Case study
T
TechPlus Store
Consumer electronics·WooCommerce

+18 net margin points by optimizing profit per product

From a 3% net margin eroded by price wars to 21%, by rationalizing the catalog based on true profitability.

+18 pts
Net margin
-42%
Unprofitable SKUs
+67%
Monthly profit
4 months
Project duration

Context

TechPlus Store is a French e-commerce specialist in consumer electronics: smartphone accessories, audio, smart home and small appliances. The catalog has about 2,400 SKUs across 18 categories. The WooCommerce store generates 420,000 euros in monthly revenue and works with a dozen European and Asian suppliers.

The sector is marked by aggressive price competition and strong margin pressure. The operations team (3 people) monitors competitor prices daily via a repricing tool and adjusts margins accordingly. Historically, the strategy was to maintain a mid-market price to stay competitive.

The challenge

After a difficult 2023, net margin fell to 3% of revenue, a critical level to sustain the business. The founder knows some products are loss-making due to free shipping or high returns but has no precise product-level visibility.

WooCommerce's native report shows revenue per product but never real profit. Calculating margin per SKU requires manually cross-referencing purchase price, inbound freight, outbound shipping, return rate and Stripe fees. An impossible task across 2,400 SKUs.

Without reliable data, the team cannot make rationalization decisions: which products to discontinue? Which ones to reprice? Which ones to focus marketing on?

The Fullmetrix solution

TechPlus connects WooCommerce to Fullmetrix and imports COGS from a supplier Excel file. Shipping fees are configured by zone and weight. Returns are automatically synced from WooCommerce.

Within 48 hours, the Profit-per-product report reveals that 412 out of 2,400 SKUs are loss-making once all costs are accounted for. Among them, 180 sell in volume and represent 23% of revenue for a cumulative monthly loss of -8,000 euros.

The team uses Fullmetrix dashboards to make three structuring decisions: discontinue the 412 unprofitable SKUs, targeted price increases on 160 low-margin products, and renegotiate with 4 suppliers identified as the least profitable.

The results

Net margin from 3% to 21%

In 4 months, net margin goes from 3% to 21% thanks to unprofitable product removal and supplier renegotiations based on Fullmetrix data.

Catalog streamlined to 1,400

The catalog goes from 2,400 to 1,400 active SKUs. Surprisingly, total revenue only drops 11% because the removed products had low volumes.

Monthly profit x2.6

Monthly net profit goes from 12,600 euros to 33,200 euros, a 2.6x increase without additional marketing investment.

Data-driven supplier management

Annual supplier negotiations now rely on Fullmetrix data on profitability per brand and per SKU.

« We were losing money on a quarter of our catalog without knowing it. Fullmetrix let us do surgical cleanup and restart on a healthy foundation. Today, I never launch a new product without checking its real projected margin in Fullmetrix. »

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Thomas R.
Founder, TechPlus Store

This case study is an illustrative example based on results observed with our users. Numbers are realistic but anonymized.

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