What are the two most important metrics for your Amazon business?
We’d say revenue and profit.
But there’s a trap!
Your sales are growing on Amazon, and your brand is doing well, but that doesn’t mean your business is profitable.
Don’t get us wrong. Revenue is a vanity metric, so even if you grow month-over-month, it doesn’t necessarily mean you’re turning profitable. The reality is that most e-commerce businesses still struggle with profit margins despite high revenue.
We don’t want to sugarcoat, but e-commerce profit margins are not going to increase after the new normal. Moreover, as an Amazon seller, competing against Chinese sellers can be a downhill battle. This is why many businesses on Amazon make 7- or 8-figure revenue but have little profits.
The good part?
A solid business model backed by strategic execution will help you remain profitable. This article covers all things you need to know to boost your gross profit margin on Amazon.
- https://www.sellerapp.com/blog/amazon-profit-margin/
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What are the two most important metrics for your Amazon business?
We’d say revenue and profit.
But there’s a trap!
Your sales are growing on Amazon, and your brand is doing well, but that doesn’t mean your business is profitable.
Don’t get us wrong. Revenue is a vanity metric, so even if you grow month-over-month, it doesn’t necessarily mean you’re turning profitable. The reality is that most e-commerce businesses still struggle with profit margins despite high revenue.
We don’t want to sugarcoat, but e-commerce profit margins are not going to increase after the new normal. Moreover, as an Amazon seller, competing against Chinese sellers can be a downhill battle. This is why many businesses on Amazon make 7- or 8-figure revenue but have little profits.
The good part?
A solid business model backed by strategic execution will help you remain profitable. This article covers all things you need to know to boost your gross profit margin on Amazon.
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