Anonymous client — name withheld by request
Margin expanded from 8% to 34% while revenue tripled
This one wasn't fast. And it wasn't a one-quarter turnaround. It's what happens when a brand and an agency actually commit to margin over time.
Margins from ~8% to ~34%
$300K to on-track $1M
ROAS held at 3.5–4.5x throughout
Where they started.
- $300K annual Amazon revenue with margins around 8% on most SKUs
- Ad spend that was efficient on paper but eating profit
- No visibility into which SKUs were actually contributing to bottom-line profit
What we did.
- Rebuilt PPC around break-even ACOS on each individual SKU, not on a category average
- Cut unprofitable placements even when they were "converting"
- Restructured the listing catalog to prioritize higher-margin SKUs in ad exposure
- Held ROAS steady in the 3.5–4.5x range across every quarter
- Trimmed inventory in low-margin SKUs; expanded in high-margin ones
Results.
- Year one: $300K to $500K in annual Amazon revenue
- Year two: $500K to $722K
- Year three: on track for $1M
- Margins expanded from ~8% to ~34% on most SKUs
- ROAS held steady at 3.5–4.5x the entire time
The topline growth matters. The margin growth matters more. A brand doing $1M at 8% margin is $80K in profit. A brand doing $1M at 34% margin is $340K in profit. That's the difference between a business and a hobby.