Global News and Digital Insights
for the Consumer Goods Industry

An insight on how CPG companies can generate profit from e-commerce

ConsumerGeniuses

ConsumerGeniuses

E-commerce is growing across CPG companies but it is not generating high profit. The following strategies could be adopted by brands to improve their company’s profitability. 1, Scale plays a significant role in e-commerce. Companies can sell higher volumes of products and benefit from scale. 2, CPG companies need to manage three P&L items, including advertising investment online, online promotion and trade investment, and supply-chain costs to boost probability. 3, Brands need to connect with channel partners and retailers to generate revenue. 4, Online businesses should relocate dollars from brand budgets via pay-to-play or brick-and-mortar trade investments. 5, In relation to revenue management, companies should invest time and money on data that could be translated into analytics.

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