39 Pros & Cons Of An Ecommerce Marketing Agency

An ecommerce marketing agency has a few pros and cons, which you should be aware of before getting started. Here are the pros and cons of an ecommerce marketing agency
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What are the pros and cons of starting an ecommerce marketing agency?

An ecommerce marketing agency has a few pros and cons, which you should be aware of before getting started.

Here are the high level benefits and drawbacks of an ecommerce marketing agency:

Pros Cons
• Flexibility • Motivation of employees
• Ability to start your business from home • Low margins
• Traffic to your website • High employee turnover
• Meaningful business connections • Stressful work
• High customer retention rates • High overhead expenses
• Gain exposure and experience • Customer churn
• Rewarding work • Time commitment
• Unlimited income potential • Difficult to build trust with your customer
• Predictable income stream • Work can be repetitive
• Higher likelihood of getting referrals • Complex maintenance
• Greater Income Potential • Impatient customers
• You get to do something you truly love • Difficult to scale
• You can decide who you work with • Learning Curve
• Express your opinions • Equipment Breakdowns
• Strong Demand & Relatively Recession Proof • Answering Phones
• You get to inspire others • Technical issues can be frustrating
• Ecommerce retail is growing fast • Takes time to see results & make money
• You establish yourself as an expert • More challenging to earn passive income
• Can build solid foundation of clients
• You can work from anywhere!
• Make money while you sleep

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Traffic to your website

A ecommerce marketing agency gives people a reason to visit your website and to keep coming back to you!

• Meaningful business connections

You never know who you will meet or get to work with for your ecommerce marketing agency. This could be the start of an incredible business opportunity!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your ecommerce marketing agency becomes an integral piece of their every day lives.

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Rewarding work

Starting a ecommerce marketing agency can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

• Unlimited income potential

With your ecommerce marketing agency, there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• Predictable income stream

With a ecommerce marketing agency, your income stream is typically predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

The ecommerce marketing agency is all about referrals, which is a very effective way of attracting and retaining customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Greater Income Potential

When you start your own ecommerce marketing agency, you have the ability to make as much money as you want. You no longer work for someone else where at any point, you could be let go or get a pay cut.

• You get to do something you truly love

With starting a ecommerce marketing agency, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• You can decide who you work with

Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.

• Express your opinions

With your ecommerce marketing agency, you have the ability to get your point across and express your opinions to a large audience, which can be very empowering.

• Strong Demand & Relatively Recession Proof

The demand for ecommerce marketing agency is increasing year over year and the business is known to be relatively recession proof.

• You get to inspire others

Your ecommerce marketing agency is an outlet that encourages and inspires others, which can help you get through the challenging parts of starting a business.

• Ecommerce retail is growing fast

Ecommerce has been grown rapidly over the years and is expected to hit a total of 4.9 trillion dollars by 2021.

With running an ecommerce business, you provide your customers with alternative and more convenient shopping experience, which will ultimately drive sales.

• You establish yourself as an expert

Starting a ecommerce marketing agency helps to establish yourself as an expert in your niche. In return, people are more likely to trust you, refer you to friends/family, and support your business.

• Can build solid foundation of clients

It's unlikely you will have one-off jobs with the ecommerce marketing agency. Typically, you can contract work with clients and be their go to when it comes to anything ecommerce marketing agency related. If you do a good job for them, they will be likely to keep using your services and refer you to others.

• You can work from anywhere!

Not only can you start your ecommerce marketing agency from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• Make money while you sleep

The advantage of starting a ecommerce marketing agency is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Low margins

The gross margins for your ecommerce marketing agency are typically around 45%, which can make it more challenging to incur new expenses and maintain profitability.

• High employee turnover

In the ecommerce marketing agency, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

• Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

• High overhead expenses

With starting a ecommerce marketing agency, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

• Customer churn

With a ecommerce marketing agency, people can cancel their subscription - which can make income unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

• Time commitment

With starting a ecommerce marketing agency, all responsibilities and duties will be in your hands. Although this is not necessarily a negative thing, it's important to understand that your work-life balance may be a bit unbalanced at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Difficult to build trust with your customer

With a ecommerce marketing agency and any online business, there is little physical interaction, which means it can be a lot more difficult to establish trust and clout with your customers. You'll need to go the extra mile with your customer to grab their attention as soon as they reach your site + assure them that your brand is legit and trustworthy.

• Work can be repetitive

You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting!

• Complex maintenance

Your ecommerce marketing agency will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.

• Impatient customers

Your ecommerce marketing agency may offer an engaging user experience for your customer, but it's important to note that customers expect a lot when it comes to your product, and are more likely to become impatient with you and your product if there are any errors or bugs.

• Difficult to scale

With a ecommerce marketing agency, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.

• Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

• Equipment Breakdowns

Starting a ecommerce marketing agency involves quite a bit of expensive equipment. Over the years, your equipment will be damaged, will break down, and will need repairing which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

• Answering Phones

The ecommerce marketing agency is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.

• Technical issues can be frustrating

A big part of starting your ecommerce marketing agency is the ability to work through technical issues. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.

• Takes time to see results & make money

Results and revenue do not come overnight with a ecommerce marketing agency. Often times, it takes weeks, months or even years for your work to monetize.

• More challenging to earn passive income

One of the disadvantages of starting a ecommerce marketing agency is that it's much more challenging to make passive income. Typically, the amount of revenue you bring in is limited by the amount of time you have in the day and there is a ceiling to your earning potential.

Want to start an ecommerce marketing agency?

See our full guide ➜