In this week's episode, we discuss profit-boosting strategies with Chad Rubin, an e-commerce veteran. Chad, who has built and sold companies like Skubana and The Prosper Show, shares insights on pricing strategies, data-driven decisions, and AI in e-commerce. Key points include optimizing Amazon listings, managing ad spend with POAS, and understanding algorithmic brands' future. Chad's extensive experience and passion for e-commerce success are evident. He's also a global speaker and author of the Amazon bestseller "Cheaper, Easier, Direct." Like, comment, and subscribe for more finance and e-commerce insights!

Takeaways:

• Data-Driven Decisions: Aggregators and successful sellers leverage data science teams to drive decisions. This approach, known as algorithmic branding, involves using algorithms for PPC, inventory management, and pricing to optimize business operations.
• Understanding and Adapting to Fees: Sellers need to get used to Amazon's changing fee structure. Operating smarter by predicting inventory levels, adjusting prices, and being efficient with inventory can help maintain profitability despite fee increases.
• Profit on Ad Spend (POAS): Instead of focusing on ACOS (Advertising Cost of Sales), consider using POAS, which takes into account the total cost of delivering a unit to the customer. This metric provides a clearer picture of profitability.
• Bundle and Pack Products: To avoid price competition, consider selling products in bundles or packs. This approach can create additional value for customers, making direct price comparisons with competitors more difficult.
• Optimize Pricing: Use dynamic pricing strategies to adjust prices based on demand and competition. By harmonizing price and ad spend, sellers can increase their contribution profit.
• External Traffic: Analyze and optimize external traffic sources in addition to organic and paid traffic within Amazon. A higher percentage of external traffic can diversify sales channels and reduce dependency on Amazon's internal ecosystem.

Quote of the Show:

Start adjusting prices to understand their impact on your objectives. I created it out of necessity when nothing on the market met my needs. Start by creating a spreadsheet with your ASIN and objective, then input all relevant factors like price, fees, ad spend, and competition. See how price adjustments affect your goals.

Links :

Website – Profasee : https://profasee.com/

Twitter – Profasee : https://twitter.com/theeprofasee

LinkedIn – Profasee : https://www.linkedin.com/company/81280009

LinkedIn – Personal : https://www.linkedin.com/in/itschadrubin/

Twitter – Personal : https://twitter.com/itschadrubin

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