The Pareto Principle, 80/20 rule impacts your growth on Amazon

The Pareto principle, also known as the 80/20 rule, states that 80% of outcomes come from 20% of causes. This concept can be applied to many areas of business, including sales and profitability. [1, 2, 3].

When it comes to selling on Amazon, the Pareto principle can be applied to suggest that 80% of your profit will come from 20% of your top products or ASINs. In other words, a small portion of your product offerings may be generating the majority of your revenue. It is important to identify these top performers and focus your efforts on maximizing their potential. This can be done through effective product management, marketing, and optimization.

By understanding the Pareto principle and applying it to your Amazon sales strategy, you can prioritize your efforts and resources to maximize your profits. This principle can help you make better decisions about which products to invest in, how to price your products, and how to allocate your advertising budget.

In conclusion, the Pareto principle can be a valuable tool for maximizing profitability on Amazon. By understanding that 80% of your profit may come from 20% of your top products or ASINs, you can prioritize your efforts and resources to maximize your success on the platform.