Types of Profit Leaks
Profixo looks for five distinct kinds of profit leak. Each has its own detection logic, and each produces an alert with the specific fix attached.
Negative-profit products
A product whose net profit is below zero after all costs — COGS, fees, shipping, returns and allocated ad spend. These are the clearest leaks: every sale loses money.
Typical fix: raise the price, cut costs, or discontinue the product.
Refund & return drain
Products with an abnormal return rate or a sudden refund spike. Returns carry double cost — lost revenue plus return-shipping and restocking — so a high return rate can quietly turn a winner into a loser.
Typical fix: investigate quality, sizing or listing accuracy; adjust the return policy for the product.
Ad waste
Campaigns or products running below a profitable return — for example ROAS under ~1.5, or ad spend that exceeds the revenue it generates. Requires your ad spend to be entered.
Typical fix: pause or rework the campaign, or reallocate budget to profitable products.
Shipping cost leaks
Orders where shipping cost outpaces the margin — often driven by free-shipping subsidies or expensive return labels. Set your shipping figures in Financial Settings so these surface accurately.
Typical fix: adjust free-shipping thresholds, shipping rates, or packaging.
Underpriced products
Products priced below their true break-even once every cost is included. These look fine in Shopify but can't be profitable at the current price.
Typical fix: move the price to (or above) the minimum viable price.
One formula, many leaks
All five leak types come from the same deterministic profit calculation — they differ only in which cost is driving the loss. See How Profixo Works.