Inventory Management: The New Math
Catalog/e-commerce profit planning becoming a complex, hybrid process
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Ray Goodman
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When e-commerce merchants spend advertising dollars, they're usually not directly attributable to individual products. Yet dollars are being spent on resources, including staff for website management and/or third-party providers for web development, SEO management, pay-per-click campaigns, affiliate marketing and other unmeasured resources. For a business to be sustainably profitable, the individual products must generate enough gross margin to pay their shares of the advertising expense.
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