Case #04
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Profit Optimisation
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90 Days
Profit Fix90 DaysOutdoor & SportsFBA + PPC
Net Margin 6% → 28% on Flat Revenue.
Revenue looked healthy at $180K/month. Profit was in the gutter. A full cost audit changed everything.
Net Margin
6% → 28%
+22 percentage pts
Monthly Profit
$10.8K→$50.4K
Same revenue base
Ad Spend Cut
−$24K/mo
Zero revenue impact
AOV
+18%
Bundle strategy
The Challenge
Revenue looked healthy — $180K/month — but net margins were in the gutter at 6%. The owner was working harder every quarter just to stay afloat. On paper it looked like a growing brand. In the bank account, it was barely breaking even. The issue wasn't sales volume — every single cost category was bleeding silently: bloated ad spend, oversize FBA fees on items that could be standard, SKUs that lost money on every unit.
The Strategy
01
PPC audit — 30% of spend identified and cut from bottom-performing ASINs
02
FBA fee analysis and dimension recalculation — 4 SKUs reclassified
03
Bundling strategy implemented on top-selling SKU to lift average order value
04
3PL vs FBA split decision made per-SKU based on profitability modelling
05
Pricing psychology test on hero SKU — $X.97 to $X.99 conversion experiment
06
Inventory management overhaul to reduce long-term storage fees
"Revenue is vanity. Profit is sanity. Most Amazon brands are optimising the wrong number entirely."
Operational Wins
FBA fee recovery claim filed — $3,200 returned within 30 days
SKU rationalisation: 8 low-margin SKUs discontinued
Monthly profit grew from $10,800 to $50,400 — same revenue
Business cash-flow positive for first time in 14 months
Repeat-purchase rate increased 14% after bundle introduction
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