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July 22, 2021

Executive Insights: The Primary Drivers of Ecommerce Profitability Across the Digital Shelf Report [Download]

Written by: Digital Shelf Intitute
Ecommerce is no longer a nice-to-have; it's a must-have.

Ecommerce has seen recent unprecedented growth, forcing brands to reconsider their approach to digital sales channels. Ecommerce is no longer a nice-to-have; it's a must-have.

There is now a sense of urgency for brands, and this renewed focus has driven executives to ask their digital leaders: What drives profitability in ecommerce — and how can we improve it?

Bobsled Marketing and the Digital Shelf Institute (DSI) just published a new report, "Executive Insights: The Primary Drivers of Ecommerce Profitability Across the Digital Shelf," to help identify these primary drivers of ecommerce profitability, leveraging interviews with ecommerce leaders.


Meet the Ecommerce Profitability Experts

Kiri Masters, founder and CEO of Bobsled Marketing, interviewed 10 members of the Digital Shelf Executive Forum for this report. These executive-level digital and ecommerce leaders come from large, multinational brands with annual revenues over $250 million.

Molly Schonthal, founder of the Digital Shelf Institute Executive Forum; Peter Crosby, executive director of the DSI; and Chris Perry, co-founder and chief learning officer at FirstMovr, also contributed to this report.

Download this report to gain these deep expert insights into the primary drivers of and fixes for ecommerce profitability for your brand.

Ecommerce Is No Longer Considered an Edge Case
— It's the Future of Retail

"Every company I've worked for in an ecommerce capacity typically looks at ecommerce through a lens of challenge. 'Ooh, this profitability looks a little squeezed. Please go fix it.," says one report respondent, echoing a statement that is likely familiar for ecommerce executives.

This report includes first-hand quotes from leaders, insights into real-life profitability wins, strategy blueprints, and other next steps for driving transformation.

Download this report and learn how leading brands are approaching the following essential focus areas:

  • Defining profitability for your brand;
  • Addressing fixed-factor challenges;
  • Optimizing media spend and attribution; and
  • Assessing your Amazon relationship.

Defining Profitability for Your Brand

“The very definition of profitability across companies is not consistent,” notes the report, highlighting the necessity of internal goal alignment to ensure every team is working toward the same goals.

This report will help you define your profitability metrics, gain internal alignment, scale your program, and separate your sales channels.

Addressing Fixed-Factor Challenges

Every brand has “fixed” factors, such as product category, price point, supply chain, and other unchangeable features. However, there are ways to address these fixed-factor challenges from a profitability lens.

This report will show you how other leaders have approached pricing, packaging, manufacturing and logistics costs, bundling and multipacks, and scale.

Optimizing Media Spend and Attribution

Media spend is often one of the largest ecommerce channel expenses for many brands, forcing them to consider which portions of above- and below-the-line ad spend ecommerce teams should carry.

This report will teach you how to rationalize brand and performance media. You’ll also develop an understanding of how much to spend and how to improve performance and efficiency.

Assessing Your Amazon Relationship

Amazon is the largest source of ecommerce revenue for many brands. This report breaks down how to review your selling relationship and tighten your trade terms with Amazon — which can be one of the highest leverage activities to help your brand improve its profitability.

Learn how to “stand your ground," explore a hybrid model, and learn more about the Amazon Net Pure Profit Margin (PPM) program.

3 Critical Focus Areas for Ecommerce Executives

“Some companies have cracked the code on these items, while others are earlier in the process,” notes the report, highlighting the enormous growth opportunity of ecommerce profitability for brands.

But all brands share the same three critical needs: “data to make your case; cross-functional, silo-crashing collaboration; and realigning incentives for an omnichannel world.”

Download this report to get actionable insights into the most critical profitability drivers and learn how leading brands are taking action on the digital shelf.