{"id":398,"date":"2022-06-03T05:33:57","date_gmt":"2022-06-03T05:33:57","guid":{"rendered":"http:\/\/localhost\/px\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/"},"modified":"2022-08-01T05:26:01","modified_gmt":"2022-08-01T05:26:01","slug":"know-your-numbers-how-profitable-should-your-amazon-business-be","status":"publish","type":"post","link":"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/","title":{"rendered":"Know Your Numbers: How Profitable Should Your Amazon Business Be? &#8211; Everything You Need to Know"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#11_Things_the_Most_Profitable_Amazon_Sellers_Have_in_Common\" >11 Things the Most Profitable Amazon Sellers Have in Common<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#1_They_Keep_Score\" >1. They Keep Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#2_They_Recognize_that_%E2%80%9CSales_are_Vanity_Profit_is_Sanity%E2%80%9D\" >2. They Recognize that \u201cSales are Vanity, Profit is Sanity\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#3_They_Run_Lean_and_Mean_Operations\" >3. They Run Lean and Mean Operations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#4_They_Focus\" >4. They Focus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#The_Rest_of_the_Story\" >The Rest of the Story<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pixelfy.me\/blog\/know-your-numbers-how-profitable-should-your-amazon-business-be\/#About_the_Author\" >About the Author<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>One of the questions we often hear at Seller Accountant is, \u201chow profitable should my Amazon business be?\u201d We generally hear this from sellers who are concerned that they are leaving money on the table.<\/p>\n\n\n\n<p>As we talked to real sellers, we began to see patterns in sellers who routinely showed maximum profits and sellers who were struggling.<\/p>\n\n\n\n<p>And hey, we\u2019re numbers people. We\u2019re interested in hard numbers, not theories or generalities. So we conducted a study where we sliced and diced over $100 million in Amazon seller data and interviewed around fifty Amazon sellers.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_Things_the_Most_Profitable_Amazon_Sellers_Have_in_Common\"><\/span>11 Things the Most Profitable Amazon Sellers Have in Common<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-1024x1024.jpg\" alt=\"how profitable should your amazon businesss be\" class=\"wp-image-1589\" srcset=\"https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-1024x1024.jpg 1024w, https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-300x300.jpg 300w, https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-150x150.jpg 150w, https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-768x768.jpg 768w, https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash-1536x1536.jpg 1536w, https:\/\/pixelfy.me\/blog\/wp-content\/uploads\/2022\/07\/hello-i-m-nik-r22qS5ejODs-unsplash.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p>From that data, here are a handful of the 11 things the most profitable Amazon sellers have in common:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_They_Keep_Score\"><\/span>1. They Keep Score<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is the big one. Profitable sellers know where their money is coming from and where it\u2019s going. They understand not only how to read important statements like their Profit &amp; Loss Statement and their Balance Sheet, but they also know how those documents (along with a Statement of Cash Flows) work together to reveal their Amazon business\u2019s bigger financial picture. And they use accrual accounting to get there.<\/p>\n\n\n\n<p>With this full picture, profitable Amazon sellers can:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Quickly see problems and nip them in the bud<\/li><li>Identify opportunities for growth<\/li><li>Plan for big expenses without firefighting (such as taking on an emergency high-interest loan)<\/li><li>Position your business to sell<\/li><\/ul>\n\n\n\n<p>But when you don\u2019t pay attention to accounting, you can miss big problems on the horizon until they\u2019re too late to manage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_They_Recognize_that_%E2%80%9CSales_are_Vanity_Profit_is_Sanity%E2%80%9D\"><\/span>2. They Recognize that \u201cSales are Vanity, Profit is Sanity\u201d<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We often see Amazon sellers get in trouble when they only look at gross sales numbers. If you\u2019ve ever asked yourself, \u201cMy sales are great! Why doesn\u2019t it feel like I\u201dm making any money?\u201d then it could be because you are looking at sales, but not profit.<\/p>\n\n\n\n<p>Profitable online sellers track and can easily pinpoint not just sales but numbers like COGS, advertising costs, overhead, and taxes. Top sellers have their finger on the pulse of how much it costs them to run their business, not just sales figures truly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_They_Run_Lean_and_Mean_Operations\"><\/span>3. They Run Lean and Mean Operations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It may surprise you to learn that the most profitable Amazon businesses in our study were simple 1 or 2-person operations. These Amazon businesses sold quality products while maintaining high margins and very low overhead.<\/p>\n\n\n\n<p>On the flip side, one of the anchors we saw weighing many Amazon businesses down was scaling up too much too soon. Hiring too much help, renting warehouse space with the intention of \u201cgrowing into it\u201d or subscribing to too many seller tools can easily eat away at your bottom line.<\/p>\n\n\n\n<p>We suggest evaluating your current spending often to ensure that every dollar you spend is working toward your business\u2019s bottom line.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_They_Focus\"><\/span>4. They Focus<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Wise Amazon sellers specialize rather than generalize.<\/p>\n\n\n\n<p>They realize that while they may be good at one or two things, nobody can be good at everything. For example, wholesalers often wonder if they should expand into private labels. Or home goods sellers wondering if they should expand into the baby category.<\/p>\n\n\n\n<p>But we\u2019ve seen repeatedly that sellers who dig in and focus on their strengths excel, while sellers who try to do too much too fast crash and burn.<\/p>\n\n\n\n<p>Don\u2019t try to force a square peg into a round hole. If your strengths lie in making deals with wholesalers, but you\u2019ve never signed into a social media platform in your life, then it may not be worth your time to become a social marketing expert. Leverage what you\u2019re good at.<\/p>\n\n\n\n<p>Of course, that\u2019s not to say that you may not want to expand your business model or marketing strategy in the future, but by focusing on your strengths, you can create a cushion of profit from where you can branch out into new areas of business.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center has-text-color has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#e2ffee;color:#292d34\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p><strong><em>Did you know: <\/em><\/strong><em><a href=\"https:\/\/pixelfy.me\/\">Shortened Links<\/a> are known to get more traffic than longer ones<\/em>. <\/p>\n\n\n\n<p><em>Shortened links also help you track the traffic you are getting from different platforms.  <\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Rest_of_the_Story\"><\/span>The Rest of the Story<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those four tips are just the beginning.<\/p>\n\n\n\n<p>We put together the results of our study in a 38-page eBook. This eBook is chock full of tips, including 7 more things that profitable Amazon sellers have in common and 6 anchors we typically see dragging an Amazon business into the red.<\/p>\n\n\n\n<p>Take a look at our <a href=\"https:\/\/pixelfy.me\/blog\/\">blog<\/a> to learn more about amazon sellers. <\/p>\n\n\n\n<p>Click here to download your free \u201c<a href=\"https:\/\/mailchi.mp\/756b902f05e9\/amazonprofit\" target=\"_blank\" rel=\"noopener\">How Profitable Should My Amazon Business Be?<\/a>\u201d eBook.<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center has-text-color has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#e2ffee;color:#292d34\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p>Are you uncertain about your business\u2019s bookkeeping? Not sure how to generate a balance sheet or a statement of cash flows?<\/p>\n\n\n\n<p>We\u2019re offering Seller Tradecraft readers the beta versions of our two eCourses for just $99. <\/p>\n\n\n\n<p>The courses increase to full price on May 15th, so check out \u201c<a href=\"https:\/\/seller-accountant.teachable.com\/p\/accounting-bookkeeping-for-e-commerce-sellers\" target=\"_blank\" rel=\"noopener\">Amazon Accounting: How to Gain Visibility into your Business<\/a>\u201d and \u201c<a href=\"https:\/\/seller-accountant.teachable.com\/p\/cfo-tactics-for-e-commerce-sellers\" target=\"_blank\" rel=\"noopener\">CFO Tactics for E-Commerce Sellers<\/a>\u201d today. <\/p>\n\n\n\n<p>Use code TRADECRAFT to receive your deep discount.<\/p>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"About_the_Author\"><\/span>About the Author<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tyler Jefcoat is the Co-Founder and CEO of Seller Accountant, a service that specializes in helping e-Commerce sellers gain true visibility into their business financials so they can achieve financial freedom. <\/p>\n\n\n\n<p>Learn more and schedule your free consultation at <a href=\"https:\/\/www.selleraccountant.com\/contact-us\/\" target=\"_blank\" rel=\"noopener\">SellerAccountant.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you want to know more about how profitable you Amazon business be and how to judge the numbers for it, go through this detailed guide. Amazon is an online &#8230;<\/p>\n","protected":false},"author":1,"featured_media":399,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[1],"tags":[360,361,362,363,364,365],"class_list":["post-398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-how-profitable-should-your-amazon-business-be","tag-11-things-the-most-profitable-amazon-sellers-have-in-common","tag-they-keep-score","tag-they-run-lean-and-mean-operations","tag-they-focus","tag-the-rest-of-the-story"],"acf":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/posts\/398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/comments?post=398"}],"version-history":[{"count":5,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/posts\/398\/revisions"}],"predecessor-version":[{"id":1874,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/posts\/398\/revisions\/1874"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/media\/399"}],"wp:attachment":[{"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/media?parent=398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/categories?post=398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pixelfy.me\/blog\/wp-json\/wp\/v2\/tags?post=398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}