The Formula and The Methodology to Increase Profits by 10-15% - Chad Rubin - Amazon Legends - Episode #325

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/theeprofaseeLinkedIn – Profasee : https://www.linkedin.com/company/81280009LinkedIn – Personal : https://www.linkedin.com/in/itschadrubin/Twitter – Personal : https://twitter.com/itschadrubinWant To Level Up Your Business? Register With Our SponsorsViably is the complete financial solution to help e-commerce business owners extend their cash flow through funding. Viably's revenue-based funding programs are designed to provide online sellers with the funding they need to achieve their business goals. Whether you need to increase your inventory or ramp up your marketing efforts, Viably can help you access the capital you need to succeed.Claim your extra $1,500 when you qualify for $25,000 or more in funding. Go to https://www.runviably.com/legends  and start your application today.

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