Amazon: Marketplace - Start Selling Online


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  • Notes to Pitchers: For retailers with whom we have a signed NDA, this will serve as a reminder. For retailers with whom we do not have a signed NDA, it’s cautionary.The faded background language is for effect in a slideshow, but will be more obvious (and distracting) in printed form. If you print the deck, remove the background language. It’s not necessary; just a prop.
  • Highlight and draw out the Amazon Seller Services part of the businessEnd with the call out of the various products on offer, with the explanation to describe the relevant offerings in the subsequent slides
  • Intent: Briefly introduce the 3 servicesStress on tested and proven – SOA was launched in XXXX, FBA as a service in XXXX, Product Ads in XXXXBrief description of SOA, FBA and JungleeIntroduce acronyms to them to seed the idea
  • While the previous slide tells an offline retailer that it pays to be online, this slide is meant to drive home the point that it’s not at all easyTime needs to be spent on this slide building up on the key challenges since our value proposition essentially mirrors these issuesNote: The key challenges (points in red) are in the same flow as a seller’s “online selling journey”:
  • Intent: Provide laundry list of service features.In addition this slide should also be the point where the BD offers a demo of to the seller. Salient points to talk about would be:Multiple ways to discover products – browse, search, merchandizingCategory and search pagesRich product detail page – detailed information, customer reviews (recommend choosing products which have HQPs)Ability to share page on social media when signed onDistinction between branding for MFN and FBA offers – “”Sold and dispatched by <Seller>” vs “Sold by Seller and Fulfilled by Amazon”FBA Offers eligible for CODAdd to cart button and more buying choices boxOLPA-to-z guaranteeOption to filter FBA only offersAbility to choose sellers based on price, delivery timelines, feedback ratingsPost Add to cart experienceMerchandizing of complementary products (has not started yet, currently other popular products are displayed)CheckoutCredit card information stored for customer convenienceCredit card information validated for change in shipping address to provide greater customer securityCustomer support – phone, email, chat
  • This is where BD begins a demo of
  • Amazon: Marketplace - Start Selling Online

    1. 1. Confidentiality: The Short Version 1. Confidential Information. As used in this Agreement, “Confidential Information” means all nonpublic information relating to Amazon or disclosed by Amazon to the above-referenced company, its affiliates or the agents of any of the foregoing (collectively, “Supplier”) that is designated as confidential or that, given the nature of the information or the circumstances surrounding its disclosure, reasonably should be considered as confidential. Confidential Information includes, without limitation (i) all nonpublic information relating to Amazon’s technology, customers, business plans, promotional and marketing activities, finances and other business affairs, and (ii) all third-party information that Amazon is obligated to keep confidential. Confidential Information may be contained in tangible materials, such as drawings, data, specifications, reports and computer programs, or may be in the nature of unwritten knowledge. 2. Exclusions. Confidential Information does not include any information that (i) is or becomes publicly available without breach of this Agreement, (ii) can be shown by documentation to have been known to Supplier at the time of its receipt from Amazon, (iii) is received from a third party who did not acquire or disclose such information by a wrongful or tortious act, or (iv) can be shown by documentation to have been independently developed by Supplier without reference to any Confidential Information. 3. Use of Confidential Information. Supplier may use Confidential Information only in pursuance of its business relationship with Amazon. Except as expressly provided in this Agreement, Supplier will not disclose Confidential Information to any person or entity without Amazon’s prior written consent. Supplier will take all reasonable measures to avoid disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum, those measures it takes to protect its own confidential information of a similar nature. Supplier will segregate Confidential Information from the confidential materials of third parties to prevent commingling. Supplier will not export any Confidential Information in any manner contrary to the export regulations of the United States. • Information we are sharing with you is confidential • We want you to learn more about our business & our plans • We ask that this presentation and its contents be shared only with persons inside your company, who have a need to know Amazon Services Confidential 1
    2. 2. An invitation to 2
    3. 3. Agenda Slide • An Introduction to • Online Retailing Challenges & our proposal • Amazon Seller Services – How we can help you grow your business • Selling on Amazon & Fulfillment by Amazon • The Value Proposition • Commercials (Pricing of Amazon services) • Seller Policies • Next Steps Amazon Services Confidential 3
    4. 4. An introduction to 4
    5. 5. Amazon’s Strategy… We strive to be Earth’s most Customer-Centric Company Build a place where people can find and discover anything they want to buy online Relentless focus and innovation based on a core set of customer needs: • • • “Start with the customer and work backwards.” - Jeff Bezos, Founder and CEO Selection Value Convenience 5
    6. 6. : How we seek to help grow your business Service How we help you Available in India Sell your products on Amazon stores, packs, ships and provides customer service for your products Increase traffic to your site using ads that take consumers to your product pages Amazon customers pay on your website using their Amazon profiles Build and operate your online store using our all-in-one e-commerce platform Third Party Sellers contributed to 45% of Amazon’s units sold Worldwide in 2012 Amazon Services Confidential 5
    7. 7. Amazon’s current offerings in India Businesses Nearby With SOA, List & Sell your products on You sell it, we ship it. With FBA, store your products in Amazon fulfillment centers, while we pack, ship & provide customer service Reach millions of online shoppers with ads on that link to product pages on your website Amazon Services Confidential Advertise your offline store on; reach buyers who research products & compare prices online 7
    8. 8. Amazon Services Confidential 6
    9. 9. OFFLINE & ONLINE RETAILING CHALLENGES & OUR PROPOSAL Amazon Services Confidential 6
    10. 10. Limitations of offline retail Reach Cost of operations Product display space Inventory management Payment Options  Reach limited to local customer base near the store  Large marketing budgets required to expand reach to new customers in other localities  Significant incremental costs of setting up new stores – real estate, manpower, overheads, etc.  Range of products on display limited to physical shelf space in store(s)  Challenges & costs of managing inventory across multiple stores  Managing multiple banks & debit/credit card transactions  High cost of credit card transactions Amazon Services Confidential 10
    11. 11. Internet Growing Rapidly in India • Growing trend of Indian offline retailers going online with Offline retailers growing online their own sites, eg. JJ Mehta, Nalli Silks, Mom & Me. • Traditional multi-brand offline sellers also going online with, eg. Shoppers Stop, Croma, Vijay Sales, Univercell, Kamdar & Kamdar. 11
    12. 12. Challenges faced by an Indian online retailer High costs in going and staying online Customer Acquisition & Conversion  High Capital expenditure in technology, delivery infrastructure  High Operational expenses in marketing, retaining employees with technical expertise, scaling infrastructure with demand  Customers are hesitant to adopt online platforms as they are unsure about experiences like returns, warranty, on time delivery etc…  High customer acquisition costs Payment Gateway Challenges  Inferior payment options lead to order cancellations, customer dropouts and overall Suboptimal customer experience Customer Service – Expertise & Costs  Customer Service brings customer retention & repeat purchases  High employee costs in hiring & training personnel Last mile delivery issues  High Fulfillment costs & High cost of customer returns  Cash on Delivery inefficiencies  Lowers buying commitment, increases returns & Adds collection charges Amazon Services Confidential 12
    13. 13. SELLING ON AMAZON (SOA) & FULFILLMENT BY AMAZON (FBA) Amazon Services Confidential 13
    14. 14. Demo of & Benefits  Product Listings on Amazon Platform  Transaction on Amazon Platform  Credit/Debit Card, Net banking & COD payment options  Inventory Stocking in Amazon Warehouse  Amazon’s Guaranteed 1-Day Delivery* for any seller using FBA Click the Image for a demo of the website  Amazon Delivery Network + Capabilities like Fast-track* shipping  Customer Service & Support * Guaranteed 1-Day delivery and Fast Track shipping available in select cities Amazon Services Confidential 14
    15. 15. SOA & FBA: The Value Proposition Robust Payment Systems Additional Sales Channel No upfront costs - No customer acquisition costs or capex towards warehousing - Reduced opex towards delivery network, human capital and customer service Variable Cost Structure - Enhanced visibility to a new range of predisposed consumers - Opportunities to Cross Sell & Up Sell - Pay as you go – we make money only when you sell or use storage space Amazon Services Confidential Ease of use - Credit/Debit Card, Net banking & COD payment options available on robust payment gateway - - Use of Amazon catalog; userfriendly panel to manage orders, inventory & payments Dedicated seller support team & Analytics support 15
    16. 16. COMMERCIALS Amazon Services Confidential 16
    17. 17. With Amazon you can focus on growing your business FUNCTION DESCRIPTION YOUR WEBSITE PARTNERING WITH AMAZON SOA+FBA Product Sourcing Selection plan and procurement Pricing Product and shipping pricing Hardware, software, ongoing development and maintenance E-catalogue with rich product data, images and reviews √ Customer Acquisition/ Marketing SEO, SEM, Affiliate Marketing √ Payments E-payment integration, card and net banking fees, payments fraud Storage Inventory storage and warehouse management Delivery Order handling, Pick and pack, Shipping, COD Fees and Returns, Octroi Customer Service Phone, email and chat based customer service Returns Inbound customer returns and returns processing √ √ √ √ √ Technology Catalogue Seller does the work √ √ Amazon does the work Amazon Services Confidential 17
    18. 18. How Amazon’s tools & services will help you succeed Monitor & promote your business by leveraging the features of Amazon Seller Central portal Business Reports Inventory Management Seller Support Customer Contacts Order Management Performance monitoring  Reports on high demand products category -wise  Market information on price competitiveness  Seller specific insights to promote sales in the listed & related category  Add offers to Amazon catalogue using feeds, spreadsheets, web APIs & other tools  Options to configure various means of promotion  Dedicated seller support team on e-mail and phone correspondence available 24X7  Opportunity to view & respond to customer feedback  Email sent whenever customer responds to a query  E-mail/periodic alerts on orders & shipping deadlines  Order/payment reports for accounting needs  Periodic notifications on performance metrics along multiple dimensions Amazon Services Confidential 18
    19. 19. Cost Comparison on Amazon promo rates LINE ITEMS COSTS -YOUR SITE (INR) Item Sale Price Traffic Payments Packing and Labor Shipping Storage Fees Customer Service Cost of Returns Service Tax TOTAL* Additional Charges 5300 393 122 35 70 4 1 7 0 632 Seller Paid Octroi Bid Amount ($) Bid Amount (INR) Conversion Rate (%) % of prepaid txns % of COD txns Prepaid txn charge (%) COD txn charge (More than 30) COD txn charge (Less than 30) Packing and Labor Shipping Storage fees Customer Service LINE ITEMS COSTS -SOA (INR) LINE ITEMS Item Sale Price Ref. Fee@5% Closing Fee Packing and Labor Shipping Storage Fees Customer Service Cost of Returns Service Tax TOTAL* Additional Charges 5300 265 10 35 70 4 1 7 34 426 Seller Paid Octroi Item Sale Price Ref. Fee@5% Closing Fee Per Unit Handling Fee P.U. Ship Fee Storage Fees COD + Octroi Service Returns + CS Service Tax TOTAL* Additional Charges 0.55 27.5 7 40% 60% 2.75% 2% 30 35 70 4 1 Weight of product (kgs) Multiples of .5kg in prod Space occupied (cu.feet) COSTS - SOA+ FBA (INR) 5300 265 10 0 20 7.1 53 0 44 355 None 0.5 1 0.5 Legend: Cost of selling on your channel: Cost of selling via Amazon: Amazon Services Confidential 19
    20. 20. Pricing for Selling on Amazon SOA Referral Fees (per Unit Sold)*** Promotional Rate Standard Rate (First Year)** FEE COST (INR) Subscripti on Rs. 499/- per month (applicable after June 5, 2014) Books, Music & Movies 5% 12% 5% 8% SOA Referral Share Consumer Electronics (includes Camera) By Category (see adjoining table) 5% 12% Closing Fee Accessories (includes PC Accessories, Electronic Accessories & Mobile Accessories) Rs. 10/- per unit Mobile Phones 4% 5% Personal Computers, Laptops & Tablets 4% 5% Toys & Baby Products 5% 15% Personal Care Appliances 5% 15% Jewellery 8% 15% Watches Home & Kitchen Beauty Video Games - Console 8% 5% 5% 5% 15% 15% 15% 8% Video Games - Games 5% 12% Luggage 8% 15% And Get: Achieve National Presence Sell in 15+ categories Zero Cost of Traffic Zero Cost of Payments Amazon’s E-commerce Technology & Catalog  Fraud Protection  Benefit of Zero Subscription Fee & Reduced Referral Shares*      * Zero Subscription Fee applicable till June 5, 2014 ** Reduced Referral Shares applicable to different categories are as follows: Books & Movies till June 5, 2014; Consumer Electronics, PC, Tablets, Mobiles & Accessories till June 25, 2014; Health & Personal Care till September 12, 2014; Jewelry & Watches till September 19, 2014 & Home & Kitchen till September 26, 2014 *** Charges are exclusive of Service Tax @ 12.36% Amazon Services Confidential 20
    21. 21. Pricing for Fulfillment by Amazon You Pay: Promotional Rate (First Year) Standard Rate (Media^) Standard Rate (NonMedia^^) Standard Rate (Oversize) Pick & Pack Fee (per Unit) Free Rs.10 Rs. 25 Rs. 50 Weight Handling Shipping Fee (per Unit) And Get:    First 500 gms Every additional 500 gms Rs.40 Rs. 45 Rs. 70 1% of Item Value 1% of Item Value 1% of Item Value 1% of Item Value  Storage Fee (per Cubic Ft/Month)   Rs.20 Rs. 50 (for oversize only) Delivery Service Fee (per Unit)     Rs.20 Rs. 35 (for oversize only) Free for the first 3 months Rs.14.20 Rs.14.20 Rs.14.20   Rs.40 Rs. 45 Rs. 100   Increased Order Conversion through FBA branding* Fast Track shipping to select cities Amazon’s Guaranteed 1-day Delivery to select cities No additional COD or Octroi charges Guaranteed delivery & trackable courier** Trusted customer service and returns Insured shipment High quality packing material Free storage for 3 months after your first shipment to the Amazon FC Free FBA shipping for units > Rs. 20,000 (not for Oversize products) Packing material weight – Media: 75 gms; Non-media: 100 gms & oversize: 500 gms Oversize Defined as: Greater than Any Of the following – 12 kgs in mass OR 45cm on longest side OR 34 cm on median side OR 26 cm on shortest side. Per unit Removal charges: Media: INR 10; Non Media: INR 25 & Oversize: INR 50 All Charges are exclusive of Service Tax @ 12.36% ^Media Categories: Books, Movies, Music, Videogames & Software ^^Non Media: all other categories * As observed on as well as in other geographies ** In pin codes serviced by our couriers with trackable service Amazon Services Confidential 15
    22. 22. AMAZON SELLER POLICIES Amazon Services Confidential 22
    23. 23. MANDATORY POLICIES for sellers on  All customer queries are to be responded to within 24 hours  Pre-fulfillment Cancelation rate* (seller-canceled orders) to be less than 2.5%  Late Shipment rate on all orders to be less than 4%  For damaged/defective products, return pick-up is to be arranged/paid for by the seller.  Only products with India-specific manufacturer warranty can be sold on  Pricing of products on is expected to be equal to or lower than the price on your site  Seller is expected to deliver pan India & bear Octroi charges wherever applicable  Requirement of UPC/EAN and bar codes to list your products  Manufacturers who wish to sell their own products on are expected to have trademark registered for their brand Amazon Services Confidential Amazon’s Return Policy for different categories Product Category “Change of Mind”/ Unopened Damaged/ Defective Products Books, Movies & TV Shows, Music, Beauty & Health 7 days 30 days Electronics, Video Games, Toys, Baby, Home & Kitchen 10 days 10 days Watches, Fashion Jewellery, Luggage 30 days 30 days 23
    24. 24. Next steps Confirm interest Designate business and tech points of contact Registration and account creation Tax registration (only for FBA) Amazon Services Confidential Onboarding and integration Launch on the Amazon platform 24
    25. 25. THANK YOU Amazon Services Confidential 25