Q1 2026 Report | Office Products
Why Office Products brands are losing 43% more revenue to stockouts
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Key takeaways
Pricing discipline drove margin expansion: ASP held flat YoY & discount rates eased 1pp to 2pp, lifting gross margin ~3pp YoY to ~31% in March
Conversion offset traffic declines: Glance views fell ~14% YoY while CVR surged to ~32%, gaining 4pp to 5pp each month
Ad spend scaled with strong efficiency: Ad spend rose ~18% YoY with CPC flat & ROAS peaking at 5.4, nearly matching previous highs
Sponsored Brands investment nearly doubled: SB spend almost doubled YoY across the quarter, with Sponsored Products carrying the rest of the lift
PO fill rate improved on stronger vendor compliance: Fill rate climbed to ~88% in March, up ~8pp YoY, reflecting better inbound execution
OOS revenue loss surged despite lower OOS rates: On-hand inventory ran ~36% below prior year & OOS revenue loss rose ~43% YoY, even as Replenishable OOS% improved to a series-low 0.7% in March
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