Deciphering Amazon FBA Inventory Challenges in Q4 - What's in Store?
This is another article of the series “Launching & Scaling on Amazon”. This article is authored by Jenny Berglund and Meghann Urewicz . Jenny Berglund is the Senior Research and Development Director and Meghann Urewicz is the Managing director at The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. Together we pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. The articles are geared to issues for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.
Managing Amazon FBA inventory during the bustling Q4 period comes with a unique set of challenges. In 2022, FBA sellers grappled with "restock limits," measured in total units, which often swung wildly on a weekly basis, culminating in a sharp decline as Q4 approached. For instance, one of our clients saw their limit shrink from around 20,000 units in early August to a mere 8,000 units by early September, eventually plummeting to fewer than 4,000 units in November. Alongside this rollercoaster, there were alarming delays in receiving inbound inventory. These draconian and unpredictable limits led to significant inventory planning headaches.
As we step into 2023, a new player enters the arena: "capacity limits." These were introduced in March and, in essence, resemble their predecessors but are now measured in cubic feet and change monthly. Amazon has also granted a sneak peek into "estimated" capacity limits, offering a non-guaranteed projection of limits two months ahead. Since their introduction, these limits have been quite generous and have not put any strain on the typical seller account. Additionally, there is a new option – "Capacity Requests" – allowing sellers to bid on extra storage space, with the potential to recoup fees if utilized judiciously.
All of these changes seem positive to the FBA seller. However, there's a cloud of uncertainty looming. Until recently, Amazon disclosed capacity limits for the upcoming month and estimates for the following two, typically about a week in advance. But September saw a departure from this norm. The September limits were not unveiled until September 1, and as of this moment, estimates for October and November have yet to surface (supposedly set to release on September 8). This raises concerns that the shift to different limits might not have addressed the fundamental problem of Amazon Fulfillment Centers grappling with Q4 demand. It's entirely conceivable that we may witness significant limit reductions in the coming months, potentially ushering in chaos akin to previous years. While the Capacity Request feature offers a glimmer of hope, it's largely untested. Very few sellers have had to resort to it until now, given the comfortable confines of regular limits.
As we inch closer to the holiday season, it remains uncertain whether Amazon sellers will face fewer frustrations in managing their inventory successfully. The question of whether this Q4 will be any less trying than previous ones hangs in the balance, with the unpredictability of capacity limits adding to the suspense.
How to Handle Inventory Challenges: Tips for Q4 Success
Early Stocking: If your profit margins allow for the increase in storage fees, consider bolstering your inventory in September while you still can. This proactive approach can help cushion the impact of potential Q4 inventory restrictions.
Selective Inventory Reduction: While removing inventory might not be your preferred strategy, it's worth evaluating if you have a substantial surplus of low-selling items. However, it's essential to exercise caution here. Often, low-selling items don't contribute significantly to storage issues for high-performing products. Removing excessive quantities can introduce complications and expenses that may outweigh the benefits.
Seek Personalized Guidance: Every seller's situation is unique. If you find yourself wrestling with inventory management decisions, don't hesitate to reach out to experts like The AmaZone for personalized guidance. Our experience and insights can provide valuable assistance in making the right choices to optimize your inventory and navigate the Q4 challenges effectively.
Don't let Q4 uncertainties hold you back. Partner with The AmaZone, a Full Service Amazon Agency, and together, we'll navigate the challenges, optimize your inventory, and ensure a successful holiday season on Amazon.
Contact us today to take your Amazon business to new heights!
Walmart.com after Amazon.com - Is it worth it? Debunking the Myth and Navigating the Differences
This is another article of the series “Launching & Scaling on Amazon”. This article is authored by Jeannie Stamberger and Lindsey Owen. Jeannie Stamberger is the CEO and Lindsey Owen is an Analyst at The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. Together we pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. The articles are geared to issues for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.
So, you've found success on Amazon.com 💡🛒and now you're considering expanding to Walmart.com? Hold on! While the idea might seem tempting, it's crucial to understand the significant differences between these platforms to make an informed decision. Let's break it down and see if Walmart.com is worth the investment:
Success on Walmart.com doesn't guarantee retail POs: Don't fall for the misconception that succeeding on Walmart.com will lead to increased retail purchase orders. While Walmart has repeatedly promised this to Brands, in reality, this hasn't been the case for many Brands. Keep your expectations realistic.
Distribution challenges: Unlike Amazon, Walmart.com lacks a robust distribution network for their eCommerce. Their store footprint is unparalleled and they are masters of logistics, but to date they haven't fully leveraged this to go after Amazon's FBA. Walmart's fulfillment program isn't on par with Amazon's FBA, making it hard to compete on a large scale. Until they catch up in distribution, Amazon remains the frontrunner.
Market size matters: Walmart.com is only about 12-21% the size of Amazon*, which might not translate into significant sales. It's often perceived as a place to make a splash, but the impact on sales might not be as substantial as you expect.
Limited consultant support: On Walmart.com, consultants' hands are tied due to the platform's backend complexities and lack of sophistication. Moving the needle as they can on Amazon is a challenge here.
Walmart's uphill battle: Despite multiple attempts and program changes, Walmart.com still struggles to match Amazon's performance and growth. They have gone from Jet.com to internal programs, and overhauled their program at least once. However, their efforts have yet to fully pan out to a full Amazon competitor. It would be great to see Amazon get some competition though!
Listings and pricing issues: Walmart.com's listings can be chaotic, and pricing wars between Amazon and Walmart can make things messy. Given its smaller sales volume, the hassle might not be worth it.
Fewer Brands may allow you to get more visibility: This is the hook we hear from many Brands as the driver to get on Walmart.com. It makes sense on the surface, but the technical backend issues we describe above make it very difficult to make the lower competition into a path for success.
Considering the expense and challenges, we can't wholeheartedly recommend Walmart.com if it compromises your growth in other channels. If you can navigate the landscape without significant costs, go ahead and give it a shot. We can only hope that Walmart.com improves and becomes a true competitor for Amazon.com in the future. Until then, keep an eye on the evolving market dynamics and make informed decisions for your brand's success! 🚀📈
#AmazonVsWalmart #EcommerceComparison #RetailExpansion #MarketInsights #EcommerceSuccess #BrandGrowth #OnlineMarketplace #RetailChallenges
*This is an estimate we are getting from 3 different sources all of which point roughly in this direction
12% - 37.6% Amazon vs 6.76% Walmart https://www.digitalcommerce360.com/2023/03/09/walmart-chips-away-at-amazons-lead-in-a-key-area-wealthy-online-shoppers/#:~:text=Key%20takeaways%3A&text=Amazon%20is%20still%20the%20bigger,in%20the%20competition%20with%20Amazon.
21% - 38% Amazon vs 8% Walmart https://www.kaspien.com/blog/walmart-vs-amazon-how-do-they-compare/
15% - 48% Amazon vs 7% Walmart https://www.pymnts.com/news/retail/2023/amazon-continues-to-own-ecommerce-as-walmart-finds-digital-footing/?cache=skip
Don't let the allure of new platforms distract you from maximizing your Amazon sales. Join The AmaZone family, where success is our primary focus. As you Full Service Amazon Agency, together, we'll explore opportunities, overcome challenges, and achieve the growth your brand deserves.
Don't miss out on this opportunity! Contact us today to take your Amazon business to new heights!
Snack Time! Mastering the Art of Selling Puffy Bag Snacks on Amazon
Puffy bag snacks, from tantalizing chips to flavorful pops and crisps, have the potential to be incredible sellers on the expansive platform that is Amazon. However, as with any endeavor, success requires a well-thought-out strategy and careful execution. Puffy bag snacks have specific challenges because they are shipping a lot of air, or if not that puffy, at risk for getting crushed in that last mile of delivery. If you're eager to dive into the world of selling puffy bag snacks on Amazon, here are some essential steps to set yourself up for success:
1. Design Smart SKUs for Maximum Appeal on Amazon - Creating attractive and attention-grabbing SKUs is the first step to capturing potential buyers' interest. Craft product titles and descriptions that convey the unique flavor, texture, and experience of your puffy bag snacks. Consider using vivid language that resonates with your target audience, making them eager to indulge. But when you design your packing, while retail may be your focus, keep in mind how your package may be seen on a screen - or more importantly a small thumbnail that has to grab the Amazon customers attention.
2. Crunching the Numbers: FBA Fees and Packaging - Understanding the Fulfillment by Amazon (FBA) fees associated with different packaging configurations is crucial. Aim for a pack size and packaging that not only appeals to customers but also optimizes your margins. We have seen puffy bag snacks sold in everything from bags in cardboard containers, plastic tubs, or polybags - if your product can survive last mile shipping in polybags (puffiness of the bag, sturdiness of the snack) you can reduce packaging costs and overall size, reducing FBA fees and increasing margins.
4. Showcase Pack Size Clearly -In a world where bulk buying is the norm, it's essential to clearly communicate the pack size to potential buyers. Puffy bag sizes can be really confusing to customers who may be familiar with snack sizes, share bags of different sizes, and then large and extra large club bags - all of these sizes begin to flow together in that Amazon hero image with a white background when the customer has no context for size. Use high-quality hero images that highlight the quantity of your puffy bag snacks, ensuring customers know exactly what they're getting for their money.
Selling puffy bag snacks on Amazon demands strategy, creativity, and constant optimization. Craft compelling SKUs, strategize packaging for optimal margins and clearly present your pack sizes will all help make Amazon work for you and your broader selling goals. By weaving these elements together, you can not only navigate the Amazon marketplace successfully but also carve out a niche for your puffy bag snacks that resonates with customers nationwide. Remember, the journey to success is as delightful as the snacks you're selling!
Ready to conquer the world of puffy snacks on Amazon? Let The AmaZone be your guide. As a Full Service Amazon Agency, we specialize in turning puffy snack dreams into profitable realities. With our expertise, you'll master smart SKU design, strategic packaging, and clear pack size presentation. Trust us to handle the complexities while you focus on creating irresistible snacks. Join us for skyrocketing sales and expert guidance. Contact us today to make your puffy snacks shine on Amazon!
Conquering Amazon’s Pesticide Puzzle: Resolving and Preventing Pesticide Flags
Authors - Lindsey Owen, Senior Analyst & Meghann Urewicz, Managing Director
A lunchbox that has an easy-to-clean silicone seal, free from crevices to prevent mold.
A pair of underwear made of breathable material that resists bacterial growth.
Do these items sound like pesticides? The answer may be an obvious “no” to us, but to an Amazon bot, the answer is usually “yes.” A listing flagged as a pesticide or pesticide device can be devastating to Sellers since affected ASINs will immediately be removed from sale and not reinstated until certain (often unknown) actions are taken. Keep reading for more info and tips for resolving (and more importantly, PREVENTING) these issues.
What are pesticide bots looking for?
According to Amazon, “A product may be classified by the EPA as a pesticide if the product claims, states or implies, even indirectly, that it can or should be used to prevent, destroy, repel, mitigate, or take any other similar action against any kind of pest. Examples of “pests” include insects, mold, bacteria, mites, mildew, and animals. For listings on Amazon, this could appear anywhere in detail page text, on an image, or both.”
Bots regularly sweep Amazon listings for the above terminology, and context does not matter. In the examples of the lunchbox and underwear at the beginning of this article, both listings were flagged and removed even though the products are described as indirectly preventing mold and bacterial growth.
How can Sellers prevent listings from being flagged?
Quite simply, avoid including ANY of the above terminology in the copy, images, or A+ content of your listings. Carefully review existing product listings for any terms or phrases that could be interpreted as pesticide claims. Remove or rephrase any problematic language that may suggest the product's use against pests.
What to do if a listing is flagged.
There are several steps Sellers can take to resolve this issue:
Complete the Pesticide Training course in your Amazon account. This will help you better understand what Amazon is considering a pesticide and will also make you eligible to sell registered pesticide products if applicable.
Conduct a sweep of that listing. Identify and remove any potentially problematic terms or phrases from all content. After you have edited your listing, ensure that the edits actually went through. If not, follow up with support cases.
Email the pesticide compliance team. If you don’t have the team’s direct email address, create a support case requesting that information. Then, send an email directly to that team explaining that the content has been removed and request reinstatement with an explanation of why your product does not fall into this gated category.
The goal is to have this team reinstate your product, but proceed with the understanding that Amazon seldom makes it easy. Prepare yourself for several rounds of back and forth with occasional unhelpful responses from Amazon. Just stay calm and diligent and keep responding with answers to their questions.
Ask for clarification from the pesticide compliance team. They may provide more details to identify the problematic content, making it easier to resolve.
Repeat Step 2 if necessary. If everything appears updated on your end, file support cases to request that Seller Support update the backend. Amazon has a long memory for data, so even after listing updates are requested, the catalog may still retain the problematic information.
If applicable, scrub your listings on international marketplaces to remove problematic content. This step may be necessary if you sell items internationally under the same ASINs.
Repeat step 3.
If you need help, contact us at The AmaZone. As a Full Service Amazon Agency, we have extensive experience troubleshooting these issues and can help lessen the headache. And again, prevention is key. It's crucial for Sellers to be proactive in understanding Amazon's policies and guidelines to avoid such issues. We’re here to help!
Elevate Your Amazon Listings: The Top 5 Impactful Strategies for Success
In the bustling realm of Amazon, optimizing your product listings is the gateway to greater visibility, increased sales, and business growth. To stand out amidst the competition, mastering the art of Amazon listing optimization is essential. In this article, we'll delve into the top five most impactful strategies that can revolutionize your Amazon listings and drive your business towards success.
Compelling Product Titles: The cornerstone of an effective Amazon listing lies in a compelling and informative product title. A concise yet descriptive title that includes the product's main features, benefits, and relevant keywords ensures both customer engagement and search engine visibility. Be sure to position the high priority keywords in the first half of the title. Stuffing the title with keywords is important, but not so much that it becomes nonsensical. Striking the right balance between creativity and clarity in your titles can significantly enhance click-through rates and conversions.
High-Quality Images and Graphics: Visual appeal plays a crucial role in capturing the attention of potential buyers. Utilize high-quality images that showcase your product from different angles and highlight its unique features, and make sure they are clear, well-lit, and informative. Incorporate lifestyle images depicting real-world scenarios that you believe will resonate with customers in your target audience. In addition, use the images to instill a sense of brand awareness and trust. Emphasize your logo, and choose a color palette that enhances your brand look and feel.
Compelling Product Descriptions: Crafting persuasive and informative product descriptions is an art that shouldn't be underestimated. It’s important to clearly outline the product's benefits, specifications, and usage instructions. Some sellers believe a Product Description isn’t useful if they have A+ Content published, but that is not entirely accurate. In that situation, the Product Description may not be visible, but it still can still help with search hits. Therefore, incorporating relevant keywords naturally to improve your listing's search ranking. A well-structured, scannable description aids both customers and search engines in understanding your product's value proposition.
Harness the Power of Keywords: Keywords are the compass guiding customers to your product. Extensive keyword research using tools like Amazon's search suggestions, Google Keyword Planner, and third-party platforms can uncover valuable keywords that resonate with your target audience. Identify the keywords that are most relevant, and integrate them into your titles, bullet points, and product descriptions. For the keywords that don’t fit quite as seamlessly into your product descriptions, save those for the backend search terms to enhance discoverability and relevancy.
Stellar Customer Reviews and Ratings: Positive customer feedback can significantly impact purchasing decisions. Encourage customers to leave genuine reviews and ratings for your products. Consider using a third-party service to automate the delivery of product review requests, it can save you time and help build your review base. Responding promptly and professionally, while maintaining a friendly and helpful tone. Focus on providing a positive experience to every customer and consistently deliver on your promises to foster a positive brand reputation.
Enhancing your Amazon listings isn't just about ticking off optimization tasks; it's about crafting a compelling narrative that resonates with your audience. By implementing these top five impactful strategies, you can transform your Amazon listings into powerful sales tools, setting your brand on a path to Amazon success. Invest time and effort into perfecting each aspect of your listings, and watch as your products gain prominence, customer trust, and ultimately, higher conversions. Elevate your Amazon listings today, and let your brand shine on the world's largest online marketplace.
Looking to enhance your Amazon presence? From keyword research to compelling copywriting and top-notch image design, The AmaZone has you covered! With 7+ years of experience, our Full-Service Amazon Agency excels at optimizing content for higher conversions. We don't just showcase your products; we create a compelling urge to buy. Elevate your Amazon game with us today!
Compliance Headaches Rear Again: Amazon's Rampant Listing Suspension, Prolonging Reinstatement Process
Authors - Lindsey Owen, Senior Analyst @ The AmaZone & Meghann Urewicz, Managing Director @ The AmaZone
Amazon Sellers often face compliance challenges, with unexpected demands from Amazon for various documentation such as CPC, GCC, or CPSC compliance. These requests can sometimes be justified but challenging to resolve, and at times, they might not even be relevant to the affected products.
Amazon has an ongoing requirement for Sellers to provide compliance documentation for products across different categories. What has evolved is the time it takes to address these compliance issues, and the uncertainty of when a bot might suspend your listings without prior notice. This untimely suspension has led Sellers to lose substantial sales opportunities. However, there are proactive measures Sellers can adopt to prepare for and potentially expedite the reinstatement process, with TA being well-positioned to offer assistance.
Automated bots may be playing a significant role, as it seems Amazon has recently introduced a sweeping bot for compliance review. Unfortunately, it appears to cast a broad net, flagging products previously approved by compliance teams or even those that should not be flagged. A flag from this bot triggers an immediate suspension of listings and halts all sales. Occasionally, Sellers are fortunate to receive a 30-day grace period to submit necessary documentation. Yet, more often, it prompts immediate removal, forcing Sellers into a race against time to compile documentation and mitigate financial losses.
Amazon’s compliance tools. Amazon has several items to help Sellers navigate through compliance issues, all with varying levels of usefulness:
Compliance Dashboard: This dashboard seeks to summarize compliance issues for all products, but it is often missing several, so if Sellers only looked at this dashboard, they would not see the entire picture in terms of violation flags. This forces Sellers to constantly monitor their inventory to ensure listings are active. To navigate to your Compliance Dashboard, go to the top left menu bars, find “Performance”, and go to “Account Health”. On the Account Health page, scroll to the bottom and find the “Manage Your Compliance” section. Clicking on the link in this section will bring you to your Compliance Dashboard.
Emails: Most communication is accomplished through email. Most (maybe all) Amazon compliance teams cannot be contacted by phone. These teams are located in different time zones, take days to reply, and often fail to account for all the documentation Sellers submit.
Child Safety (child-safety@amazon.com),
Baby Product Compliance (baby-product-compliance-us@amazon.com)
Toy Product Assurance (product-assurance-toys-us@amazon.com)
Seller Appeals (pars-rp-core-sellerappeals@amazon.com)
Compliance Information pages: In both Seller and Vender Central, Amazon lists compliance requirements for a number of product categories. It is important to refer to these pages when compiling requirements, but it doesn’t list everything! It seems only Sellers familiar with product reinstatement are aware of all the requirements.
Support Cases: While most compliance issues will not be resolved through support cases, it may be the best way to find out which email address you should contact to resolve your issue.
Setting your listings up for success:
There are several ways for listings to be suppressed or products to be suspended from sale on Amazon just due to the content on the listing detail pages.
To avoid this, follow the best practices for listing generation and do not rely solely on the Amazon AI listing builder. The AI features of Amazon are not vetted out well enough to trust with things like compliance.
One of the best practices to avoid compliance flags is making sure your listing does not have any trigger words. For example, EPA regulations prohibit the inclusion of language indicating a product has antimicrobial properties. Bots regularly sweep listings for such language and will remove your listing from sale. Regardless of context, the mere mention of such words as “mold, mildew, bacteria, antibacterial, etc.” WILL get your listings removed.
What can you do if your products are flagged?
If you want to tackle this on your own, we recommend contacting the compliance team directly by email. If you don’t have an email address, reach out to Support and ask where to send your documentation.
We encourage sellers to include all required documentation along with the list of ASINs impacted. It's essential to structure your message in a clear, easily understandable manner for support agents whose first language might not be English. Use straightforward language while consistently emphasizing that all requirements have been fulfilled and are included in the email.
If your product was removed without cause and the compliance documentation doesn’t apply to your listing, we recommend the same approach. Email the compliance team directly and explain why the compliance documents are not relevant. For instance, if they are asking for a Children’s Product Certificate (CPC) and your product is not a safety product, then quote Amazon help docs that explain what products fall into this category to make your case that your product is outside of this realm.
Example: Amazon states that, “In the US, children's products are defined as a consumer product designed or intended primarily for children 12 years of age or younger.” My product is a pet product. It’s not designed or intended for children 12 years or younger.
Note that even if you do everything right, it could take several weeks to months to get these issues resolved. Amazon reps will often reply back asking for the same information you’ve already provided, leaving you in what feels like an endless loop of frustration. However, stay calm and diligent in working through these issues. Start out with the expectation that this will take quite some time and that you will likely have to submit your request for approval or exemption several times before reaching your desired goal of listing reinstatement.
If you don’t have the time, patience, or desire to deal with these issues? Contact Us!
As a Full Service Amazon Agency, with over 25 years of combined experience, our team has extensive experience in navigating compliance issues. We can set you up for success with customized recommendations for your brand and products. We specialize in not only solving compliance issues but PREVENTING them.
Meltable Magic: Mastering the Art of Selling on Amazon Amid Seasonal Challenges!
Authors - Jeannie Stamberger, CEO/Founder The AmaZone & Betsy McGinn, CEO/Founder McGinn eComm
This is another article of the series “Launching & Scaling on Amazon” by Betsy McGinn, Jeannie Stamberger, and Meghann Urewicz. Betsy McGinn (founder of McGinn eComm) scaled Seventh Generation eCommerce from $0 to millions and now prepares major Brands for success on Amazon. Jeannie Stamberger and Meghann Urewicz run The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. We pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. It is primarily for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.
Meltable items like delicious chocolate are undeniably popular sellers on Amazon, but they face a unique hurdle - heat waves in the US and non-climate-controlled FBA Fulfillment Centers (FCs) restrict their cost-effective shipment only from Oct 16 to April 14 (with slight variations over the years). Despite these limitations, chocolate remains one of the top grocery search terms and a highly attractive and lucrative product to sell on Amazon.
Challenges: Selling meltable items on Amazon presents specific challenges due to the platform's algorithm, shipping timelines, and regional climate variability. Below, we delve into these challenges and offer effective strategies to overcome them.
Limitations: The limitation of Amazon’s FBA shipping window for meltables requires that brands turn off listings for this restricted period or find a temperature-controlled shipping solution for summer months. As appealing as a cold-chain fulfillment option sounds, unit economics in this scenario rarely make sense and it is challenging to find a partner that is willing to work with your brand for only 5 months of the year.
Profitability: The consequences of either choice are not to be minimized. Brands that choose to sell during summer months incur shipping fees that lead to an unprofitable business but for some brands, the consistency for their consumers and marketing opportunity for their brand can offset the financial impacts. Brands that choose to take a break in the summer struggle with restarting their Amazon business every year since Amazon’s algorithm favors items that are continually in stock.
Extended warm periods: Temperatures are warming with climate change, and the future could bring even shorter time periods that meltable products are allowed in FBA. And there are always areas of the country where, even in their coolest months, chocolate cannot withstand the heat.
Shipping timelines: Q3 is a notoriously busy time for warehouses, and getting a shipment processed and into FBA FCs can be tricky. Quick restocking becomes crucial to maximize your selling window, during a time when everyone else is trying to get their stock into Amazon for Q4.
Our Recommendations: Addressing these challenges requires smart planning and nimble execution. We recommend taking the following steps to successfully sell meltable items on Amazon:
DON’T ship in the summer: Shipping meltable items during the summer months can be exorbitantly expensive, requiring insulated boxes and cold packs. The cost of these safeguards almost always negates profitable sales. It's best to focus on shipping via FBA in winter, even with a limited timeline.
Warehouse coordination: Sellers should communicate clear timelines with their own warehouses well in advance, enabling you to hit the ground running and get your shipment into Amazon FCs for FBA as soon as the selling season reopens. Being proactive and responsive during restocking is vital, with the restock urgency usually subsiding by mid-December.
Push sales in the spring: While winter sales are a priority, don't underestimate the potential of spring sales for meltable items. This may contribute significantly to your overall seasonal sales, and ensure you are not leaving inventory behind in Amazon FCs to be disposed of when April 15th arrives. Tapping into this opportunity can be a game-changer.
Investment Spend: Once back in stock, quickly ramp up advertising and promotions to jumpstart your business for the season.
By navigating these challenges and embracing strategic approaches, sellers of meltable products can successfully thrive on Amazon, capitalize on seasonal sales, and delight customers with their delectable offerings.
Need expert guidance? Contact us at The AmaZone, an Amazon account management agency that can guide you through all the complexities of selling successfully on Amazon.
Unprecedented Success: Key Takeaways from July Prime Day 2023 that Shattered Sales Records and Surprised Businesses Worldwide!
This is the fourth article of the series “Launching & Scaling on Amazon” by Betsy McGinn and Jeannie Stamberger, after a brief summer hiatus. Betsy McGinn (founder of McGinn eComm) scaled Seventh Generation eCommerce from $0 to millions and now prepares major Brands for success on Amazon Jeannie Stamberger runs The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. We pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. It is primarily for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.
Prime Day has been a popular Amazon event since 2015, but in recent years has been seeming to lose momentum - that is until July 2023. Much to industry surprise, Prime Day 2023 came back with a vengeance, breaking records and leaving many sellers marveling at unprecedented sales rates.
Here are some of the top takeaways from this year’s impressive event.
It was the biggest sales day in history for many Amazon Sellers. During the first day of Prime Day 2023 (the biggest day according to Amazon), we saw record sales across many brands, including some of the largest. We witnessed remarkable surges in sales, making it the most lucrative day in history for many brands. On average, our Brands' sales on Day 1 of Prime Day 2023 were an impressive 128% higher compared to Day 1 of Prime Day 2022. We have several Brands who achieved their highest revenue day ever on Amazon, surpassing their previous records by a staggering 7-114% and outperforming Prime Day 2022 by 33-600+%. The first day of Prime Day saw a more substantial sales increase than the second day (on average, 38% higher sales on Day 1 compared to Day 2). These remarkable sales figures during Prime Day 2023 demonstrate the immense growth and potential for CPG brands on the Amazon platform.
Discounts drove it all! Brands that offered Prime Day discounts experienced enormous sales peaks, with daily surges reaching several hundred percent compared to their typical sales. Prime discounts typically began at 20% and, if brands had excess inventory or products approaching expiration discounts often increased to higher percentages. This strategy allowed brands to clear out excess stock and prepare for the upcoming Q4 season. Brands that typically refrain from running discounts but decided to participate saw the most significant percentage increase in sales. On average, our brands offered an 18% discount during the event, with discounts ranging from 5% to 30%. It's worth noting that even Brands who did not offer deals on Prime Day still experienced a slight increase in sales, although their sales uplift was considerably smaller. We observed varying daily sell-through lifts for different products/categories. For example, offering 15% off Best Deals resulted in a wide range of sell-through rates by category from 83% to a whopping 579% boost in daily sell-through rates depending on the product line (low to high: pasta sauce, coffee, organic grocery, supplements). We also noticed a strong halo effect in purchases of items not on sale from customers driving to the Brand store page from paid ads and other conversion drivers. These findings demonstrate the substantial impact of Prime Day on sales and the effectiveness of strategic discounting strategies in driving consumer engagement and boosting revenue.
Prime Day goals differ for every seller. While seeing sales spikes can be exciting for sellers, it’s important to know the goal with Prime Day. When it comes down to it, Amazon is the biggest financial beneficiary of Prime Day - they are the ones truly raking in the dough on these blow-out sales days, leaving sellers to take the hit in profits. Analyzing profit margins prior to setting discounts is crucial to ensuring success on Prime Day. In the end, a great sales day doesn’t serve the business if each sale ends up costing money without the potential benefit of acquiring a long-term or repeat consumer. That said, our Brands used Prime Day to target specific goals like increasing brand awareness, increasing sales (even at a reduced margin), reconnecting with repeat customers, or moving through excess inventory.
Ad Spend was off the charts. Advertising spend was +320% for Day 1 vs. Day 1 2022 and Cost Per Click (CPC) was over $6 on average across our Brands and their respective categories. Despite these spikes in CPC and overall ad spend, the increase in sales was proportionally much larger. For example, one Brand had record high ad spend that was about 2.5x the average daily spending, but the sales were 4-5x higher. So, while Brands spent more on Amazon ads during this event, all saw a return on investment to justify the increased ad spend. A cautionary note: it may be wise to have expert management of Amazon ads to control spending, optimize return on investment and ensure the brand is maintaining profitability throughout these high-sales/high-traffic events.
Why was 2023 Prime Day so different from 2022? Some speculate that there was deal fatigue in 2022, while this article Prime Day pushes US economy up 6% suggests shoppers in 2023 used this Prime day for purchases they held off, stocking up on low cost items, and purchasing big ticket items.
To capitalize on Prime Day success and navigate Amazon with confidence, reach out to an Amazon Consultant like The AmaZone. Our seasoned team, led by Jeannie Stamberger, has facilitated over $100M+ in Amazon sales, ensuring brands thrive amidst challenges. From reinstatement support to strategic guidance, we're here to elevate your Amazon journey. Contact us today to secure your brand's lasting success.
Overwhelmed by Amazon’s Digital Marketing Strategy? Hiring a Specialist Can Help!
In today's world, e-commerce is booming, and Amazon is one of the biggest players in this industry. As a result, many businesses are turning to Amazon to sell their products and services. However, developing a successful Amazon digital marketing strategy can be challenging, especially for those who are new to the platform. This is where an Amazon specialist can help.
Amazon specialists are experts in developing Amazon digital marketing strategies that help businesses increase their visibility and drive sales on the platform. They understand the intricacies of Amazon's algorithm, and they know what works and what doesn't work when it comes to product listings, advertising, and optimization.
Here are some reasons why you should consider hiring an Amazon consultant to develop your Amazon marketing strategy:
They have a deep understanding of Amazon's algorithm - Amazon's algorithm is constantly changing, and it can be challenging to keep up with these changes. An Amazon specialist has a deep understanding of this concept and can help you optimize your product listings to improve your visibility on the platform.
They can help you improve your product listings - A well-optimized product listing is crucial to success on Amazon. An Amazon specialist can help with Amazon optimization by writing compelling product descriptions, choosing the right keywords, and creating high-quality product images to increase conversions and drive sales.
They can help you with Amazon advertising - Amazon offers several advertising options, including sponsored products, sponsored brands, and sponsored display ads. An Amazon specialist can help you choose the right advertising options for your business and create effective ad campaigns that drive sales.
They can help you stay competitive -Amazon is a highly competitive marketplace, and it can be challenging to stand out from the competition. Professional Amazon advertising management can help you stay competitive by analyzing your competitors' strategies and developing a unique strategy that sets your business apart.
They can help you save time and money - Developing an effective Amazon digital marketing strategy takes time and resources. Hiring an Amazon specialist can save you time and money by taking care of the strategy development and execution, allowing you to focus on other aspects of your business.
Overall, if you are looking to increase your visibility and drive sales on Amazon, hiring an Amazon specialist, or Amazon marketing agency, is a wise decision. With their expertise and knowledge, you can take your Amazon business to the next level.
Co-authored by Jen Garza and Chat GPT
What’s the impact of IPI for FBA Sellers?
As an Amazon seller, you are likely familiar with the importance of maintaining a good IPI (Inventory Performance Index) score. Your IPI score is a metric that Amazon uses to evaluate your inventory management and how well you are performing in terms of meeting customer demand. A high IPI score means that you are effectively managing your inventory and meeting customer demand, which can lead to increased sales and profits. In this article, we will discuss the IPI score, strategies to improve it, its effects, storage limits, and managing FBA returns and reconciliations.
What is the IPI score?
The IPI score is a metric that Amazon uses to evaluate how well sellers are managing their inventory. It is calculated based on several factors, including excess inventory, sell-through rate, stranded inventory, and in-stock rate. A higher IPI score indicates that a seller is effectively managing their inventory, while a lower score indicates that there is room for improvement.
How does the IPI score affect sellers?
Maintaining a good IPI score is crucial for Amazon FBA sellers because it directly impacts their ability to store and sell products on Amazon. Amazon has set minimum IPI score requirements for sellers to store and fulfill their products through Amazon's FBA (Fulfillment by Amazon) program. If a seller's IPI score falls below the minimum threshold, they may face storage limits, and Amazon may restrict their ability to send in new inventory.
How to improve your IPI score?
There are several strategies that sellers can use to improve their IPI score. One of the most effective strategies is to manage inventory levels effectively by forecasting demand and optimizing inventory levels accordingly. Sellers should also focus on improving their sell-through rate by optimizing their listings, pricing strategies, and promotions to increase sales velocity.
Another Amazon strategy to improve your IPI score is to reduce stranded inventory. Stranded inventory refers to products that are not available for purchase because they are not listed correctly, out of stock, or have been removed from the Amazon catalog. By reducing stranded inventory, sellers can increase their in-stock rate and improve their IPI score.
Managing FBA returns and reconciliations
FBA returns can also have a significant impact on a seller's IPI score. When a customer returns a product, Amazon may hold the inventory for up to 30 days before returning it to the seller. During this time, the inventory is considered stranded, which can negatively impact the seller's IPI score. To minimize the impact of FBA returns on their IPI score, sellers should actively manage their FBA returns by monitoring their return rates, processing returns quickly, and restocking inventory as soon as possible.
In addition, sellers should regularly reconcile their FBA inventory to ensure that their inventory levels are accurate. This involves comparing the inventory levels reported by Amazon to the actual inventory in stock. If there are discrepancies, sellers should investigate and reconcile them promptly to avoid any negative impact on their IPI score.
The IPI score is an essential metric for Amazon sellers, as it directly impacts their ability to store and sell products on Amazon. The above steps can be complicated and time-consuming, so our final recommendation is to enlist in Amazon marketing services or Amazon FBA consulting services to help manage the process and hone your Amazon strategy.
Co-authored by Jen Garza and Chat GPT
Amazon Advertising Services for Brands: The benefits of using Sponsored Brand Videos
Sponsored Brand Videos (SBV) are a powerful tool for Amazon sellers looking to boost their sales and increase brand awareness, either alone or with Amazon Advertising Services. SBVs are video ads that appear on the top of search results and are prominently displayed on the Amazon search page. Here are some of the benefits of using SBVs to increase Amazon sales:
Increased visibility: Sponsored Brand Videos are placed at the top of the search results, above other search results, giving them prime real estate for visibility. This means that your brand will be the first thing a potential customer sees when they search for your products on Amazon.
Increased engagement: Video content is more engaging than static images or text-based ads. SBVs give sellers the opportunity to showcase their products in action, highlighting their features and benefits. This increased engagement can lead to higher click-through rates and ultimately, more sales.
Brand recognition: SBVs are a great way to build brand recognition on Amazon. By creating a consistent message and brand identity across all of your video ads, you can help customers remember your brand and products, making it more likely that they will choose your products over your competitors.
Targeted advertising: Amazon's targeting options allow you to show your SBVs to specific audiences based on factors such as search terms, products purchased, and customer demographics. This means that your videos will be shown to the people who are most likely to be interested in your products, increasing the chances of conversion.
Cost-effective: Compared to other forms of advertising, SBVs can be a cost-effective way to increase sales on Amazon. With pay-per-click (PPC) advertising, you only pay when a customer clicks on your ad, meaning that you're only paying for results.
Metrics and analysis: Amazon provides detailed metrics and analysis for SBVs, including views, clicks, and sales. This data can be used to refine your advertising strategy, helping you to create more effective ads and increase sales.
Clearly, Sponsored Brand Videos are a powerful tool when it comes to Amazon brand management. By creating engaging video content that showcases your products' features and benefits, you can increase visibility, engagement, and ultimately, sales. With Amazon's targeting options and detailed metrics and analysis, SBVs are a cost-effective way to reach your target audience and increase your sales on Amazon. If the idea is overwhelming, consider hiring an Amazon marketing agency to help manage your advertising strategy.
Co-authored by Jen Garza and Chat GPT
Effective Customer Communication on Amazon: An Seller Overview of Amazon Communication Guidelines
Amazon is one of the largest online marketplaces in the world, with millions of customers and sellers. For an FBM or FBA seller on Amazon, it is essential to communicate effectively with your customers while adhering to Amazon's communication guidelines.
Here are some tips on how to contact customers within Amazon's communication guidelines:
Use the Buyer-Seller Messaging Service
Amazon provides a messaging service that allows sellers to communicate with their customers. This service is the only approved way to contact customers on Amazon. Using any other method, such as email or phone, is not allowed.
To access the messaging service, log in to your Amazon seller account, go to the Orders tab, and click on the Contact Buyer button next to the order you wish to contact the customer about.
Respond quickly
Amazon expects sellers to respond to customer inquiries promptly. You should aim to respond to messages within 24 hours, but the sooner, the better. Fast responses show your customers that you are attentive and care about their needs.
Keep it professional
When communicating with your customers, keep your language professional and polite. Avoid using slang, emojis, or anything that could be considered unprofessional or offensive. Remember, you are representing your brand, and presenting a positive image to customers is an essential part of brand management.
Be concise
Keep your messages concise and to the point. Customers are busy, and they don't want to read long-winded messages. If you need to provide more information, provide a link to a help page or FAQ.
Don't use personal information
Amazon prohibits sellers from using personal information, such as email addresses or phone numbers, to contact customers outside of the Buyer-Seller Messaging Service. Doing so can result in your account being suspended or terminated.
Avoid spamming
Amazon also prohibits sellers from sending unsolicited messages to customers or marketing Amazon products within the email. Don't send messages about products or services that the customer has not expressed an interest in. If a customer has opted out of receiving messages from you, respect their decision and don't continue to send messages.
Follow Amazon's guidelines
Amazon has strict guidelines regarding the content of messages that sellers can send to customers. Be sure to review these guidelines and follow them closely. Violating these guidelines can result in penalties, such as account suspension or termination.
Communicating with customers on Amazon is essential for building a successful business, but it is crucial to do so within Amazon's communication guidelines. Hiring an Amazon account management agency can help you stay on top of Amazon’s ever-evolving policies. By doing so, you can establish a professional and positive relationship with your customers while avoiding penalties or account termination. Remember to keep your communication professional, concise, and timely, and use the approved messaging service to contact customers.
Co-Authored by Jen Garza and Chat GPT
Boost Your Amazon Sales with an Improved IPI Score: Strategies, Effects, and FBA Management
As an Amazon seller, you are likely familiar with the importance of maintaining a good IPI (Inventory Performance Index) score. Your IPI score is a metric that Amazon uses to evaluate your inventory management and how well you are performing in terms of meeting customer demand. A high IPI score means that you are effectively managing your inventory and meeting customer demand, which can lead to increased sales and profits. In this article, we will discuss the IPI score, strategies to improve it, its effects, storage limits, and managing FBA returns and reconciliations.
What is the IPI score?
The IPI score is a metric that Amazon uses to evaluate how well sellers are managing their inventory. It is calculated based on several factors, including excess inventory, sell-through rate, stranded inventory, and in-stock rate. A higher IPI score indicates that a seller is effectively managing their inventory, while a lower score indicates that there is room for improvement.
How does the IPI score affect sellers?
Maintaining a good IPI score is crucial for Amazon FBA sellers because it directly impacts their ability to store and sell products on Amazon. Amazon has set minimum IPI score requirements for sellers to store and fulfill their products through Amazon's FBA (Fulfillment by Amazon) program. If a seller's IPI score falls below the minimum threshold, they may face storage limits, and Amazon may restrict their ability to send in new inventory.
How to improve your IPI score?
There are several strategies that sellers can use to improve their IPI score. One of the most effective strategies is to manage inventory levels effectively by forecasting demand and optimizing inventory levels accordingly. Sellers should also focus on improving their sell-through rate by optimizing their listings, pricing strategies, and promotions to increase sales velocity.
Another Amazon strategy to improve your IPI score is to reduce stranded inventory. Stranded inventory refers to products that are not available for purchase because they are not listed correctly, out of stock, or have been removed from the Amazon catalog. By reducing stranded inventory, sellers can increase their in-stock rate and improve their IPI score.
Managing FBA returns and reconciliations
FBA returns can also have a significant impact on a seller's IPI score. When a customer returns a product, Amazon may hold the inventory for up to 30 days before returning it to the seller. During this time, the inventory is considered stranded, which can negatively impact the seller's IPI score. To minimize the impact of FBA returns on their IPI score, sellers should actively manage their FBA returns by monitoring their return rates, processing returns quickly, and restocking inventory as soon as possible.
In addition, sellers should regularly reconcile their FBA inventory to ensure that their inventory levels are accurate. This involves comparing the inventory levels reported by Amazon to the actual inventory in stock. If there are discrepancies, sellers should investigate and reconcile them promptly to avoid any negative impact on their IPI score.
The IPI score is an essential metric for Amazon sellers, as it directly impacts their ability to store and sell products on Amazon. The above steps can be complicated and time-consuming, so our final recommendation is to enlist in an Amazon specialist or Amazon FBA consulting services to help manage the process and hone your Amazon strategy.
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Hire an Amazon specialist and stand out from the competition.
Amazon has become a dominant force in the e-commerce industry, with millions of sellers competing to grab a share of the marketplace. With so many sellers vying for attention, it's become increasingly difficult to stand out and drive sales on Amazon. That's where hiring an Amazon specialist can make a significant difference for FBA Sellers.
An Amazon specialist is an expert in optimizing product listings, managing campaigns, and analyzing data to improve sales performance. They have a deep understanding of the Amazon algorithm and the strategies necessary to boost product visibility and sales.
Here are some ways in which hiring an Amazon expert consultant can help increase sales on Amazon:
Optimizing Product Listings: An Amazon specialist can help optimize product listings to ensure they are fully optimized for Amazon's search algorithm. This includes optimizing titles, bullet points, descriptions, and images to include relevant keywords and drive traffic to the product page.
Managing Campaigns: A specialist in Amazon advertising management can create and manage campaigns that target specific audiences, using advanced targeting options such as keyword, product, and interest targeting. This can help increase visibility for products and drive more sales.
Analyzing Data: Amazon specialists have access to valuable data on sales performance, customer behavior, and market trends. They can analyze this data to identify areas for improvement and adjust strategies accordingly. This can lead to more targeted marketing efforts and increased sales.
Monitoring Competition: Amazon specialists keep a close eye on competitors and monitor their activities on the marketplace. This allows them to stay up-to-date with industry trends and adjust strategies accordingly. Additionally, they can analyze competitor data to identify gaps in the market and capitalize on new opportunities.
Improving Customer Reviews: Reviews play a crucial role in influencing purchasing decisions on Amazon. Amazon specialists can help improve customer reviews by implementing strategies to encourage more positive feedback. This includes optimizing product listings, providing exceptional customer service, and addressing any negative feedback promptly.
Increasing Buy Box Wins: Winning the Buy Box is a critical component of increasing Amazon sales. Amazon specialists can help increase Buy Box wins by optimizing product listings, pricing strategies, and improving fulfillment metrics such as shipping time and delivery rates.
Overall, hiring a specialist in Amazon consulting services can help FBA sellers gain an edge against the competition. With their expertise in the Amazon marketplace, they can help sellers hone their Amazon strategy and achieve their sales goals.
Co-authored by Jen Garza and Chat GPT
Maximizing Your Online Sales: Benefits of Using Amazon Multi-Channel Fulfillment (MCF) for Efficient Order Fulfillment and Delivery
Co-authored by Jen Garza and Chat GPT
As an online seller, you want to make sure that your products reach your customers efficiently and quickly. That's where Amazon Multi-Channel Fulfillment (MCF) comes in. It is an excellent solution that enables sellers to fulfill orders from multiple sales channels using Amazon's extensive fulfillment network.
Here are some of the benefits of using Amazon MCF:
Streamlined fulfillment process: Amazon MCF makes it easy for you to fulfill orders from various sales channels in a streamlined manner. You can fulfill orders from your own website, other marketplaces, and even brick-and-mortar stores. This way, you can focus on other aspects of your business, such as marketing and customer service, while Amazon handles the logistics.
Increased sales: With Amazon MCF, you can expand your reach and sell your products on multiple sales channels, thereby increasing your sales. You can also offer your products to customers who prefer to shop on specific marketplaces or your website. Additionally, using Amazon's trusted fulfillment network can boost your credibility and encourage more customers to buy from you.
Faster delivery: Amazon has a vast fulfillment network that includes warehouses, sorting centers, and transportation services. This means that your products can reach customers faster, which can result in higher customer satisfaction and better reviews. Amazon also offers expedited shipping options, such as same-day delivery, which can be a significant selling point for customers.
Cost-effective: Amazon MCF offers competitive pricing, which can save you money on storage, packaging, and shipping costs. Additionally, you don't have to invest in your own fulfillment infrastructure, which can be costly and time-consuming. You only pay for the fulfillment services that you use, and Amazon takes care of the rest.
Easy to manage: Amazon MCF is easy maintenance. You can track your inventory and orders from a single dashboard, regardless of where the orders came from. You can also manage your shipping options, such as shipping speeds and carriers, to ensure that your customers receive their orders on time.
Returns management: Amazon MCF also includes returns management, which can be a significant benefit for sellers. Amazon handles the return process, including processing refunds and returns, and restocking inventory. This can save you time and resources, allowing you to focus on other aspects of your business.
Overall, Amazon MCF is an excellent solution for online sellers who want to expand their reach, increase sales, and streamline their fulfillment process. By leveraging Amazon's vast fulfillment network, you can offer your products to customers on multiple sales channels and ensure fast, cost-effective delivery. With easy management and returns management, Amazon MCF can save you time and resources, allowing you to focus on growing your business. If you have further questions, we suggest reaching out to an Amazon consulting agency for help.
Marketing your Amazon product: 6 tips to increase sales and brand awareness
With Amazon being the largest online marketplace in the world, having an expert Amazon Marketing Strategy in place is essential. Amazon presents a massive opportunity for brands to market and sell their products. However, with millions of products listed on the platform, it can be challenging for a brand to stand out from the crowd. In this article, we'll explore some effective forms of Amazon strategy to help brands market their products on Amazon and reach a larger audience.
Optimize Product Listings
The first step in marketing your Amazon product is to optimize your product listings. Your product title, description, and images should all be optimized with relevant keywords that customers are likely to search for. Use high-quality product images and descriptions that accurately depict your product and highlight its features and benefits.
Utilize Amazon Advertising
Amazon Advertising is a powerful tool that allows brands to target their ideal customers and drive sales. With Amazon Advertising, you can create sponsored product ads, sponsored brand ads, and sponsored display ads. These ads appear in search results and on product pages, and you only pay when someone clicks on your ad.
Leverage Customer Reviews
Customer reviews are critical on Amazon, and positive reviews can significantly impact your sales. Encourage your customers to leave reviews by following up with them after they purchase your product. You can also offer incentives, such as discounts or free products, for leaving a review.
Use Amazon's A+ Content
A+ Content is an enhanced product description that allows brands to showcase their products with rich multimedia content, including images and videos. This content appears below the product title and is visible to customers on both desktop and mobile devices. A+ Content is a vital tool in Amazon Brand management to help tell a story about your product and differentiate your product from the competition.
Offer Promotions and Deals
Amazon shoppers love a good deal, so offering promotions and deals can help drive sales and increase your product's visibility. Some examples of promotions include Lightning Deals, which offer deep discounts for a limited time, and coupons, which can be applied at checkout. These promotions are easy to set up on Amazon and can be a great way to drive sales during slower periods.
Monitor Your Competitors
Finally, it's important to monitor your competitors on Amazon to stay ahead of the game. Use tools like Jungle Scout or Helium 10 to track your competitors' sales, pricing, and reviews. This information can help you adjust your strategy and stay competitive on the platform.
In conclusion, Amazon is a powerful platform for brands to market and sell their products. With the right Amazon marketing strategy, you can increase Amazon sales and grow your brand.
Seller-Fulfilled Prime: Pros and Cons
Co-authored by Jen Garza and Chat GPT
In recent years, Amazon has introduced a new shipping option for its sellers called Seller-Fulfilled Prime (SFP). This program allows sellers to fulfill orders themselves while still offering the fast and reliable shipping that comes with Amazon Prime. While SFP offers several advantages, it also has its downsides. In this article, we will discuss the pros and cons of Seller-Fulfilled Prime shipping.
Pros of Seller-Fulfilled Prime Shipping
Cost savings: SFP allows sellers to save on the costs associated with using Amazon's Fulfillment by Amazon (FBA) service. This is because sellers are responsible for shipping their own products, which eliminates the fees that FBA charges for handling and storage.
Increased control: With SFP, sellers have more control over the entire shipping process. This includes choosing their preferred carriers, setting their own shipping rates, and having greater control over the handling of their products. This can lead to a more personalized customer experience, which can help increase customer loyalty.
More control over inventory: When using FBA, sellers must send their inventory to Amazon's warehouses, which can limit their control over their stock. With SFP, sellers have more control over their inventory, which can be especially helpful for products with short shelf lives.
Improved margins: SFP allows sellers to improve their profit margins by reducing their costs associated with shipping and fulfillment. This is because they are not paying Amazon's fees for FBA, which can eat into their profits.
Cons of Seller-Fulfilled Prime Shipping
Higher shipping costs: SFP requires sellers to pay for their own shipping, which can be more expensive than using FBA. This is because Amazon has negotiated lower shipping rates with carriers due to the volume of shipments they handle.
More work: SFP requires sellers to handle the entire shipping process themselves, from packaging the product to arranging for pickup by the carrier. This can be a time-consuming and labor-intensive process, especially for sellers who are not accustomed to handling their own shipping.
Stricter requirements: Amazon has strict requirements for sellers who want to participate in the SFP program. This includes meeting specific performance metrics, such as having a high rate of on-time delivery and low cancellation rates. Failure to meet these requirements can result in a suspension of the seller's SFP privileges.
More risk: SFP also carries more risk for sellers, as they are responsible for ensuring that the product is delivered on time and in good condition. If a product is lost or damaged during shipping, the seller is responsible for handling the claim with the carrier.
Seller-Fulfilled Prime shipping has its advantages, but it may not be a good fit for all sellers. While it can offer cost savings and increased control over the shipping process, it also requires more work and carries more risk. Ultimately, whether SFP is the right choice for a seller will depend on their individual business needs and capabilities.
Additionally, sellers who may need assistance navigating the Seller-Fulfilled Prime program and its requirements can benefit from seeking help from an Amazon consulting agency. Agencies like ours specialize in helping sellers optimize their Amazon strategies and can provide guidance on everything from fulfillment to advertising and beyond.
Subscribe and Save: A must-have for Amazon FBA sellers.
Amazon Subscribe and Save is a program designed to help sellers boost their sales and build customer loyalty. This program allows customers to subscribe to regular deliveries of their favorite products and receive a discount on each order. As an Amazon seller, participating to this program can be a valuable strategy to increase your customer base and improve your revenue. In this article, we’ll discuss the benefits of Amazon Subscribe and Save for sellers.
Increase in Sales Volume
One of the primary benefits of Amazon Subscribe and Save for sellers is an increase in sales volume. When customers subscribe to your product, they commit to purchasing it regularly, which helps you predict your sales and manage your inventory more efficiently. This can also lead to increased revenue and profits for your business.
Customer Retention
The Subscribe and Save program is designed to build customer loyalty. Customers who subscribe to your product are more likely to continue purchasing from you in the future, provided you continue to deliver quality products and excellent customer service. By participating in this program, you can retain customers and build a loyal following that helps you grow your business over time.
Improved Visibility
Amazon Subscribe and Save can also improve your visibility on the platform. When customers subscribe to your product, Amazon may give you a higher ranking in search results, making it easier for potential customers to find your product. This increased visibility can lead to more sales and better brand recognition.
Predictable Revenue
The Subscribe and Save program offers a level of predictability to your revenue stream. When customers subscribe to your product, you can anticipate a certain level of sales each month. This allows you to plan your inventory and production accordingly, and avoid overstocking or running out of stock. Predictable revenue is critical for maintaining a stable and profitable business.
Lower Advertising Costs
Participating in Amazon Subscribe and Save can also help lower your advertising costs. By promoting your product through this program, you can reduce your reliance on paid advertising and focus on building your brand through customer retention and word-of-mouth marketing. This can lead to significant cost savings over time.
Competitive Edge
Finally, participating in Amazon Subscribe and Save can give you a competitive edge over other sellers. By offering regular discounts and automatic deliveries, you can attract customers who prefer the convenience and cost savings of this program. This can help you stand out from other sellers and increase your market share.
Overall, Amazon Subscribe and Save is a valuable program for sellers looking to boost their sales and presence on Amazon. If you haven't already, consider using to this program to take advantage of these benefits and grow your business on Amazon.
When partnering with AmaZone, we serve as your full service Amazon agency and help develop a unique Amazon marketing strategy that cohesively guides you to increase your Amazon sales. Contact us to learn more.
Optimizing Amazon Sponsored Products Ads: 7 Proven Tips
Co-authored by Jen Garza and Chat GPT
If you're looking to maximize your success on Amazon, working with an Amazon consulting agency or an Amazon seller consultant could be a great option. These experts can help you optimize your Amazon Sponsored Products campaigns for maximum visibility and conversion. Here are some tips for Amazon Sponsored Products optimization that could be useful for Amazon sellers:
Keyword research:
Keyword research is crucial for any successful Amazon campaign. It's important to identify the keywords your target audience is using to search for your products. This can be done through tools like Amazon's keyword tool, Google AdWords Keyword Planner, and third-party tools like Ahrefs, SEMrush, and Moz.
Campaign structure:
Structuring your campaigns based on product categories or lines can help you target specific audiences. It's also important to create ad groups within each campaign for specific keywords or product variations.
Ad copy:
Your ad copy is key to convincing shoppers to click on your ads and make a purchase. It's important to use your target keywords in your headline and product description, and highlight the key benefits of your product.
Product listing optimization:
Optimizing your product listings can help you get the most out of your Sponsored Products campaigns. High-quality images, clear product titles, and detailed descriptions that include your target keywords can improve visibility and conversion rates.
Bidding strategy:
Finding the right balance between bidding enough to win ad placements and not overpaying is important. Monitor your bids and adjust them as needed to ensure you're getting the best return on investment.
Negative keywords:
Using negative keywords can help you save money on clicks that are unlikely to lead to sales. Prevent your ads from appearing for irrelevant search terms or for searches that are unlikely to result in a conversion.
Monitoring and optimization:
Regularly monitoring and optimizing your campaigns can help you improve your performance over time. Use Amazon's analytics tools or third-party tools like Sellics, Helium 10, or Jungle Scout to gain insights into your performance and make data-driven decisions.
By following these tips and working with an Amazon optimization consultant or Amazon marketing services, you can improve your visibility on Amazon and increase your sales and profitability.
Product Reviews vs. Seller Feedback: Which are more important for Brand Owners on Amazon?
Co-authored by Jen Garza and Chat GPT
As an Amazon seller, receiving positive feedback and product reviews is crucial for the success of your business. However, there is a difference between seller feedback and product reviews, and understanding this difference can help you determine which one is more important for brand owners.
Seller feedback refers to the overall experience a customer has with the seller, including factors such as the accuracy of the product description, shipping time, and customer service. On the other hand, product reviews specifically focus on the quality and performance of the product itself.
While both types of feedback are important for a seller to maintain a positive reputation on Amazon, product reviews tend to hold more weight in terms of influencing a customer's purchasing decision. This is because product reviews directly impact the perceived quality of the product, which is the main reason customers are browsing Amazon in the first place.
In fact, a study by PowerReviews found that 97% of consumers say that product reviews factor into their buying decisions. This means that having a high number of positive product reviews can greatly improve your chances of making a sale on Amazon.
However, this does not mean that seller feedback should be ignored. Negative feedback regarding shipping or customer service can turn customers away from your brand, regardless of how positive your product reviews are. It's important to address any issues raised in seller feedback promptly and professionally to maintain a positive reputation as a seller.
Additionally, seller feedback can also impact your ability to sell on Amazon. Amazon has strict guidelines regarding seller performance, and negative feedback can result in account suspension or closure. Ensuring that you have a high seller feedback rating is essential for maintaining your selling privileges on Amazon.
So which is more important for brand owners? In the long run, product reviews are likely to have a greater impact on the success of your brand on Amazon. However, seller feedback should not be ignored as it can impact your selling privileges and your reputation. Focus on providing high-quality products and excellent customer service in order to maximize the benefits of both, and ultimately lead to the success of your brand on Amazon. Contact your friendly Amazon consultant for more information!