Why Enterprise Retail Brands Are Spending More on Ecommerce And Converting Less

Minal: Ankit, you work with a lot of enterprise retail brands – companies with serious ecommerce operations, real budgets, established teams. What’s the most consistent problem you’re seeing right now?

Ankit: The efficiency paradox. These brands are spending more on ecommerce than they ever have – on platforms, on paid media, on personalisation tools, on fulfilment infrastructure. And their conversion rates are flat or declining. Customer acquisition costs are up 30–50% across most categories over the last two years. Return rates are climbing. And the contribution margin on ecommerce, when you strip out the real costs, is often worse than it looks on the dashboard.