How I Built a Profitable Email Marketing Service for E-Commerce Agencies

For any agency working with e-commerce clients, offering email marketing isn't just an optional add-on anymore. It's a core, revenue-generating pillar. When I work with businesses on platforms like Shopify or WooCommerce, email is the absolute centre of their customer retention world. It’s how they drive repeat purchases, making it a non-negotiable part of their growth.

From my own experience, I can tell you that building a scalable email marketing offering is your ticket to becoming a profit centre for your clients, not just another line item on their monthly expenses.

Building Your Agency's E-Commerce Email Services

I used to pitch email marketing as a nice-to-have. That was a huge mistake.

I learned the hard way with my own WordPress and Shopify development clients that a well-oiled email strategy was often more powerful than the slickest new website feature or a fresh Google Ads campaign. It's the engine that drives customer lifetime value, plain and simple.

To turn this service from an afterthought into a core offering, I had to completely shift my approach. It wasn't just about firing off weekly newsletters. It was about embedding myself in their business, connecting email directly to their sales data and customer behaviour by mastering things like the Shopify API and setting up proper tracking with GTM and the Meta Conversion API.

Structuring Your Service Tiers

The first thing I did was kill the "one-size-fits-all" package. It just doesn't work for e-commerce. Clients have wildly different needs depending on their size, stage, and ambition. I found a tiered structure is the best way forward, giving clients a clear place to start and a path to grow with you.

Essential Tier: This is your entry point, perfect for smaller stores or those just starting out. It covers the fundamentals: weekly campaign sends, basic list segmentation (think purchasers vs. non-purchasers), and setting up the foundational flows like a solid welcome series and abandoned cart recovery.
Growth Tier: This is for established businesses ready to get more sophisticated. It includes everything in Essentials, but we dial it up with advanced segmentation (like by product category, average order value, or purchase frequency), proper A/B testing on campaigns, and building out more complex flows like post-purchase and customer win-back series. This is where a deep understanding of the Meta ads creative testing process comes in handy, as we can apply similar principles to email.
Full-Service Tier: Our premium, ‘done-for-you’ offering. This is where we become a true growth partner. It wraps in custom template design, copywriting, advanced analytics and reporting dashboards, serious list hygiene, and ongoing strategic consulting. We might even get into building custom Shopify apps using the Shopify CLI to solve unique client problems.

Choosing the Right Tech Stack

You can't build a powerful service on a flimsy foundation. For e-commerce, your tech stack is everything. Your tools need to plug deep into platforms like Shopify to pull in that rich customer data—that’s what fuels real segmentation and personalisation.

From my experience, two platforms consistently deliver the goods for e-commerce:

Klaviyo: It’s the powerhouse for a reason. Its integration with Shopify is second to none, letting you segment customers based on incredibly granular details like their purchase history, browsing behaviour, and even predictive analytics.
Omnisend: A brilliant alternative that also packs a punch with its e-commerce features. A huge bonus is its built-in SMS marketing, which is a massive win for a lot of clients looking to create a multi-channel experience.

The real value isn't just knowing how to use these platforms; it's knowing how to map their features to a client's specific business goals. A welcome series for a fast-fashion brand should feel completely different from one for a high-end subscription box.

Your goal is to build an offering that an e-commerce client immediately recognises as a profit centre. When you frame your service around driving measurable revenue—literally showing them the dollar figures your emails are generating—the conversation flips from cost to investment. This is the same logic I apply when explaining the budget to spend on Google Ads; it's about ROI, not just cost.

Alpha Omega Digital is a marketing agency based in Melbourne, Australia but also services clients from Sydney, Brisbane, Newcastle, Perth, Adelaide, Darwin and Hobart. Have a project in mind? Contact us.

A Framework for Onboarding E-Commerce Clients

A chaotic onboarding process kills client confidence before you've even sent the first email campaign. I've spent years refining our system to be foolproof, setting clear expectations from the very first call and making sure everyone—my team and the client—knows exactly what's happening and when. This framework is what stops scope creep and builds the trust needed for a long-term partnership.

The entire thing kicks off with a deep-dive discovery call. This isn't just a casual chat; it's a forensic analysis of their current setup. We dig into their Shopify or WooCommerce backend, looking at everything from their theme’s code to any custom apps they have installed. We're looking for opportunities and red flags, analysing past campaign results, and getting a handle on their existing customer data.

From there, we move into the technical setup. This is where many agencies drop the ball, but it's where my background in WordPress development and setting up GTM and Google Analytics comes in clutch. It's arguably the most important part for deliverability and tracking accuracy.

For us, this is a non-negotiable checklist:

Domain Authentication: We set up DKIM and SPF records immediately. This tells email providers we're authorised to send emails on their behalf, which is crucial for staying out of the spam folder.
Tracking Installation: Getting tracking snippets installed correctly is paramount. We dive into their Google Tag Manager containers, making sure everything is firing correctly. This includes a proper Conversions API installation for Meta to ensure reliable attribution, especially with all the iOS updates impacting tracking.
Data Sync: We sync their historical customer and order data from Shopify into their email platform. This initial sync is vital for building powerful segments right from the start, allowing us to target past purchasers or high-value customers immediately.

This visual below outlines how we conceptualise building out our services, starting with defining the offering, moving to the technical setup, and finally launching full-service management.

This process flow shows that a solid technical foundation is the bridge between simply offering a service and delivering a results-driven partnership.

The 90-Day Strategy Workshop

After the tech is sorted, the most critical part of our onboarding begins: the 90-day strategy workshop. This is where we collaboratively build the blueprint for their email marketing success. Rushing this stage is a recipe for disaster; taking the time here ensures we're all aligned on goals and expectations.

We start by mapping out the foundational automation flows that every e-commerce store needs. The welcome series and abandoned cart sequence are the obvious first steps, but we also plan for post-purchase follow-ups and a basic customer win-back flow. This immediately creates an automated revenue stream for the client.

Next, we identify high-value customer segments. Using that historical data we synced earlier, we can build initial segments like:

First-time buyers
Repeat customers
High average order value (AOV) customers
Lapsed customers who haven't purchased in 90+ days

A solid onboarding isn't just about getting account access. It's a strategic alignment process that proves your agency's expertise and sets the stage for a successful, data-driven partnership from day one.

Finally, we establish realistic Key Performance Indicators (KPIs). We don't just talk about open rates; we focus on what matters to an e-commerce business—revenue per recipient, email-attributed conversion value, and customer lifetime value (CLV). We set clear, achievable goals for the first 90 days, giving the client a tangible benchmark to measure our success against. This is how you measure success with Facebook ads, and the same principle applies here.

Crafting Campaigns and Automations That Convert

This is where my agency actually starts making our clients money. Effective email marketing isn't about just blasting out discount codes; it's about delivering targeted, timely messages that feel personal and genuinely helpful. This is the difference between being seen as a partner and just another expense.

After years of managing campaigns for hundreds of Shopify stores, I've learned that a handful of core automation flows can generate a massive chunk of a store's email-driven revenue. These aren't just "set and forget" tools; they are powerful, automated sales funnels that work for your clients 24/7.

Here's a quick look at the essential email automations we set up for pretty much every e-commerce client. These are the non-negotiables for driving consistent revenue.

Essential E-Commerce Email Automation Flows

Automation Flow	Primary Goal	Key Content Points
Welcome Series	Nurture new subscribers and drive their first purchase.	Brand story, social proof, founder's message, an introductory offer.
Abandoned Cart	Recover lost sales from customers who added to cart but didn't buy.	Reminder of items, urgency (e.g., "your cart expires soon"), a small incentive.
Post-Purchase	Build loyalty, get reviews, and encourage repeat business.	Thank you, product care tips, request for review, cross-sell related items.
Customer Win-Back	Re-engage customers who haven't purchased in a while.	"We miss you" message, a strong incentive, showcase new products.
VIP/Loyalty Flow	Reward top customers and make them feel special.	Exclusive discounts, early access to sales, special thank you gifts.

These core flows are the foundation, but to really impress a client and drive serious results, you need to go deeper.

Beyond the Basic Flows

Everyone talks about the welcome series and abandoned cart. They're essential, no doubt, but they are just the starting point. To truly move the needle for an e-commerce client, you have to get more strategic with your automations.

Here are a few advanced flows we implement that consistently deliver results:

Dynamic Post-Purchase Follow-ups: Instead of a generic "thanks for your order" email, we build flows that trigger based on the specific product or category purchased. If a customer buys a specific type of coffee, the follow-up can include brewing tips for that exact blend or suggest a complementary product. This adds immense value and shows the customer you're paying attention.
VIP Recognition Flows: Your client's best customers deserve special treatment. We create automated flows that trigger when a customer meets a certain lifetime spend threshold or places a specific number of orders. These emails can offer exclusive discounts, early access to new products, or just a simple "thank you" to build loyalty.
Strategic Win-Back Campaigns: Don't let valuable customers slip away. We set up automated win-back series that trigger when a customer hasn't purchased in, say, 90 or 120 days. These aren't just desperate "we miss you" emails; they often include a compelling offer or highlight what's new to entice them back. Marketing your business is all about consistency.

Properly optimizing customer journeys is the key here. Think of each flow as a mini-journey you're guiding the customer through, with a specific goal at the end.

Smart Segmentation That Drives Revenue

Sending the same message to everyone is a recipe for low engagement and high unsubscribes. The real power of platforms like Klaviyo comes from their deep integration with Shopify, which allows for incredibly precise segmentation.

We move beyond basic lists and create dynamic segments that update in real-time. For instance, we separate first-time buyers from multi-purchase loyalists. A new customer needs reassurance and education about the brand, while a loyalist might respond better to VIP perks or new product announcements.

Another powerful tactic is segmenting by average order value (AOV). Customers who consistently spend more are prime candidates for higher-ticket item promotions or bundle offers. This same logic applies when we're running Google Shopping Ads for dropshipping clients; segmentation is everything.

The goal of segmentation is to make every subscriber feel like you're speaking directly to them. When the message is relevant, the conversion rate skyrockets. It's that simple.

Getting the volume and frequency right is also crucial. Here in Australia, we've seen a steady increase in agencies leaning more heavily on this channel. In fact, data for 2025 shows 63% of email marketers are sending more emails than in previous years—a clear strategic shift. While the average open rate in Australia is around 17.92%, agencies that perfect their cadence with weekly sends can achieve open rates as high as 48.31%.

Design and Copy That Actually Work

Finally, none of this matters if your emails are ugly or boring. I've seen too many agencies get bogged down in overly complex designs that just don't perform, whether it's for Shopify design or WordPress design projects.

Here’s my advice:

Design for Mobile-First: Most people will open your client's email on their phone. Stick to a single-column layout, use large fonts, and make sure your buttons are clear and easy to tap.
Write Compelling Copy: Ditch the generic sales pitches. Use the customer's language, focus on benefits over features, and always have a single, clear call to action (CTA). Your subject line's only job is to get the email opened. The email's only job is to get the click.

By combining advanced automations, smart segmentation, and clean, persuasive design, you can build an email marketing service that becomes a core revenue driver for your e-commerce clients.

Reporting That Proves Your Agency's Value

Clients don't really care about open rates; they care about revenue. I learned this the hard way early on. Our reports had to tell a clear, undeniable story of return on investment, otherwise, we were just another line item on their expenses.

This is all about tracking the right metrics and presenting them in a way that makes your agency's value crystal clear. It's about shifting the conversation from feel-good numbers to the crucial e-commerce KPIs that actually drive business growth.

Moving Beyond Vanity Metrics

When I first started, my reports were full of opens and clicks. While those numbers have a place, they don't show the CEO how email marketing is impacting the bottom line. I quickly realised we needed to focus on metrics that connect directly to sales and customer value.

To really prove your agency's worth, you need to understand the essential email marketing KPIs to track. This insight frames the entire reporting process around what truly matters to an e-commerce business.

Here are the key metrics we put front and centre in every single report:

Email-Attributed Revenue: This is the big one. It's the total sales generated directly from your email campaigns and automations. It's the number one metric your clients actually care about.
Revenue Per Recipient (RPR): This calculates how much revenue is generated for every single person who receives an email, giving a clear dollar value to the quality of your list.
Customer Lifetime Value (CLV) Impact: We track how the CLV of email subscribers stacks up against non-subscribers. Showing that your efforts are creating more valuable, long-term customers is a massive win.
Conversion Rate: The percentage of email recipients who not only click a link but go on to complete a desired action, like making a purchase. This is crucial whether you're running Facebook ads or Google ads for contact form submissions.

Building a Unified Dashboard

Clients are busy. They don’t want to log into three different platforms just to understand performance. That's why we build custom dashboards that pull all the critical data into a single, easy-to-digest view.

Using tools that integrate with both Klaviyo and Google Analytics 4, we create a central hub for performance. This lets us show not just the direct sales from email but also its influence on the wider customer journey. It tells a more complete story of how email supports other channels like Google Ads or Facebook Ads.

A great report doesn't just present data; it tells a narrative of growth. It should clearly answer the question, "What did my investment in your agency achieve this month?"

This approach solidifies your agency's position as an indispensable partner. In Australia, email marketing consistently outperforms other channels, making it a powerful story to tell. Recent industry data shows that email marketing in Australia can deliver an average return on investment (ROI) of $42 for every $1 spent, making it the most financially rewarding strategy for agencies and their clients. You can discover more insights about marketing in Australia and see the full breakdown of these powerful statistics.

Our Monthly Reporting Template Structure

To keep things consistent and easy for clients to follow, we use a structured monthly reporting template. It’s designed to be concise yet comprehensive, giving a high-level overview with the option to dive deeper if needed.

Here's the simple breakdown we use:

Executive Summary: A short, punchy paragraph right at the top. It highlights the key wins, total revenue generated from email, and the main takeaway from the month's performance. No fluff.
Performance Breakdown: We split this into two parts—manual campaigns vs. automated flows. This clearly shows the client the value of both our ongoing campaign management and the foundational automation work we've set up.
Actionable Insights & Next Steps: This is the most crucial part of the whole report. We don't just state what happened; we explain why it happened and lay out what we're going to do about it over the next 30 days.

This proactive approach builds immense trust and shows you’re always thinking ahead. It's a framework that has completely transformed our client relationships. When you can consistently prove your direct impact on their revenue, you stop being a vendor and become a true growth partner.

Pricing Your Email Marketing Services for E-Commerce

Figuring out how to price our email services properly was one of the biggest hurdles we ever faced. Seriously. I've tried everything over the years—from hourly rates that led to endless scope creep, to flat retainers, and even some seriously confusing performance models that left everyone scratching their heads.

Getting this right is a game-changer. You need a model that actually reflects the value you’re bringing to the table—driving real, measurable revenue—while being simple enough for a client to grasp and for you to scale. The last thing you want is to be bogged down tracking billable minutes or justifying every line on an invoice.

Over time, I've landed on a few structures that just work for e-commerce clients, creating a genuine win-win.

Tiered Packages for Predictable Revenue

The simplest and most scalable model I’ve ever implemented is a tiered package structure. It gives clients total clarity on what they’re getting and gives our agency that sweet, predictable monthly recurring revenue.

I usually structure our tiers based on a mix of their contact list size and the scope of work we’ll be handling. This approach also clicks really well with Shopify and WordPress clients, since they’re already familiar with tiered software pricing.

Here’s a rough breakdown of how it looks:

Foundation Tier: This is perfect for smaller e-commerce stores, usually those with under 10,000 contacts. It’s all about nailing the essentials—managing a set number of campaigns each month (say, four) and keeping the core automation flows like the welcome series and abandoned cart sequence humming along. It’s a solid entry point.
Growth Tier: This one is aimed at more established businesses. It covers a larger list size and a higher campaign frequency. We also start layering in more advanced services like A/B testing, building out new automation flows like a post-purchase series, and getting more granular with segmentation.
Scale Tier: This is our top-shelf offering for clients who see email as a core revenue driver. It’s a much more hands-on, strategic partnership. Think custom design work (like building custom blocks in Gutenberg for their WordPress blog), monthly strategy calls, and deep-dive reporting.

This model lets clients self-select and provides a clear upgrade path as they grow. No confusion, no friction.

The Hybrid Model: Retainer Plus Performance

For more mature e-commerce clients who already have a decent baseline of email revenue, a hybrid model can be incredibly powerful. It blends the stability of a monthly retainer with the upside of a performance bonus, directly tying our success to theirs.

Here’s how I’ve set this up in the past:

First, we agree on a base monthly retainer. This covers our team’s time for strategy, campaign management, and reporting, ensuring our operational costs are always met. Then, we add the juicy part: a performance bonus, which is a percentage of the email-attributed revenue that smashes a pre-agreed baseline.

This model completely changes the dynamic. You're no longer just another service provider; you're a true growth partner, financially motivated to drive as much revenue as humanly possible. It's a fantastic way to justify a premium price point.

For example, let’s say a client’s average email revenue is $50,000 a month. We might set a bonus of 5% on all revenue generated above that mark. If we help them hit $70,000 in a given month, we earn an extra $1,000. It’s a clear, measurable win for everyone.

Articulating Your Value

Look, no matter which model you choose, your ability to articulate your value is what allows you to charge premium rates. I stopped talking about the number of emails we send and started focusing on the outcomes we deliver.

It's all about connecting your work directly to their business goals.

When you’re pitching a client, don't just rattle off a list of services. Show them how your email marketing for agencies expertise will boost their customer lifetime value, lift their conversion rates, and generate a tangible return on investment. You have to frame your service not as a cost, but as one of the most profitable investments they'll ever make.

Final Thoughts: It's All About Consistent Results

Alright, let's wrap this up.

Building a standout email marketing service isn't about finding some magic bullet or secret hack. I learned this the hard way. It’s about building a solid, repeatable process that actually delivers results for your e-commerce clients, month in, month out. Consistency is what separates the pros from the amateurs. When clients ask me 'How much does it cost to start Google Ads?', my answer is always the same: it's not about the initial cost, it's about the consistency of the strategy that follows.

From structuring your packages and nailing the client onboarding, right through to designing campaigns that actually drive sales—every piece of the puzzle matters. And the final, most important piece? Proving your value with reporting that speaks directly to revenue.

My goal with this playbook was to give you the blueprint I wish I'd had when I started. It's designed to help you skip the painful trial-and-error phase and get straight to building a high-value service. When you can consistently show clients how you're adding to their bottom line, you stop being just another expense. You become an indispensable growth partner.

Keep testing, keep learning, and never lose sight of the metrics that actually matter. This exact approach has been the foundation of everything I've done, from building custom Gutenberg blocks and Shopify apps to running high-performance Meta and Google Ads campaigns. It's the key to making email marketing for agencies a seriously profitable part of your business.

A Few Common Questions I Get Asked

Whenever I talk to other agency owners about email marketing, the same questions always seem to pop up. Here are the big ones, especially for those working deep in the e-commerce trenches.

What’s the Best Email Platform for an E-commerce Agency?

For most of my clients, particularly anyone on Shopify, the conversation pretty much starts and ends with Klaviyo. Its native integration with Shopify is just incredibly powerful. You can pull in such detailed customer data for razor-sharp segmentation—I’m talking purchase history, browsing behaviour, and even predictive analytics. It’s a game-changer.

That said, Omnisend is another strong contender I've used, especially if a client wants to bundle SMS marketing into their strategy right from day one.

But here's the thing: the platform itself is just a tool. The real value an agency brings is knowing how to map a platform's features to a client's specific business goals. That’s where the magic happens. A great tool is only as good as the strategy behind it, whether it's Klaviyo or an AI appointment setter in Go High Level.

How Much Should an Agency Charge for Email Marketing?

Ah, the million-dollar question. And honestly, there's no single right answer.

I've found tiered packages work best for creating predictable, recurring revenue. You can structure them based on list size or the scope of the work. For instance, a basic tier for under 10,000 contacts might cover campaign management and the essential automation flows. A premium tier, on the other hand, would bring in advanced strategy, copywriting, and rigorous A/B testing.

Another model that works well for more established clients is a hybrid approach: a base retainer plus a performance bonus tied to a percentage of email-generated revenue. This shifts the dynamic completely. It turns you into a true growth partner, and clients love that alignment. This is far better than quoting based on time, which can be a real headache.

How Do You Prove the ROI of Your Email Services?

You absolutely have to shift the conversation away from vanity metrics like open rates. E-commerce store owners don't really care about opens; they care about revenue.

Your reports should lead with the heavy hitters: email-attributed revenue, revenue per recipient, and the impact your work is having on customer lifetime value (CLV). These are the numbers that matter.

Australian agencies are investing more into email marketing for a reason—it just works. With over 93% of email users in Australia checking their inbox daily in 2025, the channel’s reach is undeniable. But here’s the kicker: less than 22% of businesses actually personalise their emails. That creates a massive opportunity for agencies to stand out by offering data-driven, tailored solutions. You can dig into more digital marketing statistics to see the full picture of this opportunity.

At Alpha Omega Digital, we transform email from a simple communication channel into a powerful revenue engine for your business. As a marketing agency based in Melbourne, Australia, we also service clients from Sydney, Brisbane, Newcastle, Perth, Adelaide, Darwin and Hobart.

Have a project in mind? Contact us