Bigger revenue isn’t a win if unit economics are negative. This episode argues that e-commerce bookkeeping must be tailored to the channel so you can see true profitability per SKU after returns, platform fees, ads, tariffs, storage, and shrink. Cut losing products, reallocate budget to winners, and don’t kid yourself about “diversification”—if 95% is Amazon, Etsy/Newegg won’t save you. With tariffs and logistics pressure, Q4 success means profit discipline, not just sales volume.
Key Takeaways
- Profit > Sales: “Sales doubled” means nothing if you lose money per unit.
- E-com-specific books: Track by channel and SKU including returns, fees, ads, tariffs, and shrink.
- Cut the losers: Sell through remaining stock, stop ads, free up cash.
- Back the winners: Push inventory/ads to high-margin SKUs; use bundles to raise AOV.
- Fake diversification: If Amazon = 95%, you’re not diversified—minor channels won’t rescue you.
- Capital after fixes: Fix unit economics first; only then add debt/credit with clear ROI.
- Differentiate or bleed: Me-too private label gets price-crushed; add real value (IP, features, service).
- Q4 discipline: Restock early, warm up rank, discount only if margins survive.
- Prune channels: Keep the few that deliver meaningful, profitable volume.
- Frequent visibility: Simple, regular reporting → faster course corrections and healthier cash.
