The document provides insights on selling on Amazon, emphasizing fulfillment options, inventory management, and associated fees. Key topics include FBA and FBM, tools for inventory forecasting, and impacts of COVID-19 on operations and fees. It encourages sellers to diversify fulfillment methods and stay updated on fee changes to optimize their Amazon business.

1. Master the Ins & Outs of Amazon
Operations
Operational Efficiency as an Amazon Seller

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5. Today’s Speaker
Mark Russo
Marketplace Operations
Specialist

6. 6
1. Ways to Sell on Amazon
2. Inventory Management and Forecasting
3. 2020 Fees, Fee Increases, and Hidden Costs
4. COVID-19 Announcements
5. Live Q&A
Agenda

7. 7
Ways to Sell on Amazon

8. 8
Seller Central Operations
Ways to Sell on Amazon
There are various ways to sell product and fulfill orders
on Amazon that can be combined together into one
holistic approach:
• Fulfilled by Amazon (FBA)
• Fulfilled by Merchant (FBM)
Seller Fulfilled Prime (SFP)
S
Seller Fulfilled Prime (SFP
• Amazon Business (B2B)
• Subscribe & Save
Fulfillment Methods
Discounted Pricing

9. 9
Inventory Management and Forecasting

10. 10
Amazon’s Restock Inventory tool
(Inventory > Inventory Planning > Restock Inventory)
30 days of sales + Existing FBA inventory levels
Recommended ship dates and quantities for future FBA shipments
Hide recommendations
Not replenishable = Indirectly improves the Inventory Performance Index (IPI) score
The Restock Inventory tool provides an exportable Restock Report
Seller Central Operations
Inventory Management and Forecasting
What tools and reports does Amazon provide to help us manage our FBA inventory?

11. Maximum inventory level represents the maximum inventory you
can maintain at Amazon. You will not be able to create a shipment
that increases your inventory levels beyond this threshold. Maximum
inventory levels are calculated using historical demand for your
products.
Utilization represents your current inventory at Amazon, which
counts against your maximum inventory level and helps determine
your maximum shipment quantity. It accounts for your incoming
shipments, inventory pending removals, and inventory reserved for
orders pending shipment.
Limited Restock Tag and
Shipment Quantity Limits
Seller Central Operations

12. 12
Seller Central Operations
Inventory Management and Forecasting
In addition to the Restock Report there are
various other tools and reports available for
sellers to leverage in managing their inventory:
Inventory Performance Index (IPI)
Detail Pages Sales and Traffic
Inventory Health
Inventory Age
Excess Inventory
Subscribe & Save Forecasting

13. Inventory Performance Index (IPI) calculation change
January 20, 2020
Inventory Performance Index (“IPI”)
Seller Central Operations
Excess inventory
Sell-through
Stranded inventory
In-stock inventory

14. Continuously monitor unsellable quantities to avoid wasted
spend on storage fees
Regularly review inventory age and sales velocity to identify
opportunities for promotion and to optimize storage levels
Ensure that there is harmony between the product life cycle and
its inventory level
Avoid
Stale
Inventory
Unsellable
Aged
Discontinued
Inventory Management and Forecasting
Seller Central Operations

15. 15
2020 Fees, Fee Increases, and Hidden Costs

16. 16
Seller Central Operations
Fees + Costs
Fees
Professional Seller Account: $39.99/month
Referral Fees: 8% – 45% depending on your category (mostly 15%)
Closing Fee
Minimum Referral Fee
Fulfillment Fees
Storage Fees
Overage Fees
Long-term Storage Fees (LTSF)
Removal Order Fees
High-Volume Listing Fee
Costs
Shipping Inventory to Amazon
Returns
Advertising on an ASIN level

17. 17
Seller Central Operations
2020 Fees
Fulfillment Fees
Referral Fees
Storage Fees Jan - Sept $0.75 / ft3
| Oct - Dec $2.40 / ft3
| Changes in March 2020:
https://sellercentral.amazon.com/gp/help/GZ5Q2VW5WF4JWRGC
Label Service Fee
Flat fee per unit | Based on product size and weight | Changes in February 2020:
https://sellercentral.amazon.com/gp/help/GABBX6GZPA8MSZGW
Fee on each item sold | Vary by category | Changes in February 2020:
https://sellercentral.amazon.com/gc/fee-changes
$0.30 per unit | FBA Small and Light $0.10 per unit | Changes in February 2020:
https://sellercentral.amazon.com/gp/help/GZ5Q2VW5WF4JWRGC
Removal Order Fee
Disposal Order Fee
Varies based on size and weight tier | Changes in February 2020:
https://sellercentral.amazon.com/gp/help/GZ5Q2VW5WF4JWRGC
Varies based on size and weight tier | Large Changes in February 2020:
https://sellercentral.amazon.com/gp/help/GZ5Q2VW5WF4JWRGC

18. Seller Central Operations
Covid-19 Related Announcements
February 7, 2020
Important notification regarding impacts of the Novel Coronavirus
March 17, 2020
Temporarily prioritizing products coming into our fulfillment centers
March 24, 2020
COVID-19: Removal order delays and long-term storage fee waiver
March 27, 2020
COVID-19: Update on prioritized shipment creation, new tool to check eligibility
March 30, 2020
COVID-19: FBA storage fee waiver
April 3, 2020
Temporary return window extension
April 10, 2020
Pausing Account Suspensions for Order Performance
April 18, 2020
COVID-19: Update on products eligible for shipment creation (US)
May 4, 2020
COVID-19: Waiver of May 15 US long-term storage fee
May 6, 2020
USPS international shipping service disruptions
May 13, 2020
Pause on Account Suspensions for Order Performance Extended to May 31

19. Key Takeaways
Explore diversification options for your fulfillment network
Leverage Amazon’s existing tools to manage FBA inventory
Monitor ASIN level sales velocity (FBM Sellers)
Track fee increase announcements and continuously
update margin calculations
Remember to account for all costs associated with your
Amazon business

20. 20
Coronavirus (COVID-19): The Resource Hub for Marketers
The latest news and cutting edge strategies for marketers to apply today
tinuiti.com/covid
Latest News
& Updates
by Channel
Tips for
Marketers to
Implement
Trends &
Up-to-the
Minute
Updates

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22. Live Q&A
Mark Russo
Marketplace Operations
Specialist

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