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Why Pricing Is the Silent Killer of eCommerce Profitability

Why Pricing Is the Silent Killer of eCommerce Profitability

Why Pricing Is the Silent Killer of eCommerce Profitability

Oct 6, 2025

Oct 6, 2025

Most eCommerce teams treat pricing as a reaction.

Competitors move.
Platforms change rules.
Promotions spike volume.
Margins quietly absorb the damage.

Revenue grows.
Profit thins.

Pricing is adjusted constantly, yet very rarely designed.

In many organisations, pricing sits in between:

  • Marketing chasing growth

  • Sales chasing volume

  • Finance chasing margin

  • Operations chasing inventory clearance

Everyone influences pricing.
No one truly owns it.

Common signs of reactive pricing:

  • Promotions launched without contribution analysis

  • Discount depth decided by “what worked last time”

  • Buy Box strategy disconnected from profit reality

  • D2C and marketplace prices drifting out of alignment

  • Margin measured after the fact, not before the decision

The business moves faster.
Control disappears quietly.

Pricing is not a lever.

It is a system.

A system that connects:

  • Cost structure

  • Channel roles

  • Inventory exposure

  • Media efficiency

  • Customer behaviour

  • Brand positioning

When pricing is not architected as a system, it becomes a patchwork of decisions made under pressure.

High-performing commerce organisations design pricing with intent.

They establish:

  • Clear price corridors per channel

  • Defined discount authority

  • Promotion calendars tied to inventory and margin

  • Media spend linked to contribution, not just revenue

  • One commercial truth shared by marketing, finance, and operations

Pricing stops being reactive.
It becomes protective.

Most brands think they have a traffic problem.
In reality, they have a pricing architecture problem.

Nu8 treats pricing as part of the operating model.

Not a tactical adjustment.
Not a spreadsheet exercise.
But a leadership system that protects growth.