Selling On Amazon Requires 60% Margin

Marketplaces
Written By Rick Watson

One of the top Amazon experts in my network said to me the other day - if you don't have 60 points of gross margin, you don't belong on Amazon. Agree or disagree but WOW. that's some statement!

But in some ways it reflects the game you are in now. Most brands need 30 points just to run the business. If you can't give at least 30 points to Amazon with a combination of logistics, advertising, and marketplace fees, you can't compete on new SKUs that you launch. You won't get noticed.

Now - if you have owned ASINs for years, that is a different story.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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