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SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON

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SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON

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Learn the basics of drop shipping and how it can accelerate Amazon as a channel for increased sales. Plus, learn how your Amazon drop shipping experience can make you a more valuable trading partner, both for existing and prospective customers.

Learn the basics of drop shipping and how it can accelerate Amazon as a channel for increased sales. Plus, learn how your Amazon drop shipping experience can make you a more valuable trading partner, both for existing and prospective customers.

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SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON

  1. 1. The 2019 Amazon Acceleration Virtual Summit
  2. 2. 9 - 9:45 am PT 11 - 11:45 am PT Today’s Timeline 10 - 10:45 am PT 1 - 1:45 pm PT12 - 12:45 am PT 2 - 2:45 pm PT SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON CPC STRATEGY PRESENTS: ACCELERATE BRAND DISCOVERY WITH AMAZON’S NEW TARGETING & BIDDING SKUBANA PRESENTS: A PROVEN SEO FORMULA TO 10X YOUR TRAFFIC & CONVERSION IN 12 MONTHS OR LESS SALSIFY PRESENTS: PRODUCT DETAIL PAGE OPTIMIZATION AND ITS IMPACT ON AD SPEND EFFICIENCY SHIPBOB PRESENTS: HOW TO SHIFT LOGISTICS FROM A COST CENTER TO A REVENUE DRIVER AVALARA PRESENTS: SALES TAX 101 FOR AMAZON SELLERS
  3. 3. Today’s Logistics ● Session Recording & Slides Will Be Sent Out ● Submit Questions to Our Panelists ● Resources Available as Handouts Analicia Santaella Partner Coordinator
  4. 4. Copyright 2017 - Q4 Amazon Virtual Summit Growing Your Business with Drop Shipping & Amazon
  5. 5. Copyright 2017 - Q4 Amazon Virtual Summit Warren Knapp Sr. Customer Success Executive SPS Commerce
  6. 6. Agenda ❑ What is drop shipping? ❑ Amazon Retail and Amazon Marketplace ❑ Becoming eligible for Amazon Prime ❑ Take drop shipping beyond Amazon ❑ 5 elements for a great drop ship program
  7. 7. Copyright 2017 - Q4 Amazon Virtual Summit What is Drop Shipping?
  8. 8. Drop Shipping Defined [drop-ship] Verb (used with object), drop-shipped, drop-shipping To send purchased goods directly from the vendor or manufacturer to a customer or retailer with no intermediate distributor, but billed through a third party.
  9. 9. Consumer places order with Amazon
  10. 10. Amazon places order with the vendor
  11. 11. Vendor ships to consumer
  12. 12. Vendor provides Amazon and consumer with ongoing order/shipment information
  13. 13. Amazon provides consumer with ongoing order/shipment information when needed
  14. 14. Consumer receives their Amazon order – from you
  15. 15. Copyright 2017 - Q4 Amazon Virtual Summit Amazon Retail and Amazon Marketplace
  16. 16. Amazon: The Everything Store ❑ Amazon: Wants to be the “everything” store with unlimited SKUs and item availability ❑ Amazon Marketplace: Allows sellers to quickly list products on Amazon’s platform, backed by marketing from Amazon Seller Central, in exchange for a small referral fee
  17. 17. Two Ways to Sell on Amazon ❑ Fulfilled by Amazon: Sell and ship full pallets of product to an Amazon warehouse, to be re-sold and fulfilled through Amazon. ❑ Fulfilled by Merchant: The seller has an Amazon retail storefront and participates in the Marketplace, but takes on the responsibility and overhead of shipping to the consumer parcel by parcel.
  18. 18. Copyright 2017 - Q4 Amazon Virtual Summit Becoming Eligible for Amazon Prime
  19. 19. Prime Statistics ❑ More than 50% of U.S. households are Prime subscribers. ❑ 70% of Americans with incomes of $150,000 or more who shop online have Amazon Prime memberships. ❑ 46% of Amazon Prime subscribers buy something online using the benefits of their subscription at least once a week. ❑ Prime subscribers spending up to 4.6X more than non-prime customers
  20. 20. Seller Fulfilled Prime Eligibility
  21. 21. Amazon Premium Shipping ❑ Sell on Amazon for 90 days or more ❑ Enable Same-Day Delivery, One-Day Shipping, and/or Two-Day Shipping on shipping settings (even if they are expensive shipping options) ❑ Deliver orders according to Amazon’s Premium Shipping Eligibility requirements To be eligible for Premium Shipping, the seller must:
  22. 22. Amazon Premium Shipping ❑ An on-time delivery rate of at least 92 percent for Premium Shipping Orders ❑ A valid tracking ID for at least 94 percent of Premium Shipping Orders (UPS, US Postal Service, FedEx, or OnTrac) ❑ A seller initiated cancellation rate of less than 1.5 percent for Premium Shipping Orders These requirements must be maintained over a 30 day period for Premium Shipping:
  23. 23. Seller Fulfilled Prime Trial Period Meet the following requirements over the course of 200 consecutive orders: ❑ An on-time delivery rate of at least 99 percent for Prime Trial Orders ❑ Use of Buy Shipping Services for at least 95 percent of Prime Trial Orders ❑ A cancellation rate of less than 1 percent for all Prime orders
  24. 24. Other Seller Fulfilled Prime Terms ❑ Buy all shipping labels for orders with a Prime item via Amazon’s Buy Shipping Services ❑ Direct all post-order customer service issues to Amazon ❑ Adhere to Amazon’s returns policy ❑ Offer Prime shipping benefits and guaranteed delivery dates Required terms for Seller Fulfilled Prime agreements:
  25. 25. Copyright 2017 - Q4 Amazon Virtual Summit Take Drop Shipping Beyond Amazon
  26. 26. 1 Retailers are seeking out drop ship vendors Drop Shipping Beyond Amazon
  27. 27. 1 2 Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Drop Shipping Beyond Amazon
  28. 28. 1 2 3 Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Drop Shipping Beyond Amazon
  29. 29. 1 2 3 4 Get more product assortment in front of customers Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Drop Shipping Beyond Amazon
  30. 30. 1 2 3 4 5 Get more product assortment in front of customers Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Improve customer loyalty and lifetime value Drop Shipping Beyond Amazon
  31. 31. Drop Ship Survey Results Source: SPS Commerce, November 2018
  32. 32. Drop Ship Survey Results Source: SPS Commerce, November 2018
  33. 33. Drop Ship Survey Results Source: SPS Commerce, November 2018
  34. 34. Drop Ship Survey Results Source: SPS Commerce, November 2018
  35. 35. Drop Ship Survey Results Source: SPS Commerce, November 2018
  36. 36. Drop Ship Survey Results Source: SPS Commerce, November 2018
  37. 37. Drop Ship Survey Results Source: SPS Commerce, November 2018
  38. 38. Drop Ship Survey Results Source: SPS Commerce, November 2018
  39. 39. Drop Ship Survey Results Source: SPS Commerce, November 2018
  40. 40. Copyright 2017 - Q4 Amazon Virtual Summit 5 Elements for a Great Drop Ship Program
  41. 41. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  42. 42. Successful Program Elements 1 2 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  43. 43. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  44. 44. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  45. 45. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  46. 46. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  47. 47. Copyright 2017 - Q4 Amazon Virtual Summit Drop Shipping Report
  48. 48. Copyright 2017 - Q4 Amazon Virtual Summit Q & A
  49. 49. Copyright 2017 - Q4 Amazon Virtual Summit For more information: webinar@spscommerce.com
  50. 50. 9 - 9:45 am PT 1 - 1:45 pm PT 11 - 11:45 am PT 12 - 12:45 am PT 10 - 10:45 am PT 2 - 2:45 pm PT SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON CPC STRATEGY PRESENTS: ACCELERATE BRAND DISCOVERY WITH AMAZON’S NEW TARGETING & BIDDING SKUBANA PRESENTS: A PROVEN SEO FORMULA TO 10X YOUR TRAFFIC & CONVERSION IN 12 MONTHS OR LESS SHIPBOB PRESENTS: HOW TO SHIFT LOGISTICS FROM A COST CENTER TO A REVENUE DRIVER AVALARA PRESENTS: SALES TAX 101 FOR AMAZON SELLERS Please hold for our next presentation starting at 2pm PT / 5pm ET SALSIFY PRESENTS: PRODUCT DETAIL PAGE OPTIMIZATION AND ITS IMPACT ON AD SPEND EFFICIENCY

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