This mini-lesson uses a simple story about a farmer and his goat to illustrate crucial financial principles for Amazon sellers. It challenges listeners to understand that buying inventory, even repeatedly, doesn't guarantee profit, especially if the cost increases. The episode underscores the importance of deeply understanding Cost of Goods Sold (COGS) and other vital numbers to ensure true profitability in e-commerce.
Key takeaways
Always analyze your Cost of Goods Sold (COGS) thoroughly, including all associated costs, to accurately gauge profitability before making purchasing decisions.
Don't assume re-purchasing the same inventory will always be profitable; evaluate each buying decision based on current costs and potential selling price.
Focus on understanding your true profit margins beyond just revenue to build a sustainable and successful Amazon business.
Leverage community discussions and educational resources to deepen your financial literacy and avoid common pitfalls in e-commerce purchasing.
On this "mini-lesson" episode we learn about a farmer and a goat. The farmer buys the same goat twice - and the goat actually costs MORE the second time he buys it! Is the farmer making money or losing money? You decide! Understanding this basic lesson will help you understand the numbers that are vital to your success as a business building warrior! Show note LINKS: The farmer/goat discussion in our facebook group: https://www.facebook.com/groups/mysilentteam/posts/4984974948285242/ Proven Amazon Course - https://ProvenAmazonCourse.com - Are you ready to be successful selling on Amazon? It's time to get instant access to the most widely used, most up to date, most creative and industry leading course in the "Learn to sell on Amazon" space. You'll find hundreds of recent success stories in our Free Facebook group from Amazon sellers using all manner of creative strategies from our ridiculously inexpensive yet powerful course! ProvenReplensVA.com - We can help you find a VA who is trained in our "Replen Hunting" strategies! Visit this website to learn more! JimCockrumCoaching.com - Get a free session with a business consultant on our team at 1-800-994-1792 / 1-801-693-1688 or TEXT US at 385-284-7701 (US & Canada only for Text) My Silent Team Facebook group -https://www.facebook.com/groups/mysilentteam 100% FREE! Join 62,000 + members from around the world who are using the internet creatively every da
What does this episode say about amazon & marketplaces?
Always analyze your Cost of Goods Sold (COGS) thoroughly, including all associated costs, to accurately gauge profitability before making purchasing decisions.
What does this episode say about finance & fundraising?
Don't assume re-purchasing the same inventory will always be profitable; evaluate each buying decision based on current costs and potential selling price.
What does this episode say about founder & leadership?
Focus on understanding your true profit margins beyond just revenue to build a sustainable and successful Amazon business.
What does this episode say about amazon & marketplaces?
Leverage community discussions and educational resources to deepen your financial literacy and avoid common pitfalls in e-commerce purchasing.
