Overview
The Lost Revenue page estimates the potential revenue lost when products are disapproved or out of stock. This page leverages historical performance data to calculate an “expected value per day” for each product. When a product is identified as being out of stock or disapproved (based on historical approval and availability statuses), that expected daily revenue is counted as lost revenue.
What It Shows
Expected Daily Revenue
Calculation Basis:
For each product, historical data over the past 180 days is used to calculate an expected revenue value per day. This is done by taking the product’s total conversion value (with a threshold to ensure only products with a minimum level of conversions are included) and dividing it by the number of days with recorded performance. This metric represents the revenue you would expect the product to generate on a typical day.
Lost Revenue Estimation
Out of Stock or Disapproved:
The page flags days when a product was either out of stock or disapproved based on historical data (tracked by approval and availability statuses).Assigning Lost Value:
On these days, the calculated expected daily revenue is assigned as “lost revenue,” providing an estimate of the revenue missed due to these issues.
How to Use This Page
Review Lost Revenue Totals:
Examine the estimated lost revenue for individual products. This will help you understand the financial impact of products being disapproved or out of stock.
Identify High-Impact Products:
Focus on products with the highest lost revenue estimates. These products may require urgent attention to resolve approval issues or stock availability problems.
Historical Comparison:
Compare the expected revenue per day against the days flagged as lost. This can help you quantify how often and how significantly a product’s performance is affected by these issues.
Take Action:
Use these insights to prioritize efforts in resolving product disapprovals or stock issues. Addressing these challenges can help recover lost revenue and improve overall performance.
Tips & Considerations
Threshold for Accuracy:
A minimum threshold of conversions is applied in the calculation to ensure that the expected value per day is not skewed by low-performing products.Regular Monitoring:
Monitoring this page regularly can help you quickly identify emerging issues and measure the impact of remediation efforts over time.Strategic Focus:
Use this data to inform decisions about inventory management, feed quality improvements, and compliance efforts to maximize potential revenue.
Why It Matters
Quantifying Impact:
By understanding how much potential revenue is lost due to disapprovals or stock issues, you can make more informed decisions about where to focus your efforts.Revenue Recovery:
Identifying high-impact products allows you to take targeted actions to resolve issues, thereby reducing lost revenue.Data-Driven Decisions:
This page provides actionable insights that help optimize product availability and approval processes, contributing to overall business growth.