Implementing new sales channels opens up additional revenue sources for a company, but also entails entry and operational costs. Profitability analysis allows you to verify which platforms generate real profit and which may burden the budget. In this article we will discuss, step by step, how to assess the cost-effectiveness of new sales channels — from their identification, through measuring costs and revenues, to optimizing your channel portfolio based on hard data.
Table of Contents
Identification and classification of potential channels
First, compile a list of possible channels: marketplace stores (Amazon, Allegro), social commerce (Facebook Shops, Instagram Checkout), B2B and B2C platforms, mobile sales (apps), or even traditional partner networks. Each has different technological, marketing and logistical requirements.
Next, classify them by strategic importance: primary channels (high sales volume), complementary channels (niche customer groups) and experimental channels (still under testing). This helps set priorities — develop those with the greatest ROI potential first, then test the others.
It’s also worth considering product characteristics and target audience. Some channels work best for quick, impulsive purchases (social commerce), others for planned, comparative buys (marketplaces). At the identification stage, define which metrics will be key for your evaluation.
Measuring revenues and costs in selected channels
To calculate profitability, gather all revenue data: gross or net sales value, subscription fees, order commissions and additional logistics charges. Ideally, pull this information automatically via each platform’s API into your integrated CRM system.
On the cost side, include storefront or listing fees, marketplace commissions, advertising and promotion expenses within the channel, plus customer support and returns handling. Add in channel-specific warehousing and shipping costs, which often differ from standard logistics.
Crucially, assign all these expenditures to the correct channel to avoid mixing costs across channels. Transparent accounting and tagging of expense items in your financial system enable reliable reporting and precise ROI calculations.
Defining performance indicators (KPI)
Beyond classic ROI, establish additional KPIs to aid analysis: gross margin per channel, customer acquisition cost (CAC), average order value (AOV), customer lifetime value (LTV) per channel, and return or complaint rates.
For digital channels, add advertising efficiency metrics: click-through rate (CTR), cost per click (CPC), cart and checkout conversion rates. Combined with ad spend, these KPIs help scale budgets where they deliver the highest returns.
Regularly review these metrics — weekly, monthly and quarterly — to spot growth or drop-off trends and identify areas needing intervention, such as channels with high CAC or low LTV.
Comparative analysis and profitability matrix
Once you have complete data, plot your channels on a profitability matrix: X-axis for generated revenue, Y-axis for margin or ROI. This quickly highlights “stars” (high revenue, high ROI), “cash cows” (high revenue, low ROI), “question marks” (low revenue, high ROI) and “zombies” (low revenue, low ROI).
Based on this matrix you decide: scale up “stars,” optimize costs for “cash cows,” selectively test and scale “question marks,” and consider sunsetting “zombies” to free up resources.
Support your comparative analysis with BI dashboards that let you filter by product, season or region. This shows whether a channel’s profitability shifts by context, guiding more granular budget allocation.
Optimizing and scaling profitable channels
Using analysis results, implement optimizations: renegotiate marketplace commissions, streamline fulfillment processes, automate ad campaigns and test new communication formats. The goal is to continuously raise margin and lower customer acquisition costs.
Scale gradually: increase ad spend first in the highest-ROI channel, monitor proportional revenue growth, then expand product offerings or enter new markets within that channel. Maintain balance, as too-rapid growth can create operational bottlenecks.
A common thread in optimization is continuous testing: A/B test pricing, campaign creatives and bundled offers. With automated reporting and real-time analysis, you can quickly identify top performers and roll them out at scale.
Maintaining and monitoring the channel portfolio
Even the most profitable channel requires ongoing oversight. Establish regular review cycles — quarterly and annual — to verify that profitability still meets expectations and to spot emerging competitive platforms.
Monitoring tools should generate alerts when ROI falls below set thresholds or when costs spike unexpectedly. Early warning triggers allow prompt intervention, avoiding losses from inefficient operations.
Finally, keep your channel portfolio fresh: add new platforms, experiment with innovative solutions (social commerce, livestream shopping) and phase out channels that have lost profitability. Such dynamic channel management ensures you maintain a competitive edge in the e-commerce market.
Read the article in Polish at: Analiza rentowności nowych kanałów sprzedaży
