6 Secrets to Boost Profits
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Transcript of 6 Secrets to Boost Profits
Get a head start on the holiday rush!
6 secrets to boost profitsDarren Hutchinson - Head of US Sales
Lucy Marshall - eCommerce Sales
TJ Hyland – eCommerce Account Manager
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Your Participation
Darren HutchinsonHead of Sales US
Lucy MarshalleCommerce Sales
TJ HylandeCommerce Acct. Manager
Meet the panelists
1. Building a marketing plan for Q42. Amazon logistics and FBA optimization3. Inventory management4. The power of positive reviews5. All about Buy Box6. Being currency smart: bringing your profits home
Q&A
Topics to be covered
Internet Retailer says there’s $3.1 billion of sales up for grabs in Amazon’s European markets.
Almost 50% of all sales on Amazon come from outside the USA*.
Less competition! Selling in Europe means that you could have anywhere between 50% and 100% less competition*.
Reach new markets – some of which get up to five million visitors per day.
Amazon operat es 11 onl i ne market pl aces worl dwi de
Building a marketing plan for Q4
Have promotions in place
Analyze historical trends
Use social media to analyze selling trends
Use a repricing tool
Increase your advertising budget for Amazon sponsored products
Have a shipping strategy in place
Adopt FBA into your strategy
Building a marketing plan for Q4
Amazon logistics and FBA optimization
Know your top-selling and most-profitable products
Consult the FBA pricing pages
During the busiest time of the year, Amazon will pack, ship and provide customer service for your products.
Using FBA, your products are eligible for Amazon Prime Free Two-Day Shipping, Free Shipping, etc.
FBA will help you scale - more product lines in more markets.
When selling in Europe you can fulfill orders from all 5 Amazon marketplaces (UK, Germany, Italy, Spain and France)
Multi-Channel Fulfillment - you can fulfill orders from other sales channels using your inventory stored in Amazon fulfillment centers.
Account suspension could grind your online sales to a halt over the crucial Holiday season.
Tips to avoid getting shut down:
Make sure all of your products and descriptions are clear and accurateCheck specific country regulations where you sellMake sure your seller info 100% matches your company infoResolve your customer complaints promptlyDon’t have duplicate accounts If you do get shutdown:
Hire an account consultant before taking multiple shots at reinstatement. Show Amazon that you are aware of why they have suspended youProvide a plan of action on how to fix it.
If you do encounter shutdown issues with Amazon, Chris McCabe is an excellent resource. To get in touch please go to http://ecommercechris.com/contact or email Chris at [email protected]
Avoid a shut down nightmare in Q4
Analyze your sell-through trendsLook at your past seasonal sell-through rates and be sure you’re properly stocked for a busy Q4
Use an inventory software to helpSkubana and teikametrics helps manage inventory across selling channels
Set inventory alerts Be notified when you need to send more product to FBA
Here are the top 10 desktop online sale days for 2015*:
Inventory management
*According to InternetRetailer.com
Shipping and Customs
Ship your inventory early
Add a buffer for customs
Anticipate delays during the holiday rush
Inventory management
Managing returns during Q4
If you have a generous return policy with your suppliers, it’s worth stocking up a little more for the holiday shopping season.
Product Returns
Be ready with staffing to process returned items and send them back to suppliers. Since customers don’t always return products in new condition with original packaging and materials, develop a process for reselling returned items in used condition — on Amazon or other channels.
Inventory management
The power of positive reviews
of consumers choose to buy products from a company
they trust and 59% will recommend those companies
to a friend. 37% of consumers are also willing to pay
more to purchase from companies they trust.*
* Source:Endelman 2016 Trust Barometer. January 2016
of consumers refuse to buy products from a company they
do not trust.
Check your listings for top-selling and most-profitable products
The number of reviews that you hold as a seller and on your listings is vital
A couple of ways to manage this
Packaging gifts
Review communities
Tools/companies out there to help you gain more reviews – https://www.sellerlabs.com/feedback-genius/
The power of positive reviews
What is it?An algorithm that promotes the best products by balancing high seller performance and low cost price.
All about the Buy Box
Why it matters?85% of all Amazon sales are made through Buy Box according to Appeagle.com
How to optimize your chancesProfessional Seller account, selling for at least 2 to 6 monthsEffective repricing toolHave positive reviewsNew productsAvailability – FBA or seller fulfilled prime
A great resource on Amazon’s Buy Box, is the “Buy Box Bible” put together by our partner Feedvisor.
All about the Buy Box
Events to pay attention to during Q4
US interest rate hike
US elections
Brexit risk remains strong as pressures grow
UK inflationary pressures
Being currency smart: bringing your profits home
Being currency smart: bringing your profits home
Used with permission from Bloomberg Finance LLP
Note: These forecasts are the views and opinions of various investment banks and research houses and should not be construed as advice. You should act using your own information and judgement.
GBPUSD
Used with permission from Bloomberg Finance LLP
Note: These forecasts are the views and opinions of various investment banks and research houses and should not be construed as advice. You should act using your own information and judgement.
EURUSD
Being currency smart: bringing your profits home
Forward contractsA forward contract will allow you to fix a rate for up to 3 years
Rate alertsGet an email or text notification when your target rate is reached
Firm orders
Automatically trigger a payment if a certain rate is achieved
Market watchLet us be your eyes and ears on the currency markets
Being currency smart: bringing your profits home
A forward contract can be used by a seller to their control profit margin and pricing for a chosen period of time. .
1Month: 2 3 4 5 6 7 8 9 10 11 12
Forward contracts
Cons
You do not benefit if rates moves against your purchased rate.
If rates move against you, you may need to pay a margin call in order to keep the forward contract open
Pros
Allows you to forecast your disbursements
Budgeting your pricing to protect profit margins
Allows focus on other areas of your business
Being currency smart: bringing your profits home
For example: you disbursements are £50K per month, and your profit margin is 5% with GBPUSD rate at 1.30.
Should GBPUSD rate move 5% to 1.2350, you will have therefore lost your profit margin and have to adjust all
your pricing to be profitable.
Contact Us
Darren HutchinsonHead of Sales US
Lucy MarshalleCommerce Sales
TJ HylandeCommerce Acct. Manager
• These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgment.
• Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed.
• All opinions and estimates constitute the author’s own judgment as of the date of the briefing and are subject to change without notice.
• Any rates given are ‘interbank’ i.e. for amounts of $5million or more thus are not indicative of the rates offered by World First.
• World First USA, Inc. is a Delaware corporation, registered as a Money Services Business in the United States with FinCEN (Registration number 31000086798651), and holds licensing as a non-depository financial institution with the National Mortgage Licensing System (NMLS#1018479). World First USA, Inc. is also registered in Canada with FINTRAC (registration number M11393445).
Disclaimers