The highly competitive world of online retail can create numerous incentives for sellers to lower prices and chase revenue growth at the expense of their margins. Not all decisions that increase volume and keep the warehouse busy mean more profit at the end of the day. These decisions need to be closely monitored and routinely tested to ensure they are having the desired impact on the bottom line.
The MarginDriver Decision Model tool is designed to provide users with a means to easily test the profitability of their strategic business decisions. The tool allows users to compare custom time periods before and after the implementation of the decision and view the impact it had on revenue, margins and gross profit.
The Decision Model tool is particularly useful in testing the validity of algorithmic repricing strategies on competitive marketplaces like Amazon. Competition to get the “buy box” can be cutthroat but the effort can be futile if it only results in more work for no additional profit. MarginDriver’s Decision Model tool allows users to experiment with repricing without losing sight of the bottom line.
Gross profit margins are the pulse of a company’s financial health but identifying problem areas of deficient or unacceptable profit margins can be difficult and time consuming. Such tasks have now become effortless for users of Margin Driver’s Deficient Orders tool.
The Deficient Orders tool allows the users to search their database for orders that do not meet their custom-defined minimum profitability thresholds. The search tool is designed to identify these orders using various criteria including minimum gross profit dollars or percentage as well as product markup and product price; all of which is available by sales channel and selected dates.
One of the great variables in ecommerce order fulfillment is shipping cost. In the age of “free shipping”, shipping destination and package weight can make or break the profitability of an order. MarginDriver’s Shipping Metrics tool offers an easy reference for users to understand how their shipping costs are impacting their margins and profitability.