Boosting profitability is an age-old problem for Sellers and Vendors on Amazon, and it’s a cry for help that our CEO Andy Banks must have heard a thousand times!
So where do we look when we hear this marketplace lament from clients?
Andy says profitability problems normally stem from one of three places…
1. The Architecture behind your Product Range
When it comes to profitability problems, range architecture is so often a key culprit.
If you’re simply selling the wrong assortment on Amazon – whether that’s in terms of market fit, unit economics or another factor – it’s crucial to step back, assess and pinpoint what’s really going to perform for you.
How can Venture Forge help?
To meet growing demand in these profit-pinching times, we’ve just launched our Product Range Optimisation Service.
Our service reviews your entire offering in the context of:
- The market
- The competition
- Your existing sales
- Unit economics
The result?
You’ll be able to ensure you’re taking the right range that will drive the right profit outcome to Amazon.
2. Your Selling Model
The Vendor vs Seller vs Hybrid debate is undoubtedly one of the hottest Amazon topics around this year, and it’s one we’ve covered a few times already (see below for the links you need).
The current Amazon environment is seeing lots of brands knee-jerking from Vendor to Seller as they look to overcome their profit challenges.
But should you be doing the same?
Truth be told, we think many of those making snap decisions will find it’s not the right one – but there’s definitely no “one size fits all” approach to this incredibly fundamental Amazon question.
This is a big move, and deciding what’s right for your brand needs careful, considered thought.
You need to evaluate why you’re facing challenges, grasp the unit economics of your business (and Amazon’s) and assess your own operational capacity to deliver on the different models – all before you take any action at all.
Need expert guidance? Ask us about our Selling Model Evaluation service.
3. Inefficient Operations
From back-office inefficiencies to shortages and chargebacks, if your internal processes are leaking profits, you need to plug the gaps now to protect your margins.
How do you do that?
From defining your cross-functional team to ensuring your processes are as robust and compliant as possible; leveraging your Amazon partnerships for better service levels to introducing constant monitoring and improvements for internal performance, you need to be deep in the detail to boost your operational profitability.
But it’s worth it.
As our CEO Andy Banks says, “if you plug the leaks, it stays in your P&L from the outset.”
Can we help you do that? You bet we can. To find out how, drop us a line today.