{"id":69065,"date":"2024-12-22T04:12:27","date_gmt":"2024-12-22T09:12:27","guid":{"rendered":"https:\/\/www.radial.com\/?post_type=insight&#038;p=69065"},"modified":"2024-12-22T05:35:19","modified_gmt":"2024-12-22T10:35:19","slug":"the-human-element-of-e-commerce-profitability","status":"publish","type":"insight","link":"https:\/\/www.radial.com\/eur\/insights\/the-human-element-of-e-commerce-profitability","title":{"rendered":"The path towards e-commerce profitability"},"content":{"rendered":"\n<div class=\"interior-page-block-area\">\n\t\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Step #1<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Ecommerce <strong>profitability<\/strong> starts with building a high-performing <strong>team<\/strong>. That requires careful selection, fostering a positive environment, and establishing clear processes. Empowering team members, focusing on long-term goals, and protecting the team from distractions are crucial for sustained growth and profitability.<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Want profitable e-commerce? Start with the people who make it happen.<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>After almost 20 years in e-commerce, one thing&#8217;s become crystal clear: while fancy tech and trendy platforms are all the rage, true success begins with something far more fundamental \u2013 the human element. Or, better, the right mix of <strong>people and processes<\/strong>.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Running digital operations for electronics and high-end <strong><a href=\"https:\/\/www.radial.com\/eur\/insights\/the-rising-tide-of-fashion-e-commerce-returns\">fashion<\/a><\/strong> brands for more than two decades, plus various startup and consulting projects, showed me that the journey to e-commerce profitability starts with these three steps:<\/p>\n<\/div>\n\n<div class=\"core-list-block\">\n<ul class=\"wp-block-list\">\n<li>Finding people who will like each other. Always involve the existing team when hiring the new members.<\/li>\n\n\n\n<li>Create a safe, fun-loving environment.<\/li>\n\n\n\n<li>Implement a degree of daily discipline &#8211; i.e. Agile methodology is great for that &#8211; and a few simple processes.<\/li>\n<\/ul>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">The role of the leader<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>If you are a digital leader, understand that your role is not about driving metrics. It&#8217;s about building leaders who can drive those metrics better than yourself. When each specialist becomes stronger than you in her domain, that&#8217;s when the magic starts.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Then, there&#8217;s team composition. Forget the standard talk about collaboration and synergies. What you need is <strong>alchemy<\/strong>. Not the usual clich\u00e9s of team play, chemistry, and the vague invitations to collaboration. That doesn&#8217;t come by itself. It must be built. The role of the leader is to create very precise yet flexible areas of <strong>responsibility<\/strong>, and assign a person to each of them: User Experience. Conversion Rate Optimization. Performance Marketing. Content Maintenance. Product Catalog. CRM. <a href=\"https:\/\/www.radial.com\/eur\/ecommerce-fulfillment\">Fulfillment<\/a>. It&#8217;s a long list.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Every member on the team must have a <strong>mission<\/strong>, and it must her only mission. She must be accountable for it. All duplications and overlappings must be prevented. Once you have a team of accountable people, which means <em>leaders<\/em>, you need the alchemy: not the sum of the elements, but something completely new, bigger, better, more resilient. By then, you have to move to the background, step down from the stage. It&#8217;s not you who&#8217;s creating results, it&#8217;s your team of alchemists.<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Alchemy<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Alchemy takes time. The process of transformation is everything. Short term results and silver bullets are for the dreamers, for those who hope for shortcuts.<br>Forget goals, create <strong>processes <\/strong>and stick to them, instead. Make sure they are maintained. They won&#8217;t stay up if you don&#8217;t prop them every single day with your work: is the goal clear to everyone? Is the <strong>roadmap <\/strong>stable through the year? Are the <strong>roles and the responsibilities<\/strong> understood by each team member? Do they feel accountable for the results expected from them?<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">No silver bullets<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Building a high-performing e-commerce team is analogous to the sustained effort required to build a championship-caliber <strong>sports team<\/strong>, demanding consistent practice, disciplined adherence to strategy, and the resilience to withstand the pressure to deviate from the long-term vision.<br>There are no quick fixes, no silver bullets. Focus on building robust, sustainable processes. When we prioritized perfecting our customer data processes over chasing short-term sales goals, we actually saw a significant uptick in revenue.<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Playing defense<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>And let&#8217;s be honest, a significant part of the digital leader&#8217;s job is playing defense. In large organizations, everyone from the CEO to the janitor has an opinion on your website, your app, your content, your marketing campaigns. Everyone becomes instantly an expert when confronted with a photograph, a headline, a color palette. Your role? To shield your team of actual experts from this cacophony of voices, allowing them the space to experiment, to test, to learn. You can&#8217;t optimize <strong>conversion rates<\/strong> in between ten daily meetings, or with the Head of Accounting suggesting a different color for the CTA&#8217;s of your online shop. You have to manage the interferences and let the team focus on execution while you handle the politics.<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">The supplier ecosystem<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Then there&#8217;s the <strong>supplier ecosystem<\/strong>. When to bring capabilities in-house? When to leverage external expertise? These aren&#8217;t just cost decisions &#8211; they&#8217;re about team evolution. The best digital leaders know when to build internal strengths and when to lean on <strong>partners<\/strong>. It&#8217;s a constant balancing act.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Our supplier relationships proved crucial. When we aligned our partners with our vision for strong, consistent processes &#8211; particularly in areas like <strong><a href=\"https:\/\/www.radial.com\/files\/2024\/08\/19\/reverse-logistics.jpg\">logistics<\/a> <\/strong>and customer experience &#8211; the impact on performance was significant.<\/p>\n<\/div>\n\n<div class=\"core-heading-block\" data-heading-level=\"2\">\n<h2 class=\"wp-block-heading\">Trust the process<\/h2>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>&#8220;Trust the process&#8221; isn&#8217;t just a catchphrase &#8211; it&#8217;s survival. When we focused on protecting our processes rather than chasing quick wins, that&#8217;s when sustainable growth happened.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>The lesson? In e-commerce, your competitive advantage doesn&#8217;t come from technology alone. It comes from the <strong>collective skills<\/strong> of your team, the clarity of your management, and the integration of your partners into a shared vision of success.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>In e-commerce, profitability starts with well-oiled processes run by focused teams. Everything else is just wishful thinking.<\/p>\n<\/div>\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><a href=\"https:\/\/www.linkedin.com\/in\/petruzzellis\"><img fetchpriority=\"high\" decoding=\"async\" width=\"533\" height=\"800\" src=\"https:\/\/www.radial.com\/files\/2024\/12\/matteo_halle2.jpg\" alt=\"\" class=\"wp-image-69080 size-full\" srcset=\"https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2.jpg 533w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-200x300.jpg 200w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-400x600.jpg 400w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-240x360.jpg 240w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-480x720.jpg 480w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-418x628.jpg 418w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-498x748.jpg 498w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-153x230.jpg 153w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-306x460.jpg 306w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-267x400.jpg 267w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-164x246.jpg 164w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-328x492.jpg 328w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-220x330.jpg 220w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-440x660.jpg 440w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-300x450.jpg 300w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-293x440.jpg 293w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-50x75.jpg 50w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-100x150.jpg 100w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-96x144.jpg 96w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-192x288.jpg 192w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-83x125.jpg 83w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-167x250.jpg 167w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-333x500.jpg 333w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-430x646.jpg 430w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-152x228.jpg 152w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-304x456.jpg 304w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-426x640.jpg 426w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-313x470.jpg 313w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-341x512.jpg 341w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-281x422.jpg 281w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-125x188.jpg 125w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-251x376.jpg 251w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-345x518.jpg 345w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-233x350.jpg 233w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-466x700.jpg 466w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-31x46.jpg 31w, https:\/\/www.radial.com\/wp-content\/uploads\/2024\/12\/matteo_halle2-61x92.jpg 61w\" sizes=\"(max-width: 533px) 100vw, 533px\" \/><\/a><\/figure><div class=\"wp-block-media-text__content\"><div class=\"core-paragraph-block\">\n<p><a href=\"https:\/\/www.linkedin.com\/in\/petruzzellis\/\">Matteo Petruzzellis<\/a> is a digital commerce leader with over 20 years of experience scaling e-commerce and digital marketing operations for premium brands such as Nokia, <a href=\"https:\/\/www.wolford.com\/en-us\/\">Wolford<\/a>, <a href=\"https:\/\/us.akris.com\/\">Akris<\/a>, where he built high-performing teams that delivered both growth and profitability.<br>His consultancy work through In&amp;Out People &#8211; including roles as Marketing Director at <a href=\"https:\/\/shop.classicdesignitalia.com\/\">Classic Design Italia<\/a>, CMO at Return on Art, VP Sales &amp; Marketing at <a href=\"https:\/\/www.platforme.com\/\">PlatformE<\/a>, Global Head of Digital Sales at <a href=\"https:\/\/www.artbasel.com\/\">Art Basel<\/a> &#8211; involved advising on digital marketing strategy, email marketing optimization, CRM development, and P&amp;L restructuring.<\/p>\n<\/div>\n\n<div class=\"core-paragraph-block\">\n<p>Currently Marketing Director at Radial Europe, he leverages his expertise in e-commerce to help the Sales team matching with B2C brands in need of strong bespoke fulfillment solutions.<\/p>\n<\/div><\/div><\/div>\n\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"featured_media":69066,"template":"","insight_type":[],"solution":[427,399],"class_list":["post-69065","insight","type-insight","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/69065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":8,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/69065\/revisions"}],"predecessor-version":[{"id":69094,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight\/69065\/revisions\/69094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media\/69066"}],"wp:attachment":[{"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/media?parent=69065"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/insight_type?post=69065"},{"taxonomy":"solution","embeddable":true,"href":"https:\/\/www.radial.com\/eur\/wp-json\/wp\/v2\/solution?post=69065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}