AF301 - Are you actually making money? Talking Profitability w Chelsea Cohen
In this episode of "The Amazon Files" podcast, host Kristin Ostrander speaks with Chelsea Cohen, co-founder and CEO of SoStocked, about profitability and Amazon inventory management. They discuss the importance of understanding Amazon's fees and policies to reduce costs and increase profits, highlighting specific fees that sellers should be aware of, such as the aged inventory fee. The speakers provide practical tips for reducing fees, optimizing inventory management, and increasing profitability. They also emphasize the importance of work-life balance and pursuing hobbies outside of work. Overall, the episode provides valuable insights and resources for Amazon sellers looking to succeed in a competitive marketplace.
As entrepreneurs, it can be easy to get caught up in our work and forget about the importance of balancing leisure time. In the latest episode of the "The Amazon Files" podcast, Kristin Ostrander and Chelsea Cohen emphasize the need to have hobbies and interests outside of work to prevent burnout and maintain a healthy work-life balance.
While they both love their jobs, they acknowledge that having a well-rounded life is crucial to being successful in business and making a positive impact on the world. So, take a page out of their book and make time for your hobbies, whether it's gardening, playing cornhole, or hydroponic lettuce farming like Chelsea!
In addition to discussing the importance of leisure time, the episode also provides valuable insights and practical tips for Amazon sellers looking to increase profits and optimize their inventory management. From understanding Amazon's fee structure to reducing packaging size, there's something for every seller to learn.
So, check out the episode and be sure to visit SoStocked's website to stay updated on their latest tools and resources. And remember, don't let work consume your entire life - make time for your hobbies and interests too!
WATCH:
LISTEN:
QUOTE:
"You can't move forward without understanding your numbers. You can't be profitable without understanding your numbers." - Kristin Ostrander
Introduction [00:00:16]
Introducing the guest, Chelsea Cohen, co-founder and CEO of SoStocked, and discussing the importance of profitability and understanding Amazon's changing fees.
2023: The Year of Profitability [00:02:24]
Discussing the white paper released by SoStocked that simplifies Amazon's fee structure and provides tips for reducing fees, and the importance of understanding inventory costs and Amazon's changing fees.
The Aged Inventory Fee [00:06:34]
Explaining the aged inventory fee, a specific fee that sellers should be aware of, which was adjusted in 2022 and is now based on cubic feet and increases every 30 days, compounding on each other every month.
Understanding Amazon's storage fees [00:09:04]
The speakers discuss the importance of paying attention to Amazon's storage fees, especially for oversized items, and how it can cost more than the item's worth to keep it in storage.
Stranding inventory and seasonal items [00:10:31]
The speakers discuss how to balance inventory with seasonal items and fees, and suggest stranding inventory by creating an image violation to prevent going out of stock and hurting the inventory performance index score.
Reducing fees through dimensional weight adjustments [00:15:55]
The speakers discuss how to reduce fees by controlling the dimensions and weight of products, and suggest using tools like the product resizer to find opportunities to reduce fees, such as reducing packaging size and vacuum packing. They also mention the impact of dimensional weight on fees and how even a quarter inch difference can make a significant difference in fees.
Reducing Packaging Size [00:18:06]
Discussion on the benefits of reducing packaging size on Amazon, including reducing shipping and importing costs and Amazon fees.
Product Resizing for Reduced Fees [00:20:16]
Importance of resizing products to optimize pallets and cartons, leading to reduced fees across the board, including storage and handling fees.
Opportunities with Walmart [00:23:08]
Conversation about the potential benefits of integrating with Walmart's platform, including a less competitive market and a lucrative fee structure.
Reducing Fees with Third-Party Prep Facilities [00:26:34]
Discussion on reducing fees by using third-party prep facilities to hold inventory state side.
Product Resizing Tool and Profit Optimization [00:27:21]
Introduction of a product resizing tool and the importance of profit optimization across the supply chain.
Bundling and Creating Value for Customers [00:29:35]
The benefits of bundling products and creating value for customers, including instruction sheets and how-to guides.
Understanding Amazon's Fees [00:00:00]
The episode is about understanding Amazon's fees and policies to reduce costs and increase profits. The speakers discuss the importance of understanding inventory costs, the impact of Amazon's changing fees, and specific fees that sellers should be aware of, such as the aged inventory fee.
Balancing Work and Life [00:34:40]
The speakers discuss the importance of balancing work and life as entrepreneurs. They share their hobbies and interests outside of work and emphasize the need to take breaks to avoid burnout.
SoStocked's White Paper [00:35:23]
The speakers encourage listeners to visit SoStocked's website to access their white paper on Amazon's fee structure and to join their list to be the first to use their new tool.
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