Product research & margins
Sell the products that actually make money not just the ones that sell
Our product research compares categories with real marketplace demand, then tests the numbers at SKU level. The range is chosen for contribution, profit margin and commercial potential rather than revenue alone.
- Margin checked before launch
- Every product reviewed at SKU level
- No income or results promised
How we work with you
How better product decisions get made
Five stages, completed in order. We do not recommend a product until its demand, costs, unit economics and commercial case have been examined.
Review the store, or start with the category
For an existing store, we review what is selling, what is sitting and what each product leaves behind after supplier costs, shipping, fees, refunds and attributable advertising spend. For a new store, market analysis starts with the category, the marketplace and the position you want the business to take.
Discuss your store
Set the commercial rules before the search
We agree what a product must achieve before it earns a place in the range: the target customer, a realistic selling price, the required profit margin, acceptable competition and enough demand to justify the work. This gives every product idea the same commercial test.
Discuss your store Focus the work where it can make a difference
We define the marketplaces, categories, product types and commercial limits the research must work within. That may include supplier costs, shipping limits, platform fees, pricing expectations, brand fit and the number of products you are prepared to launch.
Discuss your store See the numbers before you commit
We examine demand, competitors and pricing, then model the landed cost and expected contribution of each viable product. You receive a shortlist with the numbers attached, and you decide what moves forward.
Discuss your store Keep the range commercially honest
Margins move after launch: supplier costs rise, competitors change prices and marketplaces introduce new fees. We review contribution at SKU level on the cadence agreed in your plan, then recommend whether to reprice, renegotiate, retain or remove each product.
Discuss your store 
Revenue is not the number
A product that sells is not always a product that pays
Revenue tells you what came in. It does not tell you what remained. Selling price, supplier cost, shipping, packaging, marketplace fees, refunds and advertising spend all affect the result, so product decisions are based on real contribution rather than the biggest number in a sales report.
- Margin visible before you commit We complete the arithmetic while products are being shortlisted, before stock is purchased or orders are fulfilled.
- Priced against the real market We compare competitor pricing with the fee structure of the marketplace where you will sell. A generic markup formula is not enough.
- Reviewed at SKU level Each product line is examined separately, so a healthy store average cannot hide products that lose money on individual orders.
- Connected to the rest of the operation Approved prices and margin targets feed into sourcing, listing management and ongoing store management, so each team works from the same numbers.
Where we work
Built for the platforms your customers already use
Each marketplace has its own fees, listing format and customer behaviour. We adapt the research to the platform instead of repeating one approach across every channel.
What this covers
Everything behind a product decision
Six connected areas of work are coordinated with the team managing the wider store operation. Product decisions are based on demand, competition, total cost and SKU-level margin rather than surface-level sales figures or short-term popularity.
Category and demand research looks for products with a realistic place in the market. We study whether interest appears steady, seasonal or temporary, then compare that demand with the level of competition already present. The work also considers how well the category fits the store, available suppliers and the platform being used. The aim is to identify credible openings rather than chase products simply because they are receiving attention for a short period.
Competitor and pricing review compares similar products, their positioning and the prices customers are already being asked to pay. We look at product features, presentation, reviews, delivery promises and offer structure to understand why one listing may hold a higher price than another. This helps establish the price your store could realistically support. It also shows where a product may need better content, a stronger offer or a lower cost before it becomes commercially workable.
Landed cost and fee modelling calculates what it actually costs to deliver a product, not only what the supplier charges. We combine the unit cost with shipping, packaging, marketplace fees and any other charges that apply to the sale. This gives the team a more reliable base for pricing and margin decisions. Where costs vary by quantity, destination or fulfilment method, the model shows how those changes affect the product before stock or advertising commitments are made.
Product shortlisting narrows a broad market into a manageable group of commercially credible options. Each product is reviewed against demand, competition, expected selling price, landed cost, supplier availability and the store’s agreed targets. Products that look attractive but do not fit the platform, margin or operating model are removed early. The remaining shortlist gives the team a clearer basis for approval, supplier discussion and testing without spending time on ideas that are unlikely to work.
SKU-level margin review calculates contribution product by product instead of relying on a store-wide average. We compare the selling price with supplier cost, shipping, platform charges, packaging and other direct expenses for each SKU. This matters because two products with similar revenue can produce very different returns. The review shows which items support the business, which need a pricing or cost change and which may be using cash without producing enough margin to justify continued stock.
Repricing and range decisions are made as costs, competition and customer demand change. We review which products should stay at their current price, which need a revised offer and which may require supplier renegotiation. Some products may be replaced or removed if the margin no longer works or the demand has weakened. These decisions are based on current SKU-level information, helping the store respond to changing conditions without making broad price changes across the entire catalogue.
Why choose us
Why run product research with Diverse Commerce?
We are not a research contractor who delivers a report and leaves the handover to someone else. The product team works alongside the people managing the store, so commercial decisions can move directly into sourcing, listings and day-to-day operations.
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Commercial thinking from the beginning
Every recommendation is tested against its effect on sales, costs, margin and customer trust. Activity that does not improve the commercial case is removed from the plan.
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One connected team
Research, sourcing, listings and store management are coordinated as one operation, which keeps the commercial assumptions consistent across supplier coordination and catalogue management.
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Marketplace-aware from the start
Every marketplace has different rules, fees, formats and buying behaviour. We build the research around those conditions from the start.
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Built for your ownership
The store, accounts, data and customer relationships remain yours throughout. Ownership does not transfer to us.
Who we build for
Built for different stages, categories and ambitions
The method stays consistent, but the research is shaped around the store, its audience and the owner’s commercial priorities.
What you receive
Working documents — not a slide deck filed and forgotten
What you receive is meant to be used: the research, the arithmetic behind it and the decisions it points to.
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Category assessment
A market analysis showing where demand exists, whether it is steady or seasonal, how competitive the category is and whether there is realistic room to enter it. It also weighs how well the category fits your store, the suppliers available and the platform you sell on.
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Product shortlist
Commercially credible products with the selling price, landed cost, fees and estimated contribution shown for each line. Ideas that look attractive but do not fit the platform, the margin or the operating model are removed early rather than tested expensively.
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Pricing position
A review of comparable listings, how they are presented and the price your store could reasonably maintain against them. It shows where a product would need better content, a stronger offer or a lower cost before the price you want becomes defensible.
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Margin model
A unit economics model linking selling price with supplier cost, shipping, packaging, marketplace fees, refunds and attributable advertising spend. Where costs move with quantity, destination or fulfilment method, the model shows what that does to the product.
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Range decisions
Practical recommendations on what to stock, reprice, renegotiate or leave out of the range altogether. Each one comes with the reasoning behind it, so the decision stays yours to take rather than arriving as a conclusion with its working left out.
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Ongoing margin reporting
SKU-level contribution reviewed on the reporting cadence agreed in your plan, rather than a single store-wide figure. Two products with similar revenue can return very differently, and the report is what makes that visible before it costs you a season.
Included
Questions
Before you pick the range
Straight answers to the questions owners ask most often about product research and margin analysis.
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No. Research improves the quality of a product decision by grounding it in demand, competition, pricing and margin. Results still depend on market changes, customer demand, competition, pricing and seasonality. No income, sales volume or commercial result is guaranteed.
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It means contribution is calculated separately for each product line rather than only across the store as a whole. The calculation starts with the selling price and subtracts costs such as the supplier price, shipping, marketplace fees, refunds and advertising spend tied to that product. A healthy store average can otherwise hide individual products that lose money on every order.
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Yes. For an existing range, we begin with what is already active. We identify which products contribute, which do not and which may be improved through repricing or supplier negotiation rather than replacement.
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Supplier sourcing and management is a separate part of the service and can run alongside product research. Once a product is approved, it can move into supplier coordination with its target selling price and required margin already defined.
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Margin is reviewed according to the reporting cadence agreed in your plan. The right frequency depends on the size of your range, the pace of the category and how often supplier costs or competitor prices change. We agree it during the call rather than forcing every store into the same schedule.
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You do. We provide the research, cost model and commercial recommendations. You make the final range decision, and the store remains yours.
The next step
Find out what your range is really contributing
Let us examine the products, pricing, costs and marketplace fees behind your range while you stay focused on running the business.
We will explain what we would review, what information we need and whether the service is a sensible fit for your store.