Margin Collapse: 9.7 to 0.6 in One Quarter
Margin collapse hit fulfillment operators fast: cushions fell from 9.7 points to 0.6 in one quarter. This breakdown digs into the live network data behind rising parcel costs, slower GMV growth and what it means before peak season. Eric Lemus of Deposco explains why shipping costs are rising faster than revenue, how order growth is […] The post Margin Collapse: 9.7 to 0.6 in One Quarter appeared…
Margin cushions for fulfillment operators rapidly diminished from 9.7 percentage points to just 0.6 points within a single quarter. This analysis delves into the real-time network data behind escalating parcel costs, decelerating gross merchandise value (GMV) growth, and the implications before the peak season. Eric Lemus, Deposco's Vice President of Strategy and Analytics, elucidates the reasons behind escalating shipping expenses outpacing revenue growth, the divergence between order and dollar growth, and the potential pitfalls of lean inventory as the year draws to a close.
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