Amazon Profitability Is Under Pressure — Here's How to Get Ahead of It
In today’s ecommerce climate, growing revenue isn’t the challenge. Protecting profitability is.
With rising CPCs, increased competition, and tighter margins across Amazon and beyond, many brands are unknowingly scaling unprofitable SKUs — or making ad decisions with outdated data. That’s why data-driven strategy is no longer optional. It's a requirement.
In a recent episode of Executive Roast, Zeal Agency founder Emma Bagley sat down with Paul Sonneveld, co-founder of MerchantSpring, to talk candidly about the evolving role of data and analytics in profitability management — and how brands and agencies can adapt.
50% off for podcast listeners:
Use code ZEAL50 to get 50% off your first 3 months on any MerchantSpring brand or vendor plan. Book via merchantspring.io and mention the Executive Roast podcast.
The Profit Problem on Amazon
As Paul puts it, Amazon has become “a Rubik’s Cube” of operational challenges:
You can’t just focus on sales, or you’ll burn cash through ad spend
Focus only on profit, and you may not sell a single unit
Supply chain, SEO, pricing, stock, buy box, TACOS, and margin erosion all now compete for attention
Paul shared one blunt truth every scaling brand should hear:
"If you're not monitoring SKU-level profitability, a few loss-making ASINs can wipe out all of your gains."
At Zeal, we see this often. Brands spending heavily on PPC without visibility on their actual profit contribution per product — especially in seasonal categories or across multiple marketplaces — are often scaling in the wrong direction.
Why Profitability Isn’t a One-Time Exercise
Many brands calculate margin once per year, set prices, and move on. But Amazon doesn’t work like that.
Fluctuating ad costs, competitor behaviour, stock-outs, seasonality, and fulfilment changes mean profitability shifts week to week.
That’s why platforms like MerchantSpring are becoming essential. Their tool integrates Amazon (seller and vendor) data with other marketplaces like Shopify, TikTok Shop, Walmart, and more — giving real-time, actionable views across accounts, SKUs, and countries.
Three Features That Matter Right Now
1. SKU-Level P&L Visibility
See actual profit performance per ASIN, including Amazon fees, logistics costs, and returns.
2. Lifetime Value and Repeat Purchase Tracking
Critical for FMCG and wellness brands looking to offset customer acquisition costs with long-term value.
3. Alerts for Suppressed Listings, Buy Box Losses and Stock Risk
Catch revenue-killing issues instantly and take action before it affects your bottom line.
Who Is MerchantSpring Built For?
Brands selling across multiple marketplaces or Amazon geographies
Agencies managing multiple clients and needing white-label analytics
Vendors who need clarity beyond what Vendor Central offers
Strategic operators focused on contribution margin, not just top-line growth
If your brand only operates on one Amazon store, there may be simpler options. But once you scale across channels or countries, MerchantSpring’s value increases exponentially.
The Future Is Multi-Channel and Margin-Led
According to Paul, the next five years won’t be about leaving Amazon behind — but diversifying around it. TikTok Shop, Walmart, and Tesco Marketplace may not rival Amazon’s volume, but they can offer better margin in key categories.
Leading brands will start measuring profitability by channel and use tools like MerchantSpring to identify where to grow, where to consolidate, and where to cut.
How to Access 50% Off
MerchantSpring is offering Zeal’s network 50% off the first three months of any plan for brands or vendors.
To claim:
Visit merchantspring.io
Book a demo or sign up
Use the code ZEAL50 or mention Executive Roast in the booking form
This offer is available for a limited time.
Final Thought from Zeal
At Zeal Agency, we’re focused on conversion-led, profitable growth. But that’s impossible without data clarity.
Tools like MerchantSpring give brands the visibility they need to grow responsibly — and protect margin as they scale. We highly recommend giving this episode a listen and exploring the tool for yourself.
Watch the full interview on YouTube: [https://youtu.be/jAqeddlMLaA]
Book a demo with MerchantSpring: merchantspring.io
