How margin-aware automated discounting drove a 99.9% gross profit uplift.

Lilimaus is a German e-commerce brand selling handcrafted muslin nursery and children's room décor; canopy beds, floor cushions, bed bumpers, bunting and related textiles. They are active in Germany and Austria.

The Brief

Y&D Team manages Lilimaus's Google Ads account, including Google Merchant Center feed management and campaign structure across PMax, Shopping and Search.

As part of this ongoing engagement, the team identified Google Automated Discounts as an opportunity to improve profitability at the product level, without adding manual overhead.

THE CHALLENGE

Lilimaus operates on historically thin, and at times negative, net margins.

Profitability, not top-line revenue growth, is the primary goal across all campaign work. Manually managing discounts across Shopping and PMax campaigns carries real risk: promoting products below their true margin can quietly erode profitability even while revenue numbers look healthy.

The challenge was enabling automated, margin-aware discounting, calibrated to Lilimaus's actual gross margin rather than a blanket one-size-fits-all discount. So price optimisation could run continuously, without manual oversight and without putting profitability at risk.

Our Approach

With profitability as the primary goal, the setup needed to be precise. Rather than applying a blanket discount across the catalogue, we built a system where every price adjustment is governed by Lilimaus's actual gross margin, not an arbitrary percentage.

Key elements of the project included:

• Configured Google Automated Discounts directly within Shopify
• Set gross margin (~63%) as the controlling input, ensuring all discounts are calculated on a margin-safe basis
• Set up and verified two active product templates to ensure correct feed coverage
• Added the required block in the Shopify theme editor so discount logic reflects correctly in the storefront and GMC feed
• Integrated the setup into the existing GMC account and live PMax/Search campaign structure
• Planned a follow-up analysis after one month live, reviewing discount bands, benchmark pricing, and best-selling variants to inform future push decisions

Automation is only as good as the rules it operates within. By anchoring the discount logic to real margin data from the outset, the system can optimise prices continuously — without manual oversight, and without putting profitability at risk.

Results & Impact

The results below reflect Google's own modelled incremental uplift from the Automated Discounts performance report, isolating the effect of sale price optimisation specifically. The feature had only been live for a couple of weeks at the time of this read.

Key Results

By focusing on profit rather than revenue alone, every pound invested now works substantially harder than it did a year earlier. The account consistently delivers within agreed monthly budgets while providing Flocon with reliable commercial insight through accurate, server-side measurement.



The partnership continues through ongoing optimisation, strategic consultancy and continuous testing to identify new opportunities for sustainable, profitable growth.

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