Criteria I Apply to Determine the Profitability of a Product on Amazon

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salma12345
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Joined: Mon Jan 24, 2022 4:26 am

Criteria I Apply to Determine the Profitability of a Product on Amazon

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I have started to analyze these days the inventory that. It has been a necessary exercise that has brought to light a lot of relevant data. Carlos Bravo0 One of the conclusions has been that I should channel the investment into a different type of product than the one I thought until now. The reason is very simple. Despite contributing 20% ​​in turnover, at the level of profitability, subtracting costs, it only remains at 2% profitability. product margin Adobe Stock Photo Rights Despite dedicating less investment to that brand, I will continue to do so in a timely manner. The reason for this is that I don't just look at cost-benefit profitability.

Contents [ hide ] 1 Stock rotation 2 Low level of incidents 3 Simplicity of shipment and provision of product Stock rotation It is not the same to have a product that is sold once a week and that gives you a return of 30% than to have one that gives 5% but generates 10 sales a day. It is important Acquista il database email to have margin but also the speed of return on investment is important. I prefer to win many times a little than once a lot. Money has to come in and out as soon as possible . It cannot be locked for a long time in the form of inventory. Low level of incidents Right now what I'm looking for is to reduce incidents. When you want to get a lot with few resources, everything has to go smoothly. I prefer to sacrifice some profit points on products that do not give problems and require resources in the form of customer service, returns, etc.

Simplicity of shipment and provision of product Not all products require the same preparation time. In profitability, a priori, we only calculate cost and benefit, but it is evident that time must also be valued . If it is necessary to invest a lot of time to acquire, prepare and/or send the product, this subtracts points. It is less profitable even if it is not seen immediately in the figures. I have a lot to improve on Amazon processes. In the end, it is not a question of looking for great improvements, but of applying small steps continuously. It is not a question of waiting to implement the great advances because if you delay it too long, it never arrives. Let's see how February goes. We will continue to improve. I'll tell you now. Stay tuned.
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