Dashboard Deficient Orders
The concept of the deficient order is central to MarginDriver’s mission of helping ecommerce sellers achieve their optimal price points and increase their gross profit margins and overall profitability. MarginDriver’s definition of deficient order is any order that falls below the user’s minimum acceptable gross profit dollar amount, gross profit margin percentage or product markup. This will be different for each user and may differ depending upon the type of product or marketplace. The Deficient Orders dashboard panel and analytics tool both allows each user to define his or her business’ minimum thresholds by entering custom values. MarginDriver returns all orders that fall below this threshold and calculates the potential profit forfeited by fulfilling these orders at a suboptimal margins (MarginDriver refers to this value as lost potential profit).
Lost Potential Profit
Lost potential profit is the average gross profit for all orders in the selected sales channel(s) for the prior month less the average gross profit or loss on all identified deficient orders multiplied by the number of identified deficient orders. The lost potential profit represents the profit the user could have made if his or her business was able to fulfill the deficient orders at the average gross profit margin for the selected sales channel(s) rather than the actual.
Users can view Deficient Order results below either an absolute dollar amount or a gross profit margin percentage by simply choosing the "$" or "%" button and entering the appropriate value in Gross Profit Less Than field.