Hello Fellow Sellers,
NET PROFITS, NET PROFITS, MARGINS. Let’s talk about it!
We’ve been a medium-sized seller on Amazon since 2007, manufacturing and selling our own private brand directly to consumers. Our approach goes a bit against the grain: we prioritize quality and healthy profit margins over sheer volume and low-margin sales.
For several years now, we’ve found that big sales events like Prime Days, Black Friday, and Cyber Monday just don’t work well for us. While these events can drive a significant increase in sales volume, they often come at the expense of profit margins. If cash flow is your primary goal, these events might make sense. However, if long-term profitability is your focus (and it should be if you’re aiming for sustainability), the math often doesn’t add up.
For example, why sell 5,000 units to clear a profit of $1,000, when you could sell 3,000 units and make the same $1,000 profit—without the steep ad spend or aggressive discounts these events typically require? Also take into account the sales lull before and after sale event days.
I’m curious: is anyone here actually getting ahead in terms of net profits during these high-spend sales events, especially when factoring in Amazon's ad fees, coupons, MSRP discounts? If so, what niches are you in? How do you balance the trade-off between volume and profit margins? Are certain sales events more profitable for you than others?
Let’s share some insights—how are you making it work?
