This episode with Chad Rubin, founder of Profasee, reveals how Amazon sellers are sacrificing profit for vanity metrics like ACOS and ROAS. Brands focusing solely on these metrics are leaving significant money on the table. The key takeaway for ecommerce operators is to prioritize a dynamic pricing strategy on Amazon, using AI to optimize profitability rather than just sales volume, as even a 1% price increase can drastically improve EBITA.
Chad Rubin is the Founder and CEO of Profasee, a pricing platform enabling Amazon brands to predict product pricing. Chad began his career in the e-commerce industry in 2008 and has since founded six companies, including Deep and Sassy, Think Crucial, and Skubana. As a speaker and Amazon expert, he speaks about e-commerce, Amazon, and SaaS at global conferences and webinars. Chad is also the author of the Amazon bestseller Cheaper, Easier, Direct, which guides readers on uncovering success by disrupting industries. In this episode... Amazon has become one of the largest e-commerce platforms for brands large and small. Consumers prefer shopping on the platform for its reasonable prices and convenience. However, to offer competitive pricing, Amazon brands have sacrificed profitability by focusing on achieving ACOS and ROAS targets. What can you implement immediately to improve your profitability on Amazon? Many e-commerce professionals encourage you to spend your valuable time on keyword research and ad spending. Chad Rubin, an e-commerce business owner, refers to the phenomenon as the ROAS illusion — capable of plummeting your business' success and profitability. A Harvard Business Review study determined a 1% price increase can improve your EBITA by 14%. If product pricing has a direct effect on profitability, why wouldn't you reconsider your pricing strategy? Chad implores business owners to revisit profitability fundamentals. On this episode of the Up Arrow Podcast, William Harris welcomes Chad Rubin, Founder and CEO of Profasee, to discuss how e-commerce brands can increase their profitability on Amazon. Chad shares how to structure your pricing on Amazon and the risk of focusing on ACOS and ROAS strategies. He also discusses the reliability of AI resources and how it contributes to business development.