Скачать или смотреть Why Most Amazon Sellers Are Broke

Everyone thinks the goal of selling on Amazon is to get more sales, but your actual goal should be to get more profit. I've seen clients doing $500,000 a year in revenue who are completely broke, while others doing $100,000 with 50% profit margins are thriving. The difference? One understands that revenue is vanity and profit is sanity.

In this video, I'll show you why chasing revenue is probably killing your Amazon business, how to identify if you're in this trap, and how to change your mindset to optimize for profitability instead of vanity metrics.

Timestamps:
0:00 - Introduction
1:17 - Why profit Matters
2:29 - Definitions
4:25 - Fix Your Profit Problem
6:38 - Calculating Profit Margin
7:30 - Margin as Your North Star

Key Points:
REVENUE VS PROFIT REALITY CHECK:
→ $500K revenue sellers can be completely broke
→ $100K sellers with 50% margins are actually profitable
→ Amazon wants you to optimize for revenue, not profit
→ Revenue is a vanity metric that doesn't pay your bills

THE SARAH EXAMPLE:
→ $40K monthly revenue sounds impressive
→ After Amazon fees, product costs, and advertising - barely breaking even
→ Working 60 hours a week for $24K annual take-home
→ Classic case of optimizing for the wrong metrics

PROFIT-FIRST DECISION MAKING:
→ Filter every decision through: "Will this get me more profit?"
→ Price increases, ad spend, inventory purchases - all profit decisions
→ Stop chasing vanity metrics in Seller Central
→ Focus on your actual bottom line P&L

CONTRIBUTION PROFIT CALCULATION:
→ Calculate profit margin for every single ASIN
→ Retail price minus cost of goods sold minus FBA fees minus Amazon commission
→ Add 3-5% buffer for returns and storage fees
→ Divide gross profit by retail price for your margin percentage

USING YOUR MARGIN AS YOUR NORTH STAR:
→ This percentage influences every business decision
→ Use it as your target ACOS in PPC campaigns
→ Don't drop prices or run coupons if it kills profitability
→ Set KPIs based on actual profit, not revenue

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Who are we? PPC Farm is an Amazon PPC Agency. That's all we do and we're really freaking good at it. As an 8-figure Amazon seller ourselves, we know what it takes to be successful on Amazon. The info I share about Amazon is from the trenches. The real deal.

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