One of the most frequently asked questions we receive is whether or not you should have multiple streams of income while running your Amazon e-commerce business. Just about every time we get asked this question, we counter it with another: “How able are you to pivot your business model?”
In today’s episode, Robyn shares her insight into pivoting, what you need to do to pivot your business model, and why it is okay to have multiple streams of income that are not related to your Amazon business to help grow your business and achieve your goals.
Pivoting often goes hand in hand with outsourcing. After all, if you’re too busy doing all of the work for your business – being a solopreneur – then how can you find the time to pivot your Amazon business as the marketplace evolves? Like outsourcing, once you get established in the marketplace, it is important to pivot your business model to continue growing and expanding your business.
Let’s face it, if there is one thing that is predictable in the e-commerce industry, it’s that there will be frequent, consistent changes as years go by. To avoid having your business and products become non-viable throughout these marketplace changes, you need to proactively change your business model as the marketplace changes. You need to be flexible.
So, how do you remain consistent and fluid in an ever-changing marketplace?
Every year, evaluate your business model – asking yourself these questions:
- Is this still the best marketplace to sell my products?
- Is my sourcing method still working?
- Am I stuck on what used to work before, but is no longer providing the same results?
- Have I given another method a fair enough shot to determine whether or not it could be a viable alternative?
- Am I taking some money out of my Amazon business to diversify or create a savings for me to insure myself in case something happens to my Amazon account or business?
- Am I still using the right tax entity?
- Is my accountant still the right size for my business’ needs?
- Is my staff still the right staffing level?
- Is my inventory turn rate appropriate?
Remember, managing your inventory turn rate has never been more important. However, it can be one of the easiest pivots to overlook if you’re too busy “doing” and haven’t dedicated adequate time to evaluate the marketplace.
- Unstoppable Amazon Academy – for more information about how to determine your profitability by SKUs, check out our Amazon Reports Webinar!
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