Help My Margins! Improving Profitability on Amazon - Episode 22
SOFTWARE IS CHANGING THE WAY WE USE SELLER DATA
DESCRIPTION
It seems that we are always talking about brands, sales, and revenue, but we don’t spend as much time focusing on profits, fees, and margins. It’s amazing what software can do for your business right now, and even more mind-boggling what software will do for you in the future. Imagine a software platform that tracks every minute detail of your experience as an Amazon seller and optimizes your profitability—all from the smartphone in the palm of your hand. It’s not far-fetched craziness, but coming soon, thanks to my guest today.
“Inventory problems are the biggest cause of lower than expected profitability.”
Alasdair McLean-Foreman founded the software company Teikametrics, which provides a suite of tools for Amazon sellers, specifically those focused on improving profitability. Alasdair shares interesting perspectives on how to measure your profitability and the key factors to consider about profitability issues. This is an important conversation from an entrepreneurial standpoint and for those with a larger brand, specifically regarding advertising and inventory management. Our conversation includes thoughts about the balance between focus and diversity in establishing your brand on Amazon, as well as some ties to previous topics covered on the podcast. The bottom line for every seller is profitability, which makes this show the one you can’t afford to miss!
Key Takeaways
How Teikametrics can help FBA sellers’ margins
Alasdair’s background includes over 15 years as an ecommerce seller, starting out from his dorm room at Harvard
He became an Amazon seller in 2003 and started focusing on technology
He sold his ecommerce business and wanted to help other sellers with technology, and so Teikametrics was born
They are the first company in the US to release a platform to help sellers optimize profitability through FBA
Alasdair gives a glimpse into the “really cool things” Teikametrics has slated for release later in 2018
Why profitability and sales are two very different things
The top cause of poor profitability revolves around inventory problems
Why these is value in scaling and consolidating
Using metrics to track fulfillment, storage, shipping, return rates, and much more
Why you must identify and “plug” the leakage points
The tough problems of packaging, shipping, and advertising: just a few of the things Teikametrics can help you through
The FBA Insight tool and how it helps sellers with FBA
Alasdair’s exciting vision of a data-driven platform that helps sellers make decisions (You’ll be amazed at what this software can do!)
Different ways to view profitability, including brand equity, market share, and lifetime value
Keeping a wary eye on your inventory levels
Why Amazon Fulfillment Centers DON’T want to be warehouses full of inventory
The difference between an expanded catalog and a focused, effective catalog
Why you need to get clear on your goals and know what to zero in on in your business
Mentioned in this Episode