I think it is quite risky to cut all the products which gross profit margin is lower than 10%, since low prices have attracted a lot of customers. Why don't we use a price differentiation strategy on "free shipping costs"? For example, if the total consumption is higher than 30 euros, we offer a free shipping, thus this will make people try to buy more, otherwise an additional shipping cost could be charged in order to compensate us. I know this may lose some customers as well since there is a huge competition outside, but i think since the bottom line could really be set around 30 euros (to at least prevent the loss), it will not reduce a lot of competitiveness of Onlinestar.
Another problem is, if it is possible to develop the brand up to aim for semi-premium? Because Online star is gaining the most profits from the products(>70 euros), i think the company should focus more on expensive buyers.