is europe actually the shortcut to ecom succes
European markets can offer better CPAs and profitability for early-stage e-commerce businesses, but they're not a scalable shortcut to success. The U.S. market remains the dominant end-game for virtually all successful D2C and CPG exits, making it the inevitable focus regardless of initial market choice.
Summary
The speaker discusses the viability of Europe as a starting market for e-commerce businesses. While European markets, particularly Scandinavian and Northern European countries, offer advantages like better cost-per-acquisition (CPA) and lower spending power leading to higher profitability, these benefits come with significant limitations. Campaigns must be run natively in local languages and markets to be effective, which severely restricts scaling potential. The speaker challenges the notion that Europe represents a shortcut by examining the exit landscape: virtually all major D2C and CPG brands that have exited for over $100 million have had the United States as their dominant market, even if they operated globally. While the U.S. may have represented a shortcut opportunity five years ago during the EU dropshipping boom, the speaker argues this is no longer true. The broader e-commerce space has become saturated worldwide, making the space less favorable overall. Rather than pursuing European markets as a shortcut, entrepreneurs still need to develop and master all core e-commerce skills. The speaker emphasizes that the U.S. market is the inevitable end-game for successful brands, noting that even successful international entrepreneurs running six or seven-figure monthly revenues across other markets consistently express the desire to expand into the U.S. This suggests that entrepreneurs should skip the European detour and focus directly on the U.S. market from the start.
Key Insights
- Northern European and Scandinavian markets can deliver better CPAs and profitability, but require native language and market-specific campaign execution, which fundamentally limits scaling potential.
- Major D2C and CPG brands that have exited for over $100 million predominantly have the United States as their main dominant market, not other regions, despite operating worldwide.
- European markets as a shortcut were viable five years ago during the EU dropshipping boom, but this opportunity no longer exists in the current market landscape.
- The global e-commerce space has significantly deteriorated and become oversaturated, making the window for easy profitability much smaller than it was previously.
- Even successful international e-commerce entrepreneurs operating at six or seven figures monthly revenue consistently desire to enter the U.S. market, indicating it represents the true end-game destination.
Topics
Transcript
[0:00] Sometimes you can get better CPAs, more profitable ads. There is also just less spending power in those countries. A lot a lot of times running offers in northern Europe, Scandinavian countries, [music] you can get really good profitability, really good scale, help you get off the ground. But they need to be run natively in those markets, in those languages as well to really make it work. The issue with that is you're so limited at scale. Let me ask you, what company has exited for an over a hundred million dollars without their main dominant market being in the United States? Like you look at any big D2C, CPG brand that's exited, let's not kid ourselves here.…
Full transcript available for MurmurCast members
Sign Up to AccessMore from Mark Builds Brands
Is Being Happy With 1-2K a Month Actually Cope
The speaker argues that being satisfied with 1-2k per month is mostly self-deception and comfort zone avoidance rather than genuine contentment. They contend that life should be about pursuing one's full potential across all dimensions, and that claiming satisfaction with a low income is only justified after achieving significant wealth.
How to create S tier winners
To create S tier creatives, it's essential to understand your customer deeply and to analyze existing winning ads to identify effective variables that can be combined into new concepts. This iterative testing approach allows marketers to refine their creatives using insights gained from lower-tier ads.
AI is not the problem, your skillset is
The speaker emphasizes that limitations in utilizing AI stem from individuals' skillsets rather than the capabilities of AI itself. They argue that by effectively communicating and solving problems with AI, anyone can leverage its potential to build innovative solutions.
why you need to remove metadata from AI ads
The speaker argues that removing metadata from AI ads reduces CPM and alleviates concerns about performance issues related to AI. It is quick and easy to implement, making it a practical decision for advertisers.
why your facebook CPMs are so high
High Facebook CPMs are influenced by multiple variables including creatives, landing page design, geographic targeting, and account spend history. The speaker recommends a systematic testing approach to isolate which factor is the primary driver of elevated costs.