1
Missed Cost Savings = Lost Profit
If there's an opportunity to cut costs and you haven't acted
on it yet, you're losing margin and profit. That's what we call Profit Drain.
on it yet, you're losing margin and profit. That's what we call Profit Drain.
For example, if your product could fit in a smaller box, switching could move it into a lower Amazon size tier — reducing your FBA fees by, say, 52%. Plus, with an optimized box size, you could fit more boxes
per pallet, cutting your logistics costs. Until you make the change, those potential savings are your Profit Drain.
per pallet, cutting your logistics costs. Until you make the change, those potential savings are your Profit Drain.
By the way, we offer a Box Optimizer tool.
With it, you can instantly calculate the best box size for each market to see if you're losing profit due to inefficient packaging.
Try Box Optimizer for Free NowWith it, you can instantly calculate the best box size for each market to see if you're losing profit due to inefficient packaging.
2
Missed or Overlooked Expenses = Lost Profit
If your costs go up because you missed something important, that's also Profit Drain — you're losing margin and profit.
For instance, imagine Amazon reimbursed you $10,000 for lost units. A month later, they say the units were found and take $10,000 back from your account. But in reality, Amazon's system made a mistake and counted your latest inbound shipment as "found inventory." If you don't catch this, that $10,000 is your Profit Drain.
With Propamp.ai, you instantly see if a Reversal Reimbursement occurred so you can quickly address it if Amazon made a mistake and save your money.
Start Monitoring Reimbursements
2 weeks free, no credit card required
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3
Missed Targets and Last-Minute Ad Spend = Profit Drain
If your ad manager only tells you in the last month of the quarter that you've only hit 10% of your unit sales target, and you have to suddenly ramp up your ad budget to catch up, you're losing margin and profit. That's Profit Drain.
For example, say your Q1 plan was to sell 330 units over three months at a 40% margin.But after two months, at the start of March, you realize you've only sold 40 units so far-just 10% of your goal. To make up for lost time, you dump an extra $9,000 into ads, way above your original plan, which cuts into your margin-and you still don't hit your quarterly sales target.
When you suddenly ramp up ad spend to make up lost ground, Amazon's algorithms show your ads more often, but not always to the most relevant shoppers. This drives up your cost-per-click and usually means you'll pay more per sale than if you'd spread your budget evenly throughout the quarter.
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