It still suprises me that some Amazon vendors don't know their real margin at sk
By Ant Finch · July 7, 2026 · Curated by George's Blog
It still suprises me that some Amazon vendors don't know their real margin at sku level.
Here's how to do it in under an hour.
Take your top 10 sku's by sales.
For each one, start with your invoice price and subtract everything Amazon takes:
Terms (if you have a fixed cost, calculate the % of your full business)
Pick, pack and ship costs
Chargeback deductions
Ad spend attributed to that ASIN
SOA
Product Cost
What's left is your net margin on that product.
What you'll almost certainly find:
Your hero sku's are probably fine.
Top volume lines may be running tight on margin.
Your mid-tier sku's are where it gets uncomfortable..decent volume, margins worse than you thought.
One or two products that are probably losing you money every time Amazon orders them.
Do this exercise before your next internal trading review.
It will change the conversation entirely.
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🚀 I help Amazon vendors increase their margins by 5-20% in 90 days.