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.

1. 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.

2. 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. 

3. 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.

4. 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:

1. 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.

2. 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.

3. 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.

4. 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.