SKU Profitability Analyzer
Enter up to 10 SKUs with revenue, COGS, ad spend, and shipping. See which products are actually profitable, which are breaking even, and which are silently destroying your margins.
SKU profitability analysis for D2C and Shopify ecommerce brands. True per-SKU profitability includes COGS, advertising spend per unit, shipping costs, and payment fees. The Pareto principle in D2C ecommerce means roughly 20% of SKUs generate 80% of real profit — the other 80% may be margin-neutral or margin-negative. Use this free tool to identify which products to scale, maintain, or kill.
Enter Your SKUs
| SKU / Product Name | Monthly Revenue ($) | COGS ($) | Ad Spend ($) | Shipping ($) |
|---|
Profitability Rankings
Total Revenue
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Total Net Profit
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Blended Net Margin
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Pareto Insight
Money-Losing SKUs Detected
You just analyzed 10 SKUs. ProfitLeaksAI does this for your entire catalog automatically.
Connect your Shopify store and get real-time profitability for every SKU, variant, and bundle — updated daily with actual ad spend and COGS data.
Why Per-SKU Profitability Analysis Matters
The Pareto problem in D2C ecommerce
In most D2C brands, roughly 20% of SKUs generate 80% of net profit — but store-level analytics hide this. A product that drives $50K/month in revenue may actually be losing money once you account for COGS, ad spend per unit, shipping, and returns. Without per-SKU analysis, founders scale products that are silently destroying margins while under-investing in their actual winners.
What true SKU profitability includes
- ✓COGS: Cost of goods sold including manufacturing, packaging, and inbound freight
- ✓Ad spend per unit: Total advertising cost divided by units sold for that SKU — most brands ignore this
- ✓Outbound shipping: Per-order shipping cost allocated to SKU based on weight and dimensions
- ✓Payment processing: Typically 2.9% + $0.30 per transaction (often forgotten in margin calculations)
- ✓Return rate impact: Higher-return products have a higher effective COGS once returns are factored in
When to kill vs. fix a SKU
Kill the SKU if:
- • Net margin below -5% with no clear fix
- • High ad dependency (ROAS < break-even) with poor organic conversion
- • Return rate above 20% with no quality improvement path
- • COGS structurally too high for your price point
Fix the SKU if:
- • Strong organic demand but inefficient ad targeting
- • High shipping cost fixable with packaging change
- • COGS reducible with volume commitment to supplier
- • Price increase possible without demand drop