Client Overview

A mid-sized kitchen brand with an established Amazon presence approached Deltamatix to help improve profitability. While the brand had steady sales across a broad catalogue, they lacked clarity on which products were actually contributing to their bottom line.

Challenge

The client was operating without a detailed understanding of profitability at the product level. With over 50 active SKUs, there was no clear data on which products were high margin and which were underperforming. This lack of visibility made it difficult to allocate resources effectively, optimize advertising, or make informed decisions around catalogue management.

Our Approach

Our team conducted a comprehensive profit and loss (P&L) analysis across the client’s catalogue, breaking down contribution by parent and child ASIN. The objective was to identify margin drivers, isolate loss-making products, and realign strategy accordingly.

Key insights from the review included:

• Three parent products accounted for over 80% of total net margin
• A significant portion of the catalogue was unprofitable once advertising, cost of goods, and operational expenses were factored in

With these findings, we developed a focused plan to improve the client’s profitability:

• Strategic emphasis on high-performing products, including adjustments to the stock buffer and implemented an organic ranking strategy. 
• Targeted improvements to underperforming SKUs, such as updated product imagery, revised positioning, and listing optimization
• Deprioritization or phase-out of persistently unprofitable products

‍

Results

Over a three-month period, the client experienced measurable improvements in contribution margin and operational efficiency:

• Profitability was concentrated around the products with proven financial performance
• Advertising budgets were redirected to maximize return
• The client gained a clearer understanding of product-level performance and a repeatable framework for financial decision-making

‍