Margin Driver is an ecommerce software solution designed by users for users who have been in the industry since 2011. The search for growth in new customers and new markets led us to a multi-channel sales strategy that included the establishment of propriety websites on multiple domains and the expansion onto numerous domestic and international marketplaces. Along with the benefits of diversification also came the challenge of gathering and analyzing all of that sales data in order to understand what was working and what wasn’t. What was the real gross profit of every order? What were the ideal product and shipping margins? What elements contributed most to the company’s total gross profit and how could business decisions designed to improve profitability be measured? And could we possibly reduce the heavy accounting burden posed by selling on so many different channels?
To our surprise, we slowly discovered there were no easy answers or readily available solutions.
Even after moving to a more sophisticated order management system that accommodated orders from all sales channels, the problem of synthesizing all of that data into useful business reports and funneling it into an accounting system persisted. Each sales channel charged different credit card, transaction or marketplaces fees. Shipping costs and weights were segregated in our shipping software. Currency fluctuations made determining gross profits on international orders a constantly moving target. We continued to search for existing solutions on the market but no one seemed interested in solving this problem. Most existing software was focused on pushing listings to marketplaces, controlling inventory and fulfilling orders – all vitally important tasks. But there was a void when it came to assessing the impact that all that activity was having on a company’s bottom line. And with one of our partners being a CPA, the monthly accounting was a constant reminder that generating a meaningful income statement with an accurate gross profit was overly cumbersome and time consuming.
The only answer was to develop our own solution. As the development of the software progressed and we perfected core functions while adding new features, we realized we had something that could benefit the whole industry. We are thrilled with the current iteration of the product and look forward to continually improving and expanding its capabilities. Margin Driver is now the nerve center of our business. We visit the Dashboard first thing every morning to check the previous days’ key performance indicators. It’s even accessible on mobile devices so we can get the latest data even before arriving at the office. And we now spend a fraction of the time and money that we used to on accounting.
Margin Driver has become an invaluable tool for our business. Give it a try and we think you’ll agree.