How to Build a Profitable Amazon Business | Why Most Amazon Sellers Fail

Most Amazon sellers brag about revenue. But revenue doesn’t pay the bills… profit does. 

David Schomer, co-host of the Firing the Man podcast, breaks down what it really takes to build a sustainable Amazon business. From managing TACoS and uncovering hidden Amazon fees to choosing the right products and using accrual-based accounting, he shares hard-earned lessons from his own journey. David explains why most sellers misunderstand profit, the overlooked costs that cut into margins, and the product strategies that actually work in 2025.

 

In this episode, we cover:

✅Why profitability (not revenue) is the real measure of success
✅The difference between cash vs accrual accounting for Amazon sellers
✅How to calculate and manage TACoS (Total Advertising Cost of Sale)
✅The hidden Amazon fees (AFCoS) that erode margins and how to track them
✅Product strategies for choosing higher-ticket and oversized items that scale profitably
 

🚀Chapters

[00:00] Profitability Over Revenue. Why Amazon is getting harder and how to stay profitable.

[02:17] Cash vs. Accrual Explained: How inventory hits P&L versus the balance sheet.

[05:00] Your Financials Are a Report Card. Why treating Amazon like a real business matters.

[06:03] Using 4x landed cost and 30% margins to set yourself up right.

[06:58] TACoS Over ACOS: The ad metric that reveals if your sales are truly profitable.

[10:18] Amazon as a Media Company: Why PPC is now required to compete.

[11:10] Higher-Priced Products Win: How $50–$200 items create faster profitability.

[12:09] Oversized Products Pay Off: Why heavy, difficult-to-ship items are hidden gems.

[17:39] Cut the Duds: How dropping underperforming SKUs can boost account health.

[20:29] Customer expectations have changed.

[26:15] Launch, Then Refine: Use customer feedback to improve on the second order.

[29:18] AFCoS Uncovered: The hidden Amazon fees most sellers overlook.

[33:08] Benchmarks That Matter: What healthy AFCoS percentages look like.

[36:13] Final Advice: Just get started and stay committed to the process.

🚀  Guest: David Schomer 

Website: firingtheman.com

Podcast: Firing the Man (available on all major platforms)
 

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