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The Amazon Seller’s Guide to Profitability (Margins, Cash Flow, and Competition)

Author
Voltage Digital Marketing
Published
Wed 12 Mar 2025
Episode Link
https://high-voltage-business-builders.simplecast.com/episodes/the-amazon-sellers-guide-to-profitability-margins-cash-flow-and-competition-5ugSirCe

 

In this episode, we cover:

  • Why understanding unit economics is the foundation of every successful Amazon business
  • How Chinese sellers are dominating Amazon and how to compete effectively
  • Amazon’s new cash flow policies and why proper inventory management is more critical than ever
  • Why focusing on the right SKUs and cutting underperformers can transform your bottom line
  • The importance of brand-building and how to avoid the “race to the bottom”

🕒 Chapters

[02:14] – Why Most Amazon Sellers Fail at Profitability

  • The #1 mistake sellers make: not understanding unit economics
  • How failing to calculate true landed costs and Amazon fees leads to disappearing margins
  • The key financial metrics every seller must track to stay profitable

[08:12] – How to Compete with Chinese Sellers Without Lowering Prices

  • Why generic, low-cost products are a losing game in today’s Amazon market
  • The real reason Chinese sellers dominate and how they use pricing and supply chain advantages
  • The only way smaller brands can compete—and it’s not just about price

[13:25] – Mastering Cash Flow & Inventory Planning on Amazon

  • How Amazon’s new cash flow policies are making it harder for sellers to manage their money
  • Why poor inventory planning can put you out of business faster than low sales
  • The biggest mistakes sellers make with stock levels and how to avoid them

[25:08] – The Power of Pricing & Why Your SKUs Might Be Holding You Back

  • Selling products under $20 is a recipe for failure
  • How focusing on the right SKUs, not more SKUs, is the key to scaling
  • The best strategy to elevate your pricing and brand positioning to escape the “race to the bottom”

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