Having a dominating share on e-commerce marketplaces has been one of the pillars of our growth over the last decade. And contrary to popular belief, it can also be a profitable channel. 10 pointers for founders to keep in mind while scaling e-com 1. The fundamental equation of e-com is “Sales= Traffic*Conversion”. Not meeting sales numbers is either a traffic problem or a conversion problem. For every SKU, figure out whether it is a traffic problem or a conversion problem. Do not try to solve traffic problems with conversion levers. And vice versa. And relook at the problem statement to solve every month for every SKU 2. Like all performance marketing, e-com media also has diminishing returns. Figure out your spends and sales graph through experiments. Beyond a point, increasing spends will not increase sales at the same speed. Stop at that point 3. If you want to increase profitability, you need to increase your organic discoverability in the platform. Amazon is a search led platform with search contributing to 60-70% views in most categories. For Flipkart, along with search, merch and reco are equally important. But the fundamentals of organic discoverability is same. Both platforms have an algorithm where SKUs with the best reviews, highest listing quality score, lowest time to delivery and highest conversion rates get pushed. Optimize for these parameters and see organic discoverability skyrocket 4. The other way to reduce dependency on platform ads( and hence increase profitability) is to ensure your branded searches increase. This is directly a function of your off platform marketing activities, word of mouth and repeat customers. So, work on those parameters 5. Category Relationships matter a lot. Understand what the number 1 objective of your category manager is for the year. And help them achieve it. If they are looking to improve ASP, help them with that assortment. If they are looking to increase profitability for their category, help them reduce returns and other levers. If you help them achieve their number 1 KPI, they will ensure you do well on the platform 6. Whatever the ads team tell you, take it with a pinch of salt. Most times they are very helpful. But their number 1 KPI is to sell ads. Not your success. So, sometimes what is good for them might not be good for you 7. All SKUs will not do well. All sub-categories won’t do well. If there is no PPCMF, no amount of good execution will cut it. So, important to cut your losses and stop investing more money on losers. Instead, allocate to your winners in the portfolio 8. Have a E-Commerce dashboard which goes beyond the L0 metrics. Look at your L1 and L2 metrics daily and hold teams accountable for these metrics. Ads driven sales, share of search, organic visits, conversion rates etc are all examples of L1 metrics 9. Sometimes there will be irrational competition and they will bid crazily for keywords. Do not compete with them. They are burning cash and because blind venture money is running out quickly in consumer brands, they will fizzle out. Instead, stay consistent with your spends instead of reacting to irrational competition 10. Do not overdo discounts. Discounts are like antibiotics. You use it 2-3 times a year, you see huge spikes. Use it every alternate day, and that becomes your market operating price. Start tracking your discounted sales( over MOP) and ensure it does not move above a certain %