Wednesday, August 6, 2025

How Do I Know Which SKUs Are Hurting My Revenue Margins?


The place Are You Shedding Cash?

I’m promoting quite a bit on Amazon, however I’m not seeing a lot revenue. What’s occurring?

If you happen to really feel such as you’re working tougher than ever however your backside line isn’t transferring — you’re not imagining it. Many Amazon sellers expertise excessive income progress with no matching revenue improve. The seemingly perpetrator? Just a few underperforming SKUs are quietly draining your margins.

And with This autumn approaching, now’s the time to catch these revenue leaks earlier than they worsen.

This isn’t about promoting extra — it’s about promoting smarter.

So how do I work out which SKUs are the issue?

The hot button is SKU-level visibility — not simply what you’re promoting, however what you’re truly incomes from every sale after:

  • Amazon FBA and referral charges
  • Promoting prices (particularly if you happen to’re scaling PPC)
  • Returns, reimbursements, and faulty claims
  • Month-to-month storage and long-term holding charges
  • Prep prices or extra achievement charges

Many sellers depend on top-line dashboards and guesswork. That’s the place errors (and misplaced income) occur. With Vendor Labs Revenue Genius, you get a full view of your product efficiency — from SKU-level profitability to catalog visibility and value sensitivity. Instruments like SKU Economics, SKU Particulars, and the SKU Slider work collectively that will help you establish which merchandise are quietly draining your margins — and which of them are able to scale.

🔍 Search for:

  • Excessive-revenue merchandise with adverse margins
  • Break-even SKUs with excessive advert spend
  • SKUs with seasonal demand however year-round storage charges

Can I repair low-margin SKUs, or ought to I simply drop them?

Not all struggling SKUs are useless weight. However they do want consideration. Right here’s a fast breakdown of frequent causes and potential fixes:

Challenge Repair
FBA charges are killing revenue Think about bundling or switching to FBM
Advert prices outweigh margin Pause or retarget adverts to high-converting key phrases
Extreme returns Enhance product pictures, replace itemizing copy, or tweak packaging
Value is just too low to cowl prices Enhance value primarily based on worth proposition or cut back prices

⚙️ Use Vendor Labs Revenue Genius to judge your SKUs earlier than making any modifications. Whether or not you’re adjusting pricing, advert spend, or stock ranges, instruments like SKU Economics, SKU Particulars, and the SKU Slider assist you to see precisely how these selections will influence your backside line — so you possibly can lower, optimize, or scale with confidence.

How typically ought to I audit my SKUs for profitability?

At the very least as soon as per thirty days — and undoubtedly earlier than peak durations like Prime Day or This autumn.

Use these checkpoints:

  • When launching new merchandise
  • Earlier than or after giant stock shipments
  • After main promoting campaigns
  • Following a payment change (particularly Amazon payment will increase)

👉 Make it a behavior to evaluation Revenue Genius frequently. The sooner you catch margin leaks, the better they’re to repair — particularly whenever you’re counting on instruments like SKU Economics to floor hidden price points.

I’ve recognized my worst-performing SKUs. What now?

Right here’s a 3-step motion plan:

  1. Tag the SKUs: Set up your catalog into excessive, medium, and low-profit merchandise.
  2. Take motion: Regulate adverts, elevate costs, or offload extra stock. Focus your time and funds in your winners.
  3. Observe progress: Monitor your margin progress over the subsequent 2–4 weeks to measure the influence of your modifications.

💡 Professional Tip: Earlier than scaling adverts, verify whether or not the product is definitely worthwhile. Use SKU Economics to identify low-margin SKUs, then alter your Advert Genius technique accordingly — so that you’re not unintentionally spending cash to lose cash.

How can I make this course of simpler and sooner?

Handbook spreadsheets, guesswork, and disconnected experiences gained’t lower it anymore — particularly when your margins are on the road. With Vendor Labs Revenue Genius, you get a transparent, unified view of what’s driving — or draining — your profitability.

Right here’s the way it helps you progress sooner and make smarter selections:

  • See revenue per SKU immediately with automated price and income breakdowns
  • Spot margin-killers like excessive charges, low pricing, or overspend with easy filters
  • Evaluation key itemizing and pricing metrics utilizing instruments like SKU Particulars and the SKU Slider so you possibly can spot patterns, gaps, and alternatives sooner.
  • Act confidently by backing each lower, scale, or reinvestment determination with actual information

No extra digging throughout spreadsheets. No extra questioning what’s working. Revenue Genius brings all of it collectively — so you possibly can defend your margins and scale what works.

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