Revenue Growth Is Hiding Your Margin Problem

Your top line looks great. Revenue is up 30% year over year, the board deck writes itself, everyone's high-fiving over the new sales record. Meanwhile net margin has quietly dropped 3 to 5 points a year. Nobody's noticed, because nobody's looking at the right dashboard.

This is the trap. Rising CPMs eat into contribution margin before you even see the invoice. Amazon referral fees and FBA costs creep upward every year with barely a press release. Discounting to hit a revenue target in the last week of the quarter feels like a win, until you tally what it actually cost you. SKU counts balloon because "more products means more revenue," but nobody goes back and checks whether half of those SKUs are dragging margin down.