The Margin Filter

Something I see inside ecommerce brands all the time. Scaling the wrong SKUs.

My role is to help founders filter their operations rather than adding to their work. To fine tune their ecommerce growth machine.

Budget, team focus, stock levels are all going into products that look like winners but don’t hold up under proper scrutiny.

Why? Because growth looks good. Margins sit quietly in the background. And when you’re in the weeds, noisy SKUs will get the most attention.

The Margin Filter

Not every SKU deserves scale.

Some low-price products are great for first-click conversions, for building brand perception or for grabbing attention.

However, that doesn’t mean they’re:

• Margin-positive after CAC, returns and shipping costs are removed

• Operationally efficient

• Building the kind of LTV that makes your brand more valuable

3 Questions I Ask My Clients

1. Is this SKU operationally sound?
If it slows fulfilment, racks up return costs or causes customer service noise (common when customers are hesitant in purchasing and not all answers are provided on the PDP), it’s probably not worth scaling.

2. Is it profitable after all costs are considered?
Not just on the surface. Not just ROAS. I want to see contribution margin after discounts, CAC, shipping and returns.

3. Is it bringing in the right kind of customer?
Some SKUs drive LTV. Others drive one-and-done bargain hunters. Know which is which.

My Rule of Thumb

Only scale SKUs that increase both margin and customer quality. By ‘customer quality’ I mean customers who ‘get it and value what you’re delivering them’

Everything else? Just taking up oxygen.

Your Action Step?

Learn how to monitor product performance at contribution margin level

Pull 90 days of product performance using an app like Conjura
Include CAC, fulfilment, return rates.

Now, sort by actual contribution margin (not just volume or ROAS).

What you find might surprise you.