Not all products are created equal. Some drive most of your profit, while others barely break even or even lose money. Understanding which products are winners and which are losers helps you:
- Optimize inventory: Stock more of profitable products, less of underperformers
- Set pricing: Know which products can handle discounts and which need price increases
- Focus marketing: Promote your most profitable products to maximize ROI
- Make decisions: Identify products to discontinue or products that need cost optimization
Use the analyzer below to compare products side-by-side. The tool calculates net profit after all costs including COGS, shipping, fulfillment, and returns.
Product Profitability Analyzer
Analyze the profitability of each product in your catalog. Identify winners and losers by comparing profit margins, profit per unit, and break-even points. Make data-driven decisions about which products to promote, discount, or discontinue.
Product 1
WinnerProfitability Metrics
Product 2
WinnerProfitability Metrics
Portfolio Summary
Top Performers (by Profit)
Understanding Product Profitability
Profit Margin Benchmarks
- 20%+ margin: Excellent - High-profit product, consider promoting
- 10-20% margin: Good - Healthy profit, maintain current strategy
- 5-10% margin: Fair - Low margin, optimize costs or pricing
- Below 5% or negative: Poor - Consider discontinuing or major changes
Action Items by Product Type
- Winners (High Profit): Increase inventory, feature in marketing, create bundles, raise prices gradually
- Average Performers: Optimize costs, improve conversion rate, test pricing strategies
- Underperformers: Reduce costs, increase price, improve quality, or consider discontinuing
What Makes a Product Profitable?
True product profitability goes beyond just revenue. You need to account for:
- Cost of Goods Sold (COGS): What you pay suppliers or manufacturers
- Shipping Costs: What you pay to ship products to customers
- Fulfillment Costs: Warehousing, picking, packing, and handling
- Returns: Lost revenue from returned products
Only after subtracting all these costs do you get your true net profit per product.
How to Use Your Results
Once you've analyzed your products:
- Winners (20%+ margin): Increase inventory, feature in marketing campaigns, create bundles, test price increases
- Average (10-20% margin): Maintain current strategy, optimize conversion rates, test pricing
- Underperformers (<10% margin): Reduce costs, increase prices, improve quality, or consider discontinuing