The Silent Killer: How 1P E-Commerce Brands Lose 10% of Revenue Without Knowing

About this episode

Makarand Bidikar discusses how 1P e-commerce brands can unknowingly lose significant revenue and the strategies to recover it.

Selling on Amazon as a brand is two completely different jobs depending on whether you’re 3P or 1P. In 3P, the brand controls price and carries inventory risk. In 1P, the retailer owns the inventory, controls price, and the brand has to think in terms of margin, not revenue. Most brands miss that shift, and the P&L tells the story. Makarand Bidikar, Director of Revenue Recovery at SPS Commerce, has spent his career across finance, operations, and strategy at JP Morgan, Amazon, and most recently Carbon 6, the e-commerce growth-tech platform he ran as GM for 1P revenue recovery before SPS acquired it last year. In this episode of GoToMasters, Makarand breaks down where 1P brands actually lose money, and it’s rarely where finance is looking. He gets into the ROI mindset that separates brands that triple their 1P sales in a year from ones that flatline; the 120-day cash cycle that quietly breaks brands long before their products fail; and what he calls death by a thousand paper cuts: deductions, compliance fees, and shortages that look small per transaction but aggregate to 5–10 percent of sales every year. He’s equally direct on what separates companies that scale efficiently…

People in this episode

Guest: Makarand Bidikar

Topics covered

• 1P E-Commerce
• Revenue Recovery
• Financial Strategy
• Inventory Management
• Sales Growth
• E-Commerce Challenges

Keywords

• 1P brands
• revenue loss
• cash cycle
• deductions
• compliance fees
• pricing strategy
• e-commerce growth

Mentioned in this episode

Organizations: SPS Commerce, JP Morgan, Amazon, Carbon 6, GoToMasters

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