Why a 40% Gross Margin Can Turn Negative on Amazon ft. David Schomer

Podcast

Noah Wickham sits down with David Schomer to talk about the numbers behind Amazon profitability, and why a 40% gross margin can shrink to almost nothing once the real costs stack up.
Noah Wickham
By
Noah Wickham
September 4, 2026

Why a 40% Gross Margin Can Turn Negative on Amazon ft. David Schomer

Noah Wickham sits down with David Schomer to talk about the numbers behind Amazon profitability, and why a 40% gross margin can shrink to almost nothing once the real costs stack up.

Noah Wickham
By
Noah Wickham
September 4, 2026
TL;DR

Noah Wickham sits down with David Schomer to talk about the numbers behind Amazon profitability, and why a 40% gross margin can shrink to almost nothing once the real costs stack up. They cover why revenue can mislead sellers, a “fail on paper” exercise before a product launch, and why sellers should stop launching me-too products. The conversation also looks at opportunities in oversized and custom products and where AI fits into ecommerce in 2026.

Outline

Episode summary

Noah Wickham sits down with David Schomer to talk about the numbers behind Amazon profitability, and why a 40% gross margin can shrink to almost nothing once the real costs stack up. They cover why revenue can mislead sellers, a "fail on paper" exercise before a product launch, and why sellers should stop launching me-too products. The conversation also looks at opportunities in oversized and custom products and where AI fits into ecommerce in 2026.

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