Why an order shows negative profit

A negative order is either a real loss or a sign of a data gap. The Negative profit orders report tells you which, because it gives a reason for each one.

Common reasons

• A deep discount pushed the sale below cost.
• Expensive shipping the customer did not cover.
• High payment or processing fees on a small order.
• A refund or return on the order.
• A cost that is wrong or, more often, a cost that is recorded too high.

What to do

1. Open the Negative profit orders report.
2. Read the reason next to each order.
3. If the reason points to missing or odd cost data, fix it in your costs - the loss may not be real.
4. If the costs are right, the loss is real, and it is a pricing, discount, or shipping decision to look at.

A handful of negative orders is normal. A pattern of them on the same product or discount is worth acting on.