Episode Details
Back to EpisodesWhy a 40% Gross Margin Can Turn Negative on Amazon
Description
A 40% Amazon margin can shrink to almost nothing once the real costs start stacking up.
In this episode of the Mad Growth podcast, Noah Wickham sits down with David Shommer, CEO of Build Grow Scale, to talk about the numbers behind profitability, smarter product choices, and lessons from launching nearly 3,000 SKUs.
The conversation covers why some products fall apart after fees, why harder-to-ship products may be worth the trouble, and where AI fits into e-commerce in 2026.
David Shommer and Build Grow Scale share more on Shopify and brand growth:
https://www.linkedin.com/in/david-schomer-b08a0a41/
Get help from My Amazon Guy to grow Amazon sales:
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#AmazonFBA #AmazonSeller #Ecommerce #AmazonPPC #ArtificialIntelligence
Want free resources? Dowload our Free Amazon guides here:
Your $1M Roadmap is here!: https://bit.ly/3SBO7Vk
Download the 2026 Amazon AI Operating Manual: https://bit.ly/3SLmusP
Amazon Receiving Delay Guide: https://hubs.ly/Q04cdD4c0
Amazon Catalog Spring Cleaning: https://hubs.ly/Q046BVfp0
Amazon Proft Margin Defense 2026: https://hubs.ly/Q042trRH0
Amazon SEO Toolkit 2026: https://bit.ly/4oC2ClT
Amazon Seller Strategy Report 2026: https://bit.ly/3YN1RME
2026 Ecommerce Website & SEO Readiness Checklist: https://hubs.ly/Q04btghf0
Amazon 2026 PPC guide: https://bit.ly/4lF0OYX
Timestamps
00:45 - David Shommer’s Journey from M&A to E-Commerce
04:49 - Why Revenue Can Mislead E-Commerce Sellers
07:29 - The “Fail on Paper” Exercise for Product Launches
11:29 - Why Sellers Should Stop Launching “Me Too” Products
13:01 - Opportunities in Oversized and Custom Products
18:12 - How AI Is Changing E-Commerce in 2026
21:41 - AI Content vs. Real Human Content
23:51 - Will AI Replace People in E-Commerce?
26:56 - Why E-Commerce Is Just Getting Started
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