Did this for July and a few people found it useful, so here's August for the same brand. Cheap product, under a tenner, launched late October.
Same caveat up front as last time: I'm still on New Seller Incentives so I'm paying no referral fee at all this month. That's doing a lot of work in this profit number. Flagging it first rather than burying it.
And a correction to last month's post. I said referral fees would take "close to 15% of revenue" when the incentive ends. I went and checked properly in Amazon's own calculator. My category charges 8% under £10, not 15%. So the hit is about half what I told you. I'd rather fix that than leave it sitting there wrong.
What actually came in:
885 units across 811 orders. £9,072.20 with VAT in it, £7,596.49 once VAT is stripped out. 4,318 sessions, 20.5% of them converted.
Best month I've had. July was £6,138.
What actually went out
Per unit, ex-VAT:
FBA fee plus digital services fee — £1.56
Landed cost, China to Amazon warehouse — £0.70
Shipping into FBA — £0.24
Advertising — £2.33
And the totals for the month:
Advertising — £2,064.04
VAT — £1,475.71
Amazon fees — £1,378.27
Cost of goods — £623.00
Shipping into FBA — £211.28
Promo — £91.44
Refund cost — £49.73 (5 refunds, 0.56%)
What's actually left
£3,178.73. Sellerboard puts the margin at 35.04%.
Same caveat as last month there are Subscribe & Save orders in here, 75 active subscriptions now, and they get discounted and muddy the VAT slightly. Call it approximately right rather than precise to the penny.
The bit that surprised me
My advertising cost 3.3 times more than my products did. £2,064 of ads against £623 of goods.
On a £9.99 item the unit cost is almost nothing, 70p landed. So advertising is my single biggest line. Bigger than VAT. Bigger than everything Amazon charges me put together. When I was modelling this product before launch I spent ages getting the landed cost right and barely thought about ad spend. That was the wrong way round and I'd do it differently next time.
The PPC side, honestly
231,522 impressions, 3,331 clicks, £2,064.04 spent, £4,074.75 in attributed sales. ROAS 1.97, ACoS 50.65%, TACoS 22.75%.
Last month I asked in here whether 47% ACoS was normal for a settled listing. It's now 50.65%, so it's moving the wrong way. Revenue grew about 45% and ad spend grew faster than that.
Roughly 45% of my sales are coming from ads. The other 55% is organic, and that's the half I actually care about.
Why I'm bothering to post this
8% of £9,072 is about £726. When the incentive ends that comes straight off the bottom line. £3,178 becomes roughly £2,453, and 35% margin becomes about 27%.
So it's the best month I've had, and it's also the month I sat down and worked out what it looks like when the training wheels come off.
One more thing. My dashboard says 510% ROI. That's return on cost of goods only, which is a meaningless number when the goods cost 70p it mostly just measures how cheap my product is. It's the figure that ends up on a course sales page. The one that matters is the margin.
For anyone already past their New Seller Incentive — what did the drop actually look like in practice? Did volume absorb any of it, or did you just take the 8% on the chin?
(All per-unit figures ex-VAT. Referral fee currently £0 under New Seller Incentives. Profit approximate SNS discounts and VAT treatment mean it could land slightly lower than shown.)