Amazon Sellers

You Know Last Month's Revenue. Do You Know What Was Left?

Amazon is very good at telling you what you sold and quite bad at telling you what you kept

Most sellers we talk to can quote their monthly revenue from memory and go quiet when asked about contribution margin. That is not carelessness — it is that the number lives across four reports, none of which know your landed cost. Meanwhile the gap between those two figures is filled with ad spend on terms that never convert, storage surcharges on last season's units, and a listing that has been suppressed for three weeks.

Common Challenges for Amazon Sellers

✗Revenue is growing and the bank balance is not, and nobody can point at why
✗Advertising spend rising every month because ACOS looks acceptable in isolation
✗Fee changes on a product whose price has not moved since it launched
✗Long-term storage surcharges on inventory that should have been liquidated two quarters ago
✗Stranded and suppressed listings costing storage while selling nothing
✗Buy Box lost to a reseller, so your ad clicks arrive and buy from somebody else
✗Returns quietly moving a SKU under water without ever triggering an alert
✗Reimbursements for lost and never-received inbound units never claimed
✗Stock-outs on the best SKU, which cost the sales and then cost the rank

Where a dollar of Amazon revenue actually goes

None of these lines is dramatic on its own. That is precisely why they survive.

Where a dollar of Amazon revenue actually goes1Customer pays2Referral fee comes out3FBA fulfillment fee comes out4Storage — and the aged-inventory surcharge if it has sat5Advertising, including the spend on terms that never converted6Refunds and returns processing7Your landed product cost — the one number Amazon does not know8What is left, which almost nobody is calculating monthlyAd spend is usually the largest single leak because it is the only costthat grows automatically while nobody is looking at it.

How to check this yourself before you talk to anyone

You do not need us to find out whether you have a problem. Take one month, one settlement report, and your own landed cost, and do this at SKU level rather than in aggregate — the aggregate almost always hides a couple of SKUs funding the rest.

  • →Take net revenue after promotional rebates, not gross sales.
  • →Subtract referral, FBA fulfillment and storage fees. All three are in the settlement data.
  • →Subtract advertising, refunds and returns. Then subtract your landed cost per unit sold.
  • →Do it per SKU. If two SKUs are carrying the account and four are quietly losing money, that is a completely different problem from a general margin squeeze.
  • →Then pull your search-term report and total the spend on terms with no conversions in sixty days. That figure is usually the fastest thing to fix.

What You Get

A ranked list of what is costing you the most, with the arithmetic shown so you can check it
Every reported figure tagged as known data or estimate — never a plausible number presented as fact
Advertising managed against your actual margin, not a generic ACOS target
TACOS reported alongside ACOS, so you can see whether ads are lifting organic rank or just buying sales
Aged and stranded inventory surfaced with the units named while there is still time to act
Reimbursement cases identified and prepared for your approval
Listings and Buy Box monitored so a suppression is caught in days rather than weeks
One monthly view an owner can read without opening Seller Central

Questions Amazon Sellers Ask Us

Where should I start — profit audit or PPC management?
Ads first if they are unmanaged or obviously wasteful, because that is the fastest money and you can see it inside a month. Here is a test you can run before talking to anyone: pull the search-term report for the last sixty days and total the spend on terms with zero conversions. If that figure is a meaningful share of your ad spend, PPC management is the direct fix. If ads look roughly sane and the margin still is not there, start with the profit audit, because the leak is somewhere ads cannot reach — aged storage surcharges, a suppressed listing, returns dragging a SKU under water, reimbursements never filed, a lost Buy Box sending your own paid clicks to a reseller. More ad optimisation will not find any of that. If you genuinely cannot tell which case you are in, the free growth review exists for exactly that and costs nothing, and it is a fair use of it.
Will you tell me how much I will save?
Not before we have seen the account, and you should be wary of anyone who does. A recovery percentage quoted on a sales call is a guess dressed as a forecast, and the person who finds out it was wrong is you, three months in. There is also a structural reason the number cannot be known from outside: the largest variable is your landed cost per unit, Amazon does not hold it, so anyone quoting without it is calculating revenue minus platform fees and calling the result profit. What we will do instead is show each leak with the underlying data behind it, label every figure as measured or estimated so you can tell which is which, and rank them by dollars so you decide what is worth acting on. Some of what we find will be things you already knew. If the account turns out to be in good shape, that is the finding and we will say it.
What do you need access to?
Reporting access to Seller Central and to the advertising account. Between them those cover referral and fulfillment fees, ad spend and search terms, inventory age and storage, returns, reimbursement eligibility and listing status. We do not need the ability to change your pricing or your catalog in order to run an audit, and we would rather start read-only. The one number Amazon does not hold is your landed cost per unit — product, freight, duty and inbound — and without it nobody can calculate contribution margin, only revenue minus platform fees, which is a different and much friendlier-looking number. Give us landed cost at SKU level and the audit becomes arithmetic rather than estimation. If you do not have it broken out per SKU, that is common, and it is worth fixing whether or not you work with us, because it is the number that tells you which products are actually worth advertising.
I already have a PPC agency. Is Profit Watch still worth it?
Often yes, and this is worth saying plainly: a competent PPC agency is running your ad account, not your P&L. The costs that add up quietly sit outside their remit entirely. Long-term storage surcharges on units that should have been liquidated two quarters ago. Reimbursements for inbound shipments Amazon lost and never credited. A listing suppressed for three weeks that is still accruing storage while selling nothing. A reseller holding the Buy Box, so the clicks your agency bought convert for somebody else. And fee changes landing on a price that has not moved since launch: 2026 FBA fees rose roughly eight cents a unit on average, and from April 17, 2026 a 3.5% fuel and logistics surcharge applies to US and Canadian FBA fulfillment fees, calculated on the fulfillment fee rather than the sale price, which Amazon puts at about seventeen cents a unit in the US. None of that appears in an ACOS report. If your agency is good, the audit will say so.
Do you do product sourcing or private-label product selection?
No. We work with brands that already make or own a product, and everything here assumes a real product with a real landed cost behind the listing. If you want someone to pick a category, find a supplier, or tell you what to sell, we are not it, and the firms that do that well are a different kind of business. It is worth knowing why we stay out of it: product selection is where the largest and least reversible mistakes get made, and an agency paid monthly to market whatever you chose has no incentive to tell you the choice was wrong. Where we can help before you commit is the arithmetic. Referral fees run 8 to 17 percent in most categories and up to 45 percent on Amazon device accessories, and running your intended retail price through referral, fulfillment, storage and landed cost tells you quickly whether the margin is there at all.

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