The Business
An MP-headquartered D2C skincare brand selling through Shopify, with ad spend running across Meta and Google. The team had grown from 4 to 14 people in 18 months on the back of strong revenue numbers.
Monthly revenue had crossed ₹2Cr but the founder was uncomfortable. Cash kept disappearing. Two SKUs sold 60% of the volume, but margin per order had been dropping every quarter.
The Problem
The team was reading Shopify gross revenue and Meta ROAS as if they were the same story. They weren't. After shipping, COGS, returns, and ad cost, three of their top five SKUs were losing money on every order.
Nobody in the company could open a single screen and see contribution margin per product. Reports came from three tools and a Google Sheet maintained by the founder's assistant.
What We Did
Linked Shopify, Meta Ads, and the inventory system into a single warehouse. Built per-SKU contribution margin (revenue – COGS – shipping – ad spend attributed by purchase) refreshed daily.
Set up an anomaly alert that pings the founder on WhatsApp when any SKU drops below a 30% contribution margin for 3 days in a row.
The Result
Wasted ad spend caught
₹14L
per year
Unprofitable SKUs killed
3
of 17
Net margin
+8 pts
in 60 days
Time to spot a leak
1 day
previously: ~30 days
Killed 3 unprofitable SKUs. Reallocated ad spend to top 5 products. Net margin improved 8 percentage points in 60 days.
What Changed for the Owner
"I stopped flying blind. Now I know on Monday morning if a SKU is bleeding — not at the end of the quarter when the damage is already done."
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