Amazon

It’s easy to get bogged down in all of the different data and financial reports compiled while running an eCommerce business. Though you should always stay on top of your finances and work to make sense of the information at your disposal, it’s particularly important to understand profit and loss (P&L) statements and how they can help you build sustained growth and profitability in the eCommerce space. Naturally, a financial statement won’t magically make your eCommerce store more profitable, but it will give you a lot of the tools you need to understand how to cut costs and maximize profits.

Deciding which selling channels to use for your eCommerce store is a huge part of planning your business. While many business owners choose to sell on more than one channel, you’ll only want to pick selling channels that can meet your needs. Some are objectively better than others, but many of the biggest players in the business — like Amazon FBA and Shopify — are great all-around options.

Figuring out how much you’re making, how much you need to make, and how much you could be making is integral to running an Amazon business. Fortunately, some of the information you need is already built into the platform via Amazon’s business reports. That said, these reports on their own don’t offer much insight or enhanced Amazon sales analytics. For this reason, it’s important to consider what kind of additional data you need to evaluate profitability.

Many Amazon Sellers who are just starting out might be able to get by with Amazon’s built-in reports. While they are very limited, these reports can accommodate sellers who just make a handful of sales per month or use Amazon as a side hustle.

Whether you’re just starting out as an Amazon Seller or you’ve been managing an online business on the platform for a while now, you may be wondering if it is a profitable endeavor over the long term. Naturally, profitability is highly dependent on a wide range of factors, from product selections to market conditions.

As an Amazon Seller, fees can seem like the bane of your existence. You work so hard to sell and market your products, only to see your profits hampered by endless fees.