Profit leakage

Why marketplace sellers lose profit even when sales look good

High sales can hide low profit. Marketplace fees, return loss, missing COGS, ad cost, packaging, and GST timing can reduce the money left in the business.

Missing COGS is the biggest blind spot

If orders are not mapped to product purchase cost, reports can show settlement without showing what the product actually cost.

Returns reduce profit twice

Returns can reduce settlement and also create damaged or missing inventory. Sellers should track whether returned items are sellable, damaged, or not received.

Expenses matter monthly

Packaging, ads, staff, tools, freight, and other costs should be included in monthly profit. Otherwise a seller may celebrate sales while cash profit is weak.