E-commerce
September 30, 2026
Wondering how to analyze e-commerce profitability in 2022? The answer lies in a single figure: nearly half of all online brands lose an average of $29 on every new order. Understanding this loss is essential to adjusting your strategy and aiming for profitability.
In 2022, acquisition costs climbed by up to 60%, while loyal customers generate the bulk of the profit. The challenge is to reduce these losses while increasing the value of each customer. This analysis is based on concrete data and practical actions you can implement today.
So how do you analyze e-commerce profitability in 2022? On the agenda:
Why are new orders rarely profitable?
How to reduce acquisition costs after an ad click?
What concrete actions can be taken to reduce product returns?
How to capture visitors' identities to build loyalty?
What role does data protection play in your profitability?
Let's go.
Summary
Why are new orders rarely profitable?
In 2022, nearly half of pure-play e-commerce brands operate at a loss. Each new order costs on average $29 more than it brings in. This finding is explained by the rise in acquisition costs, which have increased by up to 60% in just a few years. Advertising costs, discounts, and logistics costs accumulate and directly eat away at the gross margin.
Yet new orders account for three-quarters of conversions. But they absorb all acquisition, logistics, and processing costs. As a result, the first purchase is rarely profitable. This situation is worsened by increased competition on advertising channels, which is driving costs up.
To reverse the trend, you must target the second sale. Returning customers generate 43% of revenue and 100% of profit. Your goal is therefore to transform an unprofitable first purchase into a lasting relationship. This requires an impeccable customer experience and targeted loyalty actions.
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Why did the average losses per order increase?
In 2013, a new order cost brands an average loss of $9. By 2022, this loss reached $29. Acquisition costs have therefore increased significantly in nine years. This rise is explained by the saturation of advertising channels and changing consumer behaviors, as they have become more demanding and harder to convert.
Conversely, orders from loyal customers have become more profitable: $38 per order in 2022, compared to $28 in 2013. The margin on repeat purchases partially offsets the rise in acquisition costs. This trend highlights the importance of retention in your overall strategy.
This evolution confirms a principle: profitability relies on loyalty. The key indicators remain the same, but the gap between new and existing customers is widening. Your strategy must therefore prioritize retention, investing in loyalty programs and personalized experiences that encourage repeat purchases.
How to reduce acquisition costs after an ad click?
Acquisition costs directly eat away at your gross margin. With an average margin of 40%, each new customer costs more than they bring in on the first purchase. Advertising costs, discounts, and logistical costs add up. This situation is all the more worrying as advertising costs continue to rise, further reducing the profitability of campaigns.
Social networks have become the main acquisition channel. But journeys that start on these platforms often suffer from disruptions: broken links, out-of-stock products, confusing navigation. Each friction increases your acquisition cost and decreases your chances of conversion. It is therefore crucial to identify these friction points and correct them quickly.
To reduce these costs, focus on what happens after the click. A clear product page, comprehensive information, and a seamless checkout process reduce abandonment and optimize your return on ad spend. By improving the post-click experience, you maximize the value of each visitor and reduce budget waste.
What concrete actions can be taken to optimize the post-click experience?
The acquisition cost is not limited to the price of the click. It includes everything that happens after arrival on your site. A visitor who clicks on an ad and encounters a broken link or an unavailable product represents a wasted budget. Every step of the journey must be optimized to avoid unnecessary losses.
To optimize your campaigns, verify that each landing page is functional. Ensure that products are in stock, navigation is intuitive, and the checkout process is simple. These elements reduce friction and increase conversion. A regular audit of your landing pages is essential to maintain optimal performance.
A seamless post-click experience also improves your brand perception. Visitors who have a positive experience are more likely to return, even if they do not purchase immediately. By investing in the post-click experience, you create a sustainable competitive advantage that translates into better long-term profitability.
How to reduce product returns and their impact on profit margins?
Product returns represent a major cost, especially in online fashion where return rates often exceed 50%. Each return involves costs for logistics, processing, and sometimes restocking. These costs add to the losses already generated by new orders, further worsening the financial situation.
To reduce these returns, rely on effective tools: precise size guides, realistic photos, product videos, and live chat. These elements help customers make the right choice from the start. A detailed description and authentic customer reviews also reduce unpleasant surprises and disappointments.
A clear return policy and detailed descriptions also decrease impulse purchases and disappointments. Fewer returns mean a better margin on each order, even for new customers. By optimizing these aspects, you improve customer satisfaction and reduce operational costs related to returns.
How to capture visitors' identity to build loyalty?
Less than 1% of first-time visitors buy immediately. But second-time visitor conversions are nine times higher. This difference shows the importance of capturing your visitors' identity from the very first visit. Without this data, you lose the opportunity to follow up and convert them later.
Offer incentives to leave an email address: discount on the first purchase, exclusive content, early access to sales. This data allows you to follow up with visitors who did not buy. Forms must be simple and quick to fill out to maximize the capture rate.
Segmented emails and retargeting ads are powerful levers to transform a hesitant visitor into a customer. The more you know your visitors, the more you can personalize your messages and increase your chances of conversion. Data collection is therefore a strategic investment for your profitability.
How to adapt your message according to buying intent?
Not all visitors have the same buying intent. A visitor coming from a social network often has low intent, looking for entertainment. A visitor returning to a product page is much closer to making a purchase. This distinction is crucial for adapting your communication strategy.
Adapting your message to these two profiles is essential. For new visitors, reassure and educate. For returning visitors, highlight concrete benefits and social proof. Personalized communication increases the relevance and effectiveness of your campaigns.
Ad retargeting is particularly effective for returning visitors. Consistent and personalized messages encourage them to finalize their purchase. This approach increases conversion without increasing your acquisition costs. By segmenting your audiences, you optimize every dollar spent on advertising.
What role does data protection play in your profitability?
Cookie-free browsers, iOS changes, and privacy regulations are complicating data collection. These developments make acquisition more difficult and customer retention more crucial. Brands must adapt quickly to avoid losing their competitive edge.
To remain profitable, focus on owning your customer data. Obtain their consent to contact them and build a direct relationship, independent of advertising platforms. First-party data has become a major strategic asset for any e-commerce brand.
Transparency in data usage builds trust. Customers who understand why you collect their information are more likely to share it. This trust translates into better loyalty and increased profitability. By adopting an ethical approach, you differentiate yourself and build long-term loyalty.
How to measure the value of loyal customers?
Loyal customers are the engine of your profitability. They represent a quarter of conversions but generate 43% of revenue and all of the profit. Measuring their value is therefore essential to guide your strategic decisions. Without this measurement, you risk underinvesting in retention.
Track indicators such as purchase frequency, average basket size, and repeat purchase rate. This data tells you if your loyalty strategy is working and where to focus your efforts. Regular dashboards allow you to detect trends and adjust your actions accordingly.
Also compare the profitability of new and existing customers. This analysis helps you adjust your advertising budgets and invest more in retention, which offers a better return on investment. By optimizing this distribution, you maximize your overall profit.
What actions can be taken to secure the second sale?
The second sale is the key moment for profitability. To secure it, implement simple but effective actions. Post-purchase follow-up is essential: thank the customer, offer complementary products, and ask for a review. These gestures strengthen the relationship and encourage repeat purchases.
Loyalty programs and offers reserved for existing customers encourage repeat purchases. Personalize your recommendations based on purchase history to increase relevance. A customer who feels understood is more likely to return and spend more.
Finally, take care of customer service. A fast and helpful response transforms a neutral experience into a lasting relationship. Satisfied customers return more often and spend more on each visit. Investing in customer support is therefore a profitability lever not to be overlooked.
How does Qstomy improve your e-commerce profitability?
Qstomy, an AI Shopify agent, supports merchants in their profitability strategy. By guiding customers towards purchasing, it increases the average order value and conversion rate. Its personalized recommendations and cross-selling suggestions turn every visit into an opportunity. AI enables scale personalization, impossible to achieve manually.
Qstomy also tracks packages and manages customer service. An informed and reassured customer is more likely to return. By reducing post-purchase friction, Qstomy improves satisfaction and loyalty. This automation frees up time to focus on higher value-added tasks.
Finally, Qstomy helps reduce acquisition costs by optimizing the customer experience. A seamless and personalized journey increases the likelihood of conversion, making every ad click more profitable. By integrating Qstomy, you are investing in a tool that directly improves your margin.
Checklist, summary, and FAQ
Checklist for your analysis
Calculate your average loss per new order.
Identify your acquisition costs by channel.
Measure the return rate and its impact on margin.
Track the value of loyal customers.
Optimize the post-ad-click experience.
In brief
E-commerce profitability relies on customer retention. Reduce acquisition costs, decrease returns, and capture the identity of your visitors to build a lasting relationship. Every action counts towards improving your margin.
FAQ
Why are my new orders unprofitable? Acquisition and logistics costs absorb the margin of the first purchase. Profitability comes from repeat purchases.
How can I reduce my acquisition costs? Optimize the post-click experience: functional pages, products in stock, clear navigation.
What is the impact of returns on my margin? Returns increase logistics costs. Size guides and realistic photos reduce them.
To go further: What e-commerce strategy for a small brand under $100,000/month? - Qstomy, What are the e-commerce strategies? Types and choices - Qstomy, Integrating customer service answers into an e-commerce SEO strategy useful to customers - Qstomy, E-commerce CRM and customer support: using the right data to respond better - Qstomy, What e-commerce marketing strategy without an ad budget? - Qstomy, E-commerce SEO strategy for category pages - Qstomy, E-commerce first response time: what impact on conversion and loyalty? - Qstomy.
Enzo
September 30, 2026
