Berridge Strategy Group

eCommerce Should Be a Bigger Part of the Business.

Online revenues are growing but not at the level it should be.

There is rarely a single obvious failure.

Nothing feels fundamentally broken. Progress happens, but incrementally and inconsistently. Performance improves in pockets rather than in ways that materially shift the business.

Over time, a gap opens between what eCommerce is delivering and what leadership believes it should be capable of delivering.

That gap creates a growing sense that eCommerce is underperforming relative to its potential, and relative to the role it should be playing in the business.

In many cases, the issue is not a lack of activity.

Campaigns are launched. Site improvements are made. New tools and tactics are introduced with genuine intent. Teams are busy, agencies are engaged, and performance is monitored closely. Yet despite this effort, revenue growth remains uneven - or harder to sustain than expected.

Activity increases, but the underlying economics don't improve.

The reason is often that decisions are made in isolation. Marketing is optimised independently of margin. Platform and UX changes are assessed without full visibility of operational impact. Revenue that appears strong at the point of sale can be eroded downstream through inefficient fulfilment, handling, or dispatch.

Inventory, fulfilment, customer behaviour, and acquisition costs are considered separately rather than as part of a single economic model. Without a shared commercial and technical view of how eCommerce actually makes money, optimisation happens locally rather than systemically. Activity increases, but the underlying economics do not improve and the gap between effort and outcome grows.

The real friction usually sits between commercial reality and digital execution.

eCommerce decisions are often made without a shared understanding of the underlying economics. Acquisition costs, gross margin, fulfilment effort, and repeat purchase behaviour are considered separately rather than together. As a result, teams optimise for local targets without clarity on what actually drives profitability over time.

In some businesses, products are purchased once or infrequently, meaning acquisition costs must be recovered on the first sale. In others, repeat purchase allows for a different investment profile. When these dynamics aren't explicitly understood and agreed, marketing spend, pricing decisions, and channel strategy begin to pull in different directions.

This gap is rarely caused by a lack of intelligence or effort.

It exists because eCommerce sits across traditional teams - marketing, operations, finance, and technology - without a single point of ownership to connect those perspectives into a coherent commercial model.

This is a leadership issue, not a channel issue.

When eCommerce underperforms, it is often treated as a channel problem. Attention shifts to marketing performance, site conversion, or platform capability. While these areas matter, they rarely address the underlying constraint.

eCommerce performance is shaped by a series of trade-offs - between margin and volume, acquisition cost and lifetime value, service level and fulfilment efficiency - that cut across teams and functions.

Those trade-offs require leadership, not optimisation.

Without clear ownership at a senior level, decisions are made tactically rather than deliberately. Short-term gains are pursued without confidence in their long-term impact, and accountability for outcomes becomes diffuse. The result is a channel that is constantly adjusted, but rarely directed.

Treating eCommerce as a core business function changes this dynamic. Decisions are made with a view of the whole system, priorities are set intentionally, and performance becomes more predictable and sustainable over time.

When eCommerce is treated as a core business function, performance begins to change in more fundamental ways.

Decisions are made with a clearer understanding of how revenue, margin, fulfilment, and customer behaviour interact. Investment is guided by an explicit economic model rather than isolated metrics. Trade-offs are made deliberately instead of reactively.

Over time, eCommerce becomes more predictable and more resilient. Growth compounds because it is supported by systems, processes, and decision-making that reflect how the business actually operates.

The channel stops oscillating between short-term wins and disappointments, and becomes a reliable, material contributor to the business that leadership can plan around with confidence.

This situation is common in product and retail businesses where eCommerce already exists, but is not yet delivering at the level leadership expects.

It tends to resonate where the business is well funded or profitable, has strong fundamentals, and sees eCommerce as strategically important rather than experimental. Often there is capability in place across marketing, operations, and technology, but no single layer of leadership connecting those perspectives into a coherent commercial model.

The model works best for organisations that want eCommerce to become a reliable, material contributor to the business - and are prepared to treat it as an operating capability to be led over time, not a channel to be optimised in isolation.

Start a conversation.

If this reflects how eCommerce currently performs in your business, an initial conversation can help clarify what is constraining progress and whether this model is likely to be useful.

The first step is an exploratory discussion to understand the commercial context, the decisions being made, and how eCommerce fits into the wider operation.

Start a conversation