Amazon Profitability Audit: Find Where Your Margin Is Going

Revenue is up, but there is less cash at the end of the month. I trace every dollar from sale to net margin, across ads, fees, returns, pricing and stock, and fix the biggest leaks first.

Sales Growth Can Hide a Shrinking Margin

Amazon fees, storage costs, returns, discounts and ad spend all grow with sales, and they rarely show up in one place. Many brands only see the problem when cash runs short or a product goes out of stock.

The audit builds a contribution margin for every ASIN, then ranks the leaks by size. Ads are usually one of them, which is why it pairs well with my Amazon PPC services. Inventory is often another: the OOS brand turnaround started with supply chain fixes, not ads.

What the Amazon Profitability Audit Includes

Unit economics by ASIN

Landed cost, referral and FBA fees, storage, returns and ad cost per unit, giving true contribution margin per product.

FBA fee review

Size tier errors, storage and aged inventory charges, inbound placement and low-inventory fees checked for avoidable cost.

Pricing and promotions

Price testing, coupon and deal calendar planning, with a margin floor so every discount still makes money.

Inventory and replenishment

Replenishment modeling for FBA and WFS to prevent stock-outs and overstock, coordinated with your supplier lead times.

P&L dashboards and forecasting

A monthly P&L by brand and ASIN, plus a revenue and cash forecast you can plan purchasing around.

AI-assisted audits

Custom tools that pull SQP, ASIN and competitor data into one view, so problems show up early.

The TACoS-First Method, Applied to Profitability Audit & P&L

  1. 01

    Audit

    Settlement, fee, ad and inventory data combined into a margin view per ASIN.

  2. 02

    Strategy

    Leaks ranked by dollar impact, with a fix plan and an owner for each.

  3. 03

    Execution

    Fee corrections, pricing changes, ad cuts and replenishment plans put in place.

  4. 04

    Reporting

    A monthly P&L and forecast so margin stays visible after the fixes.

What Happens in the First 90 Days

Days 1 to 30

Settlement, fee, ad and inventory data combined into a contribution margin per ASIN, with leaks ranked by dollar impact.

Days 31 to 60

The biggest fixes made first: fee errors claimed, losing ad spend cut, prices and promotions reset against a margin floor.

Days 61 to 90

Replenishment plan and monthly P&L running, with a revenue and cash forecast you can plan purchasing around.

Who This Is For

  • Brands growing revenue but not profit
  • Owners who cannot say which ASINs make money
  • Brands recovering from stock-outs or fee shocks

Signs You Need This

  • No margin figure per ASIN
  • Storage and aged inventory fees climbing
  • Discounts running with no margin floor
  • Repeated stock-outs on best sellers

Case Study: Amazon Brand Turnaround: From OOS Crisis to 220% Sales Growth

220% Sales growth after the turnaround

A bags brand lost rank and velocity to a stock-out. Fixing inventory planning and the supply chain first, then rebuilding demand, took sales up about 220% from Dec 2021 to the Aug 2022 peak.

Read the full case study →

Profitability Audit & P&L FAQs

Is the audit a one-time project?

It can be. Many brands start with the audit alone, fix the biggest leaks, then move to ongoing P&L management or PPC management once they see the numbers.

What data do you need?

Seller Central access for settlement, fee and inventory reports, ad console access, and your landed cost per unit. The cost data is what turns revenue reports into a real margin view.

Do you replace my accountant?

No. I build the operating P&L you use to run the business day to day. Your accountant still handles tax, bookkeeping and filings.

How long does the audit take?

Usually two to three weeks, depending on catalog size and how quickly cost data is available.

Want a Second Opinion on Your Account?

Send me the basics and I will tell you where I see the biggest opportunity. If it is not a fit, you still leave with a clear list of what to fix first.