Why reorders are important

Put simply, generating reorders for your business is one of the healthiest metrics that you can pay attention to as an ecommerce operator. If you are capturing reorders at a high and sustained rate, it is a sign that consumers are valuing your product/service and it puts less stress on the rest of your organization.

Let’s dive into why reorders are important a bit further:

Reorders increase profitability. Instead of constantly spending budget on acquiring new customers which is more expensive than ever, when you generate reorders you are able to leverage your existing customers to generate more revenue. You are not as reliant on spending time (and resources) on acquiring new customers which leads to an increase in profitability on your bottom line. Put simply, less money is being spent on customer acquisition and more money is being generated from reorders.

Reorders are the backbone for sustained company growth. As detailed above, when customers are reordering from you, it is a sign that they like your product. When you are capturing more reorders it puts less stress on your customer acquisition funnel which allows you to conserve valuable “runway” for your business and allows you to strategically invest in areas that will put your company in the best position to succeed in the long term.

Being able to have a reliable source of reorder business drives efficiency and saves your team's time. Customer acquisition takes up time, resources and budget. To do customer acquisition the right way, you have to have compelling creative imagery, consistently monitor the performance of campaigns and of course, it takes money to acquire new customers. When you are generating reorders with regularity, you can cut down your team's time spent on these activities and have them focus on other areas of the business that can help you elevate your business to the next level.