VTEX reposted this
Managing Director, Pattern Advisory - Ex. Newell Brands & Private Equity, Board Member, “The Retail eCommerce Club” Founder, “The CPG View” Podcast 🎙️ “eCommerce” is our middle name.
eCommerce's Era of Profitability: 3 Bets Retailers & Brands Can't Afford to Miss 🎯 Awesome report by the team at VTEX. Brands and retailers have been on a rollercoaster ride these past few years, and it isn't stopping anytime soon! Fun Facts: (4) 🎊 70% of all carts are abandoned by consumers 🎊 55% of retailers/brands are in the early stages of the omnichannel maturity curve 🎊 38% reduction in ad effectiveness post iOS 14.5 update 🎊 37% of retailers say eCommerce isn’t meeting their profitability targets Key Themes: (3) 1️⃣ Customer Loyalty Over Acquisition: Forget the 'growth at all costs' mantra. It's time to nurture the relationships you already have. Did you know that 80% of your profits come from 20% of your most loyal customers? Shift gears from acquiring new customers to turning first-timers into lifelong brand champions. Gather that precious first-party data and be present on every channel your customers use. 2️⃣ Omnichannel Fulfillment Mastery: Omnichannel isn't just a buzzword anymore, it's a necessity. Treat fulfillment like a product, not an afterthought. Unify your inventory across all channels, embrace marketplace models, and watch those profit margins grow. 3️⃣ Reimagine Customer Engagement: Boring, cookie-cutter online stores won't cut it anymore. Step outside the box and create immersive experiences. Think video commerce, interactive product pages, and virtual stores. Take a cue from China, where they're already revolutionizing the online shopping game. Happy to share (23 pg). #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin
I did a quick research, and it seems that cart abandonment has been on the same level for years. It was much lower in 2006, but it's hard to compare e-commerce then to what it is now. What's interesting is that it's a peak in 2012, which is even higher than the number you showed.
Martin Oxley
2w
Don “eCommerce” Brett looks very interesting, please share
wow. that's a lot
Can you please share source material? Thank you.
Nicky Bowman
2w
yep, profitability is an item in every conversation I'm having - now that "profitable growth" is the headline the world is a different place, and better for those of us that can make it happen
Thanks for the valuable information! Would you share the report/link please?
Yen Nguyen
2w
Profitability is the common topic of our clients these days. Especially for those who are expanding a new channel on Ecom (like Tiktok Shop ...). I'll take the point (1) & (2) to discuss further with our clients. Happy to update if having something interesting. Thank you Don for sharing.
"Unify your inventory across all channels, embrace marketplace models, and watch those profit margins grow." - Truer words have never been spoken.
Digital Marketing & Sales Director
2wThese three elements - 1. Retention; 2. Inventory + fulfillment; 3. UX stickiness - have always been keys to ecommerce's profitability. The most important aspect is another one though: the combination of People + Process. The right competencies, integrated in an engaged yet relaxed team environment. To maximize EBIT potential, the ecommerce team should be in charge of the full E2E cycle, from merchandising to content to fulfillment and customer service to CRM. This will eliminate the biggest risk, the internal roadblocks, and maximize speed, time-to-market, and ultimately productivity.