Breaking Down The Unit Economics And Impact on Scale - Mike Mallazzo - Amazon Legends - Episode #299
In this week's episode, we delve into the intricacies of e-commerce and Amazon scaling strategies with our guest, Mike Mallazzo. As the co-founder and head of growth at Brandable, Mike brings extensive experience in optimizing unit economics for Amazon and Shopify sellers. Our conversation covers fundamental concepts such as unit economics, key success metrics, and the impact of data-driven decision-making on business growth. Mike emphasizes the importance of flexibility in adapting to the dynamic e-commerce landscape and provides exclusive insights into Brandable's innovative tools for sellers. Tune in to this insightful discussion and level up your Amazon game!
Takeaways :
Quote of the Show:
Understanding Amazon and Shopify unit economics boils down to contribution margins. On Amazon, after deducting various fees, the contribution margin usually sits between 30% to 50%, crucial for profitable ads. Conversely, Shopify's margin tends to be higher around 3%, offering a different landscape for profit.
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