What is Profit Optimization + Tips for Ecommerce Growth
- Use tools that break down every cost per SKU—COGS, shipping, discounts, transaction fees, returns, and ad spend.
- Avoid relying solely on spreadsheets or Shopify’s basic reports—they often miss the full picture.
- Use value-based pricing: Price according to customer perceived value, not just markup.
- A/B test different price points to find the sweet spot for your best sellers.
- Use anchor pricing by displaying “compare at” prices to increase perceived savings.
Implement tiered pricing or quantity discounts to incentivize higher order volumes.
- Negotiate better rates with your existing suppliers as your volume grows.
- Source alternative suppliers (especially domestic ones) to reduce shipping delays and fees.
- Explore white-label or private-label products with higher built-in margins.
- Consider bulk purchasing or warehouse partnerships to cut per-unit costs.
- Offer bundle deals (e.g., 3-for-2, “complete the set”)
- Use smart upsell and cross-sell apps to recommend add-ons at checkout
- Introduce free shipping thresholds just above your current AOV (e.g., “Free shipping on orders over $60”)
- Offer limited-time bundle discounts to create urgency
- Track CAC vs. LTV (Customer Lifetime Value), ROAS by product, and use marketing attribution and optimization tools to identify which campaigns actually drive profit—not just clicks.
- Analyze ROAS by product to avoid promoting low-margin SKUs
- Use audience segmentation to retarget existing buyers and cart abandoners more efficiently
- Eliminate underperforming channels and double down on high-converting ones
- Audit your app stack every quarter to cancel tools you don’t use
- Consolidate vendors or fulfillment partners to reduce complexity and fees
- Automate manual tasks like email follow-ups, returns processing, and customer support with tools like Gorgias or Zapier
- Consider switching to 3PLs that offer better rates or faster delivery to reduce cart abandonment and refunds
- Real-time net profit tracking: Automatically calculates net profit by store, product, order, marketing channel, and time period.
- Cost accuracy: Tracks COGS, ad spend, transaction fees, shipping, discounts, refunds, and more. All in one place.
- LTV & CAC monitoring: Helps you understand how much you’re really spending to acquire customers and how much they’re worth.
- Multichannel support: Integrates seamlessly with Shopify, Facebook Ads, TikTok Ads, Google Ads, and major shipping platforms.
- Shopify sellers scaling past $10k/month
- DTC brands with multiple products or suppliers
- Dropshippers and solo entrepreneurs managing ad-heavy strategies
- Store owners tired of juggling spreadsheets to track profit
Harry Chu
Founder of TrueProfit & eCommerce Profitability Expert
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
