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Sample · Margin Risk Memo

Lumière Collective

DTC Skincare · $1.2M/year revenue · 8 SKUs · DTC, Amazon
Analysis period: Jan 2026 – Mar 2026 ·  Methodology: return-adjusted contribution margin
SCALE
3
SKU × channel combos
OPTIMIZE
4
SKU × channel combos
REVIEW
1
SKU × channel combos
KILL
5
SKU × channel combos
Headline Finding

A healthy 29.9% blended margin hides a channel split — the same SKUs are margin-strong on DTC but fall below the floor on Amazon

On DTC every listing clears the beauty floor comfortably. The same catalogue compresses hard on Amazon after the 15% referral fee, per-unit FBA, and ad spend: 5 Amazon listings land below the 8% floor at single-digit CM. But this is compression, not collapse — only 1 of them (Hyaluronic Toner 150ml) actually loses money on every unit, $1,514/year. The blended 29.9% hides that a single SKU can be margin-strong on DTC and unprofitable on Amazon; the channel spread is the story, not a headline loss.

Annual Contribution Margin Lost$1,514
Below the margin floor — KILL list (worst CM% first)
SKUChannelNet Rev / moReturn-Adj CM%Recommended action
Hyaluronic Toner 150mlAmazon$4,022-3.1%Negative contribution — cut ad spend, deplete stock, delist on Amazon.
Face Oil 30ml *Amazon$3,132+2.9%Positive but below the 8% floor — freeze ad spend, no replenishment.
Exfoliating Mask 75ml *Amazon$3,370+5.0%Positive but below the 8% floor — freeze ad spend, no replenishment.
Eye Cream 15ml *Amazon$4,366+5.5%Positive but below the 8% floor — freeze ad spend, no replenishment.
Cleansing Balm 100ml *Amazon$4,046+7.5%Positive but below the 8% floor — freeze ad spend, no replenishment.
* Positive contribution but below the 8% beauty floor — margin-thin (fix or cut), not an outright loss.
Top performers — SCALE (margin-strong, growth-ready)
SKUChannelNet Rev / moReturn-Adj CM%Recommended action
Vitamin C Serum 30mlDTC$15,145+46.9%Margin-strong — protect inventory and scale ad budget.
Retinol Night Cream 50mlDTC$15,114+45.8%Margin-strong — protect inventory and scale ad budget.
SPF Moisturiser 50mlDTC$12,411+44.2%Margin-strong — protect inventory and scale ad budget.
Scenario Simulator
Return rate
Ad spend / unit
Wholesale price
Vitamin C Serum 30ml holds +46.9% CM today
Hyaluronic Toner 150ml sits at -3.1% — below the 8% floor
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Methodology note. All CM% figures are return-adjusted — refunds reduce the revenue line before margin is computed. COGS is all-in per unit (product + inbound freight + packaging), identical for a SKU across channels, and charged on every unit shipped (returned units' COGS is not recovered). Amazon economics apply a 15% referral fee on net revenue plus a per-unit FBA fee of roughly $5 — never zero. DTC carries a 3% payment-processing fee. Ad spend is deducted per SKU per month. Read full methodology →
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Excel Dashboard Sample
The 12-sheet Excel workbook with decision matrix, channel waterfall, and scenario tabs.

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