Deficient Orders

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 a deficient order is any order that falls below the user's minimum acceptable gross profit dollar amount, gross profit margin percentage or product markup. The Deficient Orders feature provides the user with an analytical tool designed to identify these orders as soon as possible. Early identification of these deficiencies provides the opportunity to correct them before they can become a significant drag on the company's overall profitability.

Below is a description of the four individual deficient order criteria available to users. Since a significant percentage of deficient orders are a function of weight and shipping cost, each of these four criteria can be combined with selected weight criteria.

Gross Profit Less Than $ - This criteria will identify all orders with a gross profit dollar amount that is below the value entered. For example, if the user enters $0.00 all orders with a gross profit less than zero (showing a loss) will be displayed. If the user enters $1.50 all orders with a gross profit less than $1.50 will be identified and displayed.

Gross Profit Less than % - This criteria Margin Driver will search for and display all orders with a gross profit margin percentage less than the percentage entered.

Markup Less Than – This criteria will uncover the orders that had a product marked up over its cost less than the markup entered. If the user entered 1.4, all orders with a product marked up less than 1.4 over its respective cost will be displayed. As an example if a products cost was $10.00 and its sales price in an order was $14.50 such an order would not be included in the results for this analysis as its markup is not less than 1.4. But if a product with a cost of $10.00 was sold to a customer for $13.99 or lower then such orders would be included. This is an excellent tool for monitoring the profitability of products sold on Amazon with the help of an automated repricer.

Product Sales Price Less Than – Only orders with a product sales price less than the amount entered by the user will be included in the results for this analysis. As an example, if the user wants to see all orders in which a product was sold for less than $4.50 the user would simply enter $4.50 after selecting this criteria. This can be helpful in determining if the gross profit generated by low priced products is meeting certain minimum profitability thresholds.   

Weight Between (oz)  As stated above, all four of the provided criteria can be combined with a weight criteria by entering the minimum and maximum weight to be included in the deficient order search.

Finally, as with most MarginDriver reports, Deficient Orders results are capable of being filtered by sales channel(s) and date range, and the option exists to add or remove KPI metrics as desired. All Deficient Orders reports can be exported in Excel (.xlxs) format for further filtering and manipulation.

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