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channeladvisor Selling on Amazon 2013 Presentation Transcript

  • 1. Myths & Misconceptions of Selling on Amazon Best Practices to Doing it Right Gina DeFrank 2013 Product Manager & Business Analyst, Marketplaces
  • 2. Amazon Myths 1. It’s too late to get on Amazon 2. Only Amazon Wins the Buy Box 3. Data Quality Doesn’t Matter 4. It’s too difficult to go International confidential #AmazonErrors 2
  • 3. Myth #1 It’s too late to get on Amazon confidential #AmazonErrors 3
  • 4. Myth #1: It’s too late to get on Amazon Amazon continues to grow 2-3X e-commerce Source: comScore and Amazon public data confidential 4
  • 5. Myth #1: It’s too late to get on Amazon 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?  Source: ChannelAdvisor and Morgan Stanley estimates
  • 6. Myth #1: It’s too late to get on Amazon 3PM is growing 2X Amazon Retail Source: Amazon Public Data confidential
  • 7. Myth #1: It’s too late to get on Amazon  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 globally—the opportunity is there. confidential
  • 8. Myth #2 Only Amazon Wins the Buy Box confidential #AmazonErrors 8
  • 9. Myth #2: Only Amazon Wins the Buy Box  80-90% of sales go to Buy Box owner  To win the Buy Box:     Price Availability Performance Volume confidential #AmazonErrors 9
  • 10. Amazon: Factors in Winning Buy Box • 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 Volume Performance • Number of products you sell • Featured Merchant • Order Defect Rate (Charge backs, Feedback, A-z Claims) confidential 10
  • 11. Buy Box: Best Practices  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! confidential #AmazonErrors 11
  • 12. Amazon: Consider Product Repricing  Repricer used as a Buy Box strategy  Rules engine designed to automate competitive repricing.  Minimally decrease margin to increase sales $197.64 Price up to keep in step with competitors $186.49  X
  • 13. Amazon: Consider FBA Fulfillment by Amazon (FBA):  Inventory stored at an Amazon Fulfillment Center.  Picking, Packing & Shipping  Customer Service confidential 13
  • 14. 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.) confidential 14
  • 15. Amazon: 360 Dashboard Sales and Order History Product Listing Status Top-performing Products Seller Reputation Focus on improving your seller reputation and becoming more successful on Amazon 15
  • 16. Amazon: Manage Seller Performance confidential #AmazonErrors 16
  • 17. 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
  • 18. Myth #3 Data Quality Doesn’t Matter confidential #AmazonErrors 18
  • 19. Amazon: Listings & Data Quality A Good Customer Experience starts with Good Product Details Product Feedback Images Variations Product Features More Details! confidential #AmazonErrors 19
  • 20. Amazon: Data Listing Challenges  Lots of Data Requirements  Requirements Change  Variation Listing Errors  Matching Amazon’s Catalog confidential #AmazonErrors 20
  • 21. Most Common Amazon Errors  Listing Relationships (28%)  Insufficient Variation Data  Parent or Child Product not Recognized  Product Matching Errors (16%)  Unable to match to Amazon catalog  Data discrepancies confidential #AmazonErrors 21
  • 22. Common Error 1: Variation Errors Problem: Not enough product data to properly create a variation (parent/child) relationship between products Result: Product listings not properly created on Amazon confidential #AmazonErrors 22
  • 23. Variations: Best Practices  Research which variations themes are available for your category   Check that the values sent for the variation data are Amazon Valid Values   Size, Color, Item Package Quantity 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 confidential #AmazonErrors 23
  • 24. Amazon: Templates  In ChannelAdvisor we use templates and highlight the recommended fields confidential #AmazonErrors 24
  • 25. Common Error #2: Product Matching 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.  25
  • 26. Avoiding Matching Errors: Best Practices  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 confidential #AmazonErrors 26
  • 27. 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 can’t determine the appropriate catalog match.
  • 28. Myth #4 It’s too difficult to go International confidential #AmazonErrors 28
  • 29. Amazon: Selling Internationally  Consider Selling in Canada  Consider FBA & Amazon Export  Amazon’s Global Marketplaces confidential #AmazonErrors 29
  • 30. Amazon Canada  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 Source: Amazon Public data and Alexa data confidential #AmazonErrors 30
  • 31. Amazon FBA Export    Products listed on Amazon.com and Products held in FBA All eligible product listings will be available to International Customers No extra charge confidential 31
  • 32. Myth #4: It’s too difficult to go International  Consider selling in the United Kingdom and in Europe:  Amazon’s 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. Source: Amazon Webinar that sources Amazon Investor Relations 32
  • 33. Global Amazon Marketplaces UK France Germany Spain Italy 2013 US Canada Japan China $29.7b 5% of Total Growth Rate 17% confidential 33
  • 34. Thank you! For more information: info@channeladvisor.com 1-866-264-8594 confidential #AmazonErrors 34