Fractals Ecommerce & the Web

Every online merchant will come to know one of the web’s most enduring fractals – the 80:20 Rule. Small things on any e-commerce website matter. Small things control everything.

As Richard Koch points out the 80:20 Rule is a “magic pill”. We outlined out to Find Your Website’s 80:20 Rule in a previous post, but Koch is right.

Knowing and using your 80:20 Rule is a magic pill. It helps you:

  • Merchandise products to customer demand.
  • Create content aligned with customer demand and questions.
  • Know how to manage your paid advertising.
  • Know what partners are worth your investment.
  • Know what products to double down on and which to ignore.
  • Learn about the future (of your website) before it happens.
  • Align your time and efforts with profitable activities.

The last bullet, alignment of your online business with where you are making money, may be the most impactful. When people ask me how teams I’ve managed made over $30M in online sales never with Average Order Value (AOV) higher than $62 I explain how choosing what NOT TO DO is more important.

The list of tasks any ecommerce site needs to accomplish leans toward infinity. Knowing what to do NOW for the biggest return on time and capital is how you make money online. This is another way of saying not all tasks are equal.

Not by a long shot are all tasks equal. Return On Investment (ROI) comes from a tiny number of customers, products, tasks, and activities as the video (above) explain. Finding your site’s 20% of X generating 80% of Y where X and Y are important online marketing metrics such as profits, sales, customers and clicks is to touch the face of God.

Knowing your 80:20 Rule and using it to determine what NOT to do touches the face of the online merchandising gods and sets your store, team, and brands up for success.