For forward-thinking retailers, achieving sustainable eCommerce profitability is vital. As customer acquisition costs rise and margins tighten, eCommerce profitability demands smarter decision-making across merchandising management, customer acquisition, retention, supply management, pricing and customer experience.
So, how can you increase eCommerce profit without resorting to guesswork? That’s where Conjura comes in. Our platform helps retail and DTC brands transform their performance data into real, actionable insights – all the way down to SKU level.
In this article, we will explore how four different retail businesses used Conjura to “pull key profit levers” (see diagram below!) – opening new channels, pushing high-LTV products, optimising ad spend, and lowering COGS, to significantly maximize profitability.
Why Profitability is the New Growth Metric
Before we dive into the tactics, let’s acknowledge the big shift happening in eCommerce: profitability is the new growth.
Brands are increasingly under pressure to show not just top-line growth, but bottom-line sustainability. And with so many levers to pull – pricing, marketing, inventory, customer targeting, it can be hard to know where to focus.
That’s why Conjura exists. We help brands take the guesswork out of growth by showing how every SKU, ad campaign, and customer segment contributes to your bottom line.
Let’s break down these 4 important “levers” and how our customers used Conjura to drive smarter decisions and better margins.
Profit Lever #1: Acquiring New Customers – With Margin in Mind
Customer acquisition is the lifeblood of any retail business. But let’s be honest, not all customers (or channels) are created equal. You might be acquiring customers at scale, but if you’re doing it through unprofitable products or expensive channels, you’re losing money every time someone checks out.
How this brand used Conjura to increase profit:
One fast-growing supplement brand used Conjura’s Product Table and Product Deep Dive dashboards to understand contribution margin by channel – DTC vs. marketplaces vs. wholesale. They were able to answer critical questions like:
- Which SKUs are profitable in each channel?
- Are we spending more to acquire a customer than they’re worth?
- Are marketplaces dragging down our margins?
By focusing on the most profitable SKUs and selectively expanding into the best-performing channels, they saw a 15% increase in contribution margin.
Takeaway: Conjura helps you evaluate CAC and contribution margin side-by-side, so you can acquire the right customers in the right places.
Profit Lever #2: Selling High-LTV Products to Existing Customers
It’s common knowledge that it’s cheaper to keep a customer than find a new one. But here’s the next-level insight: some products are better than others at building long-term customer value.
How this brand used Conjura to maximize eCommerce profitability:
A pharmacy brand dug into Conjura’s Product Table to identify SKUs that led to higher customer lifetime value (LTV). They found a set of products that had an LTV 5X higher than their average order value.
These products weren’t always their best sellers, but they drove repeat purchases and long-term loyalty. So, they shifted their email campaigns, loyalty promos, and retargeting ads to focus on those high-LTV SKUs.
The result? A 12% increase in revenue from existing customers.
Takeaway: Not all repeat purchases are equal. Use Conjura to zero in on the products that turn first-time buyers into long-term customers.
Profit Lever #3: Focusing Ad Spend on Profitable Products
Most eCommerce brands use platforms like Google Performance Max or Meta Advantage+ to manage their product ads. But letting ad platforms decide what to push can result in overspending on low-margin or unprofitable SKUs.
How this brand used Conjura to increase eCommerce profit:
A furniture brand used Conjura’s SKU-level ad spend tracking to evaluate which products were worth promoting. They found that several products with high ad budgets were actually returning negative contribution profit.
By removing those SKUs from their ad feeds/platforms and focusing spend on high-margin products, they turned their ad strategy around.
The impact? A 60% increase in contribution profit from ad campaigns, without increasing total spend.
Takeaway: Your ad platforms are powerful, but they’re not margin-aware. Conjura helps you take control by aligning your ad spend with actual product profitability.
Profit Lever #4: Lowering COGS to Boost Margins
Revenue gets the headlines, but lowering your cost of goods sold (COGS) is one of the fastest ways to maximize profitability. Yet many brands don’t have clear visibility into which SKUs are dragging down margins, or how to fix them.
How this brand used Conjura to lower COGS:
A homeware retailer used Conjura’s contribution margin analysis to identify their most unprofitable SKUs. With data in hand, they went back to suppliers and renegotiated costs on key underperforming products.
In some cases, they discontinued SKUs entirely or found alternative suppliers. The result was a 40% increase in contribution profit, all driven by better supply-side decisions.
Takeaway: Conjura gives you the clarity to have better supplier conversations and make smarter product decisions. Lowering COGS doesn’t require a total overhaul, just better data.
How to Use Conjura to Increase eCommerce Profit
Let’s talk tech. Here’s how to use Conjura to put these profit levers into motion.
🛠 Product Table: Get SKU-level visibility into gross revenue, ad spend, COGS, refunds, and contribution profit. Filter by channel, customer type, or product category.
📊 Performance Overview: See high-level trends across channels, stores, and countries. Spot where your business is gaining (or losing) profitability.
💸 LTV Analysis: Dive into customer lifetime value by cohort, acquisition product, or channel. Track CAC vs. LTV over 12 months.
📦 Actions Dashboard: Receive recommended actions like “Stop Advertising,” “Increase Prices,” or “Boost Sales” based on your specific performance data.
🔁 Daily Summaries: Wake up to automated email updates summarising yesterday’s key movements in sales, profit, and SKU performance.
Bonus: Conjura integrates with Shopify, Google Ads, Meta, TikTok, BigCommerce, Amazon, and more, so you get all your eCommerce and marketing data in one place. No more spreadsheets. No more guessing.
Questions to Ask Your Team Today
If you want to increase eCommerce profit, here are some high-leverage questions to ask internally:
On Acquisition:
- Which SKUs are acquiring customers with strong LTV?
- Are any acquisition channels consistently delivering low or negative margin?
On Retention:
- What products drive repeat purchases and long-term loyalty?
- Are we nurturing high-value customers differently from low-value ones?
On Ads:
- Are we promoting profitable SKUs—or just popular ones?
- Which products are soaking up spend without delivering return?
On COGS:
- Can we renegotiate or drop our least profitable SKUs?
- Are there suppliers or logistics partners costing us more than they’re worth?
These aren’t just data points – they’re revenue opportunities waiting to be unlocked with the right tools.
Let’s Talk About Your Data
Want to find out how much profit you’re leaving on the table?
Book a free consultation with our team and let’s chat about how Conjura can help you unlock hidden profit in your business.