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CPC Strategy: FBA Assortment Allocation Strategy
The document outlines a course on refining FBA allocation strategies, emphasizing the importance of understanding FBA's role in Amazon marketplace performance and common misconceptions. It discusses the necessity for sellers to analyze profitability at the ASIN level and the impact of long-term storage fees on product selection. Key takeaways include the need for a strategic reassessment of FBA allocations to optimize sales and prepare for seasonal demands.
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CPC Strategy: FBA Assortment Allocation Strategy
- 1. Refining Your FBAAllocation 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. Before We GetStarted 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. 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. • Founded in2007 • 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
- 6. Pat Petriello Head ofMarketplace 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
- 7. Course Overview • TheRole 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
- 8. The Role ofFBA 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
- 9. Misconceptions About FBAAllocation 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
- 10. A New Strategyfor 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.
- 11. Following ASIN-level PerformanceMetrics 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
- 12. Incorporating Fees inProfitability 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
- 13. Long Term StorageFees 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
- 14. Short-term vs. Long-termPlanning 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
- 15. Takeaways from today KeyTakeaways 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
- 16. Evaluate Your Approachto 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