Episode 22 - Help My Margins! Improving Profitability on Amazon

Software will be changing way we use seller data

 


DESCRIPTION

It seems that we are always talking about brands, sales, and revenue, but we don’t spend as much time focusing on profits, fees, and margins. It’s amazing what software can do for your business right now, and even more mind-boggling what software will do for you in the future. Imagine a software platform that tracks every minute detail of your experience as an Amazon seller and optimizes your profitability—all from the smartphone in the palm of your hand. It’s not far-fetched craziness, but coming soon, thanks to my guest today.

Inventory problems are the biggest cause of lower than expected profitability.
— Alasdair McLean-Foreman

Alasdair McLean-Foreman founded the software company Teikametrics, which provides a suite of tools for Amazon sellers, specifically those focused on improving profitability. Alasdair shares interesting perspectives on how to measure your profitability and the key factors to consider about profitability issues. This is an important conversation from an entrepreneurial standpoint and for those with a larger brand, specifically regarding advertising and inventory management. Our conversation includes thoughts about the balance between focus and diversity in establishing your brand on Amazon, as well as some ties to previous topics covered on the podcast. The bottom line for every seller is profitability, which makes this show the one you can’t afford to miss!

 

Key Takeaways

  • How Teikametrics can help FBA sellers’ margins
  • Alasdair’s background includes over 15 years as an ecommerce seller, starting out from his dorm room at Harvard
  • He became an Amazon seller in 2003 and started focusing on technology
  • He sold his ecommerce business and wanted to help other sellers with technology, and so Teikametrics was born
  • They are the first company in the US to release a platform to help sellers optimize profitability through FBA
  • Alasdair gives a glimpse into the “really cool things” Teikametrics has slated for release later in 2018
  • Why profitability and sales are two very different things
  • The top cause of poor profitability revolves around inventory problems
  • Why these is value in scaling and consolidating
  • Using metrics to track fulfillment, storage, shipping, return rates, and much more
  • Why you must identify and “plug” the leakage points
  • The tough problems of packaging, shipping, and advertising: just a few of the things Teikametrics can help you through
  • The FBA Insight tool and how it helps sellers with FBA
  • Alasdair’s exciting vision of a data-driven platform that helps sellers make decisions (You’ll be amazed at what this software can do!)
  • Different ways to view profitability, including brand equity, market share, and lifetime value
  • Keeping a wary eye on your inventory levels
  • Why Amazon Fulfillment Centers DON’T want to be warehouses full of inventory
  • The difference between an expanded catalog and a focused, effective catalog
  • Why you need to get clear on your goals and know what to zero in on in your business

 

Mentioned in this Episode

www.teikametrics.com

 

 

 

Kiri Masters