The key to profitable e-commerce

We are in times when a lot of things are going on (growing interest rates, war etc.), making it difficult for companies to understand what to prioritize in order to generate growth. Although E-commerce is continuously growing, it remains difficult for digital actors to be profitable. One problem is similarity as many retailers' digital platforms are close to identical. An important KPI is thus to differentiate. A good business shall be able to provide something that buyers are willing to pay more for (price premium). In order to do that the company must figure out the customers' real needs.

John and Niklas strongly emphasized that you can never fully rely on simply asking consumers - because they may lie. By applying inspiration, sustainability and social belonging (which are the main drivers of price premiums) retailers can satisfy customers without being part of the existing price war (competition in lowering prices), and in that way also become profitable.

Monika Profus, Key Account Manager, Entrepreneurship & E-commerce Retail Club