon or waiting too long
  • Choosing manufacturers and distributors to handle your increasing order volume without sacrificing quality
  • Determining the best channels and strategies for spending your media money and efforts
  • Identifying the e-commerce platform, order management software, credit card processor, and analytics platform necessary to handle the uptick in customer orders and information
  • Taking steps to keep customer information updated to reduce churn and ensure the best possible delivery experience
  • Providing high-quality personalized customer service even when you have tens of thousands of customers
  • Protecting customers and their information to prevent fraud, and teaching employees about security protocols
  • Ensuring your company’s employees are well-equipped to tackle their jobs rather than holding on to people who were successful only when your company was smaller
  • Deciding whether it makes sense to pursue international expansion

To read more about each of these challenges and discover how you can avoid them, download our whitepaper on the tips and tricks you can use to scale from $100,000 to $1 million in monthly recurring revenue. And if you think you might need some help navigating the path to successful growth, say hello at 310-774-4088 or [email protected].