The #1 Pricing Mistake That’s Killing Your Ecom Profits with Oz Merchant

May 27, 2025

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Oz Merchant is a leader and coach in the fields of sales and customer success for B2B SaaS and ecommerce companies. Oz is passionate about helping businesses grow and thrive. He is the former VP of Sales, Success, and Support at Viably. Currently he is the founder and CEO of Ecom Sellers HQ, a platform that could help you to start or scale your ecommerce business with the best software tools, service providers, and funding options.

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> Here’s a glimpse of what you would learn….

Current challenges of margin compression in e-commerce, particularly on Amazon.
Strategies for navigating cash flow challenges in the evolving e-commerce landscape.
The importance of adopting an omnichannel approach for e-commerce brands.
Insights on the transition from Viably to E-commerce Sellers HQ and its impact on sellers.
The significance of understanding FBA fees and optimizing supply chain operations.
The necessity of financial acumen and establishing clear Key Performance Indicators (KPIs).
The disconnect between perception and reality in business performance metrics.
Managing overhead expenses and identifying major expense buckets for e-commerce businesses.
The implications of seeking external funding and understanding cash flow dynamics.
The role of technology and automation in the future of e-commerce.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Oz Merchant, founder and CEO of E-commerce Sellers HQ. The discussion centers on the pressing challenges faced by e-commerce brands, particularly those selling on Amazon. Key topics include margin compression, cash flow management, and the importance of an omnichannel approach. Oz shares his transition from Viably to E-commerce Sellers HQ, emphasizing the need for financial acumen and strategic cost management. The episode also explores the future of e-commerce, highlighting the potential impact of AI and automation. This insightful conversation offers valuable strategies for scaling e-commerce businesses to eight figures and beyond.

Here are the 3 action items that Josh identified from this episode:

Optimize Profitability to Combat Margin Compression
1. Regularly audit your Total Advertising Cost of Sale (TACoS) and aim for 15% or lower.
2. Negotiate with suppliers for better pricing on bulk orders to lower Cost of Goods Sold (COGS).
3. Monitor FBA fees and optimize packaging to reduce unnecessary costs.
Prioritize Financial and Operational Efficiency
1. Conduct regular overhead expense audits to eliminate wasteful spending.
2. Streamline operations using automation tools to reduce manual workload and improve efficiency.
3. Set clear Key Performance Indicators (KPIs) to track financial health and operational performance.
Leverage Technology and Community for Growth
1. Invest in AI-driven tools for inventory management, customer service, and marketing automation.
2. Engage in e-commerce communities, networking events, and industry conferences to stay ahead of trends.
3. Follow industry leaders for insights on best practices and evolving e-commerce strategies.

Resources mentioned in this episode:

Josh Hadley on LinkedIn
eComm Breakthrough Consulting
eComm Breakthrough Podcast
Email Josh Hadley: Josh@eCommBreakthrough.com
E-commerce Sellers HQ
AWP (Amazon Warehouse Program)
Hello Profit
Seller Board
Gorilla ROI
Amazon FBA Fee Reimbursement
Amazon
Walmart
Shopify
TikTok
ChatGPT
Leadership and Self-Deception by The Arbinger Institute

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Episode Sponsor

Sponsor for this episode...
This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures.

I started Hadley Designs in 2015 and grew it to an eight-figure brand in seven years.

I made mistakes along the way that made the path to eight figures longer. At times I doubted whether our business could even survive and become a real brand. I wish I would have had a guide to help me grow faster and avoid the stumbling blocks.

If you’ve hit a plateau and want to know the next steps to take your business to the next level, then go to www.EcommBreakthrough.com (that’s Ecomm with two M’s) to learn more.

Transcript Area

Josh Hadley 00:00:00 Welcome to the Ecomm Breakthrough podcast. I'm your host, Josh Hadley, where I interview the top business leaders in e-commerce. Past guests include Kevin King, Michael Gerber, author of The E-myth, and Matt Clark from ASM. Today I'm speaking with Oz Merchant, and we are going to be talking about how to prevent the margin compression happening right now on Amazon, navigating cash flow challenges, and the mindset that you need to have to win in e-commerce in 2025. This episode is brought t...