Why Amazon Brands Are Facing a Crisis

It’s clear why (some) brands on Amazon are facing a profit crisis.

For the past decade, brands followed a familiar script.

PPC. Listing optimization. Discounts & deals.

Checklist tactics that worked like clockwork. And for a while, it did work. Until it didn’t. One critical lever stayed frozen in time — PRICING.

Evolution Problem

Unlike PPC or listing optimization, pricing is stuck in “set it & forget it” mode.

Brands pick a price. Hope it’s right. Or worse… they copy a competitor’s price and just go a little lower.

This is why they’re losing. And while most sellers are still squeezing pennies from PPC… The smarter brands are playing a much bigger game. They’re controlling the 1 lever that drives profit faster than any other: PRICE.

But here’s the issue. Most brands are too stubborn or too scared to evolve.

They stick to manual price changes. Or worse, they do nothing at all.

Meanwhile, the competition is letting AI do the heavy lifting. And they’re eating everyone’s lunch.

The Critical Shift

Here is the shift you need to make:

  1. Forget chasing another 1% improvement in ad spend.
  2. Forget A/B testing your product images for the 10th time.
  3. Start controlling your price.

Price is The Profit

Price is the profit lever that drives everything else.

Lower it too much? You bleed money.

Raise it too high? You lose sales.

The crazy part? Many brands I speak with aren’t even curious about it. They’re too scared. Too stuck in the old ways.

They are NOT HUNGRY.

New Mental Model

If you don’t evolve, you get left behind.

The mental model required to win on Amazon now looks different. The brands still clinging to old methods are getting run over.

Right now, the market is forcing this realization. It’s all coming to roost.

Conclusion

The only question left is… Are you ready to evolve?

PS: This post was inspired by this morning’s sunrise run. Every day is a chance to turn it all around.

Sunrise

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