Common mistakes when working with gross income :

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They do not control the cost price. When doing business on marketplaces, the cost price is how much it costs to produce a product or purchase it and put it in a warehouse. In the case of production, they make mistakes in a huge number of parameters: for example, they did not include expenses related to production management, rent, calculated the payroll without taxes at 46% or did not calculate bonuses, forgot to put something in the car when transporting to the warehouse and you need to order a new one, the rate of purchase of raw materials changed, and much more. We had an example when the cost price of one SKU increased by 5%, and gross income fell by 50% - minor fluctuations in this parameter lead to huge losses in profit.
They make mistakes in calculating VD1: when mexico whatsapp phone number entering the marketplace, the seller can set a lower price and work at a loss. He ignores the revenue minus cost parameter in order to get into the top sales and, as he thinks, build up the loyalty of the audience. But at the moment when this seller raises the price to bring VD1 to its target values, the marketplace promptly recalculates his rating and sends him from the first to the 3000th position. With such a rating, he will not sell anything, users simply will not see his product.
Another example is an erroneous calculation of the channel cost. Everyone knows about the standard marketplace commissions for their categories. For example, in our “childhood”, the Wildberries commission is 25%. But when I open the Wildberries report, which is sent every week, I see that the platform receives not a quarter, but almost half of the revenue (on average 44%). For those who do not reduce unit economics and do not take into account, for example, logistics costs, storage, fines, this can be a huge surprise and lead to an incorrect price calculation.
I will give another regular case. The marketplace says: if you do not participate in promotions with 80% discounts, I remove you from all search results. If you participate, you sell at a loss, if you do not participate, you lose revenue. Whether or not to agree to the promotion is still the sellers' business. But if you are chasing turnover, your managers may not even think about the fact that participation in the promotion will lead you into the minus. To make a decision, you need to reduce the parameters of VD1, VD2 and VD3 and calculate what is optimal for you.



What to do
Constantly monitor P&L for products. Regularly update data for each parameter in VD 1, 2, 3, including cost price, channel and promotion costs. Break down P&L by product segments to correctly set a plan for marginality for regular assortment and remove products from stop lists that you do not earn on.