Store Health Audit · USD 69
Four products are the business, and the discount is eating them
Storefront, product mix, offers and retention reviewed against twelve months of store data.
Revenue is up 9 percent and gross margin is down 4 points. Both of those trace to the same place: a welcome discount that has quietly become the default price of your four best products, and a product range that has grown to 71 items without any of them mattering.
Four products are 63 percent of revenue and 58 percent of their orders use a discount code. The store is not growing into a wider range, it is discounting a narrow one, and the repeat purchase rate of 11 percent is the symptom rather than a separate problem.
Concentration
What the store actually sells
| Range segment | Products | Revenue share | Recommendation |
|---|---|---|---|
| Core four | 4 | 63% | Protect and extend |
| Supporting | 12 | 22% | Keep |
| Long tail | 39 | 13% | Sell through, do not reorder |
| Dormant | 16 | 2% | Delist |
Sixteen products sold fewer than 12 units each across the year. Delisting them removes nothing from revenue and takes three screens out of the browsing path.
Discount
The welcome code has become the price
WELCOME15 was introduced as a first-order incentive in 2024. It is not expiring, it is in your footer, and it is on affiliate and voucher sites. Fifty eight percent of core-product orders now use it, including from returning customers.
| With code | Without code | Gap | |
|---|---|---|---|
| Share of orders | 58% | 42% | |
| Average order value | USD 94 | USD 103 | USD 9 |
| Gross margin | 41% | 52% | 11 points |
| Repeat within 12 months | 8% | 17% | 9 points |
| Return rate | 12% | 11% | Negligible |
| Annual margin forgone | About USD 96,000 |
Customers who pay full price come back at more than twice the rate. That may be a difference in customer type rather than an effect of the discount, and either way it argues against making the code the default entry point to your brand.
Remove the code from the footer and voucher sites
It should be earned by an email signup, not published. This alone moves a meaningful share of the 58 percent to full price, and it takes an afternoon.
Make it single use and new customers only
Returning customers using a welcome code is pure margin loss. Most stores discover this exactly as you have.
Remove it entirely on day one
It is load bearing for first orders at the moment. Narrow it, watch four weeks, then decide.
Retention
Why 11 percent come back
| You | Expected | Priority | |
|---|---|---|---|
| Order confirmation | Yes | Yes | None |
| Dispatch notification | Yes | Yes | None |
| Delivery follow up | None | Day 3 | High |
| Review request | None | Day 14 | High |
| Replenishment prompt | None | Month 9 to 12 | Critical |
| Size and fit guidance | On product page only | Also post-purchase | Medium |
| Second-item recommendation | None | In dispatch email | High |
Workwear wears out. A customer who bought a navy work trouser in October 2025 is a customer who needs one in late 2026, and nothing in your store tells them so. The replenishment prompt is the single largest retention opportunity here and it does not exist.
Actions
Ten things, in order
- Week 1
Take the code out of the footer and off voucher sites
Biggest margin item in the audit and the least work. Watch conversion for two weeks before anything else changes.
- Week 1
Delist the 16 dormant products
No revenue effect, shorter collection pages, less stock sitting in a corner.
- Week 2
Restrict the code to new customers, single use
Returning customers stop discounting themselves.
- Week 3
Add a day 3 delivery follow up and a day 14 review request
Two emails. You currently ask nobody for a review, which is why you have 41 of them.
- Week 4
Build the 10 month replenishment prompt
Segment by product and by purchase date. This is the one with real revenue behind it.
- Week 6
Add a second-item block to the dispatch email
Fleece to jacket buyers, second colour to trouser buyers. Dispatch emails have the highest open rate you own.
- Week 8
Re-measure margin and repeat rate
Not conversion. Margin and repeat are what this audit is about, and conversion may fall slightly while both improve.