Every year as we get close to Black Friday and the peak season, the same pattern shows up. Screenshots of big revenue numbers start to appear. Dashboards look great but behind those screenshots, the real question is simple. How much of that revenue actually turns into profit?
From what I have seen across e-commerce and agencies, there is often a clear gap between the story revenue tells and the story profit tells: revenue is the screenshot and the margin is the reality.
Big revenue does not always mean you are winning
High revenue feels good. It is easy to share, easy to talk about, and it can impress people who are not close to the numbers. Here is the problem: revenue on its own does not pay staff, suppliers, or tax. Profit does.
Around BFCM, I have seen brands and agencies push hard for growth, only to discover later that the extra work did not move profit much at all. Sometimes, the more they sell, the more they give away in discounts, higher costs, and stress. If the end result is a tired team and a small profit, it is fair to ask whether that push was worth it.
E-commerce and BFCM: big sales, thin slices of profit
For e-commerce brands, BFCM can be useful but it is not free money. Discounts help to move stock and pull people in but they cut directly into margin. At the same time, several costs rise together:
Ad spend goes up because every brand is bidding for the same attention
Creative, tools, and campaign setup add extra cost
Packing, shipping, and fulfilment all scale with volume
Customer service gets busier
Returns increase after the rush
On a chart, revenue climbs however underneath the mix of deeper discounts, higher cost per click, more handling, and more returns can leave profit per order flat or even negative.
A brand can easily end the month proud of its revenue while feeling disappointed with what is left in the bank. That is why this season needs more than a revenue target. It needs a clear view on what you want profit to look like as well.
Agencies: busy does not always mean healthy
Agencies feel a similar pressure from a different angle.They want to support clients through peak periods, protect relationships, and sometimes grow their book of business before year end. It is tempting to say yes to more work, add projects, and stretch scope to keep revenue climbing.
On paper, that can look good. In practice, margin can suffer:
More staff or freelancers to handle extra work
Longer hours and more context switching for the team
Scope creep that is not reflected in pricing
If process is messy or pricing is soft, the agency can end up with a lot of activity and not much profit. It is very common to find agencies that are proud of their top line but quietly frustrated with what they take home.
From an operator or buyer point of view, this is where profit quality matters more than the level of revenue. An agency that knows its numbers, protects margin, and keeps delivery under control is usually a stronger, more durable business, even if it is smaller on paper.
When trading margin for growth makes sense
It is not always wrong to accept lower margin for a period. Sometimes it is a deliberate trade:
Reaching a new audience that you can serve again at full price
Building a list or customer base you plan to nurture over time
Testing offers or channels that can become profitable once they are tuned
In those cases, thin margin today might support better profit later. The key is that the decision is intentional and sits inside a clear plan, rather than happening by accident.
That is why, when I look at e-commerce agencies, I care about both the numbers and the story behind them. Profit quality is not only about how big the margin is, but about how the business earns it, and whether the choices it makes are sustainable.
Takeaways
Revenue is the screenshot. Margin is the reality.
BFCM and peak season can lift revenue while quietly squeezing profit.
Agencies can look busy and growing while weak pricing and process drain margin.
Profit quality is a better guide to durability and exit value than headline revenue alone.
Trading margin for growth can be smart only if it fits into a clear, long term plan.
If you are exploring this too
If you run an e-commerce brand or e-commerce digital agency and this hits close to home, I would love to hear more about your experience.
Thanks for reading,
Jordan
