This Ecom SMS Tool Leveraging AI has a Problem.. - Breakdown

Just analyzed an e-commerce SMS platform making $83K/month with 270 employees. They've built an impressive AI-powered system for Shopify merchants, but face a critical bottleneck that could limit their future growth.

First, what's working: Their AI optimizes message content, timing, and personalization - driving a 20% sales increase through SMS. They've focused exclusively on Shopify integration with two-way texting capabilities.

Their business model is solid: $25/month base with volume scaling, and they've resisted the temptation to expand beyond SMS. This focus has paid off with profitable growth since 2018.

But here's the fundamental constraint they can't control: carrier and regulatory limitations in SMS. Telecom companies impose strict limits on throughput, message content, and opt-in requirements that vary wildly by country.

This external bottleneck creates a ceiling on their growth. No matter how sophisticated their AI becomes, they'll always be at the mercy of carriers and changing regulations. It's like building a mansion on rented land.

The strategic solution: Stop treating SMS as the end destination. Instead, use it as the onramp to proprietary communication channels. Once you've earned trust through SMS, transition users to platform-owned messaging apps.

By funneling users from SMS to communication platforms like custom apps, Telegram or WhatsApp, they can escape carrier limitations while leveraging the trust and commitment already established. The first text should never be the final destination.

Hope you found this valuable! :)

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