AM/PM Podcast
#481 - How to Stay Profitable on Amazon in 2026
AM/PM Podcast
•December 24, 2025•44 min
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AM/PM Podcast•Dec 24, 2025
Key Takeaways
- •US manufacturing shields brands from tariff spikes.
- •Consistent pricing across Amazon, Walmart builds trust.
- •Contribution margin tiers (CM1‑CM3) pinpoint profitability issues.
- •Balance branded vs long‑tail PPC spend for optimal ACoS.
- •Supplier renegotiation can cut costs by 25% instantly.
Pulse Analysis
In 2025 sellers faced soaring tariff rates and volatile freight costs, but brands that keep production in the United States gained a decisive edge. By controlling raw‑material sourcing and manufacturing domestically, companies avoided 160% tariff shocks and shortened lead times, allowing faster replenishment to Amazon and Walmart fulfillment centers. Consistent price points across all marketplaces reinforced brand trust, ensuring shoppers encountered the same value whether they bought online or in‑store, a strategy that directly supports long‑term profitability on Amazon in 2026.
Profitability hinges on granular margin analysis. Speakers highlighted a three‑tier contribution‑margin framework—CM1, CM2, CM3—to isolate pricing, fee, and advertising inefficiencies. When CM1 falls below a set threshold, price adjustments or cost reductions become mandatory; CM2 flags high return rates or Amazon fees; CM3 uncovers overspending on PPC. Coupled with a hybrid FBM/FBA inventory model, sellers limit long‑term storage fees by sending only fast‑moving units to Amazon while retaining slower SKUs in private warehouses. This disciplined approach transforms inventory from a hidden cost center into a transparent profit driver.
Advertising strategy evolved from blanket spend to data‑driven balance. Brands now allocate a lower ACoS—around 10%—to high‑intent branded keywords while scouting long‑tail terms that deliver higher conversion rates at modest cost. Monitoring clicks‑to‑conversion ratios across price points ensures that even high‑ticket items justify a slightly higher ACoS. Additionally, renegotiating suppliers yielded up to 25% cost reductions, directly boosting contribution margins and freeing budget for strategic PPC campaigns. Together, these tactics—domestic manufacturing, margin tiering, smart inventory, and calibrated ad spend—position sellers to stay profitable on Amazon through 2026 and beyond.
Episode Description
Stay profitable on Amazon in 2026 with pricing, PPC, and inventory tips. Plus, how Helium 10’s Managed Refund Service helped a seller recover $100K in reimbursements.
Amazon profitability in 2026 is going to reward sellers who run their business like a finance department and a marketing department at the same time. In this episode, Carrie Miller and Leo Sgovio bring on experienced sellers to talk through what’s actually moving the needle right now: pricing discipline, smarter PPC decisions, inventory/storage awareness, and operational tweaks that protect margin when costs keep rising.
Ryan Cramer shares how Gen-Y Hitch stays profitable by controlling what they can control: manufacturing in the US, negotiating in bulk, keeping prices consistent across Amazon/Walmart/other channels, and forecasting 6–12 months out so unprofitable SKUs get sunset instead of quietly bleeding margin. Leo adds a practical angle from the games category: when competitors aren’t racing to the bottom on price, the real leverage becomes perceived value. Sharona Ozeri brings the apparel perspective, where price pressure is brutal, and explains how she’s leaning harder into brand positioning, using a mix of lower-margin “traffic drivers” and higher-margin specialty products to stay afloat. She also breaks down her CM1/CM2/CM3 contribution margin method to pinpoint whether the real issue is price, Amazon fees/returns, or PPC spend, so decisions stay math-based, not emotional.
Then the conversation turns into “found money”: reimbursements. If Amazon loses inventory (and it happens), leaving reimbursements unclaimed is like accepting a lower profit margin on purpose. Ryan explains why Helium 10’s MRS Managed Refund Service stands out (hands-on support + smart automation), how documentation like BOLs matters, and how their team recovered six figures in reimbursements, money that went straight back to the bottom line. Carrie also highlights a limited-time incentive: if you activate Helium 10’s MRS inside your dashboard, the fee is 10% through February 28, 2026, making it an easy win compared to services charging 15–20%+.
In episode 481 of the AM/PM Podcast, Carrie, Leo, Ryan, and Sharona discuss:
00:00 – Introduction
01:19 – Ryan Cramer: Forecasting and Cost Control
05:03 – Leo Sgovio: Pricing and Perceived Value
07:11 – Sharona: Competing in Apparel by Branding up
10:39 – CM1/CM2/CM3 and FBA vs FBM Strategies
12:40 – Amazon PPC for Profitability Basics
21:19 – Amazon Reimbursement Policy Change
23:33 – Helium 10 Managed Refund Service
25:46 – MRS promo: 10% fee until Feb 28, 2026
40:20 – Deals, Rufus Price History, and Price Wars
Show Notes
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