Build These 3 Moats & Become A Massively Profitable Online Business

Build These 3 Moats & Become A Massively Profitable Online Business


What is a Moat?


In business, moat building is a tactic to make it difficult for competitors to compete with you, while incentivizing customers to buy from you again & again.


Amazon’s Prime Membership is a example of a successful moat building tactic. By incentivizing Prime members with free shipping, prime videos and variety of member benefits, it becomes difficult for a competitor in any single category: online shopping or streaming videos to compete with Amazon Prime. 


Mid-market and small eCommerce businesses can use similar moat tactics to keep competition at bay while encouraging customer loyalty.


Moat 1: Register your business with the State, Federal & Military. Small businesses, woman-owned or minority-owned businesses, get priority treatment for many supplier contracts, Take advantage of your business size or status. Be warned though, there will be a boatload of online forms to fill, and contracts can take nearly a year to fruition. But once you are in the system, you are in 🙂


Moat 2: Look for Institutional or Group Buyers in your space and become an authorized supplier. Example: If you supply school or athletic equipment, register yourself as an authorized vendor with your state school districts. If you supply sports uniforms, register with local leagues.


Be warned though, it is not as simple as calling the league. Many leagues have exclusive multi-year contracts with the big guys like Nike (yes Nike uses the Moat tactic as well). But do the legwork for a few months and you will connect with a few that need you.


Moat 3: Connect with Corporate Buyers. It does not have to be only office supplies. Kwikco Toys develop exclusive contracts with the HR (Human Resources) department, offering toy subscriptions to employee families with new babies. The family receives a highly acclaimed educational toy each month, so they are happy. The HR is happy as it boosts employee satisfaction.


Another startup offers hand-made crafts from around the world as employee gifts. So be creative, and find opportunities to help businesses grow employee & client satisfaction.


"Do the upfront work". Build your business moats


Sit back, relax, and watch your eCommerce business prosper for years


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