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Retail media’s rise, eComm profitability pressure, and more — Profitero press highlights

January 28, 2021
Sandy Skrovan
Written By
Sandy Skrovan

What are some hot themes emerging in the digital space?

Here are snippets from Profitero’s recent press coverage, which demonstrate how our eCommerce analytics and expertise are helping brands spot some of the biggest trends happening across the digital landscape.

Retail media’s rise

Excerpted from AdExchanger, and written by Bryan Wiener, CEO at Profitero

Hardly a material line item a year ago, retail media is the new black – capturing the attention of brand marketers, and getting them to open their wallets in numbers that were unimaginable this time last year. […] Brands incorporating this new channel into their media mix can get a turbo boost by applying lessons learned from the early days of search. There are eerie similarities to many of the growth inhibitors faced in early stage search marketing, albeit with some new twists. Two of the biggest challenges are ecosystem alignment and data connectivity. Solving for both could give retail an opportunity to take search marketing to heights that Google can’t.

For more on how retail media is changing up the ad game, check out Profitero CEO Bryan Wiener’s take on beet TV below:



eCommerce profitability pressure

Excerpted from Forbes

E-commerce profitability has become a bit of a hot potato for retailers and brands. […] Retailers raised prices to ease some of the profitability pressure as demand soared during the early months of the pandemic. According to Profitero’s eCommerce Price Index (eCPI), which tracks monthly price changes across leading online retailers, prices for consumer goods rose 1.9% in the month of September, compared to June. At the close of 2020, prices were still up by 1.6%.



Unsung hero of eComm: The supply chain

Excerpted from Forbes

Investment in on-site optimization goes down the drain if the supply chain is not primed and the stock is simply unavailable. A recent report by Profitero called “The Costly Penalties of Going Out of Stock” found that brands could lose up to 42% of sales when their stock rate drops from 90% to less than 30% and that it takes three to four days to regain full sales volume after being out of stock for just one day. If the drop in sales happens during a major sales event, the revenue lost can be devastating for a brand’s success.

(Click here for the full report: The Costly Penalties of Going Out of Stock)



Pulling the plug on Amazon Pantry

Excerpted from Modern Retail

“Pantry is not necessarily a failure, but I think its relevance has been subsumed or made obsolete by Fresh or Prime Now,” said Keith Anderson, svp of strategy and insights at e-commerce analytics platform Profitero, referring to Amazon’s other grocery services. […] Anderson said he wouldn’t be surprised if Pantry’s shuttering foreshadows future streamlining in Amazon’s grocery sector. From Whole Foods to Amazon Fresh to Prime Now to Amazon Pantry, Amazon was offering a slew of overlapping grocery services at the end of 2020. But as Amazon continues to one-up itself, “in a year or two years, who knows whether that will be the case,” said Anderson.

Visit Profitero’s Press page for more.

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