I’ve been selling on Amazon since 2014, and have built one of the biggest companies ever started on Amazon.
Amazon isn’t over 50% of our revenue. But it is over 50% of our contribution profit.
I have sold everywhere. There is not a channel where you can make better contribution profit than Amazon. It’s easier for us to make money there than at Walmart, at Target, or on our own website.
If you want to scale profitably …
Here are the five things I’d focus on.
1. Inventory
Inventory is the lifeblood. Amazon’s algorithm hates stockouts.
The algorithm is one big feedback loop. Customers see your product and buy it, and Amazon shows it to more people. Go out of stock and you drop off. Sometimes you start over from zero.
The best place to hide a dead body is the second page of Amazon.
Being in stock isn’t enough. When you send in 1,000 units, Amazon splits them across fulfillment centers. Fast delivery only works if your product is near the customer. That takes extra inventory.
Send Amazon your leftovers, you’ll get leftover results.
2. Executive thought, not an afterthought
Your best people need to be looking at the data, studying your competitors, and finding a winning path.
If nobody senior owns Amazon, it will always lose to dotcom and wholesale. A director who cares about Amazon will get overruled again and again.
Do not hand the thinking off to an agency because the platform feels intimidating to you. An agency can execute. It can’t think for you. Only outsource after you have mastered it for yourself.
3. Catalog assortment
Different channels serve different customers. You won’t sell the exact same thing at Target, Walmart, Amazon, and on your own site.
We learned this the hard way, partly because of scrapers and partly because customers want different things.
But your best products will be your best products in every channel. The goal is to make them just different enough that you have room to price differently, while it’s still basically the same product.
If you have too many SKUs to send everything in, put your top 30% of SKUs in FBA and cover the rest with fulfilled by merchant.
4. Reputation management
Amazon is a public ledger. It’s probably the most trusted source of reviews on the internet.
Even people who never buy on Amazon go there to check your reviews. It’s your resume to the customer. Five stars on your website and three and a half on Amazon is a jarring gap.
Be proactive. Reach out to anyone who leaves a bad review. Challenge reviews caused by FBA mistakes. Encourage happy customers to share how they feel. Stay white hat: no paid reviews and no gift cards for five stars.
Even if you don’t want to sell a single unit on Amazon, you should still own your listing and your brand registry. If you don’t tell your story there, somebody else will.
5. Pricing and promotion
Amazon runs huge events. Prime Days. Holiday. Deal days.
In the first few deal days, Apple barely took part. Today, Apple puts almost everything in them. The traffic is too big to ignore.
You need a catalog and a pricing plan that let you take part. On a big deal day you can win more customers in a short window than your website might bring in over a month. Load some of your deals up early before the big moments and you’ll get extra exposure because of the increase in conversions.
To recap:
Give Amazon inventory. Give it executive thought. Build your catalog for each channel. Manage your reputation. Dig in on pricing and promotion.
This isn’t complicated. It’s bullets and cannonballs. Test cheaply. When something works, double down.
Want Amazon sales to grow?
Stop giving it leftovers ↓
Get these five things right:
1️⃣ Keep bestsellers in stock
(Protect sales + ranking)
2️⃣ Give Amazon a senior lead
(Make it their #1 priority)
3️⃣ Tailor your product lineup
(Best sellers, not scraps)
4️⃣ Manage Brand Reputation
(Reviews reach off-site)
5️⃣ Plan pricing + promotions
(Not all items need deals)
@mikebeckhamsm unpacks the five things DTC brands must get right to scale on Amazon in 2027 w/
@KatyMimari,
@JasonPanzer +
@mbertulli.
“Amazon is basically your résumé to the customer, even if they don’t want to buy there.”