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Reporting and Analytics · Amazon US · 60 Days

Amazon analytics case study: contribution doubled for a $240,000 a month seller

Each of 32 ASINs was audited for fees, product cost, discounts and ad spend. Budgets moved to products with stronger contribution, and ad spend fell by $10,520 a month.

+100.6%

Monthly contribution amount6.7% to 12.8% contribution margin

Headline result

Contribution amount

+100.6%
Before
$16,080
After
$32,256
Client
AMUSIGHT
Category
Multi-category
Marketplace
Amazon US
Timeframe
60 Days
Services delivered
Reporting and Analytics, Amazon PPC

Before and after

AMUSIGHT results, before and after

Measured at the start of the engagement and again after 60 days. Bars are drawn to scale from the reported figures.

  • Contribution amount

    +100.6%
    Before
    $16,080
    After
    $32,256
  • Contribution margin

    +91%
    Before
    6.7%
    After
    12.8%
  • Total sales

    +5%
    Before
    $240,000
    After
    $252,000
  • Ad spendlower is better

    -18%
    Before
    $59,520
    After
    $49,000
  • ACoSlower is better

    -29%
    Before
    39.68%
    After
    28.00%
  • TACoSlower is better

    -22%
    Before
    24.80%
    After
    19.44%

The challenge

Strong revenue, weak cash flow

The client

A multi-category Amazon US seller with $240,000 in monthly sales and weak cash flow.

Advertising costs were not reviewed at product level, and promotional discounts were applied without margin analysis. TACoS was 24.8% and overall contribution margin was 6.7%.

What was holding the account back

  1. No product-level review of ad costs
  2. Discounts applied without margin analysis
  3. TACoS of 24.8%
  4. Contribution margin of 6.7%

What we did

How we found the profit leaks

The work in the order it was done, with what each step changed.

  1. 1

    Profit audit of 32 ASINs

    • Fees and product cost per ASIN
    • Discount impact on margin
    • Ad cost per product

    OutcomeUnprofitable products hidden by revenue identified

  2. 2

    Reallocation

    • Budget moved to high-contribution products
    • Spend cut on low-margin revenue

    OutcomeContribution margin 6.7% to 12.8%

More results

Other numbers from the AMUSIGHT engagement

Ad sales
$150,000to$175,000
Organic sales
$90,000to$77,000
ROAS
2.52xto3.57x

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