You can have a margin problem caused entirely by where you sit in your category.
By Ant Finch · May 21, 2026 · Curated by George's Blog
You can have a margin problem caused entirely by where you sit in your category.
Wrong search terms.
Wrong price positioning.
Subsidising Buy Box against competitors who have better cost structures.
And the fix isn't always spend more on ads.
Sometimes it's realising you're defending a shelf space you were never going to win.
5 questions I'd ask about your category position:
Are you winning the search terms that actually drive sales or just terms with high impressions?
Where does your price positioning sit relative to private label and other brands and is that gap sustainable?
Are there ASINs where the product is fundamentally unprofitable at Amazon's cost and margin expectations?
Have you identified any catalogue gaps where demand exists but you're not visible?
Is your content converting at the optimum level.
Category position often dictates your margin potential.
You can improve operations, renegotiate terms and optimise advertising — but if you're competing in the wrong places with the wrong products, you're not realising your full potential on Amazon.
----
🚀 I help Amazon vendors increase their margins by 5-20% in 90 days.