eGross Profit has the power to rationalise eCommerce
People need good information to make good decisions. The gaps in eCommerce information has led to an industry wide lack of visibility and control of profit. Importantly - the information gaps have led to poor trading decisions due to an absence of itemised traffic costs.
2024 will see the eCommerce industry market AI as a universal panacea - yet the problem AI solves has not yet been fully defined. The singular problem and goal in eCommerce is PROFIT - and AI is just another means to that end.
If you want to understand how eCommerce operates - the maths is critical. If Merchant success means profit - a basic calculation takes you from Traffic to Net Profit - and this calculation should be central to all eCommerce operations.
The MATHS behind eGross Profit underpins eCommerce
Merchant Profit is the Ends with Technology and Services the Means
Some say it is decades overdue but IRP predicts that 2024 will be the year that eCommerce success is simply measured in profit - aided by the fact that profit can now be seen in real time.
Uncertainty in eCommerce is only sustained by one single critical tracking and accounting gap. To fill this gap IRP created two new eCommerce metrics - eGross Profit and eGross Margin. These are the Gross Profit and Gross Margin after traffic spend.
eGross Margin Predicts Net Profit in Realtime
These accounting innovations mean that net profits are predictable. eGross Margin becomes the real time number to watch that puts Merchants in control. In 2024 IRP believes that, in the final analysis, ‘Merchant Net Profit’ is the only eCommerce metric worth talking about.
When a Merchant knows their eGross Margin there is no longer any fundamental missing information - and Merchants can control traffic spend through a competitive Service Marketplace.
“eCommerce is Trading - Profit is the Success Metric of Trading"
Les Curran - IRP CCO
Solving Visibility and Control in eCommerce
So when things are tough - and you are looking for an eCommerce panacea in 2024 - don't chase shiny objects. Some basic maths is your superpower. Understand Net Profit and you don't just understand eCommerce - you understand the fundamental nature of all business.
How will IRP help companies in 2024? IRP is the only eCommerce platform that can show you eGross and Net Profit Position in real time. When you have this information you have the fundamental visibility and control you need. eGross Margin - the predictor of Net Profit - creates a new solid foundation for eCommerce - one that is rational and based on Merchant profit.
V10 IRP Roadmap - built for Visibility, Control and Profit. The Power of Data Intelligence combined with the Service Marketplace provides merchants with a strategic advantage.
