Why Your E-Commerce Business is Stuck & How to Overcome It

Understand the importance of diversifying your marketing channels.

July 26, 2023

After working closely with countless e-commerce business owners, we couldn't help but notice their main issue; committing fully to a marketing channel, getting excited about the growth it brings, and then suddenly experiencing a drop in effectiveness, leaving them in a panic.

We’ve seen this happen with Facebook many years ago. The organic reach Facebook had was incredible, tons of businesses were crushing it. Then all of a sudden they updated their algorithm and made it much harder to reach people organically. This completely changed the name of the game and many businesses that were doing well with Facebook Organic started to fall off drastically.

Eventually, all marketing channels are going to modify just like how Facebook did. Whether it’s Instagram, TikTok, SEO, and all the others, it’s a matter of time before these channels will no longer be as effective for your business.

What separates successful e-commerce businesses from the majority of struggling ones, isn’t how quickly they adapt to change. Instead, it's how they prepare for it.

We’ll be going over how you can overcome this critical mistake most e-commerce businesses are making, consistently finding effective marketing channels, and stacking those channels so you can diversify and never have to worry about your business getting screwed over.

What Is Marketing Channel Diversification?

Marketing Channel Diversification refers to expanding your marketing efforts across various platforms and channels. It involves utilizing a mix of channels like Facebook, Instagram, TikTok, Email, Snapchat, LinkedIn, and more. 

Each channel serves as a unique avenue to reach different audiences and achieve specific objectives. 

For example, Facebook enables targeted advertising, Instagram focuses on visual content sharing, TikTok specializes in short video content, Snapchat offers interactive features, and LinkedIn caters to professional networking.

By diversifying your marketing channels, you can leverage the strengths of each platform to reach a wider range of potential customers and enhance your overall marketing strategy.

Now that you have an understanding of what it is, here’s why it’s crucial to the success of your e-commerce business.

The Importance of Diversifying Your Marketing Channels 

The marketing world is a whirlwind of change. It's like riding a rollercoaster that never stops. Remember when everyone was crazy about Facebook? Well, now we've got TikTok taking over the show with its snappy short-form content. Trends come and go in the blink of an eye!

Here’s what happened with an e-commerce brand that we work with in the jewelry industry. They were using over 5 channels at once - SEO, Facebook, Partnerships, Instagram, and more.

It wasn’t until they ventured into TikTok Organic that they started to scale their business. They put all their attention on TikTok, which resulted in consistently getting over 50k views in their videos and started bringing tons of traffic to their website, leading to tons of sales.

However, as life loves surprises, their TikTok views suddenly took a hit, sales started to decline, and they hit a brick wall, left with nothing else to make up for their loss on TikTok.

That's why diversification is the name of the game. You don't want to put all your eggs in one basket, only to find yourself scrambling for solutions when it stops working.

Think of it like this: When you reach a certain level of investments, it's important to diversify your portfolio based on your risk tolerance. By spreading your investments across different types of assets, like stocks, bonds, and real estate, you can reduce the impact of any single investment underperforming.

Similarly, in business, diversification means offering a variety of products and targeting different customer segments. This way, you're not overly reliant on a single product or a narrow customer base, which can help protect your business from unexpected changes or downturns.

Now that you know the importance of diversification, let’s dive into the 3 main benefits you’ll obtain from diversifying…

Gather More Data

By utilizing multiple marketing channels, you not only expand your reach but also gain valuable insights into what resonates with your audience.

For instance, running campaigns on Facebook, Instagram, and TikTok allows you to test different creatives and strategies. You can analyze the engagement and conversion rates for each channel to identify what works best. Maybe you find that visually appealing content with storytelling elements performs exceptionally well on Instagram, while shorter, snappy videos capture attention on TikTok.

Furthermore, this wealth of data becomes your secret sauce for future campaigns and strategies. Armed with insights, you can tailor your content to what sparks engagement on Instagram and leverage popular TikTok trends that resonate with your audience.

The insights you gather from these channels become your compass, steering you toward success in each marketing endeavor.

Reduce Risk

Marketing is a rollercoaster, full of ups and downs. One moment, you're succeeding on a specific channel and feeling great. But the next week, another channel takes over, and you're left feeling confused. That's where diversification becomes your golden ticket to safety and success.

Imagine heavily investing in Facebook ads, but the algorithm changes, causing a decline in reach. However, since you diversified, a strong presence on Google Ads compensates for the setback.

Or, relying heavily on SEO for website traffic, imagine a major algorithm shift causing rankings to plummet. However, your diversified strategy includes content marketing with guest blogging and email newsletters, driving traffic and generating leads.

Diversification ensures you're not solely dependent on any single channel's whims. Embrace it as your insurance policy against marketing's unpredictability. Stay in the game, no matter what surprises come your way.

Stay Ahead Of Your Competitors

Diversifying your marketing channels provides a crucial advantage over competitors. While they rely on a single channel, you tap into a wider audience and connect at various customer journey stages.

By being present on multiple channels, you become an early adopter of emerging trends and opportunities. While competitors catch up, you establish a stronger brand presence. For instance, as they focus solely on Facebook, you're also engaging on Instagram, TikTok, and email, reaching diverse segments of your target market.

Moreover, tailoring messages to each customer journey stage creates a personalized and seamless experience. Your competitors may lack this level of sophistication. Utilizing Facebook for awareness, Instagram for consideration, and email for conversion, you guide customers effectively.

The #1 Biggest Mistake Businesses Make When Diversifying

The most common yet critical mistake we see e-commerce businesses making when diversifying their marketing channels is allocating little bits of effort across MULTIPLE channels at once. This approach can have detrimental effects on the growth and success of their businesses.

Consider the scenario of an e-commerce brand that specializes in men's skincare products. If they attempt to simultaneously manage Facebook ads, Instagram reels, TikTok organic content, and SEO, their attention and resources become stretched thin. It becomes unrealistic to expect mastery in all of these channels while also focusing on core business operations, product quality, and order fulfillment.

When businesses try to do it all, the result is often subpar performance across the board. Their Facebook ads might lack precision targeting and fail to capture the desired audience. Their Instagram reels might lack creativity and fail to engage viewers effectively. TikTok organic efforts might lack consistency, and their SEO strategy might lack optimization and fail to rank well on search engines.

It's crucial to recognize that becoming proficient in any marketing channel requires time, dedication, and a focused approach.

Now that you know the biggest mistake you should avoid making, it's time you take your business to the next level!

A 5-Step Roadmap To Successfully Diversify Your Marketing Channels

We get it. The thought of diversifying your marketing channels can be a bit daunting. It's like being faced with a complex puzzle, unsure of where to even begin. You're not alone in this struggle.

Many e-commerce businesses make the mistake of diving into diversification without a clear strategy, leading to confusion and missed opportunities.

Luckily for you, we’ve got a proven roadmap you can follow, that will serve as your trusty guide, leading your brand to new heights.

#1 Research Competitors & Discover The Most Effective Channels

When it comes to diversifying your marketing channels, it's essential to understand that each channel has its unique benefits. To kickstart your diversification journey, begin by focusing on the channels that resonate most with your target audience.

For instance, if your target audience consists primarily of older individuals, channels like cold email, LinkedIn, and Facebook can be gold mines for reaching and connecting with them.

On the other hand, if you're targeting a younger crowd, channels like Instagram, Snapchat, and TikTok become your playground. These platforms are buzzing with youthful energy, offering creative avenues to captivate and entertain younger audiences.

Another way of figuring which channel your target audience uses, is by researching your competitors.

Where are they spending their money? Which channels do they use the most?

You can answer these questions simply by doing this:

  • Check Amazon, reviews, etc.
  • Facebook ad library, TikTok ad library, Google ad library (you can see all of their ads)
  • You can check what influencers are promoting.
  • You can check Google rankings - ahrefs

By using these 4 methods, you should have an understanding of what your competitors are doing and what’s working for them.

Understanding your target audience's preferences and behavior is key to selecting the most effective channels for your diversification strategy. By starting with the channels your audience uses the most, you can make meaningful connections and tailor your messaging to resonate with their unique interests and preferences. 

#2 Master One At A Time

Mastering one marketing channel at a time is the secret sauce to successful diversification. It's common for e-commerce businesses to make the mistake of jumping into multiple channels right away, like trying to juggle too many balls at once. But here's the deal: focus is key.

At ConversionBird we choose ONE channel to test at a time and give it 100% of our focus. We then decide on a budget, timeframe, and KPI. We typically go through a 3-6 month test on each channel, with the goal of a 1X ROI.

If it works, we systematize and scale it (we’ll teach you how in the next step). On the other hand, if it doesn't work you need to find different experts to help you. Remember, it's not about HOW, it's about WHO.

Most experts have 5-10 years of experience, which will save you lots of money and time in the long run.

Something to keep in mind while on this step, is to be realistic. It takes time to grow a successful marketing channel, if it took less than one month, everyone would be doing it, so support your team and coach them, so they can do their best job. 

#3 Systematize & Scale

Once you've mastered a marketing channel, it’s time you systematize and scale.

Start this process by doing a quick journal session, so you can understand what worked. Why did it work? What went wrong in the process? What could be better? Put everything in a Google doc as you learn. This information will help you keep crushing that channel, and also make the process of mastering your next channel easier.

After your journal session,  you should start searching for somebody that can manage/execute that marketing channel for you by having KPIs they’re accountable for. This will help take that channel off your plate, so you can focus on the next channel you want to conquer.

Now that you have the systematized part nailed down, it’s time you scale that channel to the MOON! Whether that’s by spending more on tech/latest software, more budget, or even more people.

For example: Let’s say you did 30 influencer outreaches, had 2 people that signed up as affiliates, and brought in $3k in revenue. How can you do 100 next week? Or… how can you do 1,000 next month? And then eventually 5,000 the following months…

No matter if it takes more spending, more people, or more time - DO IT!

#4 Use The 80/20 Rule To Your Advantage

The 80/20 rule is a powerful strategy that you can leverage to your advantage when diversifying your marketing channels. Here's what you do: allocate 80 percent of your marketing acquisition spend to the proven, top-performing channels, and reserve the remaining 20 percent for testing new and experimental channels.

Let's say you have a total marketing budget of $10,000. With the 80/20 rule, you would invest $8,000 (80 percent) in the channels that have consistently delivered outstanding results for your business. For example, these channels could be Facebook ads, Google AdWords, and email marketing. By focusing the majority of your resources on these proven winners, you maximize your return on investment and ensure steady growth.

Now, what about the remaining $2,000 (20 percent)? This is where the fun begins! Allocate this portion to explore and test new channels that have piqued your interest. It could be TikTok, Snapchat, or even influencer partnerships. By dedicating a smaller portion of your budget to these test channels, you can experiment, gather data, and assess their potential for driving results.

Here's an example:
If your business generates significant revenue from Facebook ads, you might allocate $6,000 to it (80 percent). Meanwhile, you can allocate $500 to test TikTok ads, $300 to Snapchat, and $200 to influencer partnerships (20 percent combined). This way, you're strategically investing the majority of your budget in reliable channels while also exploring new opportunities with a calculated risk.

By following the 80/20 rule, you strike a balance between stability and innovation, allowing you to make data-driven decisions and optimize your marketing efforts. It's a smart approach that maximizes your chances of uncovering new gems while relying on the tried-and-true channels that consistently deliver results.

#5 Rinse & Repeat

Now that you grasp the process of finding a channel, mastering it, systematizing it, and using the 80/20 rule, it's time for the final step...

… Go back to step #1 and do it all over again.


  • The biggest mistake e-commerce businesses make when diversifying marketing channels is allocating little effort across multiple channels simultaneously.
  • Trying to focus on too many channels at once leads to diluted resources, subpar performance, and an inability to excel in any specific channel.
  • It is crucial to prioritize and focus on one channel at a time that aligns with the target audience and business goals.
  • Once you master a channel, you can outsource it and move on to the next, until you’re diversified and have revenue coming from many different channels.
  • Utilizing the 80/20 rule helps allocate resources effectively, with 80% invested in proven, top-performing channels and 20% for testing new and experimental channels.
  • Following these strategies ensures focused efforts, better results, and the ability to adapt and thrive in a competitive market.

Before you go…

Diversification isn’t easy at all. With no experience or guidance on your side, your e-commerce business is going to continue to struggle, no matter how much information you consume.

If you’re tired of:

  • Feeling lost and confused, not knowing how to execute the necessary steps for your business.
  • Putting the success of your business in the hands of a SINGLE marketing channel, not knowing when it’ll stop working.
  • Having to carry the weight of making a good product, fulfillment, running your business, and on top of all that building marketing channels.

Then you might want to book a call with us.

We’ve helped countless other e-commerce businesses get REAL insights on what’s currently working, and nailing the right strategy down. 

You’ve got nothing to lose…