Ajarro says Amazon brands should prioritize profit before automation

Ajarro, LLC is urging Amazon sellers to ground ad and operating decisions in contribution margin, inventory and cash flow before letting AI take over more of the work. Founder Brett Lemker says automation can speed analysis, but experienced judgment is still needed to protect profitability.

Why it matters: - Amazon brands can grow sales and still lose money if ad spend, fees, freight, discounts and returns eat the margin. - AI tools can speed up reporting and campaign management, but faster decisions are not the same as better business decisions. - Ajarro says the key issue is whether the work AI accelerates actually improves profit.

What happened: - Ajarro, LLC urged Amazon brands to review the economics behind advertising and operating decisions before handing more control to AI. - Founder Brett Lemker, who has 20 years of Amazon and e-commerce experience, framed the issue as a question of commercial judgment, not just automation. - The guidance comes as Amazon expands AI tools for sellers and advertisers.

The details: - Ajarro recommends that brands build a workable contribution-margin view for priority products before increasing ad spend or expanding promotions. - The review should include product-specific costs that materially affect profitability, not a blended account average that can hide weak performers. - Brands should ask how much they can afford to spend to acquire sales, which products deserve more investment and where growth would damage economics. - Discounts need the same review. A promotion can lift orders and still underperform if the discount, ad expense and fulfillment costs consume the added revenue. - Ajarro also says advertising decisions should be tied to inventory levels and replenishment timing. - Higher spend on a product with limited sellable stock can bring forward a stockout instead of creating sustainable growth. - Cutting spend too broadly can leave profitable, well-stocked products without enough support. - Campaign data is only one input. Warehouse stock, incoming shipments, listing status and cash needed for the next order also matter.

Between the lines: - Lemker is arguing that AI should support decision-making, not replace the person responsible for the tradeoff. - The practical risk is automation that optimizes a metric like return on ad spend while missing the broader profit picture. - Ajarro’s view is that brands need clearer guardrails before letting software make routine changes on its own.

What's next: - Brands that use AI for advertising or operations are being urged to define which changes can happen automatically and which require human review. - Spending limits, pricing floors and approval responsibilities should be set in advance. - A recommendation to raise budget should be checked against product economics and inventory position before it is accepted. - Lemker says brands do not need to choose between AI and experienced people; they need a clear division of responsibility.

The bottom line: - Ajarro’s message is simple: use AI to process information faster, but keep profit, inventory and cash flow at the center of every Amazon decision.