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Feb. 12, 2025

Ecommerce is Just Math - Here's Your Formula to Shopify Growth πŸ“ˆ

Ecommerce is Just Math - Here's Your Formula to Shopify Growth πŸ“ˆ

How to Scale Your Shopify Ecommerce Business: Lessons from Ken Ott

If you’ve ever found yourself stuck in the never-ending grind of growing an ecommerce business—constantly chasing the next sale, tweaking ad campaigns, and wondering why your margins aren’t as juicy as you’d like—this one’s for you. I recently had the pleasure of chatting with Ken Ott, founder of Metacake, ecommerce strategist, and (apparently) cold shower enthusiast. Ken dropped some serious knowledge bombs on how to build a profitable, scalable ecommerce business, and I’m here to break down the best parts for you.

Let’s get into it!

1. The Biggest Lie in Ecommerce: “Revenue = Success”

A lot of Shopify entrepreneurs get caught up in vanity metrics—revenue, followers, traffic—while ignoring the only metric that actually matters: profitability. As Ken put it, “It’s easy to generate a lot of revenue; it’s hard to generate a lot of profit.”

The Fix: The Three Core Systems of Ecommerce Growth

Ken has worked with ecommerce brands ranging from startups to billion-dollar businesses, and he’s identified three key systems that separate the winners from the ones that flame out.

  1. The Attraction System – How you bring people into your brand (think: marketing, advertising, content, partnerships).

  2. The Conversion System – How you turn casual browsers into loyal customers (think: website optimization, messaging, and fan-building).

  3. The Maximization System – How you make the most money possible from each customer (think: repeat purchases, pricing strategies, and product line expansion).

2. Why Most Shopify Stores Struggle with Predictable Profit

Ken highlighted a key problem: too many ecommerce brands are run by marketers instead of business owners. And marketers love hacks, funnels, and ads—but without a solid business foundation, it’s like pouring water into a leaky bucket.

The Fix: Build a Profitable Business Model First

  • Optimize for high-margin products (Ken suggests aiming for 80–90% margins!).

  • Don’t obsess over customer acquisition costs—focus on customer lifetime value (LTV) instead.

  • Stop competing on price. Competing with Amazon is a losing game. Instead, compete on value, experience, and brand.

3. The Secret to Building a Brand That Creates Fans, Not Just Customers

A lot of Shopify entrepreneurs focus on getting more customers when they should be focusing on keeping and growing the ones they already have. Ken dropped a gem here: “Most brands have fans, but they don’t even know who they are.”

The Fix: Find Your Superfans and Obsess Over Them

Your superfans are the ones who buy from you multiple times, leave reviews, and tell their friends. Instead of spending all your money on finding new customers, find more people like your best customers.

Here’s how:

  • Segment your customer list: Look for repeat buyers, people who refer others, and those who engage the most.

  • Engage with them: Email them, invite them to a VIP group, or send them something special.

  • Create content for them, not for “everyone.”

4. Pricing: The Fastest Way to Boost Profitability (That Almost No One Talks About)

This one hit hard: most ecommerce stores price their products based on cost, not on value. Huge mistake. Ken put it bluntly: “Pricing has nothing to do with what it costs. It has everything to do with what it’s worth.”

The Fix: Shift from Cost-Based Pricing to Value-Based Pricing

Instead of pricing your product based on what it costs you to make it, price it based on what it’s worth to your customer. Some examples:

  • Rolex doesn’t sell watches, they sell status.

  • Air Jordans aren’t just sneakers, they’re a symbol of culture.

  • Supreme doesn’t sell clothes, they sell exclusivity.

Ken even shared a story about a brand that literally doubled their prices and saw sales increase—because price affects perceived value. If you’re selling something cheap, people assume it’s low-quality. If you’re premium, they expect it to be worth more.

5. Product Line Strategy: The Key to Long-Term Growth

If you have an ecommerce store and you’re only focused on getting more traffic, you’re missing a massive opportunity. Ken pointed out that most brands aren’t thinking strategically about their product mix—but they should be.

The Fix: Find More Products for Your People, Not People for Your Products

Instead of constantly trying to find new customers, expand your product line for the customers you already have. Here’s how:

  • Look at your existing bestsellers—what’s a natural upsell or cross-sell?

  • Find complementary products that make sense for your audience.

  • Introduce higher-ticket items for your most engaged customers.

6. The “Become the Only One” Strategy (How to Eliminate Competition)

Ken’s philosophy is simple: Don’t compete. Make your brand the only logical choice.

The Fix: Own a Unique Position in Your Market

Ask yourself:

  • How can we make it impossible for people to compare us to competitors?

  • What can we do that no one else is doing?

  • How do we create an experience so unique that people want to talk about it?

One of the most successful pricing and positioning strategies? Become the most expensive.

Why?

  • People associate higher prices with higher value.

  • There’s zero strategic advantage to being the second cheapest brand—but there’s a HUGE advantage to being the premium option.

  • Premium pricing = better customers. You eliminate cheap, difficult buyers and attract customers who value what you offer.

Final Thoughts: Build a Shopify Brand, Not Just a Store

Ken Ott’s approach is all about long-term, profitable, sustainable growth. If you want to build an ecommerce brand that stands the test of time, focus on:

  • Profit over revenue.

  • Fans over one-time customers.

  • Value over cost-based pricing.

  • Product strategy over chasing new traffic.

  • Becoming the only choice, instead of competing on price.

If you want to dive deeper, check out Ken’s ‘Grow Your Ecommerce Business’ Challenge at growyourecommbusiness.com—it’s packed with even more game-changing insights and strategies.

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