Running a successful Amazon business requires a keen eye for profitability. While our overall sales might be thriving, examining individual product performance is crucial to identifying potential low-hanging fruits eating into our profits. In this blog post, we will explore the importance of understanding the profit per product and how making informed decisions based on this data can significantly impact our Amazon business’s success.
The Power of Profit Per Product Analysis:
Profit per product analysis assesses the profitability of each item in our Amazon inventory. It allows you to identify which products contribute positively to our profits and which may be dragging our earnings down. This analysis provides valuable insights into our sales strategy and helps you make data-driven decisions to optimise our business.
Let’s look into a real-life example of an Amazon account with sales data over the last few weeks using the SellerBoard dashboard. The first product had the highest sales volume but was not profitable. On the other hand, three other products were generating profits.
Here, the costs associated with ads mainly swallowed the profit, negatively impacting the overall business.
Once we know ads are an issue, we can control the advertising spend and work towards making this product profitable. Without a SellerBoard user-friendly interface, figuring out the product with the negative margin would have been difficult.
To find out more about your product profitability, Sign up for a free 2-month trial with SellerBoard today, and access invaluable insights that maximise profits and set the stage for long-term success.