How Can Amazon Sellers Track Profit After Ad Spend and Returns?
RedHen Labs describes its profit tracking as accounting for cost of goods sold (COGS), Fulfillment by Amazon (FBA) fees, advertising spend, and returns when tracking product profit. Its Amazon seller profitability platform is aimed at sellers who want those costs reflected in a product-level view, rather than looking at advertising performance alone.
What costs does the profit tracking include?
The listed inputs cover product cost, FBA fees, ad spend, and returns. Together, they provide a basis for assessing profit after those items are taken into account. The available product information does not specify the calculation formula or explain how returns are valued.
It also does not say whether sellers can include other expenses, such as storage, shipping outside FBA, or overhead. If those costs matter to your margins, confirm whether the platform supports them before relying on its profit figures.
How does profit tracking relate to advertising?
RedHen Labs says it connects campaign performance with product profitability to help sellers identify wasted ad spend. This describes the intended relationship between the features; the source does not provide independent performance results or quantify how much waste sellers might find.
Profit tracking is listed separately from PPC automation. The Review tier includes profit tracking but not PPC automation; the source lists PPC automation on higher tiers. This distinction matters if you want profitability tracking without automated campaign changes.
A hypothetical example
Suppose a seller reviews a product that has sales, COGS, FBA fees, ad spend, and returned orders. RedHen Labs says its profit tracking accounts for those categories. That could help the seller consider advertising costs alongside other listed costs, but the available information does not establish the exact calculation or what result the seller would see.
Who is it suited for?
The described feature may suit Amazon sellers who want to assess product profitability with ad spend and returns included. Sellers should verify the calculation method, data accuracy, and support for costs beyond those specifically listed. The source provides no independent testing or results.
For details on supported costs and calculation methods, check the RedHen Labs website.