Welcome to the second editionof The Trading IntelligenceQuarterly
Online prots will become animportant aspect of a retailer’sperformance over the next fewyears.
Overall retail growth is predicted to slow, sogrowing online sales while optimising the protopportunity will become increasingly critical.So far all the hype around online retail, andcustomers’ growing appetite and sophisticationin purchasing online, has failed to materialise instrong prots. Indeed for many standalone onlineretailers prot remains an elusive target. While afew such as ASOS and Net-a-Porter have shownit can be done, most prot announcements are alow key event and something of a disappointment.Multichannel retailers rarely break out theironline prots but our experience indicates a reallack of condence in how to maximise prots.The industry is so new that there are few modelsof success to emulate and no real sense yet of bestpractice. We have seen three different types of retaileruncertainty:•The protable who are not sure about how togrow and stay protable;•The unprotable who do measure their prot,but are not sure how to turn it around; and•The large number of retailers who fail toproperly measure their online protability.It is this lack of awareness of protability thatis most worrying to future online growth andsuccess. To realise that goal of strong, protablegrowth online, retailers must enforce rigorous andsophisticated measurement of marketing, productsand customers.This edition of The Trading Intelligence Quarterlygives some answers to the crucial question
‘HowCan We Make Money Online?’
We offer thisadvice based on our experience of working withhundreds of online retailers. This is backed up byour recent survey ndings of over 100 ecommercedirectors which gives a fascinating look at whatmeasurements are being used… and, even moreimportantly, not used.We also assess the long term protability of Zappos, getting underneath its initial strongprots to question their long term strategy. Andwe are delighted to include insights on how tomake money from one of the great online successstories - Google.I hope you will nd it an invaluable guide toexploring how you can improve your onlineprotability.
CEO and co-founder, eCommeraandrew.email@example.com