Amazon SKU Economics Made Easy: How Seller Labs Helps You Uncover Hidden Profits

Running a successful Amazon business is about more than just driving sales—it’s about understanding the numbers behind each product you sell. Amazon SKU economics is the practice of analyzing your product catalog at the SKU level to uncover which items are truly profitable, which ones need help, and which ones may be draining your bottom line.

While Amazon provides some data, the real insights often require deeper analysis. That’s where the Seller Labs SKU Economics app makes all the difference.

What is Amazon SKU Economics?

SKU economics means understanding profitability per product—not just total revenue. As an Amazon seller, it’s easy to assume your top sellers are your most profitable products, but that’s not always the case.

Real profitability takes into account:

• Cost of Goods Sold (COGS)
• FBA fees (storage, fulfillment, pick & pack)
• Amazon’s referral and handling fees
• Sponsored ad spend
• Returns and inbound costs

Profit = Total Amazon Payout – COGS – Storage – AIS – Advertising Costs

Without this full picture, you’re making decisions in the dark.

The Problem with Native Amazon Reporting

Amazon gives sellers access to disjointed data—fees in one report, ads in another, and sales figures in a third. To determine actual profitability per SKU, you’d need to manually combine spreadsheets, estimate costs, and re-calculate with every change in inventory or ad strategy.

That process is not only time-consuming—it’s error-prone and outdated by the time you’re done.

How Seller Labs Makes SKU Economics Simple

The Seller Labs SKU Economics app was built specifically to solve this problem. Instead of pulling reports from multiple sources and stitching together spreadsheets, the app provides a complete profitability snapshot at both the SKU and catalog level.

🔍 Single View vs. All View

• Single View: Zoom into one SKU to track performance, advertising costs, Amazon fees, and trends over time. Perfect for optimizing hero products or troubleshooting poor performers.
• All View: Get a catalog-wide breakdown of your profit margins, net revenue, and ad spend—all in one place.

📈 Real-Time, Accurate Profit Tracking

Seller Labs connects directly to your Amazon account via Selling Partner API and updates daily. This ensures your SKU profitability is always based on the most current:

• COGS inputs (manually entered or imported)
• Sales and refund data
• Amazon fees
• Sponsored Product charges
• Inbound and storage fees

Why It’s Better Than Doing It Manually (or Using Amazon Reports)

With Seller Labs, you spend less time analyzing and more time taking action.

Real-World Use Case: Uncovering a Hidden Profit Gem

Let’s say you’re running ads across 50 products. One of your SKUs is generating moderate sales—nothing flashy. But when viewed in the SKU Economics app, you realize it has a 45% profit margin and very low advertising costs. That SKU is quietly outperforming your top-selling product in actual net profit.

With this insight, you decide to:

• Increase budget for this high-margin SKU
• Test new variations or bundles
• Feature it in emails or promotions
• That’s the power of seeing beyond sales volume.

Action Steps to Start Uncovering Profits

1. Connect your Amazon account to Seller Labs
   
2. Input or import your COGS for accurate profit tracking
   
3. Use All View to identify your top- and bottom-performing SKUs
   
4. Drill into Single View to diagnose ad overspend or fee issues
   
5. Take action and adjust pricing, pause poor performers, and double down on profit-driving SKUs

Final Thoughts

Understanding Amazon SKU economics is critical if you want to scale profitably, not just sell more. And while Amazon gives you the raw data, it’s up to you to make sense of it—or let a tool like Seller Labs SKU Economics do the heavy lifting.

If you’re ready to find out which products are fueling your growth—and which ones are holding you back—it’s time to go beyond spreadsheets.