We Found a Massive Profit Leak in Our FBA Business

Jasim Eisa is the founder and CEO of Voadera, a global e-commerce partner helping brands win on Amazon and other online marketplaces. He built the company from selling used books at 15 into a 150-person operation managing over 30,000 SKUs and driving $100M+ in sales. Through Voadera’s Marketplace Accelerator, he helps brands fix broken listings, eliminate unauthorized sellers, and scale profitably with full-service marketplace execution. He is on a mission to help great products achieve the dominance they deserve online.Highlight Bullets> Here’s a glimpse of what you would learn…. Challenges of margin compression on Amazon and strategies for adaptation.Importance of operational efficiencies and cost savings for scaling e-commerce businesses.Tactics for reducing operating expenses, particularly in supply chain management.The significance of procurement strategies and direct sourcing from manufacturers.Shipping cost optimization through density and packaging strategies.Fulfillment strategies, including the use of FBA versus third-party logistics.Marketing efficiencies focused on organic ranking and conversion rate optimization.Increasing customer lifetime value (LTV) through various promotional strategies.The role of AI in enhancing operational capacity and workflow efficiency.Key performance indicators (KPIs) for tracking business metrics and ensuring team alignment.In this episode of the Ecomm Breakthrough podcast, host Josh Hadley sits down with Jasim Eisa, founder and CEO of Voadera, to discuss scaling e-commerce businesses profitably on Amazon. Jasim shares how his team achieved nearly $820,000 in operational savings through supply chain optimization, smarter procurement, and shipping density improvements. The conversation also covers marketing efficiencies, coupon strategies to boost customer lifetime value, reimbursement recovery, and practical AI applications. Jasim emphasizes that as brands scale, small per-unit savings compound significantly, making operational efficiency as important as growth.Here are the 3 action items that Josh identified from this episode:Stack Small Wins Relentlessly Audit every step of your operations and implement micro-improvements (e.g., packaging, shipping, processes). Small savings per unit compound into massive annual gains. Optimize for Profit, Not Just Growth Regularly review SKU-level profitability, Amazon fees, and inventory levels. Shift focus to efficiency as you scale—margin control is the new growth lever. Use Data to Drive Conversions & LTV Double down on high-converting keywords, continuously test PDPs and coupons, and implement strategies like Subscribe & Save and bundling to increase repeat purchases.Timestamps:00:00:00 Introduction & Cost-Saving InitiativeJasim discusses a major initiative to cut $1 million in operational expenses, focusing on supply chain efficiencies.00:00:24 Podcast Introduction & Guest BackgroundHost introduces the podcast, Jasim Eisa, and his experience scaling an e-commerce business to $100M+ in revenue.00:01:43 Managing Large-Scale Amazon OperationsDiscussion on managing 30,000 SKUs and the complexities of large-scale Amazon selling.00:02:07 Amazon’s Evolving Marketplace & Margin CompressionExploring margin compression, Amazon’s profit-maximizing changes, and how brands must adapt to new fee structures.00:04:26 When to Focus on Growth vs. Operational OptimizationAdvice for brands on prioritizing top-line growth versus operational cost optimization, depending on business maturity.00:07:30 Leverage in Cost Savings: High-Volume ProductsHow optimizing costs on high-volume SKUs yields significant savings, and the importance of leverage as brands scale.00:08:37 Operational Savings Strategies OverviewJasim outlines the philosophy of achieving savings through many small improvements rather than one big change.00:09:03 Procurement & Cost of Goods OptimizationTactics for reducing product costs by eliminating middlemen and running RFPs to manufacturers.00:10:40 Shipping & Supply Chain OptimizationStrategies for shipping cost reduction, including RFPs for freight, optimizing packaging density, and leveraging Amazon programs.00:13:43 Shipping & 3PL Strategy RecommendationsHigh-level recommendations for shipping from China and choosing between Amazon’s logistics and 3PLs.00:15:17 Optimizing FBA Fees & Inventory ManagementBest practices for managing FBA storage, inbound placement fees, and maintaining optimal stock levels.00:17:01 Freight Forwarders vs. AGL RatesComparison of AGL and freight forwarder rates, and when to use each based on business size and shipment volume.00:17:53 Marketing Efficiency: Organic Ranking & ConversionHow aligning SEO, creative, and marketing teams to target high-converting keywords saves money and boosts organic ranking.00:21:39 AOV & LTV Strategies on AmazonIncreasing average order value and lifetime value through coupons, multi-basket analysis, and subscribe & save tactics.00:24:47 Stackable Coupons & Tactical PromotionsUsing stackable and visible coupons to increase conversions, with caveats for premium brands.00:26:02 Ships-in-Product-Packaging & ReimbursementsCost savings from shipping in product packaging and maximizing Amazon/Walmart reimbursements and recovery.00:28:39 KPIs & Data Tracking for Operational EfficiencyKey metrics tracked at leadership and departmental levels to ensure efficiency and profitability.00:30:59 Counter Metrics & Avoiding Operational PitfallsImportance of pairing KPIs (e.g., revenue vs. profit, in-stock rate vs. months on hand) to avoid unintended consequences.00:32:43 Team Structure & KPI ManagementHow leadership and teams use KPIs, Google Sheets, and the Traction framework to manage performance.00:34:33 AI in E-commerce OperationsCurrent state of AI in e-commerce, realistic expectations, and how AI is integrated into specific workflows.00:35:54 AI Use Cases: Creative, SEO, and Product DevelopmentExamples of AI increasing creative output, improving SEO, and aiding product development through contextual prompts.00:39:27 AI vs. Human Labor: Cost-Benefit AnalysisDiscussion on when AI automation is cost-effective versus when human or VA labor is preferable.00:41:08 Final Takeaways & Action ItemsThree actionable takeaways: focus on high-impact savings, optimize high-volume SKUs, and leverage AOV/LTV strategies on Amazon.00:44:04 Book, AI Tool, and Influencer RecommendationsJasim shares his most influential books, favorite AI tool use cases, and respected figures in the e-commerce space.00:46:08 Contact Information & Episode Wrap-UpHow to connect with Jasim Eisa and closing remarks from the host.Resources mentioned in this episode:Josh Hadley on LinkedIneComm Breakthrough ConsultingeComm Breakthrough PodcastEmail Josh Hadley: [email protected] and Websites  "Voadera": "00:01:43"  "AGL (Amazon Global Logistics)": "00:11:17"&nb...