In fact, many of our new clients have come to us with exactly that problem – and although their challenges are unique to each brand, here’s the basic method we’ll be using to pinpoint what needs plugging, and how we can do it…
There’s no denying that Amazon has become much more profit-focused this year – but hasn’t everyone?
The world’s biggest marketplace tightening the purse strings and wringing margin wherever it can isn’t all that surprising – but, coming hot off the back of a few years of rapid growth and inflation, it’s definitely crept up on a lot of brands.
And so, with easy gains off the table, it’s time to turn inwards and ensure that you’re not leaking profits from your Amazon channel.
How do we do that? We dive deep.
A deep, holistic understanding
To solve a profit issue, you need to dig into the heart of your Amazon operation and gain a complete, holistic understanding of what’s going on.
Why? Because leaky margins can come from lots of areas – and usually it’s lots of areas combined, from Amazon management to channel strategy to back-of-house operations.
You need to look at:
Your market and its opportunities
To identify untapped niches, emerging trends and areas for growth where you can capitalise on new revenue streams.
Your Trading model with Amazon
1P vs 3P vs Hybrid – there’s no “one size fits all” answer and what’s right for you can change.
We covered this in more depth in our recent expert masterclass, “How to supercharge your brand’s Amazon presence in 2024”.
Just follow the link to watch.
Or if you know you need expert guidance? Ask us about our Selling Model Evaluation service.
Your ability to operationally service your current (& future) trading model
Your ability to do this effectively ensures smooth operations, efficient fulfilment, customer satisfaction, minimised costs, a better negotiating stance and more.
Catalogue Efficiency
When was the last time you optimised your product range?
We see so many clients who’ve not done this exercise for far too long that we’ve recently launched a dedicated Product Range Optimisation service, where we review your brand’s range in the context of:
- The market
- Your competition
- Existing sales
- Unit economics
And identifies the right range to take to market for top and bottom-line growth.
Chargeback and Shortage Opportunities
Addressing issues in inventory management, logistics or customer service, preventing revenue loss and improving overall profitability.
Lots of brands are tackling their Amazon profit leakage by using some of the fantastic chargeback and shortage recovery services out there working on a no-win, no-fee basis.
But, while recovered revenues are great news, the truth is that you’re still leaking profits.
And you’re paying a percentage of your money to a third party to get it back, instead of stopping the gap in the first place.
Far better to find the source and prevent future leaks.
If you’d like expert help, get in touch to talk through our profit and recovery service.
With exceptional success rates – £160k recovered for clients already this year – we find lost revenue, recover it quickly and stop it happening again, all at a market-leading rate.
Profitability Analysis down to ASIN level
This kind of in-depth profitability analysis will give you the insights you need into the performance of individual products to make informed decisions on your range, your pricing and more – all with a view to maximising every penny of profit.
When it comes to identifying and plugging profit leaks, it can be hard to see the wood for the trees, and this is especially true when you live and breathe your Amazon business day in, day out.
Plugging profit gaps and driving growth are what we do best – so if your Amazon brand is leaking margin? Let’s talk.