Advisory services

Commerce Growth & Business Cases

Establish the business case before expanding direct commerce.

Direct-to-consumer commerce should solve a customer problem and make economic sense for the business. Kappa Strategy helps consumer products leadership teams evaluate the opportunity, define a focused test, and establish what evidence should guide the next investment.

This work is useful when a consumer products business is considering a new direct channel, extending an existing operation, or deciding whether a proposed commerce investment has enough evidence behind it.

Define the customer opportunity

Begin with who the customer is, what they need, and why they would buy directly. The proposition may involve product availability, assortment, expertise, service, or convenience. The assessment should consider how a direct channel fits alongside retail, dealer, distributor, and marketplace relationships.

Test the contribution economics

Revenue alone does not establish a viable business. The case should account for product margin, customer acquisition, payment costs, fulfillment, returns, service, and the operating costs needed to sustain the channel. Assumptions should be visible, with scenarios that show the effect of changes in demand, conversion, order value, and cost.

Keep the pilot focused

A useful pilot has a defined audience, assortment, fulfillment model, and customer experience. Scope should be large enough to test the proposition and small enough to learn without unnecessary investment. Integration and technology choices should support the test and leave a practical path for expansion.

Agree on the evidence for the next decision

Leadership should establish the measures and review points before launch. Demand, contribution, customer experience, and operational reliability all inform whether to improve, expand, or stop. Seasonality and the time needed to observe repeat behavior should shape the evaluation period.

What the engagement can produce

• A clear customer proposition and assessment of channel fit.
• A business case with visible assumptions and economic scenarios.
• A proposed pilot scope, operating responsibilities, and investment requirements.
• A measurement and review plan to support the next decision.

Ken leads the work personally, alongside your management team and existing partners. Scope, deliverables, timing, and fees are agreed before the engagement begins.