#509 - Stop Bleeding Profit: The Logistics Fix Amazon Sellers Ignore
Built by Business: Amazon FBA, E-Commerce, Brand Building
Andy Isom | Amazon FBA Seller & Agency Founder
4.9 • 816 Ratings
🗓️ 8 September 2025
⏱️ 7 minutes
🧾️ Download transcript
Summary
Stop bleeding profit. Most Amazon sellers obsess over ads and keywords, but logistics is the silent factor that decides whether you keep your margins — or hand them over to Amazon in fees.
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In this episode of Built by Business with Andy Isom, Andy breaks down why storage, shipping, and fulfillment fees quietly eat into profits, and how optimizing logistics can have a bigger impact on your bottom line than tweaking your PPC strategy.
You'll learn how to:
- Identify hidden Amazon fees (storage utilization, placement service, low-inventory).
- Optimize inbound, storage, and fulfillment for lower costs.
- Treat logistics like PPC — a process you manage weekly.
Revenue is vanity. Profit is sanity. Cash is king. And logistics is where you protect it.
For a free Amazon Brand Audit, head to www.weavos.io and get 3 custom action steps to grow profitably.
Transcript
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| 0:00.0 | Most Amazon sellers obsess over ads, keywords, and creative tweaks. |
| 0:04.5 | Here's the truth. |
| 0:05.4 | One of your biggest profit killers is not your click-through rate. |
| 0:08.9 | It's your logistics bill. |
| 0:11.0 | Get that messed up and no amount of PPC magic can save you. |
| 0:38.2 | What's up, guys? Welcome back to Built by Business. Today I'm going to unpack why logistics is the hidden profit lever for Amazon brands, the specific fees that can silently eat your margins, and how the smartest sellers optimize shipping, storage, and fulfillment instead of just throwing more money at ads. First, let's break down the silent fee stack. These are the fees that will eat into your profit on Amazon quicker than |
| 0:44.0 | a pack of hungry wolves. The first wolf in the pack is the storage utilization surcharges. If your |
| 0:50.9 | inventory that is sitting at Amazon is selling too slowly or even too quickly, you're going to get hit with fees. |
| 0:57.6 | The second wolf in our wolf pack are long-term storage fees for aged inventory. |
| 1:02.9 | If you have too much inventory sitting too long at Amazon, that is going to massively increase your storage fees. |
| 1:10.5 | One of the sneakiest fees introduced back in 2023 is the low inventory level fee. |
| 1:16.6 | A fee again, where if you do not have enough inventory to meet demand, you can get hit with some extra fees. |
| 1:23.1 | The final wolf of our wolf pack is the inbound placement fee. |
| 1:26.7 | This is an added inbound storage fee if you want to ship all of your inventory to one warehouse |
| 1:31.1 | at Amazon instead of splitting it into multiple warehouses. |
| 1:34.3 | This was definitely one of the biggest kicks to the pants when it comes to fees on Amazon. |
| 1:39.0 | According to Marketplace Pulse as of last year, Amazon's total fulfillment and storage |
| 1:43.4 | fees now make up around 50% of |
| 1:46.7 | seller revenue on average. What that means, guys, is logistics is the real PPC. PPC is visible |
| 1:53.9 | spend. You can go into your advertising account and see exactly how much money you are spending |
| 1:58.1 | to get sales and how profitable those sales are, |
| 2:00.9 | whatnot. But logistics is the invisible spend. The crazy thing is that cutting 50 cents per unit |
... |
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