Store operations · Level Advanced · E-commerce Profit Operations
Profit: platform fees included
Good revenue and thin profit at year end.
Prompt
Four numbers: traffic, conversion, basket, repeat. Fix whichever fell hardest, one at a time.
Task: Good revenue and thin profit at year end.
[Before you start, do three things]
1. Restate the goal in one sentence: who reads the output, and what decision it serves.
2. If I have not given you the following, ask me. Do not assume:
- revenue and costs
- commission and ad share
- return rate
- labour and storage
3. Say how you plan to do it (at most 5 steps) and wait for my go-ahead.
[Go through each of these]
- split costs: goods, logistics, platform, ads, returns, labour
- compute real margin and ad share
- name the cost to attack first
- which costs worsen with volume
[Process]
1. Locate the failing stage with data
2. Change one variable affecting it
3. Set the test period and criterion
4. Check the margin impact
5. Say which categories this does not apply to
[Output]
Diagnosis, one change, criterion, margin impact.
[Do not]
- Never change price and image together
- 'Improve experience' is not an action
- Never ignore return rate
- Platform rules are not suggestionsWhat to state before it starts
Leave these unsaid and the model fills them with an assumption. Most 'wrong answers' start here.
- revenue and costs
- commission and ad share
- return rate
- labour and storage
Go through each of these
Where this kind of work most often goes wrong. Already in the prompt, so you do not have to remember it.
- split costs: goods, logistics, platform, ads, returns, labour
- compute real margin and ad share
- name the cost to attack first
- which costs worsen with volume