12 Ways to Clean Up Your Amazon Profit and Loss for Increased Profits

Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

This episode discusses strategies for increasing profits for e-commerce businesses, including monitoring conditions and cleaning up the profit and loss statement. It also emphasizes the importance of understanding cash flow and working with an accountant who understands ecommerce and the business. The article provides twelve ways to maximize profit and stay safe, using a metaphor of instrument flying to understand the system, and suggests involving oneself in the process of setting up an accounting system and chart of accounts. Get a Free Amazon Profit Audit Get a free audit from me, Michael Veazey, personally. As long as you have at least $10K/€10K/£10K in monthly revenue. You can be a reseller or Private label/custom product brand owner Just click the link below, scroll down, click on “Amazon audit” and book in a time! Timestamps [0:00:00 : Maximizing Profits in Ecommerce: A Step-by-Step Guide to Cleaning Up Your Profit and Loss [0:02:35] 2 Ways to Boost Your Profits by Cleaning Up Your Amazon Profit and Loss [0:05:54] Understanding Cash Flow and Instrument Flying for Ecommerce Businesses [0:07:04] Setting Up an Ecommerce Accounting System: Tips from an Accountant [0:08:41] Tips for Cleaning Up Your Profit and Loss Statement for an Ecommerce Business [0:12:14] Tips for Accurate Accounting for Amazon Sellers [0:14:43] Tips for Effective Financial Management in E-Commerce Businesses [0:16:09] Tips for Monitoring Your Ecommerce Business Finances [0:18:18] Tips for Optimizing Operating Profit in E-Commerce Businesses [0:20:04] Audit Your Profit and Loss: Get a Free Audit from My Amazonaudit.com The Show Outline Why This matters Amazon Seller Frustrations Working hard but not much money left at end of month/quarter/year Don’t know where your money goes Don’t know if you should reorder products, what to buy. How much What we Want from our Profit System Clarity and guidance Financially informed decisions Overview of business Know what to do more and to stop Know what to costs to cut Profit and Loss Mistakes Having no accounting system Not integrating Amazon with the system Not updating the system with accurate data Not acting on the insights you get Who this is for Resellers using RA, OA, or wholesale sourcing Own brand sellers (Private Label/custom products) Using Amazon Profit and Loss is like a dashboard on a small plane “Instrument flying” is what pro pilots do to be able to fly in all weather conditions With “instrument flying” you are using accurate data to build a mental map of conditions. Everything you do has two aims: To get to the destination To stay safe while doing so You need to monitor things like Altitude above the ground Attitude/orientation Air speed Weather conditions Other aircraft What Amazon profit seekers can learn from instrument flying Altitude - how far from zero profit are you? Attitude/orientation Are you at an aggressive approach angle relative to direction of travel Environmental conditions - like shrinking markets, recessions Other aircraft - competitors - where they are, speed, how close How to Clean up your Amazon Profit and Loss Choose an accountant that understands ecommerce/ your business Use an accountant to set up your accounting systems Use the system your accountant and book keepers are comfortable with Xero is common. QuickBooks is fine 3 . Identify the most important numbers to clean up for in your p and l - then work backwards from there The most important numbers in your p and l for management accounting are gross profit Operating profit Gross profit is your net revenue minus all your direct costs It shows how profitable your product sales are. It’s most helpful at the product by product level to help you decide what pro...