Online Companies are Focusing on Unit Economics, Customers: Report
E-Retailers Focusing on turning unit economics positive and customer retention as opposed to the prior focus on gross merchandise value, a recent report said.
"We believe this may be a function of limited availability of capital, leading companies to focus on cash generation. Post government regulations that curtailed discounts, companies seem to have done away with the same; most discounts being seen online are being offered by sellers or brands themselves," a study by Kotak Institutional Equities said.
Gross merchandise value is the total sales value of goods sold through a marketplace.
Most companies surveyed are also evaluating other revenue streams such as advertising and online content to better leverage their platform, it added.
Customer retention, recall and loy...