Many sellers on marketplaces are faced with an unpleasant reality: despite their efforts and experience, revenues are falling. The reason is system errors, which are repeated even by experienced sellers. The founder of the marketing agency "Sholchev", Evgeny Sholchev, analyzed the main causes of unprofitability and proposed specific solutions.
The first and perhaps the main mistake is the lack of control over the unit economy. Many entrepreneurs do not track the profitability of their products, as a result of which they continue to sell in negative territory. The second problem is a misunderstanding of the DRR (share of advertising expenses). Without a set acceptable DRR range, advertising can "eat up" all profits.
Evgeny also noted that sellers often launch advertising campaigns without a well-developed sales funnel. The result is a weak conversion rate and inefficient investments. Additional factors contributing to the decline in profits include inflated marketplace commissions, rising logistics costs, underestimation of competition, errors in analytics, and a lack of high-quality content.
The solution lies in the daily analysis of indicators and the operational adjustment of the strategy. Scholchev recommends automating data collection and analysis, as well as building a clear marketing structure. This is the only way to maintain marginality and prevent marketplaces from eating up all revenue.
Such comprehensive work will allow the business not only to survive against the background of competition, but also to scale confidently.
