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Tidewater Goods — E-commerce
Reconciling Four Sales Channels to the Penny
A DTC home-goods brand selling on Shopify, Amazon, Etsy, and wholesale finally saw contribution margin by channel.
The challenge
Tidewater Goods recorded each platform payout as revenue, which meant fees, refunds, and advertising were invisible. Inventory was counted once a year. They had crossed economic nexus thresholds in several states without registering, and the founders couldn't say whether Amazon was making them money.
What we did
We connected A2X to pull settlement-level detail from each channel, separating gross sales, platform fees, refunds, and shipping. A perpetual inventory system with landed costs replaced the annual count. We registered the company in eleven states, set up TaxJar, and built a monthly report showing contribution margin by channel and top-twenty SKUs.
The outcome
With channel-level margins in hand, Tidewater cut Amazon advertising by 40%, shifted budget to Shopify, and retired six unprofitable SKUs. Sales tax filings are now automated and reviewed monthly, with back-tax exposure resolved through voluntary disclosure.
“For the first time we can see what each channel actually earns. That changed every decision we make about where to spend.”Claire Donovan, Co-founder, Tidewater Goods
