The 80/20 Rule That Scaled My E-Commerce Business

How I Used the Pareto Principle at One Brick Road to Simplify Operations and Maximize Margins

Understanding the Pareto Principle

The Pareto Principle—also known as the 80/20 Rule—is the idea that a small fraction of causes (20%) is often responsible for a large fraction of results (80%). In business, that means focus and clarity matter more than chasing every possible option.


Applying 80/20 at One Brick Road

At One Brick Road, this principle shaped every major decision—from product selection and channel management to how I spent my time and capital. Instead of spreading myself thin, I narrowed in on just 39 SKUs: the products with the greatest impact on profit, customer demand, and operational simplicity.

By deeply understanding these core SKUs, I could out-serve competitors, keep inventory streamlined, and reduce the chaos that typically comes with rapid growth. This approach also freed me up to iterate quickly, test ideas, and focus on the details that mattered.

80/20

The Results

  • 88% of margin
  • 73% of units sold
  • 75% of revenue
20% of SKUs accounted for the majority of business results.

My analysis showed a striking pattern: just 20% of my products (by count) were responsible for 88% of profit margin, 73% of all units sold, and 75% of revenue. This wasn't luck—it was the result of careful curation, reinvestment in what worked, and a willingness to ignore the “noise” of low-impact items.

By focusing relentlessly on what truly moved the needle, I avoided the trap of busywork and complexity. The Pareto Principle didn’t just simplify my operations—it became the lens through which I built, optimized, and scaled every aspect of One Brick Road.


The Shape of Impact: Visualizing the 80/20 Rule

Previous
Previous

One Brick Road: Business and Operational Models