The document discusses the challenges Amazon sellers face in determining profitability, including hidden fees, competition, and costly accounting mistakes. It emphasizes the importance of visibility into financials and provides tips for reducing expenses related to shipping, inventory, and returns. Additionally, it highlights automation tools for better financial management and decision-making to improve overall profitability.

1. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Are Your Amazon Orders Even Profitable?

2. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Agenda
1. Introduction
2. Profit Problems
3. Seeing Profits
4. Expenses
5. Tips
6. Q & A

3. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Introduction

4. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
About Webgility
▹ Worked with 1000s of Amazon
sellers
▹ Member of Amazon’s Developer
Council
▹ Founded by an Amazon veteran
▹ #1 automation software for
Amazon sellers on QuickBooks &
NetSuite

5. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Meet Your Amazon Expert
▹ Senior Product Manager at
Webgility
▹ Over 10 years’ experience
▹ Worked in key verticals including
ecommerce, retail,
manufacturing & distribution
Kevin Draggoo

6. POLL QUESTION
Which metric of profit is most important for you to
know?
1. Profit per order
2. Profit per SKU
3. Profit per product category
4. Profit per brand
5. Profit per marketplace or store

7. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Profit Problems

8. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
▹ Over-emphasis on revenue (poor proxy for profit)
▹ Hidden fees
▹ Changing fees
▹ Returns
▹ No real-time financials
Profit Problems
Lack of Visibility into Profits
14
You only get paid
every 14 days

9. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Profit Problems
Critical Financial Data Is Scattered

10. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Profit Problems
Growing Competition & Thin Margins
Major
competition:
2 million+ sellers in
100+ countries 3
- Price wars
- Competing with
Amazon
Thin margins:
Amazon fees are
about 1/3 of the sale
price of the item 4
No margin for error!

11. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Profit Problems
Costly Accounting Mistakes
Missed
transactions
MiscalculationsLosing track of
expenses
Cost
allocation

12. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Expenses

13. POLL QUESTION
Which expenses are you most concerned with
reducing right now?
1. Shipping
2. Inventory storage
3. Product costs (inventory)
4. Marketing
5. Other

14. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Expenses
The # of Expenses Is Overwhelming
▹ COGS
▹ Sample products
▹ Shipping
▹ Bank fees
▹ Coupons/discounts
▹ Photography
▹ FBA fees (order handling, pick & pack,
weight handling)
▹ Other Amazon fees
▹ Storage fees (including long-term storage fees)
▹ Returns/refunds
▹ Advertising
▹ Overhead
▹ Taxes
▹ Payment transaction fees

15. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Expenses
Let’s Break Down Amazon’s Fees
FBA fees:
▹Fulfillment fees per unit
▹Pick, pack, shipping, and handling
▹Monthly inventory storage fees
▹Based on daily average volume (cubic feet)
▹Long-term storage fees (6+ mos)
▹Labeling fee
▹Package and prep fee
▹Unplanned prep fee
▹Repackaging fee (in case of returns)
▹Stock removal fee
Most common fees:
▹Monthly subscription fees
▹Per-item fee
▹Referral fees (6-45%)
▹Closing fees
▹High-volume listing fee
▹Refund administration fee
Multichannel FBA fees:
▹Uses different multichannel fee
schedule
*You may be charged incorrectly*
Make sure your ASINs are categorized correctly so you aren’t overcharged!

16. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Notes
▹ Amazon can change fulfillment fees at any time
▹ Charges for picking, packing & prepping (labelling,
bubble wrapping, labor, etc)
Expenses
Shipping & Fulfillment Costs
Tips
▹ Tweak packaging to avoid oversize charges ▹ Consider sea shipping from China
▹ Consider Amazon’s Partnered Carrier Program: reduce the
costs of shipping to Amazon by almost 50%
▹ Consider shipping yourself
▹ Negotiate with your shipping carriers
▹ Consider stickerless co-mingling
▹ Consider having your supplier ship directly to FBA

17. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Expenses
Inventory Fees
▹ FBA storage fees are
changing
▹ Forecast to avoid
overselling, underselling
& carrying costs
▹ Use artificial intelligence
to monitor inventory
▹ Price cut and discontinue
inventory that isn’t
selling

18. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Expenses
Returns
Tips
▹ Negotiate with manufacturer/supplier in
case of returns/defective items
▹ Automate expense tracking
Notes
▹ You get charged for shipment from the
customer to FBA and from the FBA
fulfillment center to your warehouse
▹ Some of the returned inventory may be
unusable (false returns, damages)

19. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Seeing Profits

20. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Consolidate Financial Data
Seeing Profits
Consolidate Financial Data

21. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Seeing Profits
Order Level Profitability!

22. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Revenue & Expenses
QuickBooks Webgility

23. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Seeing Profits
Discontinue Unprofitable Products!
▹ Groomers Pro used product level
P&Ls to cut products
▹ Another anonymous company
nearly doubled its profit margin in
less than a year by cutting dozens
of products

24. Automation for QuickBooks & NetSuite Sellers
Trusted by over 5,000 High Growth Sellers
SpeedScale Accuracy
2000%
order volume increase
50
hours saved per month
0
human errors
“You cannot truly scale
without Webgility”
-Dan Wells, Bases Loaded
“Now it all happens
instantly & automatically”
-Taggart Spenst, Club Ride Apparel
“It just works”
-Shen Li, Epic Mens

25. Q & A

26. W E B G I L I T Y 2 0 1 9 . A L L R I G H T S W W W . W E B G I L I T Y . C O M
Let’s Talk Amazon Automation
Call: (877) 753-5373
Email: hello@webgility.com