White Paper
High growth, low profit: The e-commerce dilemma for CPG companies
This case study explores the challenges faced by consumer packaged goods (CPG) companies in navigating the rapid growth of e-commerce, which has been accelerated by the pandemic. While online sales have soared, e-commerce typically offers thinner margins compared to brick-and-mortar stores. The report suggests that optimizing key profit-and-loss drivers such as marketing investment, revenue-growth management, and supply-chain costs can help companies achieve better margins in the e-commerce space, despite its inherent profitability challenges.