How to increase profitability in commerce? A Q&A with eCommerce expert Gireesh Sahukar

Gireesh Sahukar, VP of Implementation and Customer Solutions at commercetools, shares how enterprises shouldn’t focus on revenue growth alone. Instead, it’s time to grow revenue profitably — and leverage every sale to achieve that. 

Traditional offline commerce has stayed relatively stable over the last 25 years, while digital channels have continued to grow year after year. The real growth in commerce is happening online, but that doesn’t mean eCommerce is taking market share away from in-store retail. Instead, eCommerce is expanding the overall size of the market, making the pie bigger.

That said, many brick-and-mortar stores are struggling, especially those with undifferentiated models that rely solely on foot traffic in malls or strip malls. These businesses are finding it tough to compete against big general merchandise stores like Walmart, as well as niche and specialty retailers.

The conversation around profitability in digital channels often comes from executives who are hesitant to embrace online strategies and meet customers where they are. But the proof that online channels drive both revenue and profitability is clear — just look at platforms like TikTok, which generated $2 billion in sales last quarter.

Companies shouldn’t focus solely on generating revenue or increasing profit. It’s not an either-or decision; business success depends on doing both well.

Here’s a great example: Major brands spend millions on Super Bowl advertising (a 30-second ad costs about $8 million USD) in the hopes of generating massive sales returns. Add all the costs of ad production and related promotional activities and brands can easily spend tens of millions in such a campaign alone. But how much profit can these companies truly expect from such an investment? And how can they turn this into profitable sales? 

TV is a traditional medium. To turn attention into sales, they need to monetize the moment. How? For example, they can use QR codes or coupon codes that prompt viewers to pull out their phones and act on the impulse to buy. After all, with attention spans shrinking, brands need to convert quickly to make money and see a positive return on investment.

There are other ways to boost profitability beyond big-budget ads. They can strategically use both online marketplaces and direct-to-consumer (D2C) channels. Being on marketplaces like Amazon attracts new customers and, once someone discovers a brand there, they may visit the company’s website for additional or complementary products.

A strong D2C presence helps capture customer information (like emails) for future marketing. Offering incentives, like coupon codes and retargeting potential buyers online can drive repeat purchases and build loyalty.

Another smart move is product differentiation in different channels. For example, sell a core product on marketplaces but offer accessories or upgrades exclusively on your website. Since marketplaces might not be the best option for listing every variation, your site becomes essential for engaging that marketplace customer post-sale, maximizing sales and encouraging repeat business.

It’s hard to acquire new customers, so when you focus on increasing revenue profitably, you want to keep and focus on returning customers in the long run. Customer loyalty is key to profitability because it keeps people coming back and drives repeat sales. It’s the returning customer that you can get additional value from — and you don’t even have to spend that many marketing dollars to do so. 

Acquiring customers and growth costs money, but there are ways to grow profitability without spending too much. Educating them on your products and services is much simpler and cost-effective than bringing a brand-new customer on board. 

I recently came across a great example. When I bought a power strip, I noticed the company had designed it with a detachable plug. At first, I didn’t think much of it, but then I realized that this minor feature made the product even more useful. If I ever need a replacement plug or want an extra one for travel, I know exactly where to go: Their website.

This kind of clever product design keeps customers engaged with a brand. Instead of making a one-time purchase, I now have a reason to return for add-ons and accessories. The company even branded this feature with a unique name and trademark, making it feel like part of a larger system rather than just a standalone product.

For enterprises, innovations can turn a simple sale into an ongoing relationship. When customers feel like buying into a brand rather than just a product, they’re much more likely to stick around — and long-term loyalty can drive profitability.

Businesses can explore several innovative strategies to drive more profitable sales, including leveraging content-driven selling, like personalized recommendations and recipe integration. A great example is Woolworths in Australia, which suggests recipes based on customer shopping cart items. This smart, contextual selling enhances the shopping experience and increases product engagement.

This strategy was highly effective when I worked at Dawn Foods. We built a library of 700–800 recipes, while our largest competitor only had a few. When customers came across one of our recipes, they were exposed to dozens of ways to use our products, increasing the chances of repeat purchases. Bakeries, for example, prefer products that offer versatility — they want to display various baked goods rather than the same product in multiple places. By showing them that one ingredient can be used in various recipes, we made our products more appealing and drove higher volumes.

Ultimately, businesses can boost profitability by focusing on solutions that add value to the customer experience — whether through smart recommendations, personalized content or innovative product applications that encourage repeat purchases and larger basket sizes.

Yes and no. Businesses often look inward to cut costs, and sometimes this is necessary. But when you focus only on operational efficiency, you’re not improving the customer experience that helps generate revenue. So, it’s not only one or the other. Businesses that want to become more profitable need to think — and invest — in the customer experience. 

Dynamic pricing and AI can enhance profitability, but businesses must balance price adjustments to avoid alienating customers. Raising prices may attract new buyers while deterring others, so understanding demand shifts is key.

AI optimizes pricing by analyzing data and automating decisions, but companies must set guardrails to maintain customer trust. Beyond pricing, AI improves personalization, streamlines purchases and refines product offerings, reducing friction in the buying process.

Ultimately, the goal is not just higher margins but a seamless, value-driven shopping experience that boosts customer satisfaction and loyalty.

Composable commerce plays a crucial role in helping enterprises increase profitability by streamlining operations, reducing manual effort and enabling seamless multi-channel selling. Without the right technology, listing products across multiple marketplaces — Amazon, eBay, Walmart, Target — becomes a complex, time-consuming process that requires significant manpower. Managing the availability of products and orders from various platforms and ensuring smooth fulfillment can be equally challenging.

This is where composable commerce solutions come in. By integrating with third-party marketplaces through APIs, businesses can automate product listings, inventory updates and order management. Instead of manually handling each marketplace separately, companies can use a centralized system to push updates across all sales channels simultaneously.

The benefits extend beyond marketplaces. With the rise of retail media networks and social commerce platforms like TikTok Shop, businesses need flexible, scalable technology to adapt to new trends. A well-integrated commerce tech stack allows companies to leverage influencer-generated content, syndicate it across multiple platforms and enable shopping directly through social media.

By minimizing operational complexity and maximizing reach, composable commerce technology ensures that enterprises can scale efficiently, stay competitive and ultimately drive greater profitability.

To learn more about profitability in commerce and the role of composable technology, download our white paper, Reimagining Retail in 2025: How retailers are adapting, evolving and thriving in a changing world.