Recovering margin after a year of unprofitable growth
+27%Contribution margin
-15%Discount rate
2 monthsBack to profitable
The Challenge
Revenue rose 70% in a year and profit fell. Every additional order cost more than it brought in.
- Discounting had become a permanent growth lever rather than a campaign.
- Shipping cost was never carried into the product margin.
The Strategic Solution
Margin first
Every product's margin was recalculated after shipping and returns, and anything negative stopped being advertised.
Revenue dropped for four weeks. Then it never dropped again.
Results in numbers
- +27% — Contribution margin
- -15% — Discount rate
- 2 months — Back to profitable