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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
5
SKU × channel combos
REVIEW
3
SKU × channel combos
KILL
5
SKU × channel combos
Headline Finding

5 Amazon listings cost $28,080/year in lost contribution margin

Every unit sold on Amazon for Hyaluronic Toner, Eye Cream, Cleansing Balm, Exfoliating Mask, and Face Oil is destroying CM after FBA fees and 16–24% return rates. The blended portfolio figure of 24.3% makes the business look healthy. It isn't.

Annual Margin at Risk$28,080
Bottom performers — KILL list (top 5 by margin destruction)
SKUChannelNet Rev / moReturn-Adj CM%Recommended action
Face Oil 30mlAmazon$760-8.9%Immediate removal from FBA. Do not restock.
Cleansing Balm 100mlAmazon$1,120-7.2%Delist. Deplete remaining inventory without replenishment.
Hyaluronic Toner 150mlAmazon$1,340-4.8%Pause FBA replenishment. Investigate 21% return rate root cause.
Exfoliating Mask 75mlAmazon$1,050-3.4%Remove from Sponsored Products. Delist after next FBA cycle.
Eye Cream 15mlAmazon$890-2.1%Delist after current FBA inventory depletes.
Top performers — SCALE (margin-strong, growth-ready)
SKUChannelNet Rev / moReturn-Adj CM%Recommended action
Vitamin C Serum 30mlDTC$3,840+48.2%Increase ad budget 25%. Priority restock for Q2.
Retinol Night Cream 50mlDTC$4,120+41.7%Expand to bundle SKUs. Highest absolute CM in portfolio.
SPF Moisturiser 50mlDTC$3,290+39.4%Q2 seasonal push. Add gifting bundle SKU.
Scenario Simulator
Return rate (Amazon)
Ad spend / unit
Wholesale price
SCALE → KILL if return rate +8pp
CM% drops from 41% → 12%
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Methodology note. All CM% figures are return-adjusted. Net revenue calculated after refunds at cost price. COGS includes inbound freight and packaging. Amazon fees (FBA + referral) applied at SKU level. Return rate is units returned ÷ units shipped, trailing 13-week average. Read full methodology →
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Excel Dashboard Sample
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