From Struggling to Scaling: How to Revive a Declining Ecommerce Business

Not long ago, your ecommerce business may have been thriving. Sales were coming in, growth looked promising, and you felt like you were on the right track. But now things have stalled, or worse, started declining, and you're wondering what went wrong.

This is the unfortunate reality for many ecommerce businesses. Market conditions change, customer behaviour shifts, and what worked before no longer delivers the same results. If you’re seeing declining revenue, rising costs, or a lack of direction, it’s time for a turnaround strategy.

So here’s a step-by-step approach to reviving a struggling ecommerce business and getting back on the path to scaling.

Step 1: Identify the Root Cause of the Decline

Before jumping into solutions, you need to diagnose the real issues holding your business back. Ask yourself:

• Are sales declining due to fewer visitors or lower conversion rates?

• Are customer acquisition costs (CAC) rising without a proportional increase in revenue?

• Is my average order value (AOV) too low to be profitable?

• Is poor stock management leading to stockouts or excessive holding costs?

• Are repeat customers dropping off, making me over-reliant on new buyers?

How to fix it:

• Dig into your analytics – Use Google Analytics, Shopify reports, or other tools to track traffic, conversion rates, and revenue trends.

• Talk to customers – Send surveys or gather reviews to understand what’s changed in their buying behaviour.

• Assess competitor activity – Are they offering better pricing, a superior customer experience, or aggressive marketing strategies?

• Look at industry trends – Has your market shifted, or is demand dropping for your products?

Step 2: Optimise Your Website for Conversions

Even with traffic, if your website isn’t converting visitors into buyers, you’re losing money. A poor user experience, slow load times, or confusing navigation can all be conversion killers.

How to fix it:

• Simplify your checkout process – Reduce friction by minimising steps, offering multiple payment options, and enabling guest checkout.

• Speed up your site – Use tools like Google PageSpeed Insights to identify issues and optimise images, code, and hosting.

• Improve product pages – Use high-quality images, detailed descriptions, and persuasive copy to drive conversions.

• Add trust signals – Display reviews, testimonials, and trust badges to reassure customers.

• Use exit-intent pop-ups – Capture abandoning visitors with discount offers or lead magnets.

Step 3: Fix Your Customer Acquisition Strategy

If customer acquisition costs are rising, it’s time to rethink how you attract new buyers. Paid ads alone won’t sustain growth if they’re not delivering a solid return.

How to fix it:

• Refine your ad targeting – Test new audiences, creatives, and messaging to improve click-through and conversion rates.

• Diversify your traffic sources – Explore SEO, influencer partnerships, content marketing, and organic social media to reduce reliance on paid ads.

• Leverage retargeting – Use Facebook, Instagram, and Google retargeting ads to convert visitors who didn’t buy the first time.

• Optimise your email/SMS funnels – Build automated sequences to nurture leads and convert them into buyers.

• Create irresistible offers – Use bundling, upsells, and time-sensitive discounts to increase conversion rates.

Step 4: Increase Repeat Purchases & Customer Lifetime Value (LTV)

If your business depends too much on new customer acquisition, it’s time to focus on retaining and maximising the value of existing customers.

How to fix it:

• Launch a loyalty programme – Reward repeat customers with points, discounts, or exclusive perks.

• Improve post-purchase engagement – Use email/SMS to follow up with product recommendations, exclusive deals, and valuable content.

• Offer subscriptions or auto-reorders – Make it easy for customers to keep buying by offering subscription-based or refill options.

• Enhance customer service – Respond quickly to enquiries, process returns smoothly, and create a great overall experience.

Step 5: Streamline Operations & Improve Profit Margins

Profitability is just as important as revenue growth. If your costs are eating into profits, scaling will only make things worse.

How to fix it:

• Cut unnecessary expenses – Audit software subscriptions, advertising spend, and fulfilment costs to find savings.

• Negotiate better supplier rates – If possible, renegotiate contracts with suppliers or switch to more cost-effective manufacturers.

• Reduce returns – Improve product descriptions, size guides, and packaging to minimise avoidable returns.

• Increase average order value (AOV) – Upsell complementary products, offer bundles, and provide free shipping thresholds to encourage larger purchases.

Step 6: Reignite Your Brand & Marketing Strategy

Sometimes, businesses struggle because they’ve lost their unique appeal. If your brand messaging is unclear or your marketing feels stale, it’s time for a refresh.

How to fix it:

• Refine your brand story – Ensure your messaging clearly communicates your value proposition and what makes you different.

• Engage your audience – Run interactive content like quizzes, user-generated content campaigns, and giveaways.

• Build an engaged community – Use social media, Facebook groups, and email newsletters to foster a loyal customer base.

• Collaborate with influencers – Find brand-aligned influencers who can authentically promote your products.

Step 7: Set a Clear Growth Plan & Stick to It

Many ecommerce businesses struggle because they lack a clear direction. Instead of trying random tactics, build a structured plan with clear goals.

How to fix it:

• Set quarterly revenue and profit targets – Establish measurable goals for growth.

• Prioritise key metrics – Focus on conversion rate, AOV, CAC, and LTV to track performance.

• Test and iterate – Regularly review data, optimise campaigns, and double down on what works.

• Consider expert help – If you're stuck, working with an ecommerce turnaround expert can save time and resources.

A declining ecommerce business isn’t a lost cause, it just needs the right strategy to get back on track. By identifying the root causes of your struggles, optimising your website, refining your marketing, and improving profitability, you can shift from survival mode to sustainable and profitable scaling.

To get you started, try our free online assessment to uncover the gaps in your business. It takes less than 3 minutes and you'll get some great insights into your business.