May 15, 2023 12:00AM
Amrita Health Foods is rewriting the rules on net margins. They've seen a 6.8% increase in top-line revenue and a whopping 21.1% boost in net margin in just 30 days on Amazon. They're gunning for 100% top-line growth and 25% net margin this year. Thanks, Arshad.
Focussing on Net Margins makes a lot of people uncomfortable, especially agencies.
It's really not their fault, since for so many years they have been asked to help scale brands that are focused on just growth at all costs.
At Amrita Health Foods, we are only focussed on profitable growth. Yes you can do both although its best to focus on one lever at a time.
In the last 30 days on Amazon, we have grown topline revenue by +6.8% and Net Margin by +21.1%. In order to achieve 20%+ net margin growth we had to do these things really well: Stay in stock, resolve all customer issues ASAP, Improve product quality, Increase our subscribe and save contribution, improve PPC performance, and improve listings.
But we still have a ton of room for profitable growth. We want to double our topline this year (100% YOY) and close to the year at 25% Net margin .. we are not that far off.
1) You have to use a really good tool that can pick up all the hidden Amazon fees. I use sellerboard.com.
2) Work the back end of your business as much as the front end. If you are out of stock, all the other work is wasted.
3) Stay patient.
4) Don't bend the rules (like asking for reviews)