You know what everyone wants?  

Money. 

My team and I have done over 250 Amazon audits.

There’s one massive problem with the vast majority of these accounts.

And the account owners don’t usually know it.  

Let me explain.  

You know how many Amazon sellers say they’re profitable?

Almost all of them.

You know how many can back that up by the numbers?

Very, very few of them.  

When we peel back the onion, we find that many, many accounts are losing money. 

They think they have cash flow issues, and they do.

But the deeper problem is that they have profitability issues.

And you know what’s worse than losing money?

Taking that problem, and scaling it.  

So our first project with a new brand is assessing, unlocking, and controlling profitability.  

Here are the first 5 steps we take to unlock profitability on Amazon:

𝟭. We 𝗦𝗽𝗿𝗲𝗮𝗱𝘀𝗵𝗲𝗲𝘁 𝗨𝗻𝗶𝘁 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀, to the penny, for each 𝗔𝗦𝗜𝗡.

- This is the basis for controlling profitability.

- The Amazon Profitability Rule of Thumb is that your TaCOS cannot exceed your unit margin %. ✔️

- That only works if you know your unit margin.  

For reference, we develop, and maintain, unit economics for every account.

𝟮.  𝗟𝗮𝘂𝗻𝗰𝗵 𝗠𝗢𝗥𝗘 𝗔𝗱 𝗰𝗮𝗺𝗽𝗮𝗶𝗴𝗻𝘀. (Yes, I know this is counterintuitive.)

- Think of this as enabling 𝘭𝘰𝘸𝘦𝘳 CPC.

- Almost every brand I have ever audited is missing several key placements and campaign types.  

- That means more spend, and higher bids, for fewer campaigns.  

- Every seller should include Campaigns for Category, Manual, Remarketing, ASIN targeting, Competitor keyword targeting, and a focus to all four Auto campaign placements.  Etc, etc, etc.  

- Then all of those campaign types should exist for at least every Parent ASIN.  

𝟯. 𝗘𝗺𝗽𝗹𝗼𝘆 𝗮 𝗯𝗶𝗱𝗱𝗶𝗻𝗴 𝗳𝗼𝗿𝗺𝘂𝗹𝗮.

- Bet: 99% of agencies ‘eyeball’ bid adjustments.

- Again, almost no one is using bidding formulas.  

- But effective bidding formulas can target a desired ACOS.

- And when you employ them for long date ranges, they’re highly precise.  

𝟰. 𝗣𝗿𝗶𝗰𝗲 𝗘𝗹𝗮𝘀𝘁𝗶𝗰𝗶𝘁𝘆 𝗧𝗲𝘀𝘁𝗶𝗻𝗴.

- I know, you can’t raise prices because of Brand ‘X’.

- My guy, I thought your product was better.

- Almost every brand has room to adjust pricing upward SOMEWHERE.

- And you only know that for sure if you test.  

𝟱. 𝗦𝗞𝗨 𝗟𝗲𝘃𝗲𝗹 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗥𝗲𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻.

- Remember those Unit Economics from step one?

- Realign your advertising budget to higher margin ASIN’s.

- These are the ones you want to sell more of, both through ads, and organically.  

- Some ASINs are heavy bleeders due to low unit margin, and some clear winners are often overlooked.

Now here’s a 𝗕𝗢𝗡𝗨𝗦: 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝗼𝗽𝘁𝗶𝗺𝗮𝗹 𝗽𝗿𝗼𝗺𝗼𝘁𝗶𝗼𝗻 𝗽𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲.

- Hopefully you’re on monthly promotion calendar.

- And each time you run a promotion, you can run an incremental lift test.

- This is where you test increase in unit sales against erosion of unit margin.  

- You should know where exactly where discount percentage becomes sub-optimal.

- And you’ll probably be surprised.  

 Remember, Amazon will be the largest retailer in the world in 2025.  

And this is the first time in history.

So go HAM. Absolutely.

But don’t scale losses.

Do scale profits.  

What do you think?

Amazon will beat Walmart for the first time ever this year.

Do you think Walmart’s ChatGPT partnership ultimately changes the game?

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We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers.