Improving margin does not always require raising the customer price. Sellers can often recover profitability by reducing waste and improving the economics behind each order.
Review product acquisition cost
Negotiate suppliers, compare purchase volumes and review whether slow-moving products are tying up capital. A small improvement in purchase cost applies to every unit sold.
Be careful not to reduce quality in ways that increase returns or negative reviews.
Optimize packaging
Use packaging that protects the product without adding unnecessary material, size or shipping weight. Standardizing common package sizes can also simplify operations.
Packaging improvements can reduce direct cost and, depending on the logistics model, may also reduce shipping expense.
Measure advertising efficiency
Advertising should be evaluated against contribution margin, not only revenue. A campaign can generate many sales and still reduce profitability if acquisition cost is too high.
Segment campaigns by product and identify items that can sustain advertising spend versus items that need organic traffic.
Review logistics and fulfillment choices
Compare fulfillment methods, collection options, storage costs and shipping subsidies. The best option can vary by product dimensions, weight and sales velocity.
Operational speed also matters because errors and delays generate hidden service costs.
Improve the product mix
High-revenue products are not always high-margin products. Track contribution by SKU and consider bundles, complementary items and products with better economics.
A balanced catalog can improve total profit even when the average selling price stays similar.
Use pricing as one lever, not the only lever
Price changes can help, but they should be tested against conversion rate and competitive positioning. Sometimes a modest price increase combined with lower Ads cost and better packaging produces a stronger result than a large price increase alone.
Apply what you learned directly with the free Ajuda Seller tools.
Open Ajuda Seller tools →Frequently asked questions
Should I always raise price when margin is low?
No. First review purchasing, fees, Ads, packaging and logistics to understand the real cause.
Can reducing advertising improve total profit?
Yes, if the reduced spend does not cause a larger loss in profitable sales. Measure by contribution, not just revenue.
Why should I track margin by SKU?
Different products can have very different commissions, shipping costs, return rates and advertising efficiency.