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Myths & Misconceptions of Selling on Amazon
Best Practices to Doing it Right

Gina DeFrank

2013

Product Manager & Busine...
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.

I...
Myth #1
It’s too late to get on Amazon

confidential

#AmazonErrors

3
Myth #1: It’s too late to get on Amazon
Amazon continues to grow 2-3X e-commerce

Source: comScore and Amazon public data
...
Myth #1: It’s too late to get on Amazon
Amazon – Estimated $200B by 2017
 Poised for continued growth 2-3X E-commerce
 T...
Myth #1: It’s too late to get on Amazon
3PM is growing 2X Amazon Retail

Source: Amazon Public Data

confidential
Myth #1: It’s too late to get on Amazon



According to Forrester, Amazon is now the place most
consumers start their pro...
Myth #2
Only Amazon Wins the Buy Box

confidential

#AmazonErrors

8
Myth #2: Only Amazon Wins the Buy Box


80-90% of sales go to Buy Box owner



To win the Buy Box:





Price
Availa...
Amazon: Factors in Winning Buy Box
• Number you have in
stock and Quick and
Consistent Fulfillment
• Fulfillment Channel F...
Buy Box: Best Practices


Consider Product Repricing



Offer Free Shipping



Consider Fulfillment by Amazon (FBA)


...
Amazon: Consider Product Repricing


Repricer used as a Buy
Box strategy



Rules engine designed
to automate
competitiv...
Amazon: Consider FBA
Fulfillment by Amazon (FBA):
 Inventory stored at an Amazon Fulfillment Center.
 Picking, Packing &...
Amazon: Consider FBA
FBA Benefits to Sellers:
 Extend reach to Prime Members and Super Saver Shipping Offers
 Get Amazon...
Amazon: 360 Dashboard

Sales and Order
History
Product Listing
Status
Top-performing
Products
Seller Reputation
Focus on i...
Amazon: Manage Seller Performance

confidential

#AmazonErrors

16
Managing Performance: Best Practices


Check your Seller Performance daily!
 Order Defect Rate: < 1%
 Pre-Fulfillment C...
Myth #3
Data Quality Doesn’t Matter

confidential

#AmazonErrors

18
Amazon: Listings & Data Quality
A Good Customer Experience starts with Good Product Details
Product
Feedback

Images

Vari...
Amazon: Data Listing Challenges


Lots of Data Requirements



Requirements Change



Variation Listing Errors



Matc...
Most Common Amazon Errors


Listing Relationships (28%)
 Insufficient Variation Data
 Parent or Child Product not Recog...
Common Error 1: Variation Errors

Problem:
Not enough product data to
properly create a variation
(parent/child) relations...
Variations: Best Practices


Research which variations themes are available for your
category




Check that the values...
Amazon: Templates


In ChannelAdvisor we use templates and highlight the
recommended fields

confidential

#AmazonErrors
...
Common Error #2: Product Matching
To maintain a single product listing, Amazon uses product
matching to find and eliminate...
Avoiding Matching Errors: Best Practices



Provide as Much Data as you Can



Unique standard identifiers: ISBN, UPC, o...
Amazon: Matching Error Resolution
 Increase the % of your catalog that is actually listed on Amazon
 Used to find the be...
Myth #4
It’s too difficult to go International

confidential

#AmazonErrors

28
Amazon: Selling Internationally


Consider Selling in Canada



Consider FBA & Amazon Export



Amazon’s Global Marketp...
Amazon Canada


Consider selling on Amazon Canada:
 #11 Website Traffic in Canada
 # 1 E-Commerce site in Canada - bigg...
Amazon FBA Export




Products listed on Amazon.com and Products held in FBA
All eligible product listings will be avai...
Myth #4: It’s too difficult to go International


Consider selling in the United Kingdom and in
Europe:
 Amazon’s Europe...
Global Amazon Marketplaces
UK
France
Germany
Spain
Italy

2013

US
Canada

Japan
China
$29.7b
5% of Total
Growth Rate

17%...
Thank you!
For more information:
info@channeladvisor.com
1-866-264-8594

confidential

#AmazonErrors

34
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Transcript of "channeladvisor Selling on Amazon 2013"

  1. 1. Myths & Misconceptions of Selling on Amazon Best Practices to Doing it Right Gina DeFrank 2013 Product Manager & Business Analyst, Marketplaces
  2. 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. 3. Myth #1 It’s too late to get on Amazon confidential #AmazonErrors 3
  4. 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. 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. 6. Myth #1: It’s too late to get on Amazon 3PM is growing 2X Amazon Retail Source: Amazon Public Data confidential
  7. 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. 8. Myth #2 Only Amazon Wins the Buy Box confidential #AmazonErrors 8
  9. 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. 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. 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. 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. 13. Amazon: Consider FBA Fulfillment by Amazon (FBA):  Inventory stored at an Amazon Fulfillment Center.  Picking, Packing & Shipping  Customer Service confidential 13
  14. 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. 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. 16. Amazon: Manage Seller Performance confidential #AmazonErrors 16
  17. 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. 18. Myth #3 Data Quality Doesn’t Matter confidential #AmazonErrors 18
  19. 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. 20. Amazon: Data Listing Challenges  Lots of Data Requirements  Requirements Change  Variation Listing Errors  Matching Amazon’s Catalog confidential #AmazonErrors 20
  21. 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. 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. 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. 24. Amazon: Templates  In ChannelAdvisor we use templates and highlight the recommended fields confidential #AmazonErrors 24
  25. 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. 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. 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. 28. Myth #4 It’s too difficult to go International confidential #AmazonErrors 28
  29. 29. Amazon: Selling Internationally  Consider Selling in Canada  Consider FBA & Amazon Export  Amazon’s Global Marketplaces confidential #AmazonErrors 29
  30. 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. 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. 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. 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. 34. Thank you! For more information: info@channeladvisor.com 1-866-264-8594 confidential #AmazonErrors 34

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