The expert spoke about the ways to determine the profitability of goods to sellers
High sales on marketplaces do not always lead to financial success, says Natalia Samusenko, Chief Financial Officer, management accounting expert and mentor. In a comment to Izvestia on July 26, she explained what needs to be considered when evaluating the effectiveness of a product in order to make a profit.
The expert stressed that entrepreneurs often rely on revenue or focus on the performance of the unit economy, without seeing the real profitability of their products. Such a strategy can lead to losses even with steady sales growth.
"To assess business performance, regular financial analysis is required at the level of each item (SKU). It is important to collect data on the goods sold, take into account marketplace commissions, logistics, storage, acquiring costs, as well as fines, promotion costs and cost. Only on this basis can the marginal profit be calculated, the minimum that remains from each sale until fixed costs are covered," Samusenko said.
The expert added that the data should be taken from the financial reports of marketplaces. Entrepreneurs use data from their personal accounts on a daily basis, but they do not provide a complete financial picture.
The expert called marginality a crucial indicator in assessing the prospects of a product. This is the percentage of revenue remaining after deducting all costs. The higher it is, the greater the margin of safety for the business. If the margin of a product falls below 20%, then this should be alarming. Low-margin and loss—making products can remain unnoticeable for a long time, especially with stable sales volumes. However, if you continue to sell them, it will inevitably lead to the accumulation of losses. Visually, such positions are "lost" in the total revenue and do not cause alarm. Only the profitability analysis for each SKU allows you to identify weaknesses and take timely action. Without this, management decisions will be based on average indicators that mask real risks.
"Adjusting the product range and eliminating ineffective promotions allowed us to return profits to their previous level in just a month, and without losing turnover," Samusenko said.
The expert noted that there are no universal solutions for dealing with unprofitable positions. However, the situation can be corrected by reviewing the price, disabling advertising during organic sales of goods in order to avoid the cost of it, and reducing the cost. If none of the above helps, you need to withdraw the product from sale, Samusenko summed up.
On April 18, Izvestia reviewed the MoiSklad ERP data, which states that in 2024, the turnover of small and medium-sized businesses increased by 18% compared to 2023. However, in January and February 2025, compared with January and February 2024, this figure increased by only 6%.
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