Service
Amazon P&L Management & Profitability Analysis
Overview
Revenue without profit is just activity. We build SKU-level P&L visibility that accounts for product cost, FBA fees, advertising spend, referral fees, returns, and overhead so you can see true margin by product, by channel, by month. This lets you make confident decisions about pricing, ad budgets, and which products to scale, fix, or retire.
What You Get
- •SKU-level profitability tracking across all fee types
- •True margin visibility after ads, fees, returns, and COGS
- •Pricing strategy grounded in real unit economics
- •Monthly reporting that separates revenue growth from profit growth
Our Process
We build financial visibility that most brands don't have until they hire a CFO. Every cost is mapped to the SKU level so you can make pricing, advertising, and catalog decisions with real margin data.
- •Cost mapping: COGS, FBA fees, referral fees, storage, advertising, returns, and overhead allocated per SKU
- •Margin analysis: true contribution margin per product after all Amazon-specific costs
- •Pricing optimization: data-driven pricing that balances competitiveness with profitability
- •Ad spend attribution: advertising cost allocated to specific SKUs and campaigns, not just blended ACOS
- •Monthly P&L reporting: revenue, costs, and margin broken down by SKU, product line, and channel
- •Decision framework: clear criteria for scaling, fixing, or retiring underperforming SKUs
What We Track
Amazon has over a dozen fee types that affect your margins. Most sellers track only revenue and ACOS. We track everything.
- •Product cost (COGS) including landed cost, duties, and inbound shipping
- •Amazon referral fees (8-15% depending on category)
- •FBA fulfillment fees (pick, pack, ship — varies by size and weight)
- •FBA monthly and long-term storage fees
- •Advertising spend: Sponsored Products, Brands, Display, and DSP by SKU
- •Return and refund costs: restocking fees, customer service refunds, removal orders
- •Promotional costs: coupons, Lightning Deals, Subscribe & Save discounts
- •FBA reimbursements: lost, damaged, and overcharged inventory claims
Pricing
P&L management is included in our full-service fee ($2,000-$6,000/month). Standalone P&L analysis and reporting starts at $1,500/month. Initial profitability audits are available as a one-time engagement at $2,000.
Results You Can Expect
Most brands are surprised by what they find. Revenue growth means nothing if margins are shrinking.
- •Average 15% improvement in net margin after full cost visibility and optimization
- •Identification of unprofitable SKUs consuming advertising budget (average: 22% of catalog)
- •FBA reimbursement recovery averaging $3,200/month per brand from lost/damaged inventory claims
- •Pricing optimization typically recovers 3-8% margin without meaningful volume loss
By the Numbers
15%
Avg margin improvement
$890K+
FBA reimbursements recovered
22%
Unprofitable SKUs identified
$4,800
Avg monthly savings per brand
Case Studies
Beauty & Skincare
Beauty Brand: P&L Visibility Reveals $312K in Annual Hidden Costs
Situation
A beauty brand doing $2.4M/year on Amazon believed they were operating at 25% net margin based on simple revenue-minus-COGS calculations. They were making pricing and advertising decisions based on this number. Reality was very different once all Amazon fees were properly allocated.
Approach
We built a complete SKU-level P&L model that accounted for all 12+ Amazon fee types, advertising spend attributed per ASIN, return costs (beauty has high return rates), promotional discounts, and FBA storage fees. We also audited FBA for lost and damaged inventory eligible for reimbursement.
Results
- •True net margin was 14% — not the 25% they believed (11 percentage points of hidden costs)
- •Identified $312K/year in costs that were invisible in their previous tracking
- •Found $38K in recoverable FBA reimbursements from lost/damaged inventory
- •Retired 8 SKUs that were operating at negative margin after full cost accounting
- •Optimized pricing on remaining SKUs to recover 5 points of margin without volume loss
Food & Beverage
Food Brand: SKU Rationalization Doubles Net Profit on Flat Revenue
Situation
A specialty food brand with 45 Amazon ASINs was growing revenue 20% year-over-year but profits were flat. Their advertising budget was spread evenly across all SKUs, and pricing had not been adjusted in 18 months despite Amazon fee increases and rising COGS.
Approach
We built a SKU-level profitability matrix that ranked every ASIN by contribution margin after all costs. We segmented the catalog into four tiers: scale (high margin, high volume), optimize (high volume, low margin), evaluate (low volume, reasonable margin), and retire (low volume, negative margin). Ad budget was reallocated to the top two tiers.
Results
- •Net profit increased 94% while revenue stayed within 3% of the prior year
- •Retired 12 SKUs that were collectively losing $4,800/month after full cost accounting
- •Reallocated $8K/month in ad spend from retired SKUs to top performers
- •Average contribution margin improved from 18% to 28% across the remaining catalog
- •FBA storage fees decreased 35% after removing slow-moving and oversized inventory
Client Feedback
“We thought we were making 25% margin. We were actually making 14%. That $312K gap was invisible until 595 mapped every fee to every SKU. The P&L model they built is now the most important tool in our business.”
“Killing 12 SKUs sounds scary when you're a growth-minded founder. But those 12 products were literally losing us money every month. Net profit doubled, and I sleep better knowing every SKU earns its place.”
Frequently Asked Questions
How do I track profitability per SKU on Amazon?
Tracking SKU-level profitability on Amazon requires accounting for product cost (COGS), Amazon referral fees (typically 8-15%), FBA fulfillment fees, FBA storage fees, advertising spend allocated to that SKU, returns and refund costs, and any promotional discounts. 595 Agency builds P&L dashboards that consolidate all of these costs to show true margin per product, per month.
What Amazon fees affect my margins?
Amazon charges several fee types that directly affect your margins: referral fees (8-15% of sale price depending on category), FBA fulfillment fees (based on item size and weight), monthly and long-term storage fees, advertising costs (CPC-based), and return processing fees. Understanding and optimizing these fees at the SKU level is essential for profitable Amazon selling.