🟣 Issue No. 27: 12 Actions for Q1 2025

COMMERCE TIPS

12 Actions to Take in Q1 for a Record-Breaking 2025

Let’s talk about starting strong. If you’re serious about making 2025 your best year yet, Q1 is the time to lay the foundation. The operators who win in 2025 will focus on growth that’s both scalable and profitable. From increasing your gross margins to unlocking the potential of TikTok Shop, here are 12 key actions to set yourself up for a record-breaking year.

1. Invest in Brand and Top-of-Funnel in Q1

After the frenzy of Q4, your funnel is likely running on fumes. Now is the time to refill it by reinvesting some of your profits into top-of-funnel growth. While this won’t necessarily deliver your desired ROAS immediately, it’s a smart move for building momentum that pays off in future quarters, especially next Q4.

What to focus on:

• Drive traffic to your site to capture zero-party data (polls, quizzes) and build your email and SMS lists with first-party data.

• Use social media to tell your story with educational content, behind-the-scenes posts, and creator seeding.

• Prioritize organic momentum with stories and videos that grow your mindshare and reach.

2. Increase Your Gross Margins for More Reinvestment Power

Gross margins are where the magic happens. The higher they are, the more cash you have to reinvest in growth. If you can bump your fully landed gross margin to 70 percent or even just five points higher than in 2024, you’ll feel the impact immediately.

Here’s how:

• Renegotiate COGs with suppliers, especially by leveraging last year’s volume.

• Explore alternative sourcing through ImportYeti or ground agents in key regions.

• Simplify packaging or look for cost-saving opportunities in your logistics.

3. Make Cash Flow Your Superpower by Improving Your Cash Conversion Cycle

Cash flow is the lifeblood of your business. The goal? A negative cash conversion cycle where you sell inventory before you even pay for it.

Steps to take:

• Negotiate Net On Delivery terms with suppliers, so payments align with your revenue cycle.

• Use forecasting tools to ensure inventory levels match demand, avoiding overstock or stockouts.

4. Go All-In on TikTok Shop

TikTok Shop is shaping up to be one of the most exciting ecommerce opportunities of the decade. While it’s still early days, the potential is massive. On Black Friday alone, TikTok Shop drove over $100M in sales in the U.S.—a drop compared to Shopify’s $5B, but a clear signal of what’s to come. Think of it like Facebook ads in 2012–2015: wide open and ready for scaling.

What you need to do:

• Dedicate inventory for creator seeding and prioritize building strong partnerships.

• Treat TikTok Shop as a standalone revenue channel, and be ready to test fast.

5. Build Your Baseline Revenue

Baseline revenue—direct visits, organic search, and returning customers—is your most profitable revenue stream. It represents customers who come to you without requiring discounts or urgency tactics, making it your secret weapon for growth.

How to grow it:

• Run brand-focused campaigns that connect emotionally with your audience.

• Use boosted organic posts, engagement campaigns, and storytelling to stay top-of-mind.

6. Plan Your Discount Events for the Year

Predictability matters. Customers love knowing when to expect your discounts, and planning your discount calendar now ensures you’re not scrambling later.

Here’s a framework:

• Schedule four major events: Q1, mid-year, back-to-school, and holiday.

• Use tiered discounts like "Spend $100, save 15 percent" to boost average order values.

7. Segment Surveys for Smarter Insights

Surveys are an underrated way to get a pulse on your customers’ sentiments. The smarter play, especially if you have over 10K customers, is to segment your audience first.

Here’s how:

• Create three segments: customers who purchased multiple times in the last 12 months, those who purchased less frequently, and those who only bought once.

• Send each group a tailored set of questions. For example, ask loyal customers about what keeps them coming back and one-time buyers about what might have stopped them from purchasing again.

8. Reward Your Best Customers

Loyal customers aren’t just valuable—they’re your profit center. Q1 is a great time to double down on rewarding and retaining them.

Ideas to try:

• Gamify your rewards programs with points, badges, or challenges that encourage repeat purchases.

• Offer exclusive perks like early access to new products or surprise gifts.

9. Rethink Your Pricing Strategy

Your pricing directly impacts your margins and customer perception. Q1 is the perfect time to reassess and ensure your strategy aligns with your goals.

What to do:

• Benchmark against competitors to identify gaps or opportunities.

• Test bundles or dynamic pricing strategies to improve profitability on slow-moving SKUs.

10. Embrace AI Agents to Stay Ahead

AI agents are emerging as one of the biggest trends in ecommerce. Beyond customer service chatbots, there’s untapped potential in using AI to handle repetitive or high-skill tasks.

Where to look:

• Test AI tools for tasks like A/B split testing, PR outreach, and creator seeding.

• Keep your eyes open for new solutions that improve productivity and free up your team for higher-value work.

11. Build the Team You Need to Scale

Your team is your greatest asset. Hiring key roles in Q1 sets the tone for growth without burnout.

What’s essential:

• Fill gaps like TikTok channel managers or retention specialists.

• Ensure your team knows how to leverage AI tools to bolster their productivity and throughput.

12. Tighten Up Your Operations

Efficient operations are the backbone of a profitable business. Use Q1 to streamline your processes and future-proof your systems.

Start here:

• Audit your tech stack and cut tools that aren’t delivering value.

• Simplify workflows in fulfillment, inventory management, and customer service.

Make 2025 Your Most Profitable Year Yet

The roadmap is here. Now it’s time to act. If you’re ready to scale smarter and focus on what truly moves the needle, my 2025 Strategy Coaching Program can help.

What’s included:

• Two 90-minute strategy sessions to create a tailored roadmap for your business.

• Guidance on growing your top line while maximizing bottom-line profitability.

• An option to join an exclusive mastermind for ongoing accountability and growth.

If your business generates $2M+ annually, this is your chance to make 2025 extraordinary.

Click here to apply—only 12 spots available.

Let’s make it happen.

On the Pod 🎧

Lastest episodes:

• $40M in 5 Years: The Profit-First Obvi Playbook for DTC and Retail Domination → Ronak Shah

• How to Turn Consumer Neuroscience Insights into eCommerce Growth → Dr. A.K. Pradeep

• How to Land Top Media Features Without Hiring a PR Agency → Gloria Chou

• How to Automate and Streamline Your Shipping Processes for Growth → Gitika Jain of ShipAccel

• How to Optimize Your eCommerce Team with High-Level Outsourcing → Ian Myers

• The Highest Impact Meta Ad Creatives Types That Are Driving Results Right Now → Lachezar Voynov

• How NIFT Offers Consumer Brands A New Way to Acquire Customers at SCALE → Elery Pfeffer

• Turning Your eCommerce Operations into a Profit Center → Kunle Campbell

• How to Win this Q4 → Kunle Campbell

• How to Maximize Your eCommerce Marketing Efficiency with the PROFIT Framework → Kunle Campbell

COMMERCE HEADLINES

Commerce headlines your might have missed!

🟣 TikTok Faces Looming U.S. Deadline for Divestment Decision
As the January 19 deadline approaches, TikTok’s fate in the U.S. hangs in the balance amid intensifying regulatory scrutiny.

🟣 BNPL Becomes a Top Holiday Marketing Trend
Retailers embrace buy now, pay later (BNPL) as a key tactic for boosting sales during the holiday season.

🟣 Google Analytics Rolls Out Tools to Combat Hidden Product Listings
Google’s latest analytics features aim to improve product visibility and reduce missed opportunities for ecommerce merchants.

🟣 Shopify Merchants Drive Record $11.5 Billion in Black Friday-Cyber Monday Sales, Up 24% YoY
With a 24% increase from 2023, Shopify merchants hit new milestones, including $4.6 million in sales per minute at peak, 76+ million global customers, and a surge in cross-border orders and Shop Pay transactions.

🟣 Amazon Battles Logistics Bottlenecks During Holiday Peak
The ecommerce giant faces delays and fulfillment challenges as holiday demand surges.

🟣 X Offers Ad Credit Matching for Shopify Sellers
Shopify merchants can leverage a unique ad credit matching offer from X to boost their holiday campaigns.

🟣 Black Friday E-commerce Sales Near $11 Billion Milestone
Online sales soar during Black Friday, with ecommerce breaking records for consumer spending.