In this case, we are required to calculate the total sales from eCommerce streams in France and Germany respectively. 

We are also asked to factor in a “cannibilisation effect", which appears to be the extent to which the eCommerce streams reduce the current sales of the company through other streams. 

For this client, we are given that the cannibilisation rate of this new venture into eCommerce is 33%. However, we multiply this 33% by the total sales from our eCommerce venture to get a cannibilisation-adjusted figure of our total gains when this cannibilisation effect is factored in. 

However, I thought that the cannibilisation affects our non-online revenues. Therefore, we would need to have the non-online sales and multiply that by 33% first to figure out the loss in sales in physical retail stores and then add this figure with the potential gains from the eCommerce venture to get the total gain/(loss) in entering this new online eCommerce growth strategy venture. 

This is evidenced in the Implementation as it mentions one action point as closure of the physical retail stores to facilitate the transition of sales to the e-commerce business. I believe that the cannibilisation takes place from the sales in the retail stores, not from the online stores (since that's the distribution channel that's being expanded and you can't cannibalise the same thing that you're expanding).  

Is there something that I am missing in this case or is my point valid?

(edited)