4.9 • 816 Ratings
🗓️ 22 June 2025
⏱️ 14 minutes
🧾️ Download transcript
Most Amazon sellers are addicted to revenue—but they’re starving for profit. In this episode of Built by Business, Andy Isom breaks down the most common margin killers hiding in your Amazon business—and the simple levers you can pull this week to start keeping more of what you earn.
From FBA storage fees and PPC waste to freight negotiations and bundling tricks, this episode delivers practical insights to build a healthier, more scalable business—without chasing more orders.
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0:00.0 | You may think you need a hundred more orders every day. |
0:03.2 | But what if you could make the same or even more profit with half the orders? |
0:08.6 | Margin is freedom. |
0:10.4 | And more sales without it is just more stress. |
0:25.8 | If you're running an e-commerce business, there's a good chance you don't need more sales. |
0:34.5 | You just need more margin, meaning profit margin, the percentage of money that you keep after all expenses. |
0:42.0 | Chasing revenue feels productive, but often it isn't. Everyone gets excited when the sales dashboard lights up. It's very satisfying to open up your Amazon seller app and see those |
0:48.2 | orange bars going up and up and up. But higher sales does not always equal higher profit. And sometimes it's the opposite. |
0:56.3 | You may have heard of the point of diminishing returns. And we can often see this at play in |
1:01.4 | e-commerce businesses as well. As you scale your advertising spend, whether it's on Amazon or just |
1:07.6 | with any type of online advertising, most likely your advertising cost of sale will go |
1:14.0 | up, which means profit goes down. And as I've said in previous podcast episodes, you can think |
1:20.7 | about traffic like a target. Imagine a target for a dartboard or maybe archery. The bullseye or center of the target would contain your ideal customers. |
1:32.3 | These are customers that are hot, ready to buy. |
1:34.3 | As soon as they see your ad pop up, they're going to make a purchase. |
1:38.3 | These are going to be your most profitable conversions. |
1:42.3 | These are the people searching the keywords that resonate exactly |
1:46.2 | with the product that you're selling. But once you've captured that audience, whether it's one |
1:51.3 | time or on a monthly basis, the only way to grow your brand is to expand to the next level out. |
1:58.5 | Usually that means targeting colder and colder traffic or broader and |
2:04.6 | broader keywords. And as you get into colder traffic and broader keywords, the buying intent |
2:11.1 | goes down. Because while someone may come to Amazon and search for a two pack of gold-colored satin queen-sized pillowcases. |
... |
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