EP 12: Healthy Gross Margins for Amazon Sellers with Cyndi Thomason Artwork

Process To Ecom Profits Podcast

The Process to Ecom Profits podcast provides tactical tips, techniques, and long-term strategies to help e-commerce business owners to have the profitability, freedom, and sustainability they were hoping for when they started their business. Our hosts have years of experience helping eCommerce entrepreneurs to build and sell the business of their dreams. If you have been selling on your own Shopify site, Amazon, Walmart, eBay, or Etsy this is the show to help you finally get control and get ahead in your online business.

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Process To Ecom Profits Podcast

EP 12: Healthy Gross Margins for Amazon Sellers with Cyndi Thomason

May 23, 2022 • Robyn Johnson

Running a physical product business is cash flow intensive. After auditing hundreds of sets of books, Cyndi Thomason shares how understanding and managing your gross margin is essential to keeping your Amazon or eCommerce business healthy. Learn exactly what gross margin percentage Cyndi sees healthy online business owners have and how to increase your gross margin and cash flow.

Links Mentioned:

Cyndi Thomason - Bookskeep.com

Robyn Johnson - Marketplaceblueprint.com

Gross Profit Margins and Financial Health

Why Gross Margin is the Bottom Line for Ecommerce Sellers

01:05 What is gross margin and how does it impact scaling?

04:55 What is the minimum gross margin Cyndi recommends for e-commerce businesses

08:16 What can someone do if their margins are lower than 30%?

13:22 How using cash method accounting can hide potential gross margin issues.

15:20 How reviewing your books regularly can help you identify potential issues early.

18:00 Understanding the importance of reconciling inventory regularly.

20:30 What should you do if you expect you might have an issue with your gross margin?

28:00 The importance of taking a paycheck from your Amazon business.

31:35 Five Minute Fix: When should you start to prepare for your peak season?