How effective is online marketing for e-commerce biz?

when i say effective, i mean is the e-com biz like Jabong, Myntra, Flipkart, etc. really earning profits?? what's the way?

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  • The online marketing is helping the E-commerce to gain profits In such a way that they create banners, ads and several types of advertising through the other websites which helps the companies to gain profits.
     
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  • From information what I've gathered, these e-com companies spend a lot on online marketing (as if they have a choice to have offline marketing activities).
    What do they spend on is email database acquisition, email bombarding, google/other online ads (creating the ads - banner, posters, etc and also buying the space, CPC/CPL models, etc). This forms a major part of their overall expenses apart from manpower, web hosting, article costs, delivery charges, etc etc.
    And after doing this all, still they are not able to break-even. Profit is too far a goal to achieve for them!!!
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