NET PROFTIS, NET PROFITS, MARGINS. Lets Talk about it! / Black Friday + Cyber Monday + Prime days
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?
NET PROFTIS, NET PROFITS, MARGINS. Lets Talk about it! / Black Friday + Cyber Monday + Prime days
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?
10 replies
Seller_rI7BZIczK8iAC
We have the same philosophy like you:
We sell high quality products and I don't want to undervalue them by selling cheap. Customers looking for high value products are certainly less sensible to such events. We have never seen higher or lower sales on Black Friday and similar events. That is OK for me.
Seller_i6S8knzW6zU6Z
Hi @Seller_XvFEUPHS4TwMZ,
You make an important point—net profits are essential for running a sustainable business. At the same time, it might be worth considering the longer-term effects of sales events. Looking only at the immediate profit margins during the event can miss some of the potential benefits. For example, the increase in sales volume during these events often helps improve sales rank and keyword rankings. This can lead to better visibility and more organic sales in the following weeks or months, even if those effects taper off over time.
Of course, there are risks involved. Running out of stock during a promotion can mean missing out on those longer-term benefits. On the other hand, preparing extra inventory can also be tricky—if something unexpected happens, like a deal not going live as planned, you might end up with higher storage costs. These situations don’t necessarily mean the events aren’t worth it, but they do highlight the need for planning and managing the risks.
I see the discounts and ad spend as part of a marketing effort aimed at balancing today’s profits with tomorrow’s growth. That’s just my perspective, though. I’d love to hear how others approach this—your post raises a really interesting question. Thanks for starting this discussion!
Kind regards, Michael
Seller_lCX40xAkSs1xm
The ad fees go insane during black friday/cyber monday. We generally tone down all PPC advertising because we do not see an increase in sales, but we see a huge increase in ad spend.
Seller_dEERjnj9RPjaY
Same here. On Gourmet Popcorn much less. I have LOST my A-- on ad spend verses sales. I am in the hole! Will NEVER do that again. Thinking Amazon may not be the selling forum for me.
Seller_pdPNwT3IIPMAL
No ads, coupons or any giveaways. Only clearance for overstock items and that is it. I let other fight over ad traffic, my sales are good off season.
Seller_XjolGGpui9INo
Another issue with trading volume for profit during the holiday season is the additional fees and the extended return window Amazon offers to Buyers. The extended window creates a much big fraud opportunity for our products, I dread selling a lot of units during the holidays due to the late/fraud returns.
I would agree that lower sales with higher margins is a much better business strategy on this platform.
Best regards & Happy Holidays!
Seller_aNryBfYO3DTmL
I don't do anything on Prime Days/BFCM other than coupons based on inventory age. I just take advantage of the increased traffic.
NET PROFTIS, NET PROFITS, MARGINS. Lets Talk about it! / Black Friday + Cyber Monday + Prime days
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?
NET PROFTIS, NET PROFITS, MARGINS. Lets Talk about it! / Black Friday + Cyber Monday + Prime days
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?
NET PROFTIS, NET PROFITS, MARGINS. Lets Talk about it! / Black Friday + Cyber Monday + Prime days
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?
10 replies
10 replies
Seller_rI7BZIczK8iAC
We have the same philosophy like you:
We sell high quality products and I don't want to undervalue them by selling cheap. Customers looking for high value products are certainly less sensible to such events. We have never seen higher or lower sales on Black Friday and similar events. That is OK for me.
Seller_i6S8knzW6zU6Z
Hi @Seller_XvFEUPHS4TwMZ,
You make an important point—net profits are essential for running a sustainable business. At the same time, it might be worth considering the longer-term effects of sales events. Looking only at the immediate profit margins during the event can miss some of the potential benefits. For example, the increase in sales volume during these events often helps improve sales rank and keyword rankings. This can lead to better visibility and more organic sales in the following weeks or months, even if those effects taper off over time.
Of course, there are risks involved. Running out of stock during a promotion can mean missing out on those longer-term benefits. On the other hand, preparing extra inventory can also be tricky—if something unexpected happens, like a deal not going live as planned, you might end up with higher storage costs. These situations don’t necessarily mean the events aren’t worth it, but they do highlight the need for planning and managing the risks.
I see the discounts and ad spend as part of a marketing effort aimed at balancing today’s profits with tomorrow’s growth. That’s just my perspective, though. I’d love to hear how others approach this—your post raises a really interesting question. Thanks for starting this discussion!
Kind regards, Michael
Seller_lCX40xAkSs1xm
The ad fees go insane during black friday/cyber monday. We generally tone down all PPC advertising because we do not see an increase in sales, but we see a huge increase in ad spend.
Seller_dEERjnj9RPjaY
Same here. On Gourmet Popcorn much less. I have LOST my A-- on ad spend verses sales. I am in the hole! Will NEVER do that again. Thinking Amazon may not be the selling forum for me.
Seller_pdPNwT3IIPMAL
No ads, coupons or any giveaways. Only clearance for overstock items and that is it. I let other fight over ad traffic, my sales are good off season.
Seller_XjolGGpui9INo
Another issue with trading volume for profit during the holiday season is the additional fees and the extended return window Amazon offers to Buyers. The extended window creates a much big fraud opportunity for our products, I dread selling a lot of units during the holidays due to the late/fraud returns.
I would agree that lower sales with higher margins is a much better business strategy on this platform.
Best regards & Happy Holidays!
Seller_aNryBfYO3DTmL
I don't do anything on Prime Days/BFCM other than coupons based on inventory age. I just take advantage of the increased traffic.
Seller_rI7BZIczK8iAC
We have the same philosophy like you:
We sell high quality products and I don't want to undervalue them by selling cheap. Customers looking for high value products are certainly less sensible to such events. We have never seen higher or lower sales on Black Friday and similar events. That is OK for me.
Seller_rI7BZIczK8iAC
We have the same philosophy like you:
We sell high quality products and I don't want to undervalue them by selling cheap. Customers looking for high value products are certainly less sensible to such events. We have never seen higher or lower sales on Black Friday and similar events. That is OK for me.
Seller_i6S8knzW6zU6Z
Hi @Seller_XvFEUPHS4TwMZ,
You make an important point—net profits are essential for running a sustainable business. At the same time, it might be worth considering the longer-term effects of sales events. Looking only at the immediate profit margins during the event can miss some of the potential benefits. For example, the increase in sales volume during these events often helps improve sales rank and keyword rankings. This can lead to better visibility and more organic sales in the following weeks or months, even if those effects taper off over time.
Of course, there are risks involved. Running out of stock during a promotion can mean missing out on those longer-term benefits. On the other hand, preparing extra inventory can also be tricky—if something unexpected happens, like a deal not going live as planned, you might end up with higher storage costs. These situations don’t necessarily mean the events aren’t worth it, but they do highlight the need for planning and managing the risks.
I see the discounts and ad spend as part of a marketing effort aimed at balancing today’s profits with tomorrow’s growth. That’s just my perspective, though. I’d love to hear how others approach this—your post raises a really interesting question. Thanks for starting this discussion!
Kind regards, Michael
Seller_i6S8knzW6zU6Z
Hi @Seller_XvFEUPHS4TwMZ,
You make an important point—net profits are essential for running a sustainable business. At the same time, it might be worth considering the longer-term effects of sales events. Looking only at the immediate profit margins during the event can miss some of the potential benefits. For example, the increase in sales volume during these events often helps improve sales rank and keyword rankings. This can lead to better visibility and more organic sales in the following weeks or months, even if those effects taper off over time.
Of course, there are risks involved. Running out of stock during a promotion can mean missing out on those longer-term benefits. On the other hand, preparing extra inventory can also be tricky—if something unexpected happens, like a deal not going live as planned, you might end up with higher storage costs. These situations don’t necessarily mean the events aren’t worth it, but they do highlight the need for planning and managing the risks.
I see the discounts and ad spend as part of a marketing effort aimed at balancing today’s profits with tomorrow’s growth. That’s just my perspective, though. I’d love to hear how others approach this—your post raises a really interesting question. Thanks for starting this discussion!
Kind regards, Michael
Seller_lCX40xAkSs1xm
The ad fees go insane during black friday/cyber monday. We generally tone down all PPC advertising because we do not see an increase in sales, but we see a huge increase in ad spend.
Seller_lCX40xAkSs1xm
The ad fees go insane during black friday/cyber monday. We generally tone down all PPC advertising because we do not see an increase in sales, but we see a huge increase in ad spend.
Seller_dEERjnj9RPjaY
Same here. On Gourmet Popcorn much less. I have LOST my A-- on ad spend verses sales. I am in the hole! Will NEVER do that again. Thinking Amazon may not be the selling forum for me.
Seller_dEERjnj9RPjaY
Same here. On Gourmet Popcorn much less. I have LOST my A-- on ad spend verses sales. I am in the hole! Will NEVER do that again. Thinking Amazon may not be the selling forum for me.
Seller_pdPNwT3IIPMAL
No ads, coupons or any giveaways. Only clearance for overstock items and that is it. I let other fight over ad traffic, my sales are good off season.
Seller_pdPNwT3IIPMAL
No ads, coupons or any giveaways. Only clearance for overstock items and that is it. I let other fight over ad traffic, my sales are good off season.
Seller_XjolGGpui9INo
Another issue with trading volume for profit during the holiday season is the additional fees and the extended return window Amazon offers to Buyers. The extended window creates a much big fraud opportunity for our products, I dread selling a lot of units during the holidays due to the late/fraud returns.
I would agree that lower sales with higher margins is a much better business strategy on this platform.
Best regards & Happy Holidays!
Seller_XjolGGpui9INo
Another issue with trading volume for profit during the holiday season is the additional fees and the extended return window Amazon offers to Buyers. The extended window creates a much big fraud opportunity for our products, I dread selling a lot of units during the holidays due to the late/fraud returns.
I would agree that lower sales with higher margins is a much better business strategy on this platform.
Best regards & Happy Holidays!
Seller_aNryBfYO3DTmL
I don't do anything on Prime Days/BFCM other than coupons based on inventory age. I just take advantage of the increased traffic.
Seller_aNryBfYO3DTmL
I don't do anything on Prime Days/BFCM other than coupons based on inventory age. I just take advantage of the increased traffic.
