Thin profit margins in e-commerce & retail

E-commerce brands are generating substantial revenue but retaining little profit, as net margins shrink even when gross margins improve.

Analysis:

Profitability analytics platforms that give brands real-time visibility into true profit by SKU, channel, and customer cohort are a real need. The gap between gross margin (improving) and net margin (declining) means the profit leaks are in operations, not COGS. Tools that identify and fix these leaks are valuable.