• Explainer
  • E-commerce
  • 5 min read

The Product Analyst, Explained: Winners, Losers and Money Leaks After Every Deduction

True profit per item, not revenue per item. Brand verdicts with the arithmetic shown.

Author
ftes.ai Editorial
ftes.ai Team

The short answer

The product analyst in the commerce engine ranks products and brands by true profit after discounts, returns and cost, names the winners, the losers and the money leaks, gives brand-level verdicts with the arithmetic shown, and switches every margin figure to real landed cost per sale date once a shipment has been recorded from its invoices.

The role this piece is aboutController FTE · True-Margin Controller

Key takeaways

  • Profit per item is computed after realised discount, returns and cost, not as price minus supplier cost.
  • Winners, losers and money leaks are three ranked lists, each sorted by money rather than by units.
  • Brand-level verdicts roll the lines up so a buyer can see which labels earn their shelf.
  • Once a shipment is recorded, the landed-cost engine dates the cost so past periods do not move.
  • The Controller FTE and the Buyer FTE on ftes.ai read this surface for their proposals.

What does the product analyst show?

For any range, every product and variant with its units, its net sales after realised discount, its returns and what they cost, its cost, and the profit left after all of that. The lines are sorted by money, so the top of the winners list is the product that earned the most and the top of the losers list is the product that lost the most, not the one with the most units.

Money leaks is the third list: products that look fine on revenue and are quietly losing on profit, usually because returns or discount are eating the margin. This is the list a store admin cannot produce, because it needs the deductions joined to the sale.

True profit means after every deduction

The engine computes profit per item by taking the line's net sales after the discount actually realised on it, subtracting the returns that came back against it with their handling, and subtracting the cost of the unit on the sale date. Where cost is missing, the line says No cost data and is excluded from the ranking rather than ranked at a false margin.

This is why the product analyst and the net-sales bridge always agree: they are the same deductions applied at different grains. A product's net in the analyst sums to the bridge's net for the same range.

What is a brand-level verdict?

Lines roll up to brands, and each brand gets a verdict with the arithmetic shown: what it sold, what it kept, what came back, what it cost, what was left, and the coverage of cost data behind the figure. A buyer negotiating with a label sees whether that label earns its space after returns, which is a different conversation from sell-through alone.

The verdict is a computed statement, not an opinion. The AI writes the commentary around it, in the page and in the chat analyst, but the verdict's figures are the backend's and can be recomputed with Explain this.

What does the landed-cost engine add underneath?

Supplier price is not what a unit cost on the shelf. Freight, duty, clearing, handling and shrinkage sit on top of it. The landed-cost engine lets a brand record a shipment from its invoices plus a CSV of the lines, and from that sale date onward every margin figure in the product analyst uses the real landed cost, cent-exact.

Costs are dated. A shipment recorded in March does not change February's margin; it changes the cost of units sold from the date the shipment landed. That dating is what keeps past periods still, so a report the board read in April does not silently change in May.

What a buyer does with it

The winners list is the reorder candidate list, cross-checked against the inventory analyst's cover. The losers list is the markdown and drop candidate list, with returns analytics showing whether a page fix would rescue a line before it is marked down. The money leaks list is where a buyer finds the product that should never have been discounted.

Every action a buyer takes from here is proposed through Review & Send: a reorder, a markdown proposal, a note to the merchandiser. The analyst ranks and explains; the buyer signs.

Which roles read this surface on ftes.ai?

The Controller FTE owns true margin and loads the costs the store platform ignores; the Landed Cost & Compliance FTE owns the shipment records the landed-cost engine dates; the Buyer FTE reads winners and cover to propose the buy; the Pricing Officer FTE reads money leaks to find the discounts that gave margin away.

A brand that wants the product analyst working on its own range starts by connecting the store and loading costs. The first winners and losers lists will carry coverage notes until the costs are in; recording the last few shipments is the fastest way to make them complete.

Frequently asked questions

What is true profit per item?

Net sales after realised discount, minus returns and their handling, minus the cost of the unit on the sale date.

What is a money leak?

A product that looks fine on revenue but loses on profit, usually because returns or discount eat the margin.

How does landed cost get in?

Record a shipment from its invoices plus a CSV; every margin figure switches to real landed cost from that sale date.

Do past periods change when a cost is added?

No. Costs are dated to the shipment, so earlier periods stay as they were reported.

What if a product has no cost?

It shows No cost data and is excluded from the ranking rather than ranked at a false margin.

  • E-commerce
  • Commerce engine
  • Controller FTE
  • Digital FTE
Further reading

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