Contribution Margin

Methodology

How we calculate it

Profit-true bidding starts with knowing the profit. Laurence keeps a live contribution margin for every product you sell.

1. 01

   Your costs

   COGS and cost overrides, per product — entered once, kept current as they change. Margins are only as honest as the costs behind them.

2. 02

   Amazon's cut

   Referral fees, FBA fulfillment, and storage, pulled per product from Amazon's own fee data — measured, not estimated from a storewide average.

3. 03

   Per-product margin

   Revenue minus all of it: the contribution each order actually makes, per ASIN. One product at 45% and another at 12% should never share a bid strategy.

4. 04

   Priced into every bid

   The bid model optimizes contribution profit, not revenue. ACoS targets guess at what a sale is worth; margins know.

Capabilities

What it does

• Per-product margins from COGS, referral fees, FBA, and shipping
• Bids optimize profit, not revenue — no ACoS guesswork
• Fee and cost changes flow into bids automatically
• The foundation LTV and the bid model are built on

The rest of the platform

One system for the whole Amazon profit engine