Streamlining Cash Flow for Optimized Profits

The best Amazon sellers understand that to be successful you don’t always have to be expanding your operations. While expanding your product catalog, increasing inventory, and upgrading your processes can certainly help improve sales and grow your business, it’s not the only way. To make the most of your business and ensure profitability as an Amazon seller, you need to focus on putting cash in the bank. Not cash tied up with inventory, delayed Amazon payouts, or tools that aren’t being used. You need money that can be used now– to pay yourself or reinvest back into your business for growth. 

What is Cash Flow?

Cash flow is the movement of money in and out of your business over a certain period of time. It’s also the lifeblood of any business. Without proper cash flow management, your e-commerce business can quickly run into financial troubles. For Amazon sellers, this is especially important because of the unique and ever-changing nature of the marketplace. 

Cash Flow Crunches

Cash flow crunches occur when there’s an extended delay between capital exiting and reentering your business. These cash flow crunches most often occur between making a sale and the profits actually hitting your bank account– due to the waiting period for Amazon’s payouts. Cash flow crunches can also be caused by too much working capital being tied up in inventory for long periods of time, seasonal cash flow fluctuations, or unexpected expenses. 

Over time these crunches become longer and larger, resulting in your business being forced to operate on incredibly slim margins. Even profitable businesses can succumb to challenges with cash flow, which is why managing your cash flow is so important. It’s critical that you balance profit and expenses in good timing to ensure that your business always has enough capital to operate, and ideally to grow. 

Strategies to Streamline Your Cash Flow

While it’s easy for Amazon sellers who don’t have a good grasp on their cash flow to fall into these crunches, there are a wide variety of strategies to help you streamline your cash flow. By improving your cash flow you’ll also optimize profits for your business, thanks to increased working capital available at a given moment. 

If you’re struggling to avoid cash flow hiccups, it might be time to implement some proven cash flow strategies. These strategies will help you build toward a healthy, positive cash flow that can sustain your business through even the most expensive seasons. 

Forecast for the Future 

Strategically Order for Favorable Terms

Did you know that different Amazon seller models align best with unique inventory purchasing practices? For example, some businesses benefit from placing larger orders that will sustain their business over extended periods of time. However, if your business doesn’t have the cash flow to support itself with working capital tied up in inventory, smaller orders more frequently can help get your cash flow cycle moving more quickly. 

On the whole, larger orders typically can be negotiated to come at more favorable terms, including a cheaper cost per item–meaning a better bottom line. However, it’s important to ensure that your cash flow can handle that type of large investment beforehand. Before you can begin to optimize profits for your Amazon business, your cash flow first has to be able to sustain itself. In the meantime, external funding can help with these purchases and supplement your immediate cash flow. 

Mind Your Metrics

Amazon sellers are constantly reviewing and reflecting on a lot of numbers and metrics, but which are the most relevant and important to your business? One key metric to keep an eye on when streamlining your cash flow is your profit vs. revenue. While many sellers understand the revenue of their business, it’s surprisingly easy to miss the discrepancy between that and their profits.  

Revenue is the total income generated by sales over a specific time frame. What revenue doesn’t take into account is expenses that still need to be paid. Profit on the other hand, demonstrates exactly how positive your cash flow is and can be conceptualized as the amount of capital that exists beyond what your Amazon business needs to sustain itself. 

To accurately assess your cash flow and ensure that you’re making the most for your business, focus not just on revenue growth, but on increasing your profit margins. Here’s how:

  • Audit your expenses and look for ways to trim the fat without sacrificing quality.
  • Analyze your pricing model to ensure it reflects the true worth of your products, accounting for both costs and competition.
  • Consider the ROI on investments like PPC and advertising campaigns, virtual assistants (VAs), new software or tools, and more. 

The slimmer your profit margins, the less your cash flow will be able to increase month over month–and the less capable your Amazon business will be of scaling. 

Invest in Growth 

Optimized Cash Flow = Optimized Profits

To grow an Amazon business and succeed, it’s important that you understand how to prioritize positive cash flow. Cash flow is the life blood of your business–when it’s positive and thriving, your profits will be too. By streamlining your cash flow you can ensure that you not only have the funds to operate your business, but also to invest in its growth and in paying yourself. 

Although funding solutions may seem intimidating, they can often be a smart solution to cash flow crunches, allowing your business to get to a healthier, more stable position. Remember, maintaining positive cash flow requires consistent financial monitoring, strategic planning, and a solid understanding of your business finances. With these tools at your disposal, you can maximize your cash flow and build a successful ecommerce business.

This article may contain affiliate links for products or services.  You are NEVER charged more for something if you buy through our link, but we do get a small commission that helps us keep the site up and running with valuable and current information.  Thank you.

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Yoni Mazor

Yoni Mazor is co-founder of GETIDA, an Amazon solution provider that offers robust
auditing services to sellers, helping them to reconcile inventory, file claims and
maximize reimbursements.

Yoni began his e-commerce career while still in college, discovering he could
double his return by selling his textbooks online, instead of a trade-in at the local
bookstore. In 2009, working as Operations Manager of a supplements company, he
continued to expand his e-commerce knowledge, managing sales on the company’s
website, eBay, and Amazon. In 2013, Yoni became the Chief Operating Officer of the
May Group, a multi-category distributor that grew from selling watches and jewelry to
cosmetics and apparel. With an expansion to the Amazon marketplace, online sales
rapidly increased to 20 million.

Dealing with significantly escalating volume, Yoni and his team created solutions to
help manage inventory and accounts. In 2016, as other sellers began seeking Yoni’s
assistance, he and his co-founder Max Borin formed GETIDA, providing sophisticated
data analytic tools to assist Amazon sellers with auditing, reimbursement and inventoryreconciliation.

As spokesperson of The Ecom Cooperative, Yoni is mission-driven and
dedicated, a quick action man who gets the job done. With exceptional leadership
skills, Yoni brings positivity and good spirit into all of his interactions. Forward-thinking and growth-oriented, Yoni’s drive to be impactful and offer value is clear, using creative intelligence to advance and achieve.

~~~~~~~~~~~

“Yoni is a soldier- he has an incredible work ethic, never seems to run out of energy,
and is always in the zone.” David Dayon
 
“Yoni is like the G-dfather of our group. He is the perfect person to have on board- a
master at making it all work.” Frank Acosto

~~~~~~~~~~~

I Believe… in honesty and focusing on strengths. We have so much to offer in our own mission and we’re really good at what we do, but we know our limitations and are honest with our clients, letting them know exactly where we can provide value.
I’m Passionate About… helping others. If I see an opportunity to help and solve
challenges, I find it thrilling, exhilarating and rewarding.
I Love Working With… everyone. I see my company as an equal opportunity solution
provider. Any Amazon seller can enjoy our services and grow. Even small sellers can
have a big future.

~~~~~~~~~~~

My Drive:
I love knowing that my company gives people jobs- we have over 125 employees in 6
countries- and that it allows them to take care of their families and have better lives.
We’ve moved with them through life stages, getting married, buying homes, and having children. We’ve been able to help so many people. I take a lot of pride in that.
My Role Models:
My father, Avi, is a lawyer, managing his own firm, and he has extraordinary
entrepreneurial wisdom (as did my grandfather Saul)- it’s in our blood. I know I can
always reach out to my father for advice.
As a podcast host (Prime Talk), I’ve interviewed over 100 guests- leaders of the
industry- who have inspired me and brought me new perspectives.
My Attitude:
Every day, we start our business at zero. Mentally, it’s always day one. We take it very
seriously and know that each day, we have to prove ourselves. This keeps us
continuously focused on providing value to our clients.

Frank Acosta, Creative Director

Frank Acosta is the founder of Creative Percent, a branding agency serving clients in
the e-commerce sector, helping them to create distinctive, alluring brands.

Frank began his career in 2009, working for Alerta TV as a broadcaster’s
assistant, and advanced to serve as Broadcasting Director in 2012. Honoring his love
for all things creative, Frank founded Creative Percent in 2016, a niche agency
designed to build iconic brands, launching new companies and reinventing established ones. As the business evolved, Creative Percent responded to clear market demand for video production and, in 2019, created a dedicated studio space for filming dynamic product videos for their e-commerce base.

At the core of Frank’s success is his focus on the client: in-depth market research
and a thorough delving into the customer’s world provide a precise understanding of
needs and ensure aligned visions. Bestowing each client with a fresh perspective,
Creative Percent is renowned for producing notable brands.

As Creative Director of The Ecom Cooperative, Frank’s passion for community
and connection fuels his craft. A creative hustler, he is always ready to work and take
bold, innovative steps. Frank is a strong, well-liked leader and brings great energy,
spirit, and a high dose of perfectionism to the team, perpetually contributing to the
pursuit of growth and advancement.

~~~~~~~~~~~

“Frank never fails to deliver. ” David Dayon

“Frank has a great eye for design- and for people. He really gets to the core.” Yoni
Mazor

~~~~~~~~~~~

I Believe… in giving back. Whenever another branding agency reaches out to me, I’m
happy to share my expertise. It’s part of why I joined the Ecom Cooperative- building a community where we can all learn and grow is a powerful thing.
I’m Passionate About… creating. I love working in the creative space and watching
companies become successful- it’s an amazing thing to be a part of.
I Love Working With… clients that are open to change. As I take clients through my
process, if their brand doesn’t resonate with me, I start from scratch. My most
successful clients are the ones that are willing to go with me on this journey and trust
me, knowing that they hired an expert to execute.

~~~~~~~~~~~

My Drive:
People trust me with their livelihoods. They are paying high ticket prices for my work-
and it needs to deliver. I get so much inspiration from seeing a brand flourish, a
company exit for top dollar, or a product range expand from 3 to 50 million.
My Role Models:
My father, Frank, has run businesses his entire life, and I’ve learned so much from
watching him.

Chris Do is also someone who has really impacted my work, teaching me a lot about
branding and managing my business.
My Attitude:
The more you give, the more you get. Help others without expecting anything in return and you’ll thrive. Many other companies try to hide their processes and guard their information, but I believe in collaboration and supporting each other.

Lenny Ash, Chief Operating Officer

Lenny Ash is the co-founder of AZSeller Kit, a custom-designed software solution
for Amazon sellers which utilizes business intelligence tools to present actionable data.

Lenny began his e-commerce career while still in college, selling collectibles on
eBay in significant volumes. After completing his undergrad degree, Lenny began
working in a Manhattan-based retail store, Media Mix Distribution, and pioneered their expansion into wholesale distribution and online sales. By 2003, with the company heavily selling on the Amazon marketplace, software developers were employed to streamline inventory management.

In 2015, Lenny and his partner Jason Hanan began offering consulting services,
sharing their vast experience with other Amazon sellers. With both client and personal
business needs unsatisfied by cookie-cutter approaches, Lenny gained expertise in
data science and data management, and in 2020, launched AZSeller Kit with Jason.
This Amazon integrated software offers price optimization tools and provides key
insights which help shape vital decisions.

As Chief Technology Officer at The Ecom Cooperative, Lenny’s analytical approach and technical prowess add steady efficiency and continuous advancement to the team. With his easygoing, empathetic and methodical nature, Lenny gains a chasmic understanding of situations and provides on-target solutions, consistently plugging away to accomplish goals.

~~~~~~~~~~~

“Lenny is an executor, he gets the job done.” Frank Acosta

“Lenny is a genius, the brains behind his software.” David

~~~~~~~~~~~

I Believe… in using technology to make life easier. When I hone in on a problem, I
think, “How can I make this better with technology?” And then I find a solution and
implement it.
I’m Passionate About… digging deep to understand operations, and asking, “Why are we doing it this way?” I love looking at the big picture and the overarching process and focusing on how things can be improved.
I Love Working With… people who love data just as much as I do- when my clients
really understand the analytics, our collaboration yields powerful solutions.

~~~~~~~~~~~

My Drive:
The Ecom Cooperative really inspires me to broaden the scope of my experiences and
learn more about what others do and what they need. By engaging with more sellers, I can offer greater value.
My Role Models:
My father, Avi, was a successful entrepreneur, and immensely impacted my mindset
and my career. His approach was filled with patience and analysis. And yet, he was an
early tech adopter, on the cutting edge, always using it to make life better.
My Attitude:
You need to walk before you run. I take a very conservative approach and I would
never put a plan into place without testing it first. Tests prove scale, and once
something is a proven concept, we can double down and put it into action.

Jason Hanan , CFO

Jason Hanan is the co-founder of AZSeller Kit, a customized software solution that
provides data insights and helps Amazon sellers manage their accounts and make
logistical decisions.

After graduating college with a degree in business management, Jason joined his brother Adam in owning and managing Media Mix Distribution, a Manhattan-based retail store. As retail sales began to taper, they moved into the wholesale and online marketplace, gaining a unique understanding of the e-commerce industry.

In 2015, Jason began offering consulting services with partner Lenny Ash to other
Amazon sellers, developing software that helped manage online sales. Ahead of the
curve in e-commerce experience, Jason and Lenny leveraged this knowledge to launch
AZSeller Kit in 2020. Built from the perspective of a seller, it provides valuable business intelligence tools that give clients key insight into their business’s wellbeing.

As treasurer for The Ecom Cooperative, Jason takes a thought-out, focused
approach to achieving financial goals. A leader by nature and a hardworking and
dedicated team contributor, Jason’s empathy and free-thinking offer valuable insight and perspective.

~~~~~~~~~~~

“Jason is a realist (worst-case-scenario guy) and tempers my idealism
(bright-and-sunny-day man) – we make a good team.” Lenny Ash

“When Jason speaks- listen.“ Yoni Mazor

~~~~~~~~~~~

I Believe… that if you listen and keep an open mind, you will keep innovating. Lenny
and I have no ego as a team and we want to hear everyone’s ideas- it’s how we keep
improving.
I’m Passionate About… data. I’m a data geek- I love inventory and pricing management and I dream in spreadsheets.
I Love Working With… people that are open-minded and willing to share ideas. Also,
solution-oriented individuals who focus on, “How can we make this work?”

~~~~~~~~~~~

My Drive:
I am my own #1 customer. As Amazon sellers ourselves, we see things through the
eyes of a seller. We use our own software every day and if we see something that isn’t
working or someone has an idea on how to improve, we change and implement.
My Role Models:
Everything I am is because of my father Isaac and my brother Adam. My father treats
everyone with respect and warmth. Watching how people reacted to him was a blueprint for how to treat people.
 
My brother Adam was always the smartest person in the room. I learned how to listen,
how to ask for help, and that it’s okay for someone else to have the answer.
My Attitude:
I’m confident in our ability to adapt to any challenge that comes our way. Throughout the years, we’ve rolled with the punches, pivoting our businesses at crucial moments to be in line with market changes and technological advances. I know we will keep lining up opportunities and moving forward.

David Dayon, President

 
David Dayon is the co-founder of Amazon Xperts, a marketing and sales
consulting group that helps Amazon sellers manage their accounts and optimize sales.

David began his Amazon career while in college, spending his summers creating
listings and perfecting the art of fashioning an attractive page. David went on to work
for a consulting agency in NYC, serving hundreds of Amazon clients. In 2018, David
founded Amazon Xperts, specializing in listing optimization and working with private
label brands to implement and execute the right strategy on Amazon.

The Ecom Cooperative was David’s brainchild and founded on the principle that
we are stronger together. Serving as a community for both Amazon service providers
and sellers, The Ecom Cooperative brings everyone under one umbrella so that all can
collaborate and form valuable connections with trusted partners.
 
David is a networking powerhouse, an action personality combined with an
approachable nature, and able to form relationships and connect people on a pragmatic level. A passionate and determined visionary, David capitalizes on opportunities and provides authentic value.

~~~~~~~~~~~

“David can make something from nothing.” Jason Hanan

“David works until the wheels fall off. He’s a no-nonsense achiever.” Frank Acosta

~~~~~~~~~~~

I Believe… the customer is always right. We spoil our clients. I deal with each of my
clients personally, delivering projects before the promised date and working with clients until they’re satisfied.
I’m Passionate About… All things Amazon, growing my network and continuing to
build this ecommerce community.
I Love Working With… good people, I try to surround myself with good people and ‘I’m always looking to collaborate with good people. Great things in business are never done by one person. They’re done by a team of people.

~~~~~~~~~~~

My Drive:
I get the most out of my relationship with my clients and my partners. There are so
many good people in the e-commerce community and everyone is looking to help each other.
My Role Models:
My Dad, Steven, is my main role model, he shaped me into the person I am today.

My mentor Irwin Dayon, Irwin has spent over 30 years helping young entrepreneurs
like myself get started.
My Attitude:
I don’t believe in competition, but rather in collaboration. There is plenty of business to go around and each provider excels in a specific area, allowing us to give our sellers the choice of a service provider that truly meets their needs.