Demand forecasting, purchase order, inventory management, chargeback prevention, and more are all critical to your success as a first-party Vendor on the Marketplace. Discover how to create a holistic analysis of your brands’ catalog’s performance, the dynamic factors that affect sales and profitability, and how that aligns with Amazon’s ongoing purchase order process.
The 15 Minute Breakdown: 2024 Beauty Marketing Study
5 Steps on Your Path to Amazon Vendor Operational Fitness
1. 5 Steps on Your Path to Amazon Vendor
Operational Fitness
Master the Ins & Outs of Amazon Operations
2. Today’s Logistics
Persephanie Arellano
Webinar Coordinator
● Session recording and slides will be sent out
● Log back in anytime with the same link
● Resources available as handouts
● Submit questions for live Q&A
5. By the end of this presentation, you will understand
how to do a self-evaluation of your organization’s
Amazon operational health and how to make
improvements to subsequently drive more sales and
profits.
5 Steps on Your Path to Amazon Operational Fitness
6. The Self-Evaluation
??
Why are we receiving these Chargebacks?
Why are we having so many stock outs?
Why do we have so many issues with our
weekly purchase orders?
5 Steps on Your Path to Amazon Operational Fitness
8. Step 1: The Catalog Audit
Product data
Why is it necessary?
Tactic
● Individual ASIN updates within Catalog area of Vendor Central
● Bulk ASIN updates utilizing template
● Submit a Contact Us case
● UPC/ASIN/SKU
● Title
● Unit Cost
● PO unit of measure: each or case (case pack quantity)
● Ensure that the correct availability is correct
● Correct product information prevents shipment & payment issues
● Shortages and Chargebacks!
● Prevent delays in your EDI processes
● Reduces numerous Vendor manual tasks
5 Steps on Your Path to Amazon Operational Fitness
10. Below the fold: A+ enhanced marketing content
Build a consistent Brand image
Make your product stand out with rich, compelling content.
Potential increase in sales
Above the fold: A high quality detail page presents customers with all of
the essential product information and converts browsing shoppers to
buyers.
Step 2: Product Detail Page Audit
12. Step 3: Chargeback Deep Dive
Why are we getting them?
Where do we find them?
How do we prevent them?
● Understand all of the requirements & share with internal teams
● Assign team to monitor the operational performance dashboard
● Troubleshoot root causes & make changes to processes or catalog
How do we dispute them?
● Problems with purchase orders
● Problems with transportation process
● Problems with the receive process
● Go to: Vendor Central < Reports < Operational Performance
● Filter by date, issue, status
● Export data into spreadsheet for internal use
● Vendors have 30 days from notification date to dispute a chargeback
● Provide as much detail & documentation, as possible
● You may only dispute each chargeback twice
5 Steps on Your Path to Amazon Operational Fitness
14. Promotions are a vital way to drive
traffic, increase conversion, win
the Buy Box, and to ultimately
generate purchase orders.
Some promotions are listed on Amazon’s Today’s
Deals which attract new customers
Successful
Promotions
Lightning Deals,
Best Deals,
Price Discounts &
Coupons
More traffic for that product can
lead to more sales
More customers buy discounted product
Promotions give
customers a price
discount
Product sales may cause higher
organic rank results
Step 4: Promotions and the Halo Effect
5 Steps on Your Path to Amazon Operational Fitness
16. Step 5: Brand Analytics-How do I use all this data?
Brand Owner + Brand Registry
How do I qualify?
Track Sales
Sales reports, sales trends & profit margin
Customer Behavior Insights
Search terms, alternative purchase & reviews
Forecast & Inventory Planning
Monitor available inventory levels and Amazon’s dynamic forecast
Product Catalog
Schedule reports via email
Product catalog quality & prep instructions
Schedule weekly reports via email to share internally
5 Steps on Your Path to Amazon Operational Fitness
17. Result: Operational efficiency now driving sales growth
Purchase Order |
Inventory Management
AMAZON
OPERATIONAL
EFFICIENCY
Warehouse Efficiency and
Chargeback Management
Advertising / Marketing Efforts
Increased Sales
Growth
Catalog Management |
Expanding Product Offering
Comprehensive
Data Analysis
5 Steps on Your Path to Amazon Operational Fitness
19. ● Amazon is once again allowing Promotions!
● Vendors should review their current inventory levels within the
Amazon fulfillment center to determine if they see a need to
promote, while at the same time be able to do it profitably.
● Assume that Prime Day will occur so evaluate what items in your
Catalog can be promoted during that time-frame to take advantage
of the enormous traffic levels.
● The intent of these steps is to kick start the Amazon purchase order
algorithm which is driven by consistent traffic and recent sales
history.
Final thoughts: COVID-19 & Amazon Inventory
5 Steps on Your Path to Amazon Operational Fitness
20. Key Takeaways
Understand the importance of catalog quality & ongoing maintenance
Vendor compliance, Chargebacks & their effect on profitability
Operational efficiency is the foundation of Amazon success