289 – What is a "Good" ROI for Amazon Sellers?

This episode explores the concept of Return on Investment (ROI) for Amazon sellers, a crucial metric for success in the e-commerce platform. Against the backdrop of the various tasks involved in selling on Amazon, from sourcing inventory to fulfilling orders, the hosts emphasize that simply making a profit isn't enough; the time investment must also be considered. More significantly, the discussion establishes a 50% ROI as a recommended minimum for beginner sellers, providing sufficient buffer for unforeseen expenses like storage fees or price adjustments. For instance, the hosts highlight the use of sourcing tools like Scoutify and RevSeller to streamline ROI calculations, eliminating the need for manual computations. As the discussion pivoted to experienced sellers, the hosts revealed their personal ROI minimums (25-30%), emphasizing that this lower threshold is only achievable with significant experience and confidence in sourcing and pricing strategies. Finally, the episode advises new sellers venturing into unfamiliar product categories to revert to the 50% minimum ROI until they gain sufficient experience within that specific niche. This means for Amazon sellers, a well-defined ROI strategy is essential for sustainable growth and profitability.