How to manage an ecommerce P&L and make it profitable
In this lesson we analyse the revenue streams that can be generated through e-ecommerce and the cost center that need to be accounted for and that determine the profitability of your digital enterprise.
Table of Contents
Revenue streams
Most frequent questions and answers
Direct E-commmerce
Direct ecommerce is your brand website, usually it’s a brand.com website or localised e.g. brand.co.uk. This is your main domain on which is installed an ecommerce platform
Indirect Ecommerce
The relationship with e-tailers such as Net-A-Porter or Yoox
Market Places
Farfetch, department stores, Amazon
Digital in store
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words
Flash Sales
The standard chunk of Lorem Ipsum used since the 1500s is reproduced below for those interested. Sections 1.10.32 and 1.10.33 from “de Finibus Bonorum et Malorum” by Cicero are also reproduced in their exact original form, accompanied by English versions from the 1914 translation
Acquisition Channels
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur
Cost centers
Most frequent questions and answers
Digital Supply Chain
I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Logisitics
There are many variations of passages of Lorem Ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don’t look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn’t anything embarrassing hidden in the middle of text.
Technology
All the Lorem Ipsum generators on the Internet tend to repeat predefined chunks as necessary, making this the first true generator on the Internet. It uses a dictionary of over 200 Latin words, combined with a handful of model sentence structures, to generate Lorem Ipsum which looks reasonable. The generated Lorem Ipsum is therefore always free from repetition, injected humour, or non-characteristic words etc.
Cost of Goods
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words
Legal and Administration
If your ecommerce unit is located in a company that doesn’t do just ecommerce but for example a fashion brand, your ecommerce unit will be charged for the part of general expenses cost that belong to the ecommerce such as part of the rent, part of the overall cleaning expenses and part of the cost of CEO, CFO and other roles that operate cross functio
Cost of Personnel
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur
Digital Marketing
If your ecommerce unit is located in a company that doesn’t do just ecommerce but for example a fashion brand, your ecommerce unit will be charged for the part of general expenses cost that belong to the ecommerce such as part of the rent, part of the overall cleaning expenses and part of the cost of CEO, CFO and other roles that operate cross functio
Central cost
If your ecommerce unit is located in a company that doesn’t do just ecommerce but for example a fashion brand, your ecommerce unit will be charged for the part of general expenses cost that belong to the ecommerce such as part of the rent, part of the overall cleaning expenses and part of the cost of CEO, CFO and other roles that operate cross function
