YITH Cost of Goods (Premium Plugin):
Many businesses fail because their owners didn’t plan an in-depth analysis of the relationship between costs and revenues. It’s the story of Jonathan, who bought clothes abroad to resell them on his e-commerce.
The sale price was higher than the purchase price and that was enough for him to believe he had a fair margin of profit. But Jonathan, in his enthusiasm and inexperience, forgot something. He had underestimated his shipping costs, forgot about customs costs, and the costs of labeling individual garments. His business, which also had all the potential to succeed, managed to hold together only for about three months.
The most popularly sold product of its e-commerce, a t-shirt that customers could choose to customize, was the cause itself for the total bankruptcy of its business. It may have high sales, but the cost of customization, that were also underestimated from the beginning. They completely canceled the profit margin.
Jonathan’s story is the story of all the entrepreneurs for whom YITH created their YITH Cost of Goods Plugin.
A simple and powerful control tool that allows you to constantly monitor your e-commerce trend. It also helps you analyze the relationship between product costs and your net income.
Through the panel, you can include, for example, shipping costs, taxes, VAT charges, payment gateways, and a 360-degree overview of your total costs. This will help you figure out which ones of your products have a higher margin of profit (which are not necessarily the ones that sell the most!). You also get to know what kind of profit you will gain in case of promotions. You can offer discounts, where sale prices will cover all costs. Especially those that often go unnoticed and that actually can make the difference in your business success.