Hello EBO’ers! (That’s short for E-BusinessOnliners, and if you’re reading this it means you’re part of this community!) Just wanted to write up a quick article about something I encountered this weekend with Amazon FBA. I have a PL (Private Label) product that has been selling really well. Depending on the selling price we …
Welcome to Episode 3 of the E-BusinessOnline Podcast Host & Speaker: Fred McKinnon Topic: Introduction to Dropshipping Summary: In Episode 3, Fred McKinnon discusses the process of dropshipping in e-commerce. What is dropshipping? Dropshipping is a process where a seller utilizes a 3rd party (that we will call a drop shipper) for their …
Hello Amazon Sellers, In yet another sweeping change, Amazon announces yet another regulation and imposition on their Sellers; this time, in the Health & Personal Care category. If you are one of thousands of Sellers who create supplements or over-the-counter medicines, this will impact you in a significant way. Here’s the official notification from Amazon: …
Howdy E-Commerce Gurus: Another day, another huge blow to Amazon Marketplace Sellers. It seems like every few weeks we’re posting news about major modifications that Amazon is making on their platform. Today’s blow is especially tough for “Private Labelers” who rely on incentivizing sales in exchange for reviews. Effective today, Amazon will no …
Today is October 1st – Q4 has officially begun!
I’ve personally endured over a decade of Q4 excitement (and suffering) in the world of e-commerce. Although sales don’t historically show a significant pickup until the week of Black Friday, now is the time to begin preparing. For those who utilize dropshipping as a core component of their e-commerce strategy, it’s time to batten down the hatches and prepare for the storm of your life. Hopefully in the end, you’ve safely made it through and you’re enjoying the profits of your season.
- For those who are selling Toys & Games on Amazon, this month is a critical month for you. Amazon will be watching your performance metrics and will disqualify you for the entire holiday season if your metrics aren’t meeting their standards below.
Effective on 17th November, 2016, only sellers who meet the criteria listed below will be eligible to sell in the Toys & Games category from 17th November, 2016 through 5th January, 2016.
• Your first sale on Amazon.com must occur prior to 19th September, 2016. The sale does not need to be specific to the Toys & Games store.
• You must process and ship at least 25 orders from 1st September, 2016 through 31st October, 2016. The orders do not need to be specific to the Toys & Games store.
• Your pre-fulfillment cancel rate for the period from 1st October through 31st October, 2016 must be no greater than 1.75%.
• Your late shipment rate for the period from 1st October through 31st October, 2016 must be no greater than 4%.
• Your order defect rate must be no greater than 1% short term as of 1st November, 2016.
Orders that use Fulfillment by Amazon will not be subject to the above criteria provided your account is in good standing.
- Monitor your “late ship” and “pre-fulfillment” metrics daily. These two metrics are the biggest metrics that are at risk in the dropshipping scenario. As you are most likely purchasing items from the same distributors and suppliers that many of your competitors are, inventory will begin to fly off the shelves at record speed. This causes backorders and cancelations. Either of these metrics that slip into poor standing can cause your seller account to be suspended at the worst possible time.
- One of the best ways to prevent pre-fulfillment cancelations is to increase buffers on your inventory. In other words, if your distributor’s inventory feed shows a quantity of 15 units, you may wish to implement a buffer of 10. Depending on which tools you use to build buffers, this can be treated in two different ways. You can subtract 10 showing an inventory of 5. Or you can have logic in place that shows the actual quantity until it reaches your buffer, then it shows zero. So, in this case, you’d be showing 15 units available; however, once the distributor’s feed dropped to 9 units, you’d be showing a zero. Either way works effectively. Dropshippers should always have ample buffers in place but these should be increased prior to the holiday sales.
- Analyze your previous years’ sales or begin picking up on trends early and purchase inventory in bulk for Amazon FBA. This is a risky move as it can load you down with inventory that you can’t sell. Because of this, don’t be over eager and purchase more inventory than you can stand to hold. This is especially true for seasonal video games, toys, games, and things that won’t sell after Christmas. One great example: scooters. A few years ago, we were selling 10-12 scooters per day from one distributor. There was no Amazon retail offer so we decided to buy hundreds of them for FBA. As you may suspect, before our shipment was checked-in to Amazon and made available for sale, Amazon retail’s offer appeared at a selling price that was less than our wholesale price. We liquidated them for at least a 75% loss later in the Spring.
- Over-communicate with your buyers when there is an issue. If an item sold out and is on backorder, give them notice quickly and let them know the restock date. Whenever possible, purchase the item elsewhere, even at a loss, so you can fulfill the order. The positive metrics and seller feedback will more than pay for this expense.
- In the coming weeks, spend time in error resolution. If you are listing en-masse, you likely have hundreds of listings that are not active, or are suppressed, due to missing fields, such as Amazon’s item-type, or attribute-required fields like color, genre, department, ESRB rating, missing images, etc. Most sellers who are listing en-masse are using the same data from the same suppliers so they likely have the same errors. The seller who works on error resolution will enjoy the fruit of having these items listed and selling.
- Create a night shift. In the wonderful world of dropshipping there is this event that we call a “product run” – where one product hits the Buy Box and sells over and over, very quickly. If the price and availability on the product is accurate, this is a fantastic event. If the item is sold out and you wake up to 100 orders that you can’t fulfill, it’s a potential business-killer. Dropship distributors tend to update their systems late at night, usually after midnight. At this time, their systems often batch out all the previous day’s orders, invoice them, and update their internal quantities. New inbound inventory in their warehouses is getting scanned in and lots of data is updating internally. When a “product run” starts during your normal business hours you can stop the bleeding quickly but if your entire staff is asleep and you wake up to this disaster, it’s very difficult to recover from. (can you tell we have lived through this multiple times). It’s worthwhile to hire an hourly person to watch your system for runs during the night and train them on how to make sure that everything is OK and if not, how to correct the listing. If you are not dropshipping, or if your products are dropshipped from a niche vendor who is not selling to hundreds of competitors, this probably is not an issue for you.
These are a few helpful tips to get you ready to push through Q4 with great success. Questions or comments? Share below or join our free seller support community on Facebook.
It all started about 10 years ago. I was working full-time in my local church as the music minister and had a small, but growing web hosting company as a way to scratch my business itch and supplement our income. One of my older brothers gave me a call and he said something like …
E-Commerce Business Owners: We are always searching for ways to grow. Competition is fierce and more and more people are becoming online sellers each day. Rewardstream.Com recently published this article that we’d like to share called “Proven Tactics to Grow Your E-Commerce Business”. These are some fantastic tactics that you can implement to …
As an e-commerce business owner and specialist, there is never an end to learning. I personally try to always have literature that I am reading to learn more about the industry. Just as important as industry news, overall leadership development is just as important. Whether you are managing a multi-million dollar e-commerce …
Attention Amazon Sellers,
In case you haven’t noticed, Amazon is making serious changes to their policies impacting 3rd party marketplace sellers. Just a couple of weeks ago they started restricting well-known brands from being sold without approval. Just last week they announced a major change in their return policy as well.
It appears they are still making changes to improve the overall customer experience in the buildup to Q4 and the 2016 Holiday Season. In yet another announcement, Amazon is requiring merchants who are fulfilling very small, lightweight items that are typically shipped in regular first class envelopes or flats to include tracking. This does not apply if the item is priced less than $10 USD. Otherwise, the addition of the “package” weight and delivery confirmation from the US Postal Service will add a couple of bucks to each shipment.
Beginning October 12, 2016, Amazon’s package tracking requirement will extend to small and light items that are priced over $10 USD (including shipping). Please note that this is a change from the previous policy that tracking would not be required for any items that fit in a USPS Standard Mail envelope or First Class Mail envelope.
Small and light items under $10 in price (including shipping) can still be shipped in USPS Standard Mail envelopes or First Class Mail envelopes without tracking; however, starting on the date listed above, we will require tracking for small and light items over $10, just as we do for the catalog in general.
Amazon displays package tracking information buyers because we find that being able to check an order’s shipment status and not worry about its whereabouts creates a better experience for buyers. This peace of mind is especially important for higher-priced orders.
In addition to an improved customer experience, providing valid tracking numbers for all of your shipments has several benefits:
1. Decreased order defects and better seller feedback ratings
2. Fewer buyer messages
3. Reduced lost shipment costs
4. Improved conversion
If you choose to fulfill the tracking requirement by shipping your item as a parcel, there may be a $1-2 increase in base shipping cost but you will receive complimentary tracking on the parcel. You can access parcel rates while using the same packaging that you typically use by wrapping your item lightly in bubble wrap before putting it in the packaging, such that the thickness is more than 3/4” thick.
Small and light packages that are shipped before October 12 will not be counted toward the valid tracking requirement. After October 12, if you aren’t providing tracking on 95% of your items in a given category (including small and light items over $10), you risk losing your ability to sell non-FBA items within that category.
You can view your current Valid Tracking Rate by category by going to Seller Central > Performance > Customer Satisfaction > Account Health. Tracked packages will count toward your Valid Tracking Rate when there is at least one carrier scan recorded. If you purchase postage through Amazon’s Buy Shipping service, tracking will be automatically applied to the shipment at the time of purchase.
Learn more about :
• The new Valid Tracking Rate: https://sellercentral.amazon.com/gp/help/201817070
• Premium Shipping options: https://sellercentral.amazon.com/gp/help/201503640
• Amazon’s Buy Shipping services: https://sellercentral.amazon.com/gp/help/200472530
Thank you for selling on Amazon,
Amazon Seller Performance Team
Amazon is certainly tightening down in preparation for the holidays. Marketplace Sellers are being hit left and right with now policy punches that can make it more difficult (and more expensive) to run their businesses.
Amazon.com has been shaking up the scene lately with 3rd party “Marketplace Sellers”. Just last week they announced a massive plan to begin restricting well-known brands from being sold by Marketplace Sellers. The ripples of this announcement are still sending shock waves throughout the community of Amazon sellers who practice what’s known as …