Case study · DTC · Amazon SFP

Shipping went from 18% to 12% of revenue. Same Prime badge.

A pet care brand running ~9,000 orders/month was bleeding 18% of revenue on shipping — most of it on Amazon SFP. We rewired their carrier mix, kept the Prime badge intact, and dropped that line by six points of margin.

6 pts
Margin recovered
18% → 12% of revenue on shipping
0
Lost Prime listings
33%
Lower cost/label
USPS
Added carrier
For sub-1lb SFP orders
§ 01

The Amazon SFP trap

Amazon's SFP requirements force fast delivery on every Prime order — but the carrier strategy was UPS Ground for everything. For sub-1lb orders that don't need 2-day, that's a ~$3 overpay per order. At 5,400 Amazon orders / month, that's ~$16K of avoidable spend monthly.

§ 02

Reweighting the mix

We built a per-order routing logic that splits the SFP volume between USPS Priority (sub-1lb, regional) and UPS Ground (heavier or distant). Both qualify for Prime if delivered inside the SLA. The brand saw zero impact on Prime eligibility metrics — Amazon's dashboards never moved.

§ 03

What it added up to

Shipping dropped from 18% to 12% of revenue across the next two quarters. At their gross margin, that's six points of contribution margin — millions in run-rate. We also caught back $11K in late-delivery refunds during the transition that were never claimed.

Shipping was eating 18% of our revenue. For an Amazon SFP seller, that's the line between growing and standing still. Kadima got us to 12% without changing a single carrier. Six points of margin, straight back to us.

Jake Oliphant
Founder · Pet care brand · Amazon SFP
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