Amazon Revenue Reports and Tips for Keeping Profits Going Using Amazon Marketplace

You know what’s nice? Having your company’s profit go up 255%. You know whats really nice? When you are doing $2.89B in revenue over a 3 month span. Amazon reported Q2 profits of $78M this year up from the $22M they posted last year. With so much business coming in, it’s no wonder the worlds #1 retail site can earn big money for merchants. I have consistently seen merchants do very well on Amazon assuming your profit margins can take the 10-15% hit that Amazon will charge. The main keys to performing on Amazon are:

Keep your Feedback up: Amazon takes away exposure the lower your feedback rating. Try hard to keep feedback above 90%, even if you need to bribe customers. Do the math, how many sales will you loose instead of perhaps just accepting that late return?

Keep your Products up to date: Selling items you don’t have is a quick ticket off of Amazon. Not only will you still pay the seller’s fees for the sales, you will also have to deal with bad feedback from angry and disappointed customers. Keep your inventory up to date, sell the items you can actually deliver, and you will be fine.

July 26th, 2007