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January 25, 2023

Crush Your Amazon Profit Margin – Are You Sitting on a Gold Mine?

Amazon sellers often experience frustration with not knowing where their money is going and not having a way to analyze and identify the best products to sell. Using ecommerce profit analytics programs, such as Sellerboard or Eva, can help sellers identify profitable products, track their sales and profits, and manage their inventory and advertising. Reviewing the data regularly and double down on out of stock, high profit items is crucial to maximize profits. It’s also important to calculate “AROI” (Annualized Return on investment) which is more accurate than just ROI. Additionally, it’s recommended to reallocate capital from mediocre/loss making products to profitable items and explore options such as creating variations or bundles of successful products.

Why This matters

Amazon Seller Frustrations

  • Working hard but not much money left at end of month/quarter/year
  • Don’t know where your money goes
  • Don’t know if you should reorder products, what to buy. How much

What we Want from our Products

  • [Revenue?]
  • Return on Investment (more on this shortly)
  • Cashflow
  • Profit
  • replenishable/repeatable

Missing out on what’s working

  • Having no profit analytics system so you don’t know what’s working
  • Not having a way to analyse and “surface” the best products
  • Shiny object/creativity syndrome Not acting on the insights you get 

Who this is for 

 -Resellers using RA, OA, or wholesale sourcing 

– own brand sellers  (Private Label/custom products) 

– Shopify or DTC store owners

Using Amazon Profit Analytics is like panning for gold  – or Shopify analytics or apps – 

 eCommerce and Amazon is the new Gold Rush. Don’t throw the gold out with the gravel!

What Amazon profit seekers can learn from gold panning:

  • Once you’ve got the gold (keep the profits!)….
    • Keep what you have!
    • Go back to the same source!

How to get more out of what’s working

Phase A. Finding profitable products

  1. [as before] Get an ecommerce profit analytics programme or use what works

Amazon-specific 

Sellerboard is common. 

Eva is probably better value. 

 – EVA

    • Accurate Sales & Profit Analytics – like Sellerboard
    • Custom Reporting At Product, Store & Daily Sales Level
    • Advertising Analytics & Rule-Based Settings
  • Dynamic Pricing & Promotion Management
  • Inventory Management & Replenishment Forecasting

Very affordable. 

Shopify  – in left hand menu

Analytics>Reports

Categories: Finances

Gross profit report 

  1. Input accurate COGS and other costs

Having a system with no data is a waste of time

Having a system with inaccurate data is positively dangerous

  • You believe it – lose money
  • You don’t believe it – so you don’t follow the insights – also lose money!

  1. Review the data – regularly!

  • Annually is too late
  • Quarterly minimum 
  • Monthly is best

  1. Note frequently Out of stocks

  2. Find highest margin products

  3. Look at stock turn

  1. Don’t worry about ROI – calculate “AROI” (Annualized Return on investment] (listen to/watch future episode)

Phase B- implementation

  1. DOuble down on OOS – Make sure you stay in stock/deepen stock on fast-selling and profitable items (reallocate capital for slow-selling or loss making items)

  2. Double down on high profit items – For the most profitable items, reallocate capital from mediocre/loss making products

  3. create/find variations on profitable items (future episode)

  4. Create Bundles (listen/watch for future episode) 

Are You Sitting on a Gold Mine?

 What to do next to Crush Your Amazon [or Shopify/DTC] Profit Margin

Get a free Amazon profit audit

Get a free audit from me, Michael Veazey, personally. As long as you have at least $10K/€10K/£10K in monthly revenue. 

You can be a reseller or Private label/custom product brand owner  

Just click the link below, scroll down, click on “Amazon audit” and book in a time!

www.myamazonaudit.com  

Get access to the best Amazon profit analytics system 

 – EVA

What you get with Eva (all included in one modest monthly subscription):

  • Accurate Sales & Profit Analytics
  • Advertising Analytics & Rule-Based Settings
  • Aggregated Views
  • Custom Reporting At Product, Store & Daily Sales Level
  • Dynamic Pricing & Promotion Management
  • Inventory Management & Replenishment Forecasting

Plus Reimbursement Recovery Fee for just 13% of Recovered Amounts

(industry standard is 20-25%)

To get this – with a free trial – go to www.amazingfba.com/analytics

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Michael Veazey, Amazing FBA


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