Ecommerce discipline 05 of 06
Margin & Channels
Grow the channels and products that actually make money.
Amazon, retail and DTC rarely earn the same. We work out the true contribution of every channel and product, then reshape the mix and the terms so growth adds to the bottom line.
Sound familiar?
Signs revenue is growing faster than profit.
- Revenue grows, but cash doesn’t.
- Amazon or retail sales look great until fees and returns land.
- Some products sell well and lose money.
- Stock is tied up in the wrong lines.
What we do
Three areas. One commercial goal.
The goalGrow contribution and free up cash, through better channel, product and pricing decisions.
Unit economics
Know the real contribution per order, product and channel, after every cost.
What you’re left with- Contribution by order
- Cost-to-serve view
- Pricing review
Marketplaces & retail
Run Amazon and other marketplaces well, and win retail listings on terms that work.
What you’re left with- Marketplace strategy
- Listings and ads
- Retail terms
Product mix
Back the products that earn, fix or cut the ones that don’t, and plan the range.
What you’re left with- Range review
- Stock plan
- New product cases
The question we’d answer first
Data on its own can mislead. Context shows what to do.
One question we’d bring to Margin & Channels straight away, answered twice: with one system’s data, then with the rest of the business joined in. Figures are illustrative.
05 · Margin & Channels
Which channels make money, and which consume it?
Revenue growth by channel, year on year
Looks likeAmazon is your star channel.
Share of revenue against share of contribution, after fees, fulfilment, returns and ads
ActuallyAmazon is 31% of revenue, but 9% of contribution.
Review the 12 lines: test price, fulfilment and ads before exiting any.
How it works
We don’t hand you a strategy. We get in and do the work.
Diagnose
Work out contribution per order, product and channel.
Prioritise
Find the lines and channels that consume profit.
Do the work
Test price, fulfilment and ads before cutting anything.
Embed
Report contribution monthly, so the mix keeps up.
What changes
- Contribution by channel and product, every month.
- Marketplaces and retail on terms that pay.
- Cash freed from the wrong stock.
Start with a conversation
Find the constraint. Build the plan. Do the work.
Whether it’s Margin & Channels or somewhere else in the system, finding the real constraint is the first thing we do.