Stop the Vendor Central (1P) Profit Leak
ASIN-Level Profitability Analysis
Revenue growth means nothing if you're losing money on individual products. Many Amazon vendors lack visibility into true product-level profitability—once you account for co-op deductions, chargebacks, advertising costs, returns, and Amazon's opaque fee structures. Without granular P&L analysis at the ASIN level, brands unknowingly subsidize unprofitable SKUs with profitable ones, allocate marketing budget to margin-destroying products, and make strategic decisions based on revenue instead of profit contribution. ASIN-level profitability analysis provides the financial clarity needed to make data-driven decisions that maximize overall profitability rather than just top-line growth.
What Is ASIN-Level Profitability Analysis?
What Is ASIN-Level Profitability Analysis?
Our ASIN Profitability service provides comprehensive product-level financial analysis that calculates true net profit for every SKU after accounting for all Amazon costs, deductions, chargebacks, advertising, returns, and operational expenses. We deliver actionable insights that identify profit drivers, expose margin destroyers, and provide clear recommendations for portfolio optimization, pricing strategy, and resource allocation decisions.
Our ASIN Profitability service provides comprehensive product-level financial analysis that calculates true net profit for every SKU after accounting for all Amazon costs, deductions, chargebacks, advertising, returns, and operational expenses. We deliver actionable insights that identify profit drivers, expose margin destroyers, and provide clear recommendations for portfolio optimization, pricing strategy, and resource allocation decisions.
our solutions
our solutions
What Makes ASIN-Level Profitability Analysis Unique?
What Makes ASIN-Level Profitability Analysis Unique?
True Cost Accounting
Comprehensive P&L incorporating all direct and allocated costs—co-op, chargebacks, freight, advertising, returns, shrinkage—that standard reporting misses.
Profitability Segmentation
Strategic classification of products into profit tiers (stars, earners, drains, losers) enabling portfolio decisions based on contribution margin, not revenue.
Decision-Ready Insights
Clear action recommendations for each SKU: optimize, reprice, discontinue, invest, or maintain—transforming data into strategic decisions.
Scenario Modeling
Financial impact analysis showing how pricing changes, cost reductions, or marketing adjustments affect profitability at both SKU and portfolio levels.
Ongoing Monitoring
Continuous profitability tracking with automated alerts when products cross thresholds—catching margin erosion before it compounds into significant losses.
True Cost Accounting
Comprehensive P&L incorporating all direct and allocated costs—co-op, chargebacks, freight, advertising, returns, shrinkage—that standard reporting misses.
Scenario Modeling
Financial impact analysis showing how pricing changes, cost reductions, or marketing adjustments affect profitability at both SKU and portfolio levels.
Profitability Segmentation
Strategic classification of products into profit tiers (stars, earners, drains, losers) enabling portfolio decisions based on contribution margin, not revenue.
Ongoing Monitoring
Continuous profitability tracking with automated alerts when products cross thresholds—catching margin erosion before it compounds into significant losses.
Decision-Ready Insights
Clear action recommendations for each SKU: optimize, reprice, discontinue, invest, or maintain—transforming data into strategic decisions.
Product Portfolio Profitability - What Can We Achieve?
Identify unprofitable SKUs draining 15-30% of revenue, redirect marketing budget from margin destroyers to profit drivers, optimize pricing for 20-40% margin improvement, eliminate chronic loss-makers freeing resources for high-return opportunities, and make portfolio decisions based on contribution profit rather than vanity revenue metrics.
Why Choose ASIN-Level Profitability Analysis
Transforming Data Into Profitable Decisions
Profit Clarity
Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.
Profit Clarity
Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.
Profit Clarity
Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.
Strategic Portfolio Management
Data-driven framework for deciding which products to grow, maintain, optimize, or discontinue based on true economic contribution.
Strategic Portfolio Management
Data-driven framework for deciding which products to grow, maintain, optimize, or discontinue based on true economic contribution.
Strategic Portfolio Management
Data-driven framework for deciding which products to grow, maintain, optimize, or discontinue based on true economic contribution.
Marketing Efficiency
Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.
Marketing Efficiency
Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.
Marketing Efficiency
Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.
Pricing Optimization
Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.
Pricing Optimization
Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.
Pricing Optimization
Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.
Negotiation Leverage
Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.
Negotiation Leverage
Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.
Negotiation Leverage
Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.
Our Process
ASIN-Level Profitability Analysis
Revealing True Product Economics for Better Decisions
1
Data Integration & Cost Allocation
Profitability Analysis
We consolidate data from Vendor Central, advertising platforms, logistics, and accounting systems to build comprehensive product-level P&Ls with proper cost allocation.
2
Profitability Calculation & Segmentation
Strategic Consultation
Calculate true net profit for every SKU incorporating all direct and allocated costs, then segment portfolio into strategic categories based on contribution margin.
3
Analysis & Recommendations
Strategy Execution
Identify specific actions for each product: pricing changes, cost reduction opportunities, marketing reallocation, discontinuation candidates, and investment priorities.
4
Implementation & Ongoing Tracking
Ongoing Partnership
Execute recommended changes with continuous monitoring to ensure profitability improvements sustain and catch new issues as they emerge.
FAQ
Frequently asked questions
FAQ
Frequently asked questions
Why can't we just use Vendor Central reports for profitability?
Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation. Most vendors discover 20-40% of their catalog is unprofitable once proper cost allocation is applied.
Why can't we just use Vendor Central reports for profitability?
Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation. Most vendors discover 20-40% of their catalog is unprofitable once proper cost allocation is applied.
What costs should be included in ASIN-level P&L?
Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.
What costs should be included in ASIN-level P&L?
Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.
How often should profitability be analyzed?
Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.
How often should profitability be analyzed?
Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.
What do we do with unprofitable products?
Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimize packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.
What do we do with unprofitable products?
Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimize packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.
Can profitability analysis help with new product decisions?
Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.
Can profitability analysis help with new product decisions?
Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.
How do we maintain profitability as Amazon changes fees?
Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis—when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.
How do we maintain profitability as Amazon changes fees?
Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis—when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.
Why can't we just use Vendor Central reports for profitability?
Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation. Most vendors discover 20-40% of their catalog is unprofitable once proper cost allocation is applied.
What costs should be included in ASIN-level P&L?
Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.
How often should profitability be analyzed?
Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.
What do we do with unprofitable products?
Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimize packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.
Can profitability analysis help with new product decisions?
Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.
How do we maintain profitability as Amazon changes fees?
Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis—when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.