Email vs SMS Marketing: Which Works Better for E-commerce Startups?
For e-commerce startups, building strong customer relationships and driving repeat sales is critical for sustainable growth. But with so many digital channels available, deciding where to invest your marketing efforts can be challenging. Two of the most powerful — and often debated — options are email marketing and SMS marketing.
So, which delivers better results for e-commerce startups? Should your fashion or online retail brand lean into one channel or leverage both for maximum impact?
In this guide, we’ll break down the strengths, weaknesses, and ideal use cases of each channel, with insights on how tools like HubSpot and Klaviyo can help startups automate and scale their campaigns effectively.
Why Email and SMS Still Matter in 2025
Despite the rise of social media and paid ads, email and SMS remain the most profitable direct marketing channels for e-commerce brands. Here’s why they’re still crucial:
- Direct reach: No algorithms or ad bidding — your message goes straight to your customers.
- High ROI: Email generates an average of $36 for every $1 spent, while SMS often sees 98% open rates.
- Automation-ready: Both channels can be fully automated, saving time for lean startup teams.
- Customer retention: Perfect for win-back campaigns, loyalty programmes, and personalised offers.
For startups, using these channels wisely can mean the difference between one-off sales and long-term brand loyalty.
Email Marketing for E-commerce Startups
Email marketing remains a core revenue driver, especially for fashion brands and online retailers.
Key benefits of email marketing:
- Cost-effective scaling: Sending newsletters and offers is relatively inexpensive, even as your list grows.
- Rich content options: Showcase products, lookbooks, or style guides with visuals and links.
- Segmentation and personalisation: Tools like HubSpot allow you to target based on browsing history, purchase frequency, or demographics.
- Automated journeys: Welcome series, cart recovery, and post-purchase flows keep engagement high without manual effort.
When email is most effective:
- Promoting seasonal sales or product drops.
- Educating customers with brand content.
- Retargeting warm leads who abandoned carts or viewed products.
However, email inboxes are crowded, and deliverability can be a challenge. Success depends on list quality, personalisation, and strong subject lines.
SMS Marketing for Startups: The Rising Star
While email has been around for decades, SMS marketing is quickly becoming a must-have for startups, especially those focused on fast conversions.
Why SMS stands out:
- 98% open rates: Text messages almost guarantee your content gets seen.
- Fast engagement: Most SMS messages are read within minutes.
- High conversion rates: Limited space forces concise, high-impact messaging.
- Perfect for flash sales: SMS is ideal for time-sensitive promotions and exclusive offers.
Platforms like Klaviyo for e-commerce make SMS easy to integrate with Shopify and WooCommerce, so your customer data and purchase history drive hyper-targeted campaigns.
When SMS is most effective:
- Flash sales and exclusive drops.
- Time-sensitive reminders (cart recovery, back-in-stock alerts).
- Re-engaging VIP customers with special discounts.
But SMS comes with higher costs (pay-per-message) and strict compliance rules (like opt-ins and unsubscribe management). It’s best used strategically rather than as a blanket channel.
Comparing Performance: Email vs SMS
Both channels offer unique benefits. The right mix depends on your brand’s goals, audience, and resources.
| Feature | Email Marketing | SMS Marketing |
|---|---|---|
| Reach & Engagement | 20–30% open rates; 2–3% CTR | 98% open rates; 8–10% CTR |
| Cost | Low cost per message | Higher cost per message |
| Content Flexibility | Long-form, visuals, links | Short, concise text only |
| Automation | Easy with HubSpot workflows | Easy with Klaviyo flows |
| Best For | Nurturing leads, storytelling, brand building | Urgent sales, reminders, personalised quick offers |
The most successful startups rarely choose one over the other. Instead, they combine both channels for a multi-layered approach.
Combining Email and SMS for Maximum Impact
The real power lies in using email and SMS together, where each channel supports the other:
- Start with email for storytelling and nurturing. Use it for newsletters, lookbooks, and brand content.
- Layer SMS for urgency. Trigger texts for cart recovery, limited-time discounts, or VIP early access.
- Use automation tools. Platforms like HubSpot and Klaviyo allow you to build integrated flows where customers receive a personalised email first, then an SMS if they don’t engage.
- Segment by preference. Let customers choose how they want to hear from you to boost engagement and avoid unsubscribes.
This balanced approach can increase open rates, click rates, and revenue per customer without overwhelming your audience.
How HubSpot and Klaviyo Power These Channels
Both HubSpot and Klaviyo can help startups maximise results, but they serve slightly different needs:
- HubSpot email automation: Perfect for startups that want a full CRM and marketing hub, including lead nurturing, advanced segmentation, and analytics.
- Klaviyo for e-commerce brands: Specialises in Shopify and WooCommerce integrations, with pre-built email and SMS flows for quick revenue boosts.
By combining these tools (or using one strategically), you can automate campaigns, track performance, and make data-driven decisions to grow your e-commerce brand.
Which Should Your Startup Prioritise?
For most e-commerce startups:
- Start with email marketing if you’re building your list, sharing content, and running broad campaigns.
- Add SMS marketing once you have a customer base and need to drive urgency, recover carts, and boost retention.
Over time, the goal is to use both channels in tandem — giving you the flexibility and reach to engage customers across their preferred touchpoints.
Final Thoughts: Don’t Choose, Combine
In the Email vs SMS marketing debate, there’s no one-size-fits-all winner. Email offers scalability and rich storytelling, while SMS delivers immediacy and sky-high engagement.
For e-commerce startups, the smart strategy is to combine both using tools like HubSpot and Klaviyo, ensuring your messages are timely, relevant, and automated.
Ready to Build Smarter Campaigns?
Bulbul helps startups set up HubSpot and Klaviyo for seamless email and SMS marketing — from automation and analytics to Shopify integrations.
Learn more about our solutions at bulbulagency.com/automate.
Want personalised advice for your brand?
Book a free consultation at bulbulagency.com/lets-talk.
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