We were tasked with pushing a product on Amazon, and after executing an aggressive marketing strategy, it worked. We achieved bestseller status, but soon realized an important issue: while the product was selling well, we were barely breaking even.
The problem stemmed from a combination of a calendar deal and stacked coupon upon it, which allowed buyers to purchase the product at an extremely low price, resulting in razor-thin margins. Despite high sales volume, our profits were much lower than expected.
To address this, we introduced a minimum pricing policy to avoid selling below cost in the future. By setting a floor price, we were able to maintain profitability while keeping visibility high. It was a tough lesson, but it taught us how important it is to balance sales volume with sustainable pricing strategies.
In the end, the product stayed a bestseller, but now we were also able to make a reasonable profit on each sale. This experience demonstrated that success isn’t just about pushing volume-it’s about ensuring the success is profitable and sustainable.