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Refining Your FBA Allocation
Strategy
Are You Sending the Right Products to FBA?
D A Y 1 : A M A Z O N F U L F I L L M E N...
Before We Get Started
Session Recordings Will Be Sent Next Week
Q&A Following the Presentation
Submit Questions In the Cha...
For my business, Amazon Prime Day…
Poll For The Audience
A. Had zero impact on my sales
B. Had minimal impact on my sales
...
• Founded in 2007
• Over 300 active retail clients
• Top 50 fastest growing company in San Diego 3 years running
• Recogni...
Pat Petriello
Head of Marketplace Strategy
 Former member of Amazon Seller Services Team
 Former professional seller on ...
Course Overview
• The Role of FBA in Overall Amazon Strategy
• Misconceptions About FBA Allocation
• Following ASIN-level ...
The Role of FBA in Overall Amazon Strategy
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Fulfillment by Ama...
Misconceptions About FBA Allocation
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Sellers find FBA to be an...
A New Strategy for FBA Allocation
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
A Shift in Mindset
• The gr...
Following ASIN-level Performance Metrics to Allocate FBA
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
FBA ...
Incorporating Fees in Profitability Assessment
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Calculating Pr...
Long Term Storage Fees
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
• FC clean up twice every year (Feb. &...
Short-term vs. Long-term Planning
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Constant Evaluation is Requ...
Takeaways from today
Key Takeaways
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
• Always opportunities to ...
Evaluate Your Approach to the Amazon Marketplace
Questions for Pat or Rick?
Submit your questions in the chat box on the r...
CPC Strategy: FBA Assortment Allocation Strategy
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CPC Strategy: FBA Assortment Allocation Strategy

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How to choose which products to send to Amazon and how to calculate the overall profitability of FBA.

Published in: Marketing
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CPC Strategy: FBA Assortment Allocation Strategy

  1. 1. Refining Your FBA Allocation Strategy Are You Sending the Right Products to FBA? D A Y 1 : A M A Z O N F U L F I L L M E N T S T R A T E G Y C O U R S E S E R I E S
  2. 2. Before We Get Started Session Recordings Will Be Sent Next Week Q&A Following the Presentation Submit Questions In the Chat Box to the Right Logistics Speakers Rick Backus CEO CPC Strategy Pat Petriello Head of Marketplace Strategy CPC Strategy
  3. 3. For my business, Amazon Prime Day… Poll For The Audience A. Had zero impact on my sales B. Had minimal impact on my sales C. Significantly increased my sales D. Other
  4. 4. • Founded in 2007 • Over 300 active retail clients • Top 50 fastest growing company in San Diego 3 years running • Recognized as an Official Google Shopping Partner • Custom-built retail search technology platform, CAPx Solutions  Retail-focused Paid Search (PPC)  Google Shopping Management  Shopping Channel Management  Amazon Sales Acceleration CPC STRATEGY HAS BEEN FEATURED ON DELIVERING LASTING RESULTS FOR OUR CLIENTS VISIT CPCSTRATEGY.COM
  5. 5. Pat Petriello Head of Marketplace Strategy  Former member of Amazon Seller Services Team  Former professional seller on Amazon.co.uk, eBay, Buy.com  Lead architect for CPC Strategy’s Amazon Sales Acceleration Program (ASAP)  Engineered & directed million dollar revenue stream on Amazon
  6. 6. Course Overview • The Role of FBA in Overall Amazon Strategy • Misconceptions About FBA Allocation • Following ASIN-level Performance Metrics to Allocate FBA • Incorporating Fees in Profitability Assessments • Long Term Storage Fees • Takeaways • Q&A
  7. 7. The Role of FBA in Overall Amazon Strategy www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com Fulfillment by Amazon (FBA) The single most influential lever third-party sellers can pull to improve Marketplace performance The benefits of FBA are well-known: • Warehouse units • Pack and ship orders to customers • Provide customer service for those orders • Influence role on Buy Box ownership • Safeguard fulfillment latency & seller rating • Access to Amazon Prime user base • Increase sales performance
  8. 8. Misconceptions About FBA Allocation www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com Sellers find FBA to be an intimidating program • You’ve experienced some success with FBA but don’t know where to push forward with it • You’ve increased sales velocity but can’t quantify how profitable it is • Some of the operational elements are painful for you and your team (labeling, inbound shipments, etc.) Misconceptions about FBA • FBA is Binary • Emotional Connection to Product(s) • FBA Assortment Allocation • Calculating Profitability • Non-transparent Fees • Short-term vs. Long-term Planning
  9. 9. A New Strategy for FBA Allocation www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com A Shift in Mindset • The growing sophistication and technicality of the Amazon Marketplace • Sellers can no longer throw products in FBA and expect success • The Hybrid approach • The products you want to FBA vs. The products you should FBA Complexity around FBA can actually create opportunity.
  10. 10. Following ASIN-level Performance Metrics to Allocate FBA www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com FBA Assortment Allocation • Product Dimensions • Competitive Landscape • Profit Margin • Average Selling Price • Sales Performance History
  11. 11. Incorporating Fees in Profitability Assessment www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com Calculating Profitability • FBA fees are not calculated off the price of the item • If you are over 30% in fees, be aware of margins • Fee is unit based (will differ across catalog), so an ASIN-level approach is required
  12. 12. Long Term Storage Fees www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com • FC clean up twice every year (Feb. & Aug.) How can you improve now? • Discover which products are at risk for fees – How? • How to approach long-term storage fees? • Increase sales velocity • Sponsored Products • Pricing Strategy • Request a removal order • Sellers pay fee per cubic foot • Storage limits
  13. 13. Short-term vs. Long-term Planning www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com Constant Evaluation is Required An FBA allocation decision today may not be qualified in the future Factors that can change: • Landscape • Margin • Catalog • Seasonality
  14. 14. Takeaways from today Key Takeaways www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com • Always opportunities to optimize FBA assortment allocation • Analyzing profitability at the ASIN-level • Comprehensive understanding of fees • Be aware of long term fees - A choice to do nothing – is a choice to pay • Reassess FBA in preparation for Q4
  15. 15. Evaluate Your Approach to the Amazon Marketplace Questions for Pat or Rick? Submit your questions in the chat box on the right CPCStrategy.com www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com

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