Growing your e-commerce business is exciting, but to be honest — it is too expensive. Between keeping up with orders, marketing, and all the behind-the-scenes stuff, the costs can start to pile up before you even realize it.
But there are plenty of creative ways to keep expenses low while still growing your business. And this guide is here to help you find these ways.
Optimize Your Marketing Budget
According to Eran Mizrahi, CEO of Source86, “Marketing is one of the biggest expenses for any e-commerce business, but it doesn’t have to be. The key is to focus on strategies that offer the most bang for your buck. Instead of relying heavily on expensive ad campaigns, prioritize organic marketing channels like social media and search engine optimization (SEO).”
By creating helpful and engaging content — like blog posts, how-to videos, or social media posts — you can attract traffic without paying for ads.
Another cost-effective strategy is email marketing. It’s one of the highest ROI channels available. With email, you can reach your existing customers with updates, exclusive discounts, or personalized offers.
Unlike ads, which require ongoing spending, a single email campaign can generate significant sales without a hefty price tag. Plus, using tools that help you retarget existing customers with abandoned cart reminders or upsell opportunities.
According to Aaron Dewit, Owner of Commercial Cleaning Depot, “Consider collaborating with micro-influencers in your niche as well. They often charge less than big-name influencers but can deliver strong engagement and help build trust with their audience.”
Automate Repetitive Tasks
Running an e-commerce business comes with tons of little tasks — updating inventory, sending order confirmations, or responding to customer questions. These things eat up time, but they don’t have to. Automation tools can handle them for you, Taylor Morgan, Head of Marketing at Rush Custom Tees.
For example, you can use inventory management software to keep track of stock levels, or set up chatbots to handle common customer questions. Email marketing? Automate it with tools that send welcome emails or cart reminders. These tools cost a bit upfront, but they save you so much time and reduce the need to hire more staff.
Plus, automation keeps things running smoothly so you can focus on big-picture goals like scaling and growth.
Outsource Non-Essential Work
According to Andy Wu, CEO of Backyard Oasis, “You can’t do everything — and you don’t have to. Tasks like product photography, social media content, or customer support can be outsourced to freelancers or specialized agencies. Hiring full-time staff for every role gets expensive, especially when you’re scaling.”
Outsourcing lets you tap into experts who get the job done quickly and efficiently. For example, hire a freelance graphic designer for seasonal ads instead of paying someone full-time. Upwork or Fiverr are great places to find affordable help. This way, you can spend more time on the core parts of your business, like improving products or planning growth strategies — without burning out or overspending.
Negotiate with Suppliers
Every dollar saved on supplies is a dollar earned. If you’re ordering in bulk, don’t be afraid to ask for discounts, better payment terms, or perks like free shipping. Suppliers are often willing to cut deals for loyal, repeat customers or those making large orders, says Erick Recors, Founder & CEO of Full Bloom Green House.
If one supplier doesn’t budge, compare options and use competing quotes as leverage. Beyond price, building strong relationships with suppliers can pay off in other ways, like priority service during busy seasons or access to new products before your competitors. Saving even 5-10% on supplies can make a huge difference in your profit margins as you scale.
Streamline Your Shipping Process
Shipping is a significant cost for any e-commerce business, but it’s also an area where smart adjustments can lead to major savings. Start by negotiating better rates with your shipping carriers. Many logistics companies offer discounts for bulk shipments or consistent high-volume clients, so don’t hesitate to ask for a deal, says Raviraj Hegde, SVP of Growth at Donorbox.
If one provider isn’t willing to budge, compare other carriers and use competing quotes as leverage.
Also, you can cut costs by offering free shipping strategically. Instead of absorbing the cost for every order, set a minimum purchase amount to encourage larger baskets. This not only offsets shipping costs but also increases your average order value.
Plus, explore using fulfillment centers or dropshipping services to handle logistics. They often offer lower shipping rates and reduce the hassle of managing inventory and delivery.
Packaging is another area to consider. Oversized boxes or excessive materials not only cost more but also increase shipping fees. Switching to smaller, eco-friendly packaging can save money and appeal to environmentally conscious customers
Focus on Retaining Customers
Retaining customers is far cheaper than acquiring new ones, but the benefits go beyond cost savings. Loyal customers tend to spend more, buy more often, and refer others to your business. Investing in retention strategies not only boosts your bottom line but also builds a reliable revenue stream as you scale, says Andrew Smith, Co-Founder of PropFusion.
A great place to start is by creating a loyalty program. Offer points, discounts, or exclusive perks to customers who make repeat purchases.
For example, a points system that rewards buyers for every dollar spent encourages them to come back and shop more. You can also offer VIP benefits, like early access to sales or free shipping for top-tier customers.
Communication plays a huge role in retention as well. Regularly engage with your customers through email or SMS campaigns. Keep them updated about new products, restocks, or special promotions. Personalized messages, like birthday discounts, add a thoughtful touch that keeps your brand memorable.
According to James Forsyth, Founder of Quality Contracts, “Don’t forget to focus on customer satisfaction. Quick responses to inquiries, easy return processes, and proactive communication can turn one-time buyers into loyal fans. Happy customers are also more likely to leave positive reviews and share your brand with friends, multiplying the impact of your retention efforts i.e growth.”
Use Technology for Cost Savings
Technology is best when it comes to reducing costs and scaling your e-commerce business. Tools and software are available for nearly every aspect of your business, from managing inventory to tracking customer behavior. By integrating these tools, you can streamline operations and cut unnecessary expenses.
Start with analytics tools to track sales trends and customer preferences. Knowing what’s selling and when helps you stock inventory smarter, avoiding overstocking or running out of popular items. Predictive analytics tools take it a step further by forecasting demand, helping you plan ahead and reduce waste, says Jeremy Hoye, Business Owner of Jeremy Hoye Jewellery.
Cloud-based solutions are another cost-effective way to manage your business. Instead of investing in expensive servers or IT infrastructure, you can use cloud platforms for data storage, team collaboration, and even running your e-commerce store. These services are often scalable, so you only pay for what you use, saving you money as you grow.
Also, AI and machine learning tools can automate complex tasks like dynamic pricing, which adjusts product prices based on demand, competition, or customer behavior. These small adjustments can significantly boost sales while maximizing your margins.
Use Data-Driven Inventory Management
One of the biggest challenges for e-commerce businesses is managing inventory efficiently. Overstocking ties up your cash in products that may not sell, while understocking can lead to missed sales opportunities and frustrated customers. Using data-driven inventory management systems can solve both problems and save you money.
According to Eric Andrews, Owner of Mold Inspection & Testing, “Start by analyzing your sales data. Look at patterns—what products sell during certain seasons, which ones have a steady demand, and which rarely move. With this information, you can order stock based on actual demand instead of guessing. Inventory management tools can help by tracking stock levels, generating reports, and even sending alerts when it’s time to reorder.”
Consider adopting just-in-time (JIT) inventory practices. With JIT, you only order products when they’re needed, minimizing storage costs and reducing the risk of excess inventory. This works particularly well if you have reliable suppliers who can deliver quickly.
Plus, bundle slow-moving items with popular ones to clear them out without taking a loss. Regular audits of your inventory can also help identify inefficiencies, allowing you to adjust purchasing and storage strategies. A well-managed inventory system keeps your cash flow healthy and ensures your customers get what they want when they want it.
Reduce Returns with Better Product Information
Returns are costly for e-commerce businesses, and they can eat into your profits quickly. One of the best ways to reduce return rates is by providing clear, detailed, and accurate product information. Customers are far less likely to return items when they know exactly what they’re buying, says Alex Borkin, Owner of Coastline Gutter Pros.
Start by investing in high-quality product images that show your items from multiple angles. Add videos or 360-degree views if possible to give customers a better sense of what they’re purchasing.
Pair this with detailed descriptions that include sizing guides, materials, and any other information buyers might need. For example, if you sell clothing, include measurements for every size and specify how the fabric feels or fits.
Customer reviews are another powerful tool. Encourage buyers to leave reviews and include their own photos, which give new customers more confidence in their purchase decisions. Clear return policies also help.
Build Strategic Partnerships
Strategic partnerships are the best way to reduce costs while scaling your e-commerce business. By collaborating with other businesses, you can share resources, reach new audiences, and cut down on expenses like marketing or product development.
Dana Ronald, President of Tax Crisis Institute says, “One effective approach is co-marketing. Partner with a business that complements yours but doesn’t compete directly. For example, if you sell fitness apparel, team up with a company that sells workout equipment. You can cross-promote each other’s products through email campaigns, social media, or even bundled product offerings. This allows you to split marketing costs while doubling your reach.”
Also, focus on supplier partnerships. Negotiate better deals with suppliers by committing to long-term contracts or agreeing to bulk purchases. Many suppliers are willing to offer discounts or special perks to loyal customers, such as priority access to new products or reduced shipping rates.
Consider collaborating with influencers, especially micro-influencers, who have a smaller but highly engaged audience. Instead of paying hefty fees to top-tier influencers, work with those who align with your brand values and audience. Many micro-influencers are open to product exchanges or affordable collaborations that can generate strong results, says Justin Reddy, CEO of ProLawn Turf.
Conclusion
Scaling your e-commerce business means making smart decisions that keep costs low while driving growth. Automating daily tasks, negotiating better deals with suppliers, or improving customer retention can make a big impact. Small changes, done consistently, add up over time and create a solid foundation for sustainable growth.
Scaling is not confusing or breaking the bank — it’s about working smarter, finding creative solutions, and focusing on what truly matters. With the right approach, you can grow your business while staying efficient and profitable.