[ BDSN ] The biggest lie in Amazon FBA

💰 AEO for AMAZON SELLERS: HOW to OPTIMIZE YOUR BRAND

Here's the reality: AI search engines like ChatGPT, Perplexity, and Google's Gemini are fundamentally changing how customers discover products. And the rules are completely different from the SEO game you've been playing.

The Core Difference: Authority vs. Sentiment

Traditional SEO (what you know):

• Optimize product listings for keywords

• Build backlinks to your site

• Fight for top rankings on Google

• Focus on what YOU publish about your products

AEO (Answer Engine Optimization - what's new):

• Optimize for how AI interprets your brand

• Control what others say about you on Reddit, forums, and reviews

• Get cited when AI answers shopping questions

• Focus on sentiment and user experiences

The brutal truth: You can rank #1 on Google and still be invisible (or worse, negatively recommended) in AI search.

When someone asks ChatGPT "What's the best vacuum for pet hair?" or "Is [Your Brand] worth it?", the AI doesn't just pull up search results, it actively recommends or warns against products based on what it "reads" about them.

How AI Search Actually Works

When you ask ChatGPT a shopping question, here's what happens:

1. AI runs a real-time web search (ChatGPT uses Bing, Gemini uses Google, Perplexity has its own index)

2. Retrieves the top 5-10 sources

3. Synthesizes an answer based on those sources

4. Cites what it used

The Reddit Problem (This Could Be Killing You)

AI models treat Reddit threads as expert testimony. Not noise, but signal.

Real example from the research:

• Typeform ranks #1 on Google for "online form builder"

• But ChatGPT recommends competitors instead, with a warning that Typeform is "expensive" and "locks basic features behind paywalls"

• Where did that come from? Hundreds of Reddit threads complaining about pricing

For your brand, this means: If customers are complaining about your product on Reddit, YouTube comments, or review sites, AI is reading those complaints and encoding them as fact. It will actively steer people away from you.

Your competitive moat isn't just features, it's narrative control.

Own a specific outcome:

• Not: "All-in-one kitchen solution"

• Instead: "Best cutting board for meal prep enthusiasts"

For your products:

• "Best [product] for [specific customer type]"

• "Fastest [product] for [specific job]"

• "Most affordable [product] that [solves specific problem]"

Pick one job-to-be-done and dominate it.|

Monthly Monitoring Checklist

Run this audit monthly:

✅ Test visibility in ChatGPT, Perplexity, Gemini with core category keywords
✅ Reddit sentiment check (search brand name, read threads)
✅ Review site monitoring (new reviews on Amazon, G2, category sites)
✅ Content freshness audit (update top 10 pages)
✅ Citation tracking (what content gets mentioned by AI?)
✅ Competitor monitoring (who appears instead of you?)
✅ Bing indexing status
✅ Page speed check

You're losing the AEO game if:

• You rank well on Google but don't appear in AI answers

• AI mentions competitors with qualifiers like "faster," "cheaper," "better for [use case]"

• Reddit threads about your category don't mention you

• When mentioned, you're described with negatives ("expensive," "complicated," "outdated")

• Your content is 12+ months old

• You're not indexed in Bing

Your two priorities:

1. Control the narrative - Shape what people say about you in the places AI scans most

2. Make it easy for AI to cite you - Fresh content, clear answers, proper technical setup

The brands winning AI search aren't just optimizing for crawlers. They're optimizing for reasoning engines. DragonFish (from Norm Farrar and Kevin King) can help with this.

PART 2 of this story of actionable steps to take will be in Thursday’s newsletter!

🖼️ MAIN IMAGE PLAYBOOK to BEAT YOUR COMPETITION 

When you’re fighting for visibility on Amazon, your main image often determines whether shoppers click or keep scrolling. With categories packed full of look-alike products and AI-polished creative, guesswork simply isn’t enough.

The sellers who consistently win are the ones who use iterative testing and real consumer feedback to refine their main image and take clicks back from the competition.

Here’s the 4-step playbook they use to reliably boost CTR with PickFu😀 

1. Analyze shopper behavior in the SERP

Screenshot your keyword’s search results and run a click test on the listings.

You’ll see which products attract the most clicks via a heatmap, plus feedback explaining why they stood out. Note the recurring themes—clarity, angle, premium cues, feature visibility. These patterns inform your redesign.

2. Benchmark your main image against competitors

Test your main image alongside 2-3 competitors and ask, “Which product would you buy?”

You’ll get a ranked comparison and comments that reveal where your image falls short – weaker quality cues, missing features, failure to “pop” visually. This becomes your baseline.

3. Iterate, test, repeat

Build 2-3 image variations based on the feedback and test each against your original.

Keep changes focused (one major tweak at a time) so you can pinpoint what moves the needle. Repeat the cycle until one variation consistently wins.

4. Validate your improved image

Run a final ranked-choice test against the same competitor set.

If your improved image rises in rank and score, you’ve got strong evidence your CTR will increase. Ship the new image with confidence.

PickFu’s consumer research platform makes this entire workflow simple, fast, and actionable, delivering insights from a verified panel of real shoppers within hours, not weeks.

Daniela Bolzmann’s Mindful Goods agency follows this process, and nearly 80% of her clients see increased Amazon sales by launching their PickFu-optimized main image.

To try this playbook yourself, create your free PickFu account and get $100 free credit with code BDSN2025.

🫢 THE BIGGEST LIE in AMAZON FBA: PROFIT MARGINS 

Tyler Jeffcoat is a battle-tested e-commerce veteran who founded and exited Seller Accountant, and currently coaches CEOs while serving as CFO for a private equity group managing multiple Amazon assets.

He leads the Seller Roundtable Mastermind, working with successful seven-figure brand owners.

Today, he's exposing the fundamental flaw in how most Amazon sellers evaluate profitability.

The Problem: Why "Profit Margin" Is a Lie

Most sellers choose products based on keyword search volume, competition, reviews, and price range. Some even look at profit margins. But here's the brutal truth: profit margin alone is meaningless if your cash is locked up in inventory for months or years.

Think about it like baseball: You might have a great batting average, but if you only get one swing per year, you're going to lose to the player with a lower average who gets ten at-bats.

What Most Sellers Don't Understand

It's calculated like this:

ROWC = Return on Inventory Investment × Inventory Turns Per Year

Where:

• Return on Inventory Investment (ROI) = (Profit after ads ÷ COGS) × 100

• Inventory Turns Per Year = How many times you sell through your inventory annually

Real Numbers Example:

Product A: 20% profit margin, turns 3x/year = ROWC of 2.00
Product B: 30% profit margin, turns 1x/year = ROWC of 1.00

Product A is worth twice as much despite having lower margins because you get your cash back faster and can redeploy it.

The Four Product Quadrants:

1. Superstars (High velocity + High margin) → Never stock out

2. Cash Cows (High velocity + Low margin) → Raise prices, negotiate better COGS, improve ad efficiency

3. High Margin Slow Movers (Low velocity + High margin) → Negotiate payment terms, increase ad budget, consider price cuts

4. Dogs (Low velocity + Low margin) → Kill these products immediately

What You Need To Do Right Now:

1. Calculate your ROWC for every product. Use this formula or check Helium 10/Sellerboard (their "ROI" metric is actually Return on Inventory Investment).

2. Set your alarm bells:

   • ROI below 50%? You have a margin problem

   • Inventory turns below 2x/year? You have a cash flow problem

3. Take action based on your quadrant:

   • For margin problems: Raise prices 5-10%, renegotiate supplier pricing (especially if you're a $100K+ customer), hold your PPC team accountable, fix quality/returns issues

   • For velocity problems: Negotiate better payment terms (pay after delivery, not before shipment), increase MOQ to lower per-unit costs, hire an "inventory czar" to manage reorders

If You're Already Knee-Deep in This Problem:

You likely have too much cash tied up in slow-moving inventory. Here's your rescue plan:

1. Audit your entire catalog immediately. Rank products by ROWC.

2. Phase out your bottom 20-30% of SKUs unless you can fix them in 90 days.

3. Visit (or video call) your top suppliers. If you spend six figures annually with a supplier, you deserve better terms. Ask for:

   • Lower per-unit pricing

   • Extended payment terms (net 60-90 days after delivery)

   • Scheduled shipments so you're not sitting on a year's worth of inventory

4. Hire an inventory manager. Tyler's exact words: "Inventory management is not a matter of superior intelligence. It's a matter of superior attention." Either invest in better software or hire someone whose only job is watching those numbers daily.

5. Never stock out of your top quartile products. These are your money-makers. Borrow if you need to.

Exit Strategy Insight:

If you're thinking about selling your business, now's the time to optimize for ROWC. Current multiples are 2.5-3.5X for typical $2M sellers, 4X+ for larger, more consistent brands with multi-channel presence.

But interest rates are expected to drop in the next 6-8 months, making it a better time to sell. Get your business ready now by culling underperformers and improving your ROWC metrics.

Stop thinking like an Amazon seller. Start thinking like an investor. Every dollar you deploy into inventory should return as much as possible, as fast as possible. That's the game.

🗜️ NAPSTER is BACK REVOLUTIONIZING E-COM with AI

Remember Napster? The music-sharing platform that defined a generation is back with a completely different mission: powering the future of AI-driven shopping.

And what they've built is seriously impressive.

Napster Spaces is a platform that transforms any Shopify store into an interactive shopping experience powered by AI sales experts who guide customers, answer questions, and deliver personalized recommendations through real-time conversations.

Want to try it yourself? Enter your Shopify store URL here and watch your shop transform into a Napster Space with one click.

Twenty-six years ago, Napster democratized music. Today, they're democratizing access to AI expertise.

✌🏼 See you again Thursday …

The answer to today’s STUMP BEZOS is
Amazon’s rolling cash pool increases between $3B and $6B