Meeting new profit margins
At NRF 2023, VTEX, a leading global digital commerce platform for top-tier retailers and brands, introduced its latest research paper on retail profitability entitled “Three Investments to Drive Ecommerce Growth”. The study, which was conducted in partnership with AWS, explores key investment prospects that can help retailers achieve profitable growth in the face of upcoming economic challenges. It delves into the challenges facing ecommerce, the changing landscape of profitability, and provides insights on how retailers can attain profitability in 2023 by prioritizing their customers and their changing needs.
The COVID-19 pandemic has rewritten the rules of commerce, leading many retailers to prioritize growth over profitability. As retailers face a challenging financial environment and shifting consumer demands, they are under increasing pressure to generate profits but may not be certain where to invest. VTEX’s Director of Merchant Growth Strategy, Jordan Jewell, said the company’s research can help retailers make informed decisions to achieve the desired ROI.
Concentrate on Existing Customers
Brand profitability is largely driven by their most loyal customers. Therefore, investing in these customers can significantly boost profitability. Retailers should prioritize customer retention, gather first-party data, and enhance cross-channel communication when investing in this sector.
Improve Supply chain management and lead time
Investing in inventory management, order management, and supply chain strategies can lead to enhanced customer satisfaction. To achieve this, retailers should consider treating fulfillment as a product, streamlining inventory across channels, and leveraging marketplace models.
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