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Why ROAS can't be trusted and what to use instead to maximize contribution margin

Henrik Hoffman - 2024-02-21

Explore the shortcomings of using ROAS as the sole metric for e-commerce success and discover "epROAS" as a superior metric of marketing efficiency. This post delves into practical and theoretical examples, offering insights into essential data requirements for aligning marketing strategies with true profitability.

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Why e-commerce needs Marketing Mix Modeling

Marcus Tagesson - 2024-01-30

Mastering the art of marketing budget allocation is more crucial than ever. As someone who scaled a multi-brand e-commerce venture in the 2010s, Dema Co-Founder Marcus has experienced firsthand the provoking task of managing a substantial marketing budget across diverse markets and thousands of products.

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E-commerce Retention Explained: Customer Churn & Why It Matters

Henrik Hoffman - 2024-01-25

A comprehensive guide to e-commerce retention and churn. How to approach it, measure it, and how to continuously analyze it.

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A comprehensive introduction to AI Data Analysis in e-commerce

Henrik Hoffman - 2024-01-08

AI data analysis enhances decision-making in e-commerce, offering rapid, precise insights for optimizing products, marketing, and profitability using ML.

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How Visual Merchandising Can Improve E-commerce Profitability

Henrik Hoffman - 2024-01-04

Visual merchandising is essential to any successful e-commerce business and can improve your overall profitability.

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How E-commerce Companies Should Allocate Marketing Budget Between Markets to Maximize Profitable Growth

Marcus Tagesson - 2023-11-14

Why you should not use ROAS when allocating your marketing budget between markets: since variable costs naturally differ a lot between countries, you need to use a profit-based metric, such as Profit ROAS, which we call epROAS.

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Optimizing Discounts: A Data-Driven Guide to Profitable Discounting in Ecommerce

Henrik Hoffman - 2023-09-27

Learn how to implement effective discount campaigns that let you maintain profitability.

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Unlocking Profitable Growth Globally: A Data-Driven Approach to Selecting the Markets to invest in

Marcus Tagesson - 2023-09-18

Dema's tips and tricks on successfully optimizing your budget allocation between different countries for your e-commerce business.

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Set a free shipping threshold that boosts your profitability

Henrik Hoffman - 2023-09-14

Set a free shipping threshold that boosts your profitability

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Why Vanity Metrics in E-commerce is the Secret to Failure

Marcus Tagesson - 2023-09-12

While traffic, revenue, and conversion rate may seem appealing, they don't measure your business's health or long-term sustainability.

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Contribution Margin 1, 2, and 3: The Key Components of E-commerce Profitability

Henrik Hoffman - 2023-09-12

The importance of Contribution Margins (CM) in e-commerce focuses on three levels of CMs: CM1, CM2, and CM3. CM1 is the initial product margin after returns and discounts, while CM2 includes logistic costs like shipping and customs, which can vary significantly based on product type and destination. CM3 then considers marketing costs, emphasizing the need for real-time, granular tracking and optimization of these costs for a global e-commerce business using tools like Dema's e-commerce analytics platform.

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Optimize your ecommerce marketing for maximum profitability

Henrik Hoffman - 2023-08-31

Proven tactics and cutting-edge techniques enable you to shift from optimizing only for sales to profitable growth. Learn how to optimize for epROAS with Dema.

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Product Page Tactics for E-commerce Profit Optimization

Henrik Hoffman - 2023-08-24

Optimize your product pages to improve overall business profitability.

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What is e-commerce profitability?

Henrik Hoffman - 2023-08-01

This is an introduction to E-commerce Profitability: what it is—and what it's not—how to optimize for profitability—and why it is extra important in 2024.

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Optimize your business with smart attribution

Henrik Hoffman - 2023-06-05

Learn about different kinds of attribution models and how your business can benefit from using a smarter attribution model.

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