New VTEX Research Explores How Retailers Can Meet 2023 Profitability Targets

Rhea-AI Summary

VTEX, a global enterprise digital commerce platform, launched a research paper titled 'Three Investments to Drive Ecommerce Growth' at NRF 2023. The study highlights critical investment areas for retailers to combat ecommerce challenges and enhance profitability amidst economic headwinds. Conducted with AWS, it suggests focusing on better customer engagement, strengthening inventory and fulfillment, and innovating customer interaction methods. Notably, 37% of retailers reported that ecommerce isn't meeting profitability targets. The report aims to provide actionable insights for retailers to achieve their 2023 profitability objectives.

Positive

• VTEX's research identifies key investment areas to boost profitability for retailers.
• The report emphasizes improving customer engagement, inventory management, and innovative interaction methods, providing actionable insights.

Negative

• 37% of retailers claim their ecommerce strategies are failing to meet profitability targets.
• Retailers face financial pressures and shifting consumer demands, complicating the path to profitability.

The research paper, launched at NRF 2023, discusses the top three investments brands and retailers should make to drive customer engagement and profitability this year

NEW YORK, Jan. 16, 2023 /PRNewswire/ -- VTEX (NYSE: VTEX), the global enterprise digital commerce platform for premier brands and retailers, has launched its new retail profitability research paper, "Three Investments to Drive Ecommerce Growth," at NRF 2023.

The research, powered by VTEX partner AWS, highlights important investment opportunities for retailers looking to earn profitable growth, despite the economic headwinds ahead. It specifically dives into ecommerce challenges, the new era of profitability and how retailers can achieve that profitability in 2023 by putting the attention back on the customer and their evolving needs.

Since the beginning of COVID-19, the rules of commerce have been rewritten, and an increased emphasis on growth over profitability consumed retailers. Despite this shift, a recent study by Publicis Sapient showed that 37% of retailers say ecommerce isn't meeting their profitability targets.

"The pandemic ignited the Era of Growth at All Costs, but now retailers are facing higher expectations while fighting a perfect storm of financial challenges and shifting consumer demands," said Jordan Jewell, the report's author, former IDC analyst and current director of Merchant Growth Strategy at VTEX. "Retailers are feeling the pressure to generate profit, and they're not quite sure which investments will help them move the needle and give them the ROI they need to see. Through our finds from this research, we give retailers the tools they need to make the right decisions for them and their business to do just that."

In evaluating what will drive long-term growth, VTEX recommends to focus on three key investments:

• Get more out of the customers you already have. The majority of a brand's profits come from their most loyal customers, so investing in those select customers can make a huge difference in profitability. Retailers investing in this sector should focus their initiatives on customer retention, collecting first-party data and cross-channel communication.
• Make inventory and fulfillment your strength. VTEX research shows 55% of brands are still in the early stages of the omnichannel maturity curve. Investing in this strategy – specifically inventory management, order management and supply chain – can improve customer satisfaction. These initiatives should focus on treating fulfillment like a product, unifying inventory and harnessing marketplace models.
• Engage with customers in new ways. The digital commerce market is more fierce and competitive than ever before. So brands need to step outside their traditional customer experience tactics to better engage with consumers, like through video commerce and immersive product pages, to boost conversion rates and differentiate themselves from the crowded space.

To access the full report, please visit: bit.ly/VTEX3Investiments. To meet with VTEX at NRF and learn more about the report and how VTEX supports retailers in reaching 2023 profitability targets, find them at booth #6245.

About VTEX
VTEX (NYSE: VTEX) is the enterprise digital commerce platform where global brands and retailers run their world of commerce. VTEX puts its customers' businesses on a fast path to growth with a complete Commerce, Marketplace, and OMS solution. VTEX helps global companies build, manage and deliver native and advanced B2B, B2C, and Marketplace commerce experiences with unprecedented time-to-market and without complexity.

As a leader in digital commerce platforms, VTEX is trusted by more than 2,400 customers, including AbInbev, Carrefour, Colgate, Motorola, and Whirlpool, having over 3,200 active online stores across 38 countries (as of FY ended on December 31st, 2021). For more information, visit www.vtex.com.

CONTACT: Rachel Goodwill for VTEX, rachel.goodwill@walkersands.com

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SOURCE VTEX

FAQ

What is the main focus of VTEX's research launched at NRF 2023?

The research focuses on key investments that can drive customer engagement and profitability for retailers.

What are the three key investments recommended by VTEX?

VTEX recommends focusing on customer retention, improving inventory and fulfillment, and engaging customers through innovative methods.

How many retailers report that ecommerce does not meet profitability targets according to the research?

The research indicates that 37% of retailers say ecommerce does not meet their profitability targets.

Who partnered with VTEX for the research paper on ecommerce growth?

The research was powered by VTEX partner AWS.

Where can I access the full VTEX research report?

The full report can be accessed at bit.ly/VTEX3Investiments.