September 7 - 14, 2020

A+ Content - Action Items

 ITEM #1:  Major buyer / seller messaging changes starting November 3rd.

You must adhere to these buyer / seller messaging changes soon to avoid risk of permanent suspension.

• These changes go into effect on November 3, 2020.
• Amazon has stated you CAN ask for reviews.
• You CANNOT send order confirmations or simply "thank you" messages. Nor can you send more than one request for reviews.
• No longer can pixels be used to track open rates.
• No longer can you include any images of purchased products or most other imagery.
• These are the major changes. For all others, click through below.

 ITEM #2:  Inventory Storage rates about to go up more than 3x

Inventory Management is extremely important. Here's what to know.

• When inventory runs out, your keywords suffer.
• Inventory Turnover Rate = COGS / Average Inventories. Average Inventories = (end of month inventory value) / total # of months A "good" turnover rate is between 5 & 10
• Overstock fees drastically increase by more than 3x (from $0.75 to $2.40 per cubic foot) from Oct - Dec for standard size and from $0.48 to $1.20 for oversize.
• 3PL's charge roughly $20 to $40 per pallet per month and roughly $0.20 for pick and pack fees per item.
• Helium 10 provides a full-service inventory management system.

Other Recent Posts with Highlights

Expect 30 to 100% increase in Q4 if you prepare. Here's how to get ready.

• Have an extra month of inventory in stock (roughly 4 months).
• For a new product, look at your closest competitor's sales volume. Look at their Q4 sales last year.
• Some suppliers will pre-book inventory. Ask them if they'll take net 30 to do so. Consider ordering in bulk and having supplier send partial shipment. Then it'll be ready despite Chinese New Year.
• Considering inventory limits (every product will have limits) you may want to switch to FBM if Amazon can't deliver in time or can't process your inventory for Q4 bump. You can create two listings, FBA & FBM. Also consider applying for Seller Fulfilled Prime.
• Consider sending half (for example) of Chinese shipment to Amazon then half to you to control inflow.
• In Q4, expect 2 to 5 weeks for Amazon to process inbound shipments. LTL goes to the back of the list so consider individual boxes.

Here's a suggested daily schedule to advance your Amazon business.

• Monday: check each SKU for sales, refunds, stock levels & competition. Tuesday: analyze new products. Wednesday: source new product ideas from suppliers. Thursday: optimize your Amazon ads. Friday: focus on marketing products. Sat & Sunday: study the latest Amazon trends & strategy.

Here are the features of Brand Registry you should be using.

• 1) A+ Content 2) Amazon Store 3) Amazon Posts 4) Sponsored Brands Advertising (including video ads) 5) Vine Reviews 6) Listing Videos 7) Virtual Bundles (New) 8) Subscribe & Save Option

Sourcing involves optimizing price & quality. Here are pros & cons of using an agent.

• PROS: You free up time. Agents can have experience and relationships with existing manufacturers to get you better product & pricing. Agents can bundle samples to save costs. An agent can also check product quality before sending all the way to you first.
• CONS: You lose the direct, factory relationship. You become reliant on the agent. If the agent goes missing, you're in big trouble. Agents have been known to switch suppliers without you knowing.
• Considerations: Sometimes it's better to work with a sourcing company vs one agent. Make sure they have multiple years of experience. Ask if you can have a direct relationship with the supplier. Find one that specializes in your niche. Ask if they get kickbacks from the supplier. They shouldn't. Ask if they cover sourcing & inspection. Ask if they have relationships. Ask if they attend the Canton Fair.

News: Amazon Sellers can now advertise on Twitch. Amazon removed 20k reviews for manipulated reviews - don't do it. Amazon announced Sept 17th for deadline for lightning deals for holiday season.

Facebook ads can be cheaper than Amazon advertising if done right. This guy got 1 billion ad views for a $10k budget. Focus on pain points and be entertaining when solving these.

• Customers need to see your brand 7 times before committing to buy.
• Start a website and review your own products to get #1 on google and will be rewarded on Amazon. Provide valuable content and the money will follow.
• Repurpose blog posts using a teleprompter app - simply read your shortened blog posts on video.
• When advertising on FB, don't spend in large bursts. Rather, spend smaller amounts daily for the long term.
• Track your facebook competitor pages and copy most popular & engaging posts.
• Posts 3 to 12 posts per day.

Evaluates an email marketing campaign

• Always send to un-opens 24 hours after initial send.
• Keep email to maximum 3 links. Don't add prices or it'll get flagged. Avoid terms suggesting buying / selling.
• Bring curiosity around links to get reader to click.
• Make very simple and easy to scan.
• Adding a number to title can increase open rate.
• Make entire email about the reader, not about you / your product.

Facebook is improving it's mobile-first shopping. Here are some details on why you should consider it.

• Facebook integrates with platforms like Shopify, Woocommerce, etc to sync products.
• Facebook fees are $0.40 for items $8 or less and 5% for over $8. There are no listing fees.
• You can create "collections" similar to "categories" on other platforms.
• Use FB Ads to boost sales. It's likely FB favors these ads far more than others.

Prime Day is tentatively October 5th. Here's how to prepare.

• If selling "toys & games" you must meet thresholds seen here.
• Consider competing with bundles and subscription boxes vs lowering price.
• Discounts are expected to be smaller this year due to increased costs with shortages & shipment delays.

5 common Amazon Profit LIinks to avoid.

• 1) storage fees can wipe out profit - first lower price or do promos 2) outsource rather than micro-manage 3) re-stock old, successful arbitrage items 4) use a re-pricer 5) keep in stock with inventory tool