FBA is considered one of the most influential levers third-party sellers use to improve marketplace performance, but without a proper FBA analysis, many sellers could see a decline in profits. While some sellers are seeing profitable returns through FBA, many are still looking for an edge on other sales channels to increase revenue/profitability.

1. MAXIMIZING AMAZON
PROFITABILITY
FBA Profitability & Sales Channel
Expansion Analysis

2. Today’s Logistics
Session Recording + Slides Will Be Sent Out
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3. Overview
Founded in 2007
Recognized as a Google Premier Partner
400+ Active Retail Clients
Top 50 fastest growing company in San Diego
DELIVERING LASTING RESULTS FOR OUR CLIENTS
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
About CPC Strategy

4. About Stitch Labs
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5. Today’s Event Speakers
David Cooley
Manager, Marketplace Channels
Brandon Levey
CEO

6. Today’s Event Agenda
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● The Current State of Retail
● Why Fullfillment By Amazon?
● How to Determine Which Products to Sell on Amazon?
● Succeed on FBA...Without Cannibalizing Your other Sales Channel
● How to be Successful with FBA
● How to Decide Which Products to Push into FBA

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8. Why FBA?
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How can you determine which products to
sell on Amazon?

10. Succeed on FBA...Without Cannibalizing Your
other Sales Channels
● Good news: Customers are starting product searches on
Amazon, not Google
● People are buying in different ways
● Think carefully before introducing competing product
variations on Amazon
● Use Amazon to clear old inventory
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11. How to be Successful with FBA
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12. Deciding Which Products & How Many to Send into FBA
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Factors Influencing FBA Allocation:
- FBA Fees
- Margin
- Current FBA Inventory
- Sales Velocity
- Seasonality Multiplier
- Inbound Inventory
- Lead Time
- Advertising
- Stockouts

13. Deciding Which Products & How Many to Send into FBA
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The In Stock report provides inventory metrics on your active listings with two or more
sales in the past 60 days. This report provides information on Estimated Lost Sales,
Estimated Days of Cover and Average Unit Sales per Week.
This report can be found within Seller Central under Business Reports -> Inventory In
Stock.

14. Deciding Which Products & How Many to Send into FBA
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- A seasonality multiplier is used
to account for demand
fluctuations due to seasonality.
- A 60 day sales velocity helps to
determine how many units will
need to be in stock to have full
coverage for that period.
- Days until stock out is used to
determine how many days of
current inventory coverage are
remaining.

15. Deciding Which Products & How Many to Send into FBA
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1. Start with trailing 60 day sales performance
2. Take into account inventory already in stock
3. Apply a seasonality multiplier, if applicable
4. Consider inventory en route inbound to Amazon FC’s
5. Consider stockouts using in stock report data
6. Use ASIN level profitability data to determine your FBA fee %
a) COGS
b) Sponsored Products
c) Fee % > 30% is worth investigating further
d) Margin determines what is ultimately acceptable

16. Questions?
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