Showing posts from April, 2020

Amazon can smell the blood in Ads. And it's going for it.

The week when pandemic hit, sales for my home commodities on Amazon had multiplied 3x over night. In two weeks, I was completely out of stock with what was forecast as 3 months of supplies. Since our manufacturing and supplies is from the Himalayas in Nepal which was in complete lockdown, there was no incoming inventory. Technically this should have meant that I made all my revenues and profit for three months in three weeks. However when I sat down to reconcile my profit and loss, I discovered to my utter disbelief that my profits were almost non-existent. And the reason for this was that the cost of ads on Amazon had gone up 10x. Not only the cost of bids were 3x, there was almost 10x the clicks with much fewer conversions. Partly this can be attributed to bored "window-shoppers" browsing around Amazon looking for stocking up their essentials. If this had happened two years ago, the cost of ads would have been negligible. So what changed in two years? Ads. And the prolifer

Learn how to Restock your Inventory on Amazon FBA with AI

The main problem that e-commerce sellers encounter is not knowing when and how many items to restock. In a nutshell, e-commerce companies need to know the optimal volume to restock otherwise it puts them at jeopardy of overstocking and understocking. We want to dodge these three scenarios because overstocking means holding excess inventory sitting on warehouse racks where the long-term storage fees will start racking up (especially in Amazon warehouses) to a substantial number. The long-term warehouse fees can be around 20-30% of your inventory cost, another reason to avoid overstocking. Understocking should also be avoided because you will miss opportunity cost for not being able to sell if the item had otherwise been restocked to the optimal amount. The table here shows the inventory status of these 5 items. The items are classified by their restock status with the items that need critical restocks showing up first and the least urgency on the bottom of the list. Items that are out

The Long Road To Become a Cult Brand

It is quite likely that the dream of many brands is to cross the border and become material that goes a step further, that is, to become brands that consumers feel more than just appreciation. Not a few brands would want to become cult brands, those with a large fan base and, above all, see how those consumers themselves are advocates, propagators and supports for the brand. The followers of one of these brands are loyal to it and, besides, they are enthusiasts who not only always buy their products but also function as a kind of evangelists of the same. Just think about the Apple case. The company is, for a percentage of consumers, one of those brands of worship, which makes them maintain a very special relationship with it. These consumers are queues in their stores, those who buy their products every time they make a modification (no matter how minimal that non-Apple fans think) and who defend it against any attack. The path to becoming a cult brand is not easy nor is it something t

Planning your inventory for the holidays

First, I have a question for you, are you smarter than artificial intelligence when it comes to running your ecommerce business? Do you know how much you’re going to sell in the coming month or 3 months? Specifically, October, November, December and January? The reason I’m talking about these months is because the warehouse fees for Amazon and most 3PLs increase by 3 to 5 times more during this time. This could potentially ruin your business as a result of these ludicrous costs. To combat this problem, you need to know how much you will sell during the Christmas period and what are your three worst days. Taking a look at what our AI determines is our worst day from October 1st to January 31st. So you can see here the three worst days are Christmas Day, Boxing Day and New Years Day. Zooming in you can get a closer look. If you guessed that these would be the worst performing days, congratulations you’re as smart as our AI! If you are managing a lot of SKUs and there are a lot of holida

How the media and social networks impact on impulsive buying

Social networks have created a new way of communicating. They have become a kind of inevitable, prominent element. We are all connected to all of our contacts and we are at the same moment in which we do things. We are on vacation, we upload a photo of our glorious hotel breakfast. We buy a product, we quickly tell it on Facebook or Twitter sharing how good (or bad) the experience has been. We share the information in real time and receive the information in real time and that has completely changed how we relate to it. And if things start to be so immediate, our reaction to them also begins to be so. We are always in a sort of real-time conversation with others and we are always commenting on what happens in the moment that happens. But this immediacy has not only an impact on information and our reaction to it but also modifies other elements. Our buying habits and purchasing decisions are greatly modified by what happens in social networks. The social environment has become a new pr

A Small Note on Your Seller Nickname!

Are you a new seller who is just starting out? Then you are probably wondering what you should keep as your nickname. When you are starting out as a seller on Amazon, selecting your seller’s nickname is something that is very important but often overlooked. Once you have put in the hardwork and have pleased your customers, it’s difficult for them to find you again among the mass of listings on Amazon. If you choose your name carelessly, it will become even more difficult. If you choose your name carefully, but don’t consider the realities of searchengines, you’ll still be stuck. Another example in this regard would be that of  Pulse decor, a seller who is specializing in home furnishings, he also chose a great nickname. Anyone who is satisfied with a purchase from this seller can easily find him again by searching Amazon for his nickname. As you select your nickname, be sure you don’t create one that violates Amazon’s rules. You are prohibited from including anything in your nickname t

The re-rise of Wal-Mart: from a plummeting failure, to a new era of refreshing changes

Reinvention. In the world of business, it’s a word that inspires fear to many companies that don’t know how to deal with failure and prefer to go on with the same old practices, rather than change their strategies and overcome disaster. It’s maybe the word that defines giant companies like Wal-Mart, which is known as the world's largest company by revenue and the world’s biggest retail corporation. These kind of companies are known for their capacity to adapt to the constant cultural and technological transformations of our era: for example, in 2015 Walmart suffered its worst stock decline in more than 27 years , after a series of major strikes demanding higher wages ended up with a series of reformations that made their market shares to fell approximately -33% , wiping out nearly $20 billion in the company’s market value. In the following years, the situation took a drastic turn: by 2018, the company reported that its U.S. comparable sales rose 4.5% , its strongest US sales growt

Starting as a Seller: Setting Up Your Seller Account

If you have finally decided that you want to start selling now, congrats! Let’s start the process of setting up an account for you. Again, let me list down some of the benefits of selling on Amazon: 1.       Flexible work schedule and freedom of work 2.        Financial security 3.        Good returns on your investments 4.        More free time to enjoy the things you love doing 5.        Experience to carry out bigger projects in future Amazon Sales could mean financial security for you   It’s so easy that pretty much anyone can learn to do it, and that’s the best thing about it. You have control over how profitable your business will be. Your efficacy in applying the strategies mentioned would decide how successful you are. Gradually, you will also learn the ins and OUTs of the trade, and this will boost your income further. All of that, however, comes later. Right now, we must start with some baby steps. Creating an Amazon Seller Central account is your first step to starting your

Here's Everything You Need to Know About 3PLs

What’s a 3PL? It’s simple, you take the orders as usual, but a third-party logistics provider (3PL) fulfills them. Sounds seamless at first, doesn’t it? It’s the least concern for customers about how an order they made online gets delivered to them. They’ll hardly give it a second thought, provided their order arrives safely and in a timely manner. A third-party logistics provider is a link in the supply chain industry that brands use to outsource part or all of a company’s distribution and fulfillment services.  Following the start and exponential growth of eCommerce, the market for 3PLs exploded. Most established companies, like the Fortune 500 companies today, rely on 3PLS for order fulfillment, and so should you! It’s not only about order fulfillment, but 3PLs also receive new inventory from your manufacturers before shipment to consumers. A well equipped 3PL can also handle retail distribution and returns. In the end, they deliver your orders with a stellar experience. When Should

Four secrets to lower your FBA fees

How to lower your amazon seller fees     The digital era has opened up new opportunities for those that are willing to start a business. If you are searching for a spot in the online market, Amazon can become a great marketplace for your company. In order to sell on Amazon, there are two options: either we take care of the entire selling process, or we rely on “Fulfillment By Amazon” (FBA). With FBA we basically "rent" space at the warehouses of the American company, which from that moment is the sole responsible of processing your shipments. For many companies, this represents a great advantage, since the logistic management of an e-commerce business can become a real headache. However, despite the attractiveness of this system, paying FBA fees can cut into your bottom line.      To combat overcrowding in their fulfillment center, Amazon began instituting a penalty on a low Inventory Performance Index (IPI) for their third-party sellers, who provide just over half of their s

5 Steps to Sell More on Amazon

Millions of people around the world use Amazon to make purchases of all kinds of products. Regardless of whether or not you have your own e-commerce, we recommend you use it to increase your sales in the Online Channel. To this end, here are some tricks to improve your visibility in the # 1 marketplace and make it the best ally, either online or offline.   Optimize the product listing on Amazon. For this you have to follow the SEO guidelines that the same platform offers. A good Amazon title should include essential elements like the brand, the type of product, its material or ingredients, in case it is a consumable. In addition it is essential to add a keyword integrated in it and define the product (eg tool, phone, glasses, etc.) Including quality images is essential and if they are over 1000x1000 pixels, This will activate the zoom function to see your product in more detail. Amazon also allows you to define your own search terms for each product, through 5 fields that accept 50 cha

The A-Z of Social Marketing: What You Need to Know

How and Where Do I Market My Products? There are hundreds of social network sites worldwide, but the most popular sites are Facebook, Instagram, Twitter, LinkedIn, Pinterest, and Tumblr. These sites will account for over 90% of all the visits on your shop. Facebook dominates user engagement, so if you are starting out and are confused on what website to prioritize, you have your answer. The second is Pinterest, and it has very high conversion rates as well. Your primary focus should be on these two websites when it comes to social marketing. Choose the right platform to promote your brand While online social network users spend over 30 hours a month on average on all networks combined, there are 720 total hours in a month. Therefore, about 4% of all social life in a month involves online social networks, while 96% does not. This is where Dark Social comes to play. This is the portion of life that is spent off of social networks. This may be spent anywhere, such as an IM app such as Wha

4 times in which re-branding is mandatory

Changing the logo of a brand or a company is a very complicated process and not risk free. Some of the companies that have thrown themselves to it have found themselves on the road with consumer rejection and have been forced to even backtracking in the process. One of the recurring examples of this situation is that of the US retail chain GAP. The company decided a few years ago to change its logo to become something 'more modern', but the shot went straight through. Instead of modifying its image by updating it, it found a real uprising among its consumers. The new logo was, or at least that was what they pointed out, horrendous. The company had no choice but to go back and return to known terrain, recovering the logo they had already used and that their consumers knew and apparently loved. If changing the logo is already going into moving ground, completely changing the identity and migrate not only image but also name or corporate colors can be an adventure of extreme sport

Can you survive and sell on the internet without being the cheapest?

In the offline world, there are many types of stores and not all bet on the same criteria to try to reach the consumer. Not everyone wants to have a low cost supermarket or a discount store in which the main offer are products at low prices. So why is there a certain belief that when selling online you have to sell at a low price? Is e-commerce marked by offers to the point that it is only successful if it is sold cheap? For years, what most worked on the net were the offers. Consumers made the network their main ally when they were looking for things at lower prices. The trips started to be bought online because the internet was able to find the lowest prices, last minute offers of hotels or the cheapest fares of the low cost airlines. Then came the coupon pages or online outlets, which were the entry point for many consumers for e-commerce. And then many large e-commerce companies that invoice millions have made offer low prices a decisive element of their corporate image and the ser

If you aren't on the internet you don't exist and soon you will not be able to sell either

Many were those who did not want to believe that Bill Gates phrase, when he mentioned that " If  your business is  not  on the  Internet , then your business  will  be out of business" .  That phrase is perfect when it comes to verify the true importance of the internet for businesses. Now, the most immediate future, augurs us a new generational change where electronic commerce and the way of selling will be protagonists. The Internet is an increasingly important part of the day to day and is also becoming a fundamental part of understanding the future. The network is appropriating all the parts of our day to day and is integrating all our needs. The Internet is no longer an element or part of what we are or do, but has become a vehicle element that unites everyone and everything. Therefore, and especially as the penetration of the network becomes deeper and as its importance is touching more and more points (do not forget that the immediate future is undeniably smart and tha

Key Terms You Need to Know When You Start Out as A Seller

FBA: Yes? No? Seller Rating Most sites like amazon will grant you a seller rating once you sign on as a seller. Seller rating is the number one way your customer will figure out whether you are a reliable seller or not. If you have a high amount of positive feedback, your seller rating will be high. Which in turn means that more people will see your products, because the algorithm at amazon will promote sellers with higher ratings. Ratings are provided to sellers based on a number of parameters, which includes things such as feedback from customers, response time with regards to complaints, shipping time that you take, among a few things that might be considered. Obviously, you can appeal against hits on your seller rating, but you might want to be careful using that. If found guilty, you will be penalized further.   Fulfillment by Amazon Honestly, packaging and shipping is difficult. Not only is there a ton of paper work involved in this process, but there are high chances of yo