If an article is in the top 70% in terms of revenue

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We calculate the margin (also known as gross income) in a similar way: margin per sale * number of sales in the period.

If an article is included in the top 70% category by margin, it is assigned category X (according to the first digit XYZ, which is responsible for the marginality in the product rating).

The conclusion is this: invest money only in AX, BX, AY and BY. No CZ should slip into your assortment, otherwise it will be a minus game, especially on marketplaces. You need to sell not the product that mexico whatsapp phone number simply generates your turnover, but the one that makes you richer.



Mission Impossible, or How to Marry the Product and Advertising Funnels on Marketplaces
If you have correctly forecasted demand and calculated which articles bring you the highest gross profit, you can move on to planning promotion. Until 2023, sellers on marketplaces grew organically: they set up high-quality SEO descriptions, worked with the visual and rating of the card in stars and positive reviews, participated in promotions and grew, solving the out-of-stock problem (you should never run out of goods).

In April 2023, Wildberries introduced a number of innovations, and it became clear: if you do not invest money in advertising and use it as the main driver of growth, then it will be impossible to maintain high card positions in organics.

By this time I had 1,500 SKUs, and I had to invest money in advertising each one so that the product had a chance to survive. We started launching 1,000 campaigns at a time, spending a million rubles on advertising per week, and we didn’t see any conversions into sales, because there was no tool for managing the effectiveness of advertising campaigns on Wildberries.



What to do
Connect the product and advertising funnels that marketplaces provide (using Wildberries as an example).



We came up with this life hack: put the product code in the name of the advertising campaign, so that in Excel we can extract data by name and connect two funnels (product and advertising) using the key - the code. The basic report of the advertising platform shows all the money spent on the campaign since the start, CTR, and so on. But we need to watch the numbers in dynamics.

How to do it: repeat the exercise every week. We monitor how the product funnel works from week to week, we upload data from the advertising funnel to it, and in weekly sections we see which parameters are growing, which are falling, and how we influence them.