I don't know which orders make money.
What every order really makes after returns, product cost, shipping and the ads that won it, from the day it's placed.
Sound familiar?
- I only find out what a drop made after the month has closed.
- Revenue doubled last year, profit didn't, and nobody can say which products ate the difference.
- We use one margin percentage for everything we sell.
A worked example
Worked example · one item · 1.299 kr including VAT
- Expected returns−39538% for this product in this market
- Cost of goods, on the units expected to stay sold−236landed, including duty and freight in
- Outbound fulfilment−42
- Return handling, expected−33
- Payment fee−21
- Advertising, allocated−94this order's share of the campaign that brought it in
Three of the lines below revenue move with one estimate, the 38 % return rate for this product in this market. The advertising line is the campaign's spend shared across the orders it brought in, since no platform can say which single ad won an order.
On the day the order comes in, those are the two numbers nobody has yet, and the order is already counted as 1.039 kr of revenue.
What you receive
A live figure on every order, checked against your accounts every month with the gap explained, and profit per product ready for a feed tool.
Who owns it at your brand
You, or your part-time CFO.
How often
Live, and checked against the accounts every month.
What it needs
When it starts paying back
From the first month's orders.
Is this one worth it for you?
It matters most where margin and returns vary a lot from product to product, which in clothing they usually do. Where every product has a high margin and few returns, it matters less, and I'll tell you so.
If one of these sounds like your business, write to me.
A few lines is plenty. If you're not the one who decides, forwarding this to whoever does works just as well.
There's nothing to prepare, and nobody sends me any data before we decide to work together.