The final 5th part of this miniseries of 5 episodes, this completes this overview of Profit Maximizing Strategies. Remember the basics: you can only increase profit 2 ways: * Increase income * decrease costs We looked last time at decreasing your overheads. Here we address the other profit killer: your Direct Costs. Otherwise known as COGS=Cost of Goods Sold. look at your Total Landed Cost (TLC): Here are some ideas for reducing these: -Manufacturing cost – can you negotiate with your supplier for lower costs? If you order more units, can you get a lower per unit price? -Freight cost – get multiple freight quotes. Order more in bulk so you can sea freight rather than air freight etc. Choose lighter products! Also consider your Amazon costs when choosing a product: -Weight handling costs: Consider product weight & calculate costs very carefully if considering a heavy product. Will it make a profit? -Oversize product costs: same things to consider as heavy products. -Amazon Warehousing/storage – generally these are low but again very bulky products may increase these – do your P&L calculations carefully as well. -Receiving warehouse/Prep: compare costs between eg FBA Inspection, Earth Class Mail, EZPrep in the USA. Other supply chain cost reductions: * remove a link in the chain! Eg get products sent directly from China to Amazon warehouse(s) rather than via a warehouse. I advise against it for a new supplier but if you plan it carefully for a proven supplier/product, that will save you money – and of course time as well.