Let’s be real—running an ecommerce business isn’t for the faint of heart. You’ve got products to sell, orders to fulfil, and social media algorithms that seem to change more often than the British weather. But one of the biggest headaches? The ever-rising cost of acquiring new customers.

You’re not imagining it. The price of customer acquisition (CAC) has shot up in recent years, and it’s leaving business owners wondering, “Is it even worth it?” Spoiler alert: It absolutely is—but only if you play it smart. Let’s break down why costs are creeping up and, more importantly, what you can do to keep your sales rolling without blowing your budget.

Why Is Customer Acquisition So Pricey Now?

1. Ad Costs Are Through the Roof

Platforms like Facebook and Google Ads used to be the Wild West—cheap, effective, and a goldmine for early adopters. Now? It’s like trying to buy property in London. Increased competition means you’re paying more to reach the same people.

2. Privacy Updates Have Shaken Things Up

With Apple’s iOS updates and stricter data privacy laws, tracking customers isn’t as simple as it used to be. Fewer data points mean less accurate targeting, which means… yep, you guessed it—higher costs to get in front of the right audience.

3. More Competition, Less Attention

New ecommerce brands pop up daily, all vying for the same customers. And with short attention spans (thanks, TikTok!), you need to work harder to grab and keep interest.

So… How Do You Lower CAC Without Slashing Your Profits?

Glad you asked. Here’s how you can still win without spending every penny on ads:

1. Get More from Your Existing Customers

Acquiring new customers is expensive, but selling to people who already love your brand? Much easier! Focus on retention with email marketing, loyalty programs, and irresistible upsells. The more you keep your existing customers engaged, the less you need to rely on new ones.

2. Optimise Your Ad Strategy

If you’re running paid ads (and let’s be honest, you probably are), make sure your strategy is on point. Test different creatives, refine your audience targeting, and use retargeting ads to get the most out of your budget.

3. Make SEO Your Best Friend

Paid ads are great, but organic traffic? Even better. A solid SEO strategy (including blogs like this!) helps bring in potential customers without ongoing ad spend. Focus on high-intent keywords and create content that answers your audience’s biggest questions.

4. Leverage User-Generated Content (UGC)

Nothing builds trust like real people raving about your products. Encourage customers to share reviews, photos, and videos. Then, repurpose that content in your ads and socials—it’s often cheaper and more effective than polished brand ads.

5. Build an Email & SMS List

Owning your audience is key. Instead of relying on paid traffic, nurture potential customers through email and SMS marketing. Send valuable content, exclusive offers, and personalised recommendations to keep them engaged.

The Bottom Line

Yes, customer acquisition costs are rising—but that doesn’t mean your ecommerce business has to suffer. By focusing on retention, optimising your ads, and diversifying your marketing strategy, you can stay ahead without breaking the bank.

And if you need a little help making your paid ads work harder (without just throwing more money at them), we’ve got you. Let’s chat!