Why do some e-commerce businesses keep growing their sales but struggle to make money?

In Episode 24 of eCommerce, Clearly, Vedika Agrawal breaks down the profitability trap in e-commerce, starting with the striking FY26 financials of Snabbit, the instant house-help startup.

But context matters. Snabbit is a heavily venture-funded startup that has raised more than $112 million. Its first full year of operations involved significant investments in customer acquisition, service professionals, technology and expansion.

So, what can e-commerce founders learn from this?

In this episode, we explore why revenue growth alone doesn't tell you whether your business is financially healthy, how pricing and unit economics affect profitability, and what D2C founders and Amazon and Flipkart sellers can do to build more sustainable businesses.

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WHAT YOU'LL LEARN

• Why growing revenue doesn't necessarily mean growing profit
• How to calculate and interpret contribution margins
• How product costs, shipping, marketplace fees, advertising and returns affect profitability
• Why copying competitor pricing can be dangerous
• How D2C brands can evaluate customer acquisition costs and repeat purchases
• How Amazon and Flipkart sellers can review profitability by SKU and channel
• How better operations, inventory planning and pricing can improve business economics
• Why founders should understand their unit economics before scaling

Whether you're launching your first product, running a D2C brand, selling on Amazon or Flipkart, or scaling an established e-commerce business, this episode will help you think beyond revenue and make more informed growth decisions.

ABOUT ECOMMERCE, CLEARLY

eCommerce, Clearly is a podcast by Vedika Agrawal covering Indian e-commerce, D2C brands, marketplaces, consumer behaviour, business economics, growth strategies and the decisions shaping the industry.

Explore EcomBeyondDropship: https://www.ecombeyonddropship.com/

SOURCES & FURTHER READING

1. Mint — Snabbit's expansion push comes at a cost as FY26 losses hit ₹168 crore
   https://www.livemint.com/companies/company-results/snabbits-expansion-fy26-losses-168-crore-home-helps-workers-professionals-11792155028989.html

2. Moneycontrol — Quick services startup Snabbit posts ₹168 crore loss on ₹12 crore revenue in FY26
   https://www.moneycontrol.com/news/business/startup/quick-services-startup-snabbit-posts-rs-168-crore-loss-on-rs-12-crore-revenue-in-fy26-14053843.html

3. Inc42 — Snabbit Spent ₹16 To Earn Every Rupee In Operating Revenue In FY26
   https://inc42.com/buzz/snabbit-spent-%E2%82%B916-to-earn-every-rupee-in-operating-revenue-in-fy26/

DISCLAIMER: This episode is for educational and informational purposes only. Business outcomes depend on individual circumstances, costs, pricing, competition, capital and execution. The examples discussed are illustrative and should not be treated as financial or accounting advice.

#Ecommerce #D2C #EcommerceProfitability #UnitEconomics #AmazonSeller #FlipkartSeller

What does the RBI have to do with your ecommerce business? And what does the GST Council have to do with your growth strategy?

More than you might think.

In this episode of eCommerce, Clearly, we step back from CAC, ROAS and conversion rates to look at the forces outside your business that can shape what happens inside it.

We break down the recent RBI repo rate hike, the latest GST reforms, and what they can mean for ecommerce sellers — from cost of capital and working capital to inventory, margins, consumer spending and expansion.

But this episode isn't really about the repo rate or GST.

It’s about understanding that your ecommerce business operates inside a much bigger economic system — and when that system changes, your strategy may need to change with it.

Because sometimes, the biggest decision affecting your ecommerce business is being made by someone who has never even heard of your brand.

RBI Repo Rate / October 2026 Monetary Policy:
RBI repo rate hike — October 2026

The RBI raised the repo rate by 25 bps to 5.50% and shifted its stance to calibrated tightening. Reuters

57th GST Council Meeting — October 2026:
GST Council Meeting — Economic Times live updates

The meeting focused on GST administration and compliance reforms, including simplified registration for small ecommerce sellers, faster refunds and other compliance changes, while GST rates remained unchanged. The Economic Times

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