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  5. Profit Floor

Profit Governance

Profit Floor

By Herzel Mishel · Founder, Agentis · Last reviewed May 22, 2026

Definition

The minimum gross margin required before an order is confirmed at checkout. Orders falling below the profit floor are blocked, modified, or redirected.

A profit floor is the minimum acceptable gross margin threshold configured for checkout enforcement. Unlike traditional margin targets that are monitored retroactively, a profit floor is enforced in real-time at the point of transaction. Agentis evaluates each checkout against the configured profit floor — factoring in applied discounts, current COGS from NetSuite, freight zone costs, and FX rates — and blocks or redirects any order that falls below it. Profit floors can be configured per SKU category, freight zone, promo type, or any combination, giving merchants granular control over their minimum acceptable profitability per transaction. It is worth distinguishing a pricing floor from a margin floor, because the two are often conflated. A pricing floor (or list-price floor) governs what you ADVERTISE — the lowest price a SKU may be shown or sold at, the mechanism behind MAP enforcement and the output of repricing tools that set automated pricing floors against competitor data. A margin floor governs what you NET per order after discounts, COGS, freight, and FX are subtracted — it is indifferent to list price and cares only about the dollar or percentage profit that survives to the bottom line. A profit floor is a margin floor: Agentis is not a repricer and does not set advertised prices. It enforces the margin floor at checkout, blocking the specific orders where the realized combination of price and cost would breach it, even when every individual list price remains perfectly compliant.

Sources

  • Shopify.dev: Checkout extensibility and UI extensions
  • National Retail Federation: Retail industry research

Related Terms

Margin Analysis

Checkout Margin Erosion

The gradual loss of profit margin at checkout caused by unmonitored discount stacking, freight cost miscalculation, FX fluctuations, and stale COGS data.

Margin Analysis

Margin Intelligence

Real-time visibility into per-order, per-SKU, and per-channel profitability using live data from ERP, logistics, and FX systems.

Profit Governance

Profit Governance

A systematic framework for enforcing profitability rules across every transaction in real-time, ensuring no order ships below acceptable margin thresholds.

More in Profit Governance

→Promo Abuse→Negative Margin Order→Checkout Enforcement→Propensity Modeling→Profit Firewall→Margin Governance
Browse all 49+ glossary terms →

Related Solutions

Agentis Solution

DTC Brand Margin Protection

Stop invisible margin erosion from stacked promos, influencer codes, and free shipping thresholds. Agentis enforces profit floors at checkout for DTC brands on Shopify Plus.

Agentis Solution

Shopify Plus Profit Analytics

Go beyond Shopify’s native reporting with real-time margin intelligence that factors in live COGS from NetSuite, freight zone costs, and FX rates.

See how Agentis compares to other ecommerce profit tools → View all comparisons

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