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The 2019 Amazon
Acceleration Virtual Summit
9 - 9:45 am PT 11 - 11:45 am PT
Today’s Timeline
10 - 10:45 am PT
1 - 1:45 pm PT12 - 12:45 am PT 2 - 2:45 pm PT
SPS COMMERCE PRESENTS:
GROWING YOUR BUSINESS
WITH DROP SHIPPING
& AMAZON
CPC STRATEGY PRESENTS:
ACCELERATE BRAND DISCOVERY
WITH AMAZON’S NEW
TARGETING & BIDDING
SKUBANA PRESENTS:
A PROVEN SEO FORMULA TO
10X YOUR TRAFFIC & CONVERSION
IN 12 MONTHS OR LESS
SALSIFY PRESENTS:
PRODUCT DETAIL PAGE
OPTIMIZATION AND ITS IMPACT
ON AD SPEND EFFICIENCY
SHIPBOB PRESENTS:
HOW TO SHIFT LOGISTICS
FROM A COST CENTER
TO A REVENUE DRIVER
AVALARA PRESENTS:
SALES TAX 101 FOR
AMAZON SELLERS
Today’s Logistics
● Session Recording & Slides Will Be Sent Out
● Submit Questions to Our Panelists
● Resources Available as Handouts
Analicia Santaella
Partner Coordinator
Copyright 2017 - Q4 Amazon Virtual Summit
Growing Your Business with
Drop Shipping & Amazon
Copyright 2017 - Q4 Amazon Virtual Summit
Warren Knapp
Sr. Customer Success Executive
SPS Commerce
Agenda
❑ What is drop shipping?
❑ Amazon Retail and Amazon Marketplace
❑ Becoming eligible for Amazon Prime
❑ Take drop shipping beyond Amazon
❑ 5 elements for a great drop ship program
Copyright 2017 - Q4 Amazon Virtual Summit
What is
Drop Shipping?
Drop Shipping Defined
[drop-ship]
Verb (used with object), drop-shipped, drop-shipping
To send purchased goods directly from the vendor
or manufacturer to a customer or retailer with no
intermediate distributor, but billed through a third
party.
Consumer places order
with Amazon
Amazon places order
with the vendor
Vendor ships to consumer
Vendor provides Amazon and
consumer with ongoing
order/shipment information
Amazon provides consumer
with ongoing order/shipment
information when needed
Consumer receives their
Amazon order – from you
Copyright 2017 - Q4 Amazon Virtual Summit
Amazon Retail and
Amazon Marketplace
Amazon: The Everything Store
❑ Amazon: Wants to be the “everything” store with unlimited
SKUs and item availability
❑ Amazon Marketplace: Allows sellers to quickly list products on
Amazon’s platform, backed by marketing from Amazon Seller
Central, in exchange for a small referral fee
Two Ways to Sell on Amazon
❑ Fulfilled by Amazon: Sell and ship full pallets of product to an
Amazon warehouse, to be re-sold and fulfilled through Amazon.
❑ Fulfilled by Merchant: The seller has an Amazon retail
storefront and participates in the Marketplace, but takes on the
responsibility and overhead of shipping to the consumer parcel
by parcel.
Copyright 2017 - Q4 Amazon Virtual Summit
Becoming Eligible for
Amazon Prime
Prime Statistics
❑ More than 50% of U.S. households are Prime subscribers.
❑ 70% of Americans with incomes of $150,000 or more who shop
online have Amazon Prime memberships.
❑ 46% of Amazon Prime subscribers buy something online using
the benefits of their subscription at least once a week.
❑ Prime subscribers spending up to 4.6X more than non-prime
customers
Seller Fulfilled Prime Eligibility
Amazon Premium Shipping
❑ Sell on Amazon for 90 days or more
❑ Enable Same-Day Delivery, One-Day Shipping,
and/or Two-Day Shipping on shipping settings (even if they are
expensive shipping options)
❑ Deliver orders according to Amazon’s Premium Shipping
Eligibility requirements
To be eligible for Premium Shipping, the seller must:
Amazon Premium Shipping
❑ An on-time delivery rate of at least 92 percent for Premium
Shipping Orders
❑ A valid tracking ID for at least 94 percent of Premium Shipping
Orders (UPS, US Postal Service, FedEx, or OnTrac)
❑ A seller initiated cancellation rate of less than 1.5 percent for
Premium Shipping Orders
These requirements must be maintained over a 30
day period for Premium Shipping:
Seller Fulfilled Prime Trial Period
Meet the following requirements over the course of
200 consecutive orders:
❑ An on-time delivery rate of at least 99 percent for Prime Trial
Orders
❑ Use of Buy Shipping Services for at least 95 percent of Prime
Trial Orders
❑ A cancellation rate of less than 1 percent for all Prime orders
Other Seller Fulfilled Prime Terms
❑ Buy all shipping labels for orders with a Prime item via Amazon’s
Buy Shipping Services
❑ Direct all post-order customer service issues to Amazon
❑ Adhere to Amazon’s returns policy
❑ Offer Prime shipping benefits and guaranteed delivery dates
Required terms for Seller Fulfilled Prime agreements:
Copyright 2017 - Q4 Amazon Virtual Summit
Take Drop Shipping
Beyond Amazon
1 Retailers are seeking out drop ship vendors
Drop Shipping Beyond Amazon
1
2
Retailers are seeking out drop ship vendors
Greater opportunities for more sales channels
Drop Shipping Beyond Amazon
1
2
3
Retailers are seeking out drop ship vendors
Greater opportunities for more sales channels
Test new products in the market easier, faster
Drop Shipping Beyond Amazon
1
2
3
4 Get more product assortment in front of customers
Retailers are seeking out drop ship vendors
Greater opportunities for more sales channels
Test new products in the market easier, faster
Drop Shipping Beyond Amazon
1
2
3
4
5
Get more product assortment in front of customers
Retailers are seeking out drop ship vendors
Greater opportunities for more sales channels
Test new products in the market easier, faster
Improve customer loyalty and lifetime value
Drop Shipping Beyond Amazon
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Drop Ship Survey Results
Source: SPS Commerce, November 2018
Copyright 2017 - Q4 Amazon Virtual Summit
5 Elements for a
Great Drop Ship Program
Successful Program Elements
1
2
3
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Successful Program Elements
1
2
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Successful Program Elements
1
2
3
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Successful Program Elements
1
2
3
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Successful Program Elements
1
2
3
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Successful Program Elements
1
2
3
4
5
Tracking of performance
Agreements between trading partners for a drop
shipping relationship
Accurate, detailed information from end-to-end
Processes and systems aligned to facilitate good
communication and exchanging of information/data
Refinement and evolution
Copyright 2017 - Q4 Amazon Virtual Summit
Drop Shipping Report
Copyright 2017 - Q4 Amazon Virtual Summit
Q & A
Copyright 2017 - Q4 Amazon Virtual Summit
For more information:
webinar@spscommerce.com
9 - 9:45 am PT
1 - 1:45 pm PT
11 - 11:45 am PT
12 - 12:45 am PT
10 - 10:45 am PT
2 - 2:45 pm PT
SPS COMMERCE PRESENTS:
GROWING YOUR BUSINESS
WITH DROP SHIPPING
& AMAZON
CPC STRATEGY PRESENTS:
ACCELERATE BRAND DISCOVERY
WITH AMAZON’S NEW
TARGETING & BIDDING
SKUBANA PRESENTS:
A PROVEN SEO FORMULA TO
10X YOUR TRAFFIC & CONVERSION
IN 12 MONTHS OR LESS
SHIPBOB PRESENTS:
HOW TO SHIFT LOGISTICS
FROM A COST CENTER
TO A REVENUE DRIVER
AVALARA PRESENTS:
SALES TAX 101 FOR
AMAZON SELLERS
Please hold for our next presentation starting at 2pm PT / 5pm ET
SALSIFY PRESENTS:
PRODUCT DETAIL PAGE
OPTIMIZATION AND ITS IMPACT
ON AD SPEND EFFICIENCY

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SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON

  • 2. 9 - 9:45 am PT 11 - 11:45 am PT Today’s Timeline 10 - 10:45 am PT 1 - 1:45 pm PT12 - 12:45 am PT 2 - 2:45 pm PT SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON CPC STRATEGY PRESENTS: ACCELERATE BRAND DISCOVERY WITH AMAZON’S NEW TARGETING & BIDDING SKUBANA PRESENTS: A PROVEN SEO FORMULA TO 10X YOUR TRAFFIC & CONVERSION IN 12 MONTHS OR LESS SALSIFY PRESENTS: PRODUCT DETAIL PAGE OPTIMIZATION AND ITS IMPACT ON AD SPEND EFFICIENCY SHIPBOB PRESENTS: HOW TO SHIFT LOGISTICS FROM A COST CENTER TO A REVENUE DRIVER AVALARA PRESENTS: SALES TAX 101 FOR AMAZON SELLERS
  • 3. Today’s Logistics ● Session Recording & Slides Will Be Sent Out ● Submit Questions to Our Panelists ● Resources Available as Handouts Analicia Santaella Partner Coordinator
  • 4. Copyright 2017 - Q4 Amazon Virtual Summit Growing Your Business with Drop Shipping & Amazon
  • 5. Copyright 2017 - Q4 Amazon Virtual Summit Warren Knapp Sr. Customer Success Executive SPS Commerce
  • 6. Agenda ❑ What is drop shipping? ❑ Amazon Retail and Amazon Marketplace ❑ Becoming eligible for Amazon Prime ❑ Take drop shipping beyond Amazon ❑ 5 elements for a great drop ship program
  • 7. Copyright 2017 - Q4 Amazon Virtual Summit What is Drop Shipping?
  • 8. Drop Shipping Defined [drop-ship] Verb (used with object), drop-shipped, drop-shipping To send purchased goods directly from the vendor or manufacturer to a customer or retailer with no intermediate distributor, but billed through a third party.
  • 11. Vendor ships to consumer
  • 12. Vendor provides Amazon and consumer with ongoing order/shipment information
  • 13. Amazon provides consumer with ongoing order/shipment information when needed
  • 14. Consumer receives their Amazon order – from you
  • 15. Copyright 2017 - Q4 Amazon Virtual Summit Amazon Retail and Amazon Marketplace
  • 16. Amazon: The Everything Store ❑ Amazon: Wants to be the “everything” store with unlimited SKUs and item availability ❑ Amazon Marketplace: Allows sellers to quickly list products on Amazon’s platform, backed by marketing from Amazon Seller Central, in exchange for a small referral fee
  • 17. Two Ways to Sell on Amazon ❑ Fulfilled by Amazon: Sell and ship full pallets of product to an Amazon warehouse, to be re-sold and fulfilled through Amazon. ❑ Fulfilled by Merchant: The seller has an Amazon retail storefront and participates in the Marketplace, but takes on the responsibility and overhead of shipping to the consumer parcel by parcel.
  • 18. Copyright 2017 - Q4 Amazon Virtual Summit Becoming Eligible for Amazon Prime
  • 19. Prime Statistics ❑ More than 50% of U.S. households are Prime subscribers. ❑ 70% of Americans with incomes of $150,000 or more who shop online have Amazon Prime memberships. ❑ 46% of Amazon Prime subscribers buy something online using the benefits of their subscription at least once a week. ❑ Prime subscribers spending up to 4.6X more than non-prime customers
  • 20. Seller Fulfilled Prime Eligibility
  • 21. Amazon Premium Shipping ❑ Sell on Amazon for 90 days or more ❑ Enable Same-Day Delivery, One-Day Shipping, and/or Two-Day Shipping on shipping settings (even if they are expensive shipping options) ❑ Deliver orders according to Amazon’s Premium Shipping Eligibility requirements To be eligible for Premium Shipping, the seller must:
  • 22. Amazon Premium Shipping ❑ An on-time delivery rate of at least 92 percent for Premium Shipping Orders ❑ A valid tracking ID for at least 94 percent of Premium Shipping Orders (UPS, US Postal Service, FedEx, or OnTrac) ❑ A seller initiated cancellation rate of less than 1.5 percent for Premium Shipping Orders These requirements must be maintained over a 30 day period for Premium Shipping:
  • 23. Seller Fulfilled Prime Trial Period Meet the following requirements over the course of 200 consecutive orders: ❑ An on-time delivery rate of at least 99 percent for Prime Trial Orders ❑ Use of Buy Shipping Services for at least 95 percent of Prime Trial Orders ❑ A cancellation rate of less than 1 percent for all Prime orders
  • 24. Other Seller Fulfilled Prime Terms ❑ Buy all shipping labels for orders with a Prime item via Amazon’s Buy Shipping Services ❑ Direct all post-order customer service issues to Amazon ❑ Adhere to Amazon’s returns policy ❑ Offer Prime shipping benefits and guaranteed delivery dates Required terms for Seller Fulfilled Prime agreements:
  • 25. Copyright 2017 - Q4 Amazon Virtual Summit Take Drop Shipping Beyond Amazon
  • 26. 1 Retailers are seeking out drop ship vendors Drop Shipping Beyond Amazon
  • 27. 1 2 Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Drop Shipping Beyond Amazon
  • 28. 1 2 3 Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Drop Shipping Beyond Amazon
  • 29. 1 2 3 4 Get more product assortment in front of customers Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Drop Shipping Beyond Amazon
  • 30. 1 2 3 4 5 Get more product assortment in front of customers Retailers are seeking out drop ship vendors Greater opportunities for more sales channels Test new products in the market easier, faster Improve customer loyalty and lifetime value Drop Shipping Beyond Amazon
  • 31. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 32. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 33. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 34. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 35. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 36. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 37. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 38. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 39. Drop Ship Survey Results Source: SPS Commerce, November 2018
  • 40. Copyright 2017 - Q4 Amazon Virtual Summit 5 Elements for a Great Drop Ship Program
  • 41. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 42. Successful Program Elements 1 2 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 43. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 44. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 45. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 46. Successful Program Elements 1 2 3 4 5 Tracking of performance Agreements between trading partners for a drop shipping relationship Accurate, detailed information from end-to-end Processes and systems aligned to facilitate good communication and exchanging of information/data Refinement and evolution
  • 47. Copyright 2017 - Q4 Amazon Virtual Summit Drop Shipping Report
  • 48. Copyright 2017 - Q4 Amazon Virtual Summit Q & A
  • 49. Copyright 2017 - Q4 Amazon Virtual Summit For more information: webinar@spscommerce.com
  • 50. 9 - 9:45 am PT 1 - 1:45 pm PT 11 - 11:45 am PT 12 - 12:45 am PT 10 - 10:45 am PT 2 - 2:45 pm PT SPS COMMERCE PRESENTS: GROWING YOUR BUSINESS WITH DROP SHIPPING & AMAZON CPC STRATEGY PRESENTS: ACCELERATE BRAND DISCOVERY WITH AMAZON’S NEW TARGETING & BIDDING SKUBANA PRESENTS: A PROVEN SEO FORMULA TO 10X YOUR TRAFFIC & CONVERSION IN 12 MONTHS OR LESS SHIPBOB PRESENTS: HOW TO SHIFT LOGISTICS FROM A COST CENTER TO A REVENUE DRIVER AVALARA PRESENTS: SALES TAX 101 FOR AMAZON SELLERS Please hold for our next presentation starting at 2pm PT / 5pm ET SALSIFY PRESENTS: PRODUCT DETAIL PAGE OPTIMIZATION AND ITS IMPACT ON AD SPEND EFFICIENCY