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  • Myths & Misconceptions of Selling on Amazon

    Best Practices to Doing it Right

    2013

    Gina DeFrank Product Manager & Business Analyst, Marketplaces

  • 1. Its too late to get on Amazon

    2. Only Amazon Wins the Buy Box

    3. Data Quality Doesnt Matter

    4. Its too difficult to go International

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    Amazon Myths

  • Myth #1

    Its too late to get on Amazon

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    Amazon continues to grow 2-3X e-commerce

    Myth #1: Its too late to get on Amazon

    Source: comScore and Amazon public data

  • Amazon Estimated $200B by 2017

    Poised for continued growth 2-3X E-commerce

    Today Amazon has ~40 FCs in 20 states

    2017 - 150 FCs in 50 states?

    Myth #1: Its too late to get on Amazon

    Source: ChannelAdvisor and Morgan Stanley estimates

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    Myth #1: Its too late to get on Amazon

    3PM is growing 2X Amazon Retail

    Source: Amazon Public Data

  • According to Forrester, Amazon is now the place most consumers start their product search.

    Morningstar estimates that Amazon Prime membership may be in excess of 10M.

    Most categories on Amazon are still open to accepting new sellers.

    Amazon is growing at 2X the rate of e-commerce, and expanding globallythe opportunity is there.

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    Myth #1: Its too late to get on Amazon

  • Myth #2

    Only Amazon Wins the Buy Box

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  • 80-90% of sales go to Buy Box owner

    To win the Buy Box:

    Price

    Availability

    Performance

    Volume

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    Myth #2: Only Amazon Wins the Buy Box

  • Featured Merchant

    Order Defect Rate (Charge backs, Feedback, A-z Claims)

    Number of products you sell

    Number you have in stock and Quick and Consistent Fulfillment

    Fulfillment Channel FBA Proximity to the buyer

    Shipping offers

    Most important factor

    Low total price, including product price and shipping cost

    Price Availability

    Performance Volume

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    Amazon: Factors in Winning Buy Box

  • Consider Product Repricing

    Offer Free Shipping

    Consider Fulfillment by Amazon (FBA)

    Ensure Sufficient Availability

    Manage your Seller Performance

    Remember: Buy Box Status is Always in Flux!

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    Buy Box: Best Practices

  • Repricer used as a Buy Box strategy

    Rules engine designed to automate competitive repricing.

    Minimally decrease margin to increase sales

    Price up to keep in step with competitors

    Amazon: Consider Product Repricing

    $197.64

    $186.49

    X

  • Fulfillment by Amazon (FBA):

    Inventory stored at an Amazon Fulfillment Center.

    Picking, Packing & Shipping

    Customer Service

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    Amazon: Consider FBA

  • FBA Benefits to Sellers:

    Extend reach to Prime Members and Super Saver Shipping Offers

    Get Amazon's Customer Service

    FBA Product Eligible to win the Buy Box at Higher Price

    Increase Profit Margins with a Lower Total Fulfillment Cost

    Access to Last-Minute Holiday Shoppers

    Easily Access International Customers

    Multi-Channel FBA (fulfill for own site, eBay, etc.)

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    Amazon: Consider FBA

  • Amazon: 360 Dashboard

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    Sales and Order History

    Product Listing Status

    Top-performing Products

    Seller Reputation

    Focus on improving your seller reputation and becoming more successful on Amazon

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    Amazon: Manage Seller Performance

  • Managing Performance: Best Practices

    Check your Seller Performance daily!

    Order Defect Rate: < 1%

    Pre-Fulfillment Cancel Rate: < 2.5%

    Late Ship Rate: < 4%

    Customer Communication

    Answer Questions with 24 hours

    Timely Refunds

    Address Negative Feedback

    Shipping

    Ship on Time and with Tracking

    Accurate Lead Time to Ship

  • Myth #3

    Data Quality Doesnt Matter

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  • A Good Customer Experience starts with Good Product Details

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    Amazon: Listings & Data Quality

    Images Product

    Feedback

    Product

    Features

    Variations

    More

    Details!

  • Lots of Data Requirements

    Requirements Change

    Variation Listing Errors

    Matching Amazons Catalog

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    Amazon: Data Listing Challenges

  • Listing Relationships (28%)

    Insufficient Variation Data

    Parent or Child Product not Recognized

    Product Matching Errors (16%)

    Unable to match to Amazon catalog

    Data discrepancies

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    Most Common Amazon Errors

  • Problem:

    Not enough product data to properly create a variation (parent/child) relationship between products

    Result:

    Product listings not properly created on Amazon

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    Common Error 1: Variation Errors

  • Research which variations themes are available for your category

    Size, Color, Item Package Quantity

    Check that the values sent for the variation data are Amazon Valid Values

    Blue not Dark Blue

    Ensure child products have a unique variation

    Kitchen Aid 5-Quart Mixer, Red

    Kitchen Aid 5-Quart Mixer, Blue

    Kitchen Aid 5-Quart Mixer, Silver

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    Variations: Best Practices

  • In ChannelAdvisor we use templates and highlight the recommended fields

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    Amazon: Templates

  • To maintain a single product listing, Amazon uses product matching to find and eliminate duplicate products.

    Challenge for retailers to match their product up to an Amazon listing.

    Common Error #2: Product Matching

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  • Provide as Much Data as you Can

    Unique standard identifiers: ISBN, UPC, or EAN

    Include Manufacturer Part Numbers (MPN)

    Add Manufacturer or Brand

    Category-specific attributes

    Do not Re-Use SKUs

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    Avoiding Matching Errors: Best Practices

  • Amazon: Matching Error Resolution

    Increase the % of your catalog that is actually listed on Amazon

    Used to find the best match for your product when Amazon cant determine the appropriate catalog match.

  • Myth #4

    Its too difficult to go International

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  • Consider Selling in Canada

    Consider FBA & Amazon Export

    Amazons Global Marketplaces

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    Amazon: Selling Internationally

  • Consider selling on Amazon Canada:

    #11 Website Traffic in Canada

    # 1 E-Commerce site in Canada - bigger than Amazon.com

    Programs:

    Many Categories

    Amazon Prime

    FBA in Canada

    International Disbursements

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    Amazon Canada

    Source: Amazon Public data and Alexa data

  • Products listed on Amazon.com and Products held in FBA

    All eligible product listings will be available to International Customers

    No extra charge

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    Amazon FBA Export

  • Consider selling in the United Kingdom and in Europe:

    Amazons European marketplaces had over 164 million active customers last year.

    30% of total Amazon units were sold by 3rd party sellers.

    Amazon.co.uk receives about 20M unique visitors monthly - Amazon.de has 24M and Amazon.fr has 13M.

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    Myth #4: Its too difficult to go International

    Source: Amazon Webinar that sources Amazon Investor Relations

  • Global Amazon Marketplaces

    US Canada

    UK France

    Germany

    Spain

    Italy

    Japan China

    $29.7b 5% of Total

    Growth Rate

    17%

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    2013

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  • Thank you!

    For more information:

    info@channeladvisor.com

    1-866-264-8594

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    mailto:info@channeladvisor.com