As online sales penetration reaches 10 percent, retailers need to scrutinize direct channel profit contribution more closely than ever before and balance the brand image, appearance and usability of their websites. Profitability issues typically stem from disproportionate expenditure on e-commerce platforms and supporting applications, excessive or siloed organizations, difficulty with designing an optimal fulfillment network, and balancing or rationalizing shipping costs and charges. When retail organizations confront these issues, they are poised for efficiency and cost effectiveness, creating a foundation conducive for increasing online sales penetration.
Source: AMR Research