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 contribution profit is below zero — revenue minus COGS, fees, shipping and returns, before ad spend (ads are counted once for the whole store). These are the clearest leaks: every sale loses money even before advertising.

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 spend above break-even

Your store ROAS is below your break-even ROAS (ads cost more than your products earn before ads), or below 1.5 × break-even (close to the line). Judged for the whole store — see Ad Spend. A single product is only flagged when you entered that product's own ad spend.

Typical fix: lower the total ad budget or pause the weakest campaign; don't scale until store ROAS is back above 1.5 × break-even.

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.