5 Keys to Increasing your FBA Profitability | Be an Investor, Not a Parent

Here at Seller Labs, we’re not accountants or financial planners . . . but we do work with experts in those fields, experts who happen to be some of the very best in the business. This week, we’re turning the blog over to one of those experts: Tyler Jefcoat of Seller Accountant. Enjoy Tyler’s five-part series on the 5 Keys to Increasing Your FBA Profitability. Check back all week for one key per day to maximize your Amazon FBA success.

When you pour your heart and soul into your business, it’s difficult to remove the emotive ownership. However, good business owners are those who remove emotion from decisions, whether it’s pulling a product line or cutting ties with a manufacturer to decrease costs.


Do you have children? I have two beautiful kids and I love them no matter what. You love your babies too for lots of reasons, including the fact that you made them, they are yours, they do the funniest things, etc… No good parent will dump a child because the child isn’t performing up to par. Our kids do things that get on our nerves and so we don’t like them sometimes, but we still love them. We’re attached and invested—for life.

Being a business owner requires you to think like an investor and not like a parent, even when you feel attached to a product because you made it. Investors love high-margin products that are popular, profitable, and protectable. And they are still happy with medium-margin products that fly off the shelves. But as an investor, you HATE products that sit in inventory for 9 months and then still don’t make you much money when they do finally sell.

  • The investor is willing to ask the hard question: Does this product belong in our brand family?
  • And the investor is willing to make the tough call, namely to drop the weak products and move on to try new investments in pursuit of a winner.

Products are objects. They don’t have feelings so you can’t offend them or do them harm by cutting your losses. That said, please continue loving your children regardless of what kind of year they are having (and there will be some tough ones for sure). But take the time to understand each product’s profitability and don’t be afraid to cut it. It, unlike your child, is replaceable. With an investor’s mindset you will have the courage to discontinue bad products and you will be more profitable as a result.

Read the other Keys to FBA Profitability:

  1. Know your Profitability (Or Lack Thereof)
  2. Margin + Velocity = Profit
  3. View Each Product as an Investor, Not a Parent
  4. Make (And Keep) a Scorecard
  5. Spend Your Time Where You Make Your Money

If you need help managing profitability or your books, Seller Accountant would love to assist you.
Tyler Jefcoat, Co-Founder and CEO of Seller Accountant, is a longtime accountant and successful business builder who excels in helping stressed out owners regain their lives while driving superior financial results.

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