Amazon Takes Up To 50% Of Your Revenue…
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About this listen
Amazon can take up to 50% of your revenue, and DTC brands are still scaling profitably. Here's the complete breakdown of when Shopify brands should launch on Amazon, how to protect margins, and why your wholesale strategy might be sabotaging your marketplace success before you even start.
Mark Lathrum is the Founder and GM of Tiide Commerce, an Amazon growth agency that's helped DTC brands scale from first launch to eight figures on the platform. With almost a decade in the Amazon ecosystem, Mark specializes in helping Shopify-first brands navigate marketplace economics, avoid cannibalization, and unlock incremental revenue
What You'll Learn:
→ The real breakdown of Amazon's 40-50% fee structure (and why it's still profitable)
→ When Shopify brands should actually launch on Amazon (revenue threshold + readiness checklist)
→ FBA vs FBM: Why 95% of brands should choose FBA despite the fees
→ How to price $2-4 higher on Amazon without customer complaints
→ The wholesale trap: Why 60% of wholesale products leak to Amazon and ruin your launch
→ Why you can't spend on Amazon like you do on Meta (and what to do instead) → Product selection strategy to avoid cannibalizing your DTC channel
→ When to hire in-house Amazon talent vs. working with an agency
If you're a DTC founder or operator doing $1M+ on Shopify and considering Amazon as your next growth channel, this episode gives you the complete framework to launch strategically, protect your brand, and scale profitably on the world's largest marketplace.
Connect with Mark:
linkedin.com/in/marklathrum
Mark’s Agency: https://tiideco.com/
Connect with Matt:
https://x.com/mattlady
https://www.linkedin.com/in/mattlady/
The Performance Marketing Agency for eCommerce & DTC Brands: https://www.klientboost.com/
00:00 Amazon takes 40-50% of revenue
01:01 When Shopify brands should launch on Amazon
02:25 Inventory requirements and working with experts
03:35 FBM vs FBA: The 95% rule explained
04:30 Breaking down Amazon's fee structure
05:49 Why you can't scale spending like Meta
07:20 The review and ranking throttle explained
07:50 Product selection to avoid cannibalization
09:15 Pricing $2-4 higher on Amazon strategy
11:45 Bundle and multi-pack tactics
13:30 Amazon's search algorithm dynamics
17:15 Category and keyword strategy
20:15 Brand consistency across channels
21:00 Packaging inserts: What's allowed vs banned
22:16 Cannibalization concerns addressed
23:48 Wholesale warning: 60% leak to Amazon
25:09 In-house Amazon hire vs agency ($10M threshold)
28:07 Final takeaways