Hands carefully packaging an e-commerce order

Oct 29, 2026

How Do You Lose Money While Breaking E-Commerce Revenue Records?

In digital commerce, growth figures are very attractive. More traffic, more orders, higher ROAS… But none of these indicators on its own tells you about profitability.

E-commerce

Marketplaces

Profitability

Insight

The important question is not “How much did digital sales grow?” but “How much of that growth stayed in the company as value?”

Once marketplace commission, shipping, returns, advertising, coupons, payment costs and operational workload are deducted, some high-revenue products can turn out to leave very little contribution to the business. Worse, aggressive digital campaigns can also damage the price perception of physical stores.

Analysis

That is why I do not see perfume and cosmetics e-commerce simply as buying traffic. Trust on the product page, correct product availability, the right pack size, conversion to the second order, category-level contribution and channel price consistency are equally important.

Digital channels can take on different roles: the marketplace brings in new customers; the brand's own site deepens the relationship and the data; the physical store offers trial and advice. Growing every channel with the same promotion erases this difference in roles.

Order pickup at the click and collect counter

Water poured into a leaky bucket and seeping through

How Do You Lose Money While Breaking E-Commerce Revenue Records?

In digital commerce, growth figures are very attractive. More traffic, more orders, higher ROAS… But none of these indicators on its own tells you about profitability.

E-commerce

Marketplaces

Profitability

Insight

The important question is not “How much did digital sales grow?” but “How much of that growth stayed in the company as value?”

Once marketplace commission, shipping, returns, advertising, coupons, payment costs and operational workload are deducted, some high-revenue products can turn out to leave very little contribution to the business. Worse, aggressive digital campaigns can also damage the price perception of physical stores.

Analysis

That is why I do not see perfume and cosmetics e-commerce simply as buying traffic. Trust on the product page, correct product availability, the right pack size, conversion to the second order, category-level contribution and channel price consistency are equally important.

Digital channels can take on different roles: the marketplace brings in new customers; the brand's own site deepens the relationship and the data; the physical store offers trial and advice. Growing every channel with the same promotion erases this difference in roles.

How Do You Lose Money While Breaking E-Commerce Revenue Records?

In digital commerce, growth figures are very attractive. More traffic, more orders, higher ROAS… But none of these indicators on its own tells you about profitability.

E-commerce

Marketplaces

Profitability

Insight

The important question is not “How much did digital sales grow?” but “How much of that growth stayed in the company as value?”

Once marketplace commission, shipping, returns, advertising, coupons, payment costs and operational workload are deducted, some high-revenue products can turn out to leave very little contribution to the business. Worse, aggressive digital campaigns can also damage the price perception of physical stores.

Analysis

That is why I do not see perfume and cosmetics e-commerce simply as buying traffic. Trust on the product page, correct product availability, the right pack size, conversion to the second order, category-level contribution and channel price consistency are equally important.

Digital channels can take on different roles: the marketplace brings in new customers; the brand's own site deepens the relationship and the data; the physical store offers trial and advice. Growing every channel with the same promotion erases this difference in roles.

How Do You Lose Money While Breaking E-Commerce Revenue Records?

Related reading

How Do You Lose Money While Breaking E-Commerce Revenue Records?

Related reading

How Do You Lose Money While Breaking E-Commerce Revenue Records?

Related reading