Published on

Why Most Amazon Sellers Fail

Why Most Amazon Sellers Fail


In this article, we will discuss the reasons behind the failure of most Amazon sellers. We will focus on two key aspects: profit analysis and inventory management. Profit analysis involves calculating your monthly profit and loss, while inventory management is crucial for effectively managing your stock levels. We will also introduce a software solution called Cibo, which can automate these processes and help Amazon sellers make better-informed decisions.

Profit Analysis

Profit analysis is the process of evaluating your monthly earnings and expenses to determine the profitability of your business. Unlike traditional employment where you receive a payslip, running a business means you don't have access to such information. Therefore, you need to create a profit and loss statement, also known as a P&L statement, to track your income and expenses and calculate your net profit.

Creating a P&L statement manually involves downloading transaction reports from your Amazon account and analyzing your costs of goods sold (COGS) to calculate your profit. Alternatively, you can use software like Cibo, which automatically pulls data from your Amazon account and generates detailed profit and loss statements. This automation is beneficial as it accounts for various fees and transactions on Amazon, ensuring accurate calculations.

By regularly assessing your profit and loss, you gain valuable insights into your business's financial performance. It enables you to identify trends, analyze expenses, and make informed decisions to improve profitability.

Inventory Management

Inventory management is crucial for maintaining optimal stock levels, avoiding stockouts, and minimizing storage fees. Poor inventory management can lead to financial losses and missed sales opportunities. It involves striking a balance between overordering, resulting in excess inventory and increased storage costs, and underordering, leading to stockouts and lost sales.

Amazon provides an inventory management page where sellers can manually track their inventory and receive recommendations on reorder quantities. However, this interface can be challenging to navigate and may not provide a comprehensive view of your inventory.

Using software like Cibo streamlines inventory management by automatically syncing with your Amazon account, displaying your current stock levels, days of inventory remaining, and recommended reorder quantities. It also considers external stock at prepping centers and integrates with purchase orders, providing a comprehensive overview of your inventory.

Efficient inventory management allows you to make data-driven decisions about when to order new stock, preventing stockouts, and optimizing your cash flow.

Cibo Software Solution

Cibo is an all-in-one software solution specifically designed for Amazon sellers. It helps automate profit analysis and inventory management, providing powerful tools to enhance your business's performance.

With Cibo, you can access a user-friendly dashboard that displays real-time sales, profit, and other essential metrics. The mobile app allows you to monitor your profit throughout the day, ensuring you're focusing on profitability rather than just sales.

The software also offers features such as trend analysis, sales reports, PPC optimization, and an autoresponder for customer review and feedback requests. These features save time and streamline your operations, enabling you to focus on growing your Amazon business.

Cibo offers affordable monthly plans starting from $ 19, making it accessible for sellers of all scales. Its intuitive interface and comprehensive features make it the preferred choice for many successful Amazon sellers.


Profit analysis, inventory management, Amazon sellers, P&L statement, Cibo software, stock levels, sales optimization, cash flow, profitability, trend analysis, sales reports, PPC optimization, autoresponder.


  1. Why is profit analysis important for Amazon sellers? Profit analysis helps evaluate your business's financial performance, identify trends, and make informed decisions to enhance profitability.

  2. Why is inventory management crucial for Amazon sellers? Efficient inventory management prevents stockouts, minimizes storage costs, and ensures you have adequate stock to meet customer demand.

  3. How can Cibo software assist Amazon sellers? Cibo automates profit analysis and inventory management, providing real-time insights, optimizing sales, and streamlining operations.

  4. What other features does Cibo offer besides profit analysis and inventory management? Cibo also offers trend analysis, sales reports, PPC optimization, and an autoresponder for requesting customer reviews and feedback.

  5. How affordable is the Cibo software? Cibo offers monthly plans starting from $ 19, making it cost-effective for sellers of all sizes.