Some products sell well and lose money. Spotting them is the fastest margin lever there is.
Why a best-seller can be loss-making
- High FBA fees (heavy/bulky product)
- Too many returns
- Advertising that exceeds the margin
- Long-term storage on unsold stock
The view to build
Rank each product by real net profit (not by revenue). You will often find that 20% of your SKUs generate 80% of your profit — and that some destroy value.
Deciding
- Optimize: lower PPC, renegotiate COGS, rethink the package size.
- Raise the price: if the Buy Box allows it.
- Cut: liquidate the stock and stop restocking.
Ongoing monitoring
A profitable product can tip over (fee increases, price war). Monitoring must be recurring. Profit+ flags loss-making SKUs in red so you can act fast.