As e-commerce continues to claim a larger share of retail sales worldwide, the challenge for retailers is no longer just about driving digital growth—it’s about achieving sustainable profitability. Grocery, apparel, and electronics each face unique hurdles on the path to profitable e-commerce, from high fulfillment costs and complex returns to rapidly evolving consumer expectations. At Publicis Sapient, we help retailers in these sectors navigate the complexity with tailored strategies that address their most pressing pain points and unlock new sources of value.
Across the retail landscape, the rapid acceleration of digital channels has exposed a stark reality: e-commerce is often less profitable than traditional in-store business. Nearly half of retailers with both e-commerce and brick-and-mortar operations report that their online channels are less profitable than their stores, and a quarter say their e-commerce business is not profitable at all. This profitability gap is even more pronounced in sectors like grocery, where 54% say e-commerce is less profitable than in-store, and in e-commerce-only businesses, where 44% report a lack of profitability.
Despite these challenges, there is broad consensus among retail leaders about what needs to be done. The majority recognize that digital customer experience, omnichannel commerce, and supply chain modernization are the most critical levers for improving e-commerce profitability. However, many struggle to make the necessary investments, often due to legacy systems, organizational silos, and the sheer complexity of transformation.
Grocery retailers face some of the toughest e-commerce profitability challenges. The sector’s low margins, high fulfillment costs, and the perishability of goods make digital transformation especially complex. Notably, grocery is among the least optimistic about near-term e-commerce profit improvement, with only 61% expecting gains.
We help grocery clients deploy robotics and automation in-store, design and implement MFCs, and integrate digital and physical inventory systems. Our data-driven strategies ensure that investments in technology deliver measurable improvements in both customer experience and operational efficiency.
Apparel retailers have seen tremendous e-commerce growth, but profitability is often undermined by high return rates and the complexity of managing vast assortments. Nearly half of apparel shoppers engage in “bracketing”—buying multiple sizes with the intention of returning some—which drives up costs and erodes margins.
We partner with apparel brands to implement end-to-end returns management strategies, leveraging AI for fit prediction and customer segmentation. Our solutions also include dynamic assortment planning and personalized digital experiences that reduce returns and increase customer satisfaction.
Consumer electronics retailers operate in a highly competitive, fast-moving sector where product cycles are short and customer expectations for service and fulfillment are high. Profitability is often challenged by supply chain disruptions, price competition, and the need for seamless omnichannel experiences.
We help electronics retailers modernize their supply chains with AI-driven analytics, implement omnichannel commerce platforms, and design customer service solutions that blend digital and human support. Our focus is on building resilient, data-enabled operations that can adapt to market shifts and deliver superior customer experiences.
While the path to e-commerce profitability is unique for each sector, several cross-cutting strategies are essential:
At Publicis Sapient, we combine deep industry expertise with SPEED capabilities—Strategy, Product, Experience, Engineering, and Data—to help retailers in grocery, apparel, and electronics not only identify the right investments but also execute them at scale. The result: sustainable, profitable e-commerce growth tailored to the realities of each sector.
Ready to transform your e-commerce profitability? Connect with our team to explore how we can help you turn sector-specific challenges into competitive advantage.