Sample · Margin Risk Memo

SKU-Level Margin Analysis
DTC + Amazon — Skincare Brand

Analysis period: Q1 2026 (13 weeks)  ·  6 SKUs × 2 channels  ·  12 combinations evaluated
Methodology: Return-adjusted contribution margin (net revenue − COGS − returns − channel fees)
Generated by Clarim · clarim.io
SCALE
3
SKU × channel combinations
OPTIMIZE
4
SKU × channel combinations
REVIEW
2
SKU × channel combinations
KILL
3
SKU × channel combinations

This is sample data from a skincare brand with 6 SKUs across Amazon and DTC.
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Decision Matrix — All SKU × Channel Combinations
SKUChannelVerdictCM%Net Rev (€)Return %
Vitamin C Serum 30mlDTC🚀 SCALE+48.2%€3,8402.1%
Vitamin C Serum 30mlAmazon⚙ OPTIMIZE+24.1%€2,2108.4%
Retinol Night Cream 50mlDTC🚀 SCALE+41.7%€4,1201.9%
Retinol Night Cream 50mlAmazon△ REVIEW+14.3%€1,89011.2%
Hyaluronic Toner 150mlDTC⚙ OPTIMIZE+27.6%€2,8503.4%
Hyaluronic Toner 150mlAmazon● KILL-4.8%€1,34018.6%
Eye Cream 15mlDTC⚙ OPTIMIZE+31.2%€1,7602.8%
Eye Cream 15mlAmazon● KILL-2.1%€89015.9%
SPF Moisturiser 50mlDTC🚀 SCALE+39.4%€3,2901.6%
SPF Moisturiser 50mlAmazon△ REVIEW+16.8%€1,4509.7%
Cleansing Balm 100mlDTC⚙ OPTIMIZE+22.4%€1,9803.1%
Cleansing Balm 100mlAmazon● KILL-7.2%€1,12021.3%
Executive Summary

Blended portfolio CM% across all 12 combinations is 24.3%. However, blended averages obscure a critical channel-level divergence: the three KILL combinations are each destroying contribution margin, with return rates between 15.9% and 21.3% on Amazon absorbing all gross margin after FBA fees.

The three SCALE combinations — all on DTC — carry CM% of 39–48%, with return rates below 2.1%. These are the growth engine of the portfolio. Amazon, by contrast, is net-negative for 3 of 6 SKUs when return-adjusted margin is applied.

Primary risk: Continued investment in Amazon listings for Hyaluronic Toner, Eye Cream, and Cleansing Balm. Each unit sold on Amazon is destroying contribution margin after FBA fees and returns. At current run rates, these three listings are costing approximately €2,340 in contribution margin per quarter.

Recommended Actions
🚀
Scale DTC investment — 3 SKUs
Vitamin C Serum, Retinol Night Cream, and SPF Moisturiser on DTC are margin-strong (39–48% CM%). Increase ad spend, prioritise inventory replenishment, and expand bundling strategy.
⚙
Investigate return drivers — Amazon OPTIMIZE SKUs
Vitamin C Serum and Retinol Night Cream on Amazon have compressed margins driven by return rates of 8–11%. Review packaging, listing accuracy, and customer expectations before next reorder.
△
Hold and monitor — 2 REVIEW combinations
Retinol Night Cream and SPF Moisturiser on Amazon sit at 14–17% CM%. Viable if return rates improve. Do not increase Amazon ad spend until return rate trend is confirmed over next 4 weeks.
●
Kill 3 Amazon listings immediately
Hyaluronic Toner, Eye Cream, and Cleansing Balm on Amazon are margin-negative after returns and FBA fees. Pause all ad spend, deplete existing inventory without replenishment, then delist. Reallocate freed ad budget to SCALE DTC SKUs.
Methodology note. All contribution margin figures are return-adjusted: net revenue is calculated after deducting return refunds, and cost of goods sold includes inbound shipping. Channel fees (Amazon FBA rates, referral fees) are deducted at the combination level — not blended across channels. Return rate is units returned ÷ units shipped, trailing 13-week average. Thresholds: SCALE ≥ 35% CM and ≥ €2,000 net rev; OPTIMIZE 20–35%; REVIEW 10–20%; KILL < 10%.

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