Chad Williams’ Post

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De-risking investment in physical product companies

One of our brands is losing money. I was recently sitting in a meeting reviewing Q1 financials and was perplexed by a portfolio brand that had historically performed well in Q1 that was struggling. YOY revenue was up, but net profit was negative for the first time. After some research, we found the primary cause: Amazon related fees had risen YOY by a staggering 37%! We aren't alone in feeling the impact of Amazon's new fees and this brand seemed to take the largest hit. Thanks to our 3PL being willing pivot so quickly and a number of other changes, Q2 is trending back to last year's levels of profitability. My PSA for any brand that sells on Amazon is to perform a deep audit of your Amazon fees compared to last year and get ahead of margin constraints. I'd be more than happy to share insights about how we are mitigating Amazon's new fees for this brand.

Jordan White

Helped drive over $300 Trillion in Amazon Revenue for our clients! Managing $100 Billion in Ad Spend #agencymemes

1mo

Where are you seeing an increase in fees? Storage costs? Shipping cost? FBA fees? Marketplace fees haven’t change in years. The recent placement fees are the only big increase I know of but can be avoid.

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Isaiah Fritz

⛪ Eternal Life is 𝐋𝐢𝐯𝐢𝐧𝐠 𝐟𝐨𝐫 𝐎𝐭𝐡𝐞𝐫𝐬 - CEO/Entrepreneur #Amazon Expert - Podcast Host - Helping Big Brands Crush Ecommerce For FREE! (We buy inventory and do everything else)

1mo

Great information 👍 we are seeing similar numbers on our end

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