Setting Margin Floors That Actually Protect You
A margin floor is only as good as the cost data behind it. Most sellers set floors too conservatively (missing revenue) or too loosely (getting automated into unprofitability). Getting this right is the most important configuration decision in any repricing setup.
What goes into a correct floor
Your margin floor must account for: COGS (cost of goods sold), marketplace fees (Amazon referral fee, FBA fee or shipping cost for FBM), return rate cost, and your target gross margin. Missing any of these produces a floor that doesn't actually protect you.
Setting one floor for an entire category instead of per-SKU. Two products in the same category can have radically different cost structures. Category-level floors always overprice your cheapest items or underprice your most expensive ones.
Apply this in PriceLeap
Everything in this guide is built into PriceLeap - real-time competitor monitoring, rule-based decision logic, and margin protection. See it on your actual catalog.
Book a Free Demo →