Teikametrics & CPC Strategy - Assessing Your Fulfillment by Amazon Strategy
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Alasdair McLean-Foreman, CEO of Teikametrics [email protected]
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Transcript of Teikametrics & CPC Strategy - Assessing Your Fulfillment by Amazon Strategy
Twitter Hashtag: #FBAWebinar Demo URL: http://go.teikametrics.com/webinar-offer
About Alasdair• Started in e-commerce in 2001 with a dorm room e-commerce business
• Studied economics at Harvard
• One of the first Amazon 3P partners in 2003 • Experience developing software solutions for enterprise including a platform
for the New York City Marathon and Newscorp / Times of London • Passion for technology and using big data tools to help solve problems
About Teikametrics• Founded in 2012
• Core team of data analysts, software developers, data scientists, and consultants
• 25 employees based in Boston and growing rapidly
• 150% increase in revenue with a large improvement in Gross Margin
FBA Optimization
Our solutions
Data Driven Software Solution for FBA Retailers
FBA Insite Software
Jumpstart $990
Brand Accelerator Program
Data Driven Marketing for Direct to Consumer Brands
Professional $2,499
Consulting and Expert Optimization
from $4K per month
Repricing Only $499
SECRET #1:
THINK LIKE A TRADER
Old Retail Model
New Retail Modelv.
Loyal to retailers Focused on the lowest price and quickest delivery timeCustomers
Prices Relatively stable through seasons
Changing constantly based on supply & demand
Products SKU selection from manufacturers
Commodities valued based on the market
Inventory Inventory investments few annual ‘turns’
Constantly changing diversified portfolio
SECRET I: Think like a trader
Outsource Heavy Lifting to Amazon FBA
HEAVYLIFTING
SKILLED TRADING
FULFILLMENT LOGISITICS
DATA DRIVEN TRADING
HIGH VALUE
LOW VALUE
SECRET I: Think like a trader
Tools to Trade the Amazon Stock Market
FBA Insite DashboardSECRET I: Think like a trader
SECRET #2:
THE GROSS MARGIN
SUCCESS BLUEPRINT
Secret #2:
Gross Margin Blueprint • Single most important metric
for success
• On Amazon it’s easy to grow revenue but a lot harder to generate high Gross Margins at scale
• Every trading decision needs to be based on an accurate Gross Margin analysis
• Discipline across all investment decisions and strategy
$100 Selling Price
-‐$50
-‐$15
-‐$5-‐$2-‐$0.5
GM
Typical GM% for FBA retailers after baked in costs is ~15-‐20%
-‐ COGS
-‐ Amazon Commission
-‐ FBA Fees-‐ Freight
-‐ Exp. Returns
SECRET II: Gross Margin Blueprint
SECRET #3: OWN YOUR NUMBERS
FBA Insite Dashboard
Secret #3:
Own Your Numbers• Check performance daily
• Set objective goals for every metric
• Spot the warning signs – e.g. Inventory to Sales Ratio
• You can always be better!
SECRET III: Own your numbers
Amaze Analytics Visual Data Discovery
Data Driven Decision Making
SECRET III: Own your numbers
SECRET #4: HOW TO BEAT AMAZON AT ITS
OWN GAME
Secret #4:
Beating Amazon• Amazon has a strategy that has
weaknesses – “size doesn’t matter”
• Myth: Amazon has perfect supply and if Amazon sells a product line there is no chance
• Use data tools to understand and outflank Amazon coverage
• Amazon coverage changes and you may find volume where others have given up
SECRET IV: Beating Amazon
SECRET #5: LEVERAGE YOUR COMPETITIVE
ADVANTAGE
Secret #5:
Leverage your advantage• What can you do better than
your competition?
• Example: Special relationship with a supplier
• Example: Non-Amazon leverage
• Example: Economies of scale
• Example: Marketing advantage
SECRET V: Leverage your advantage
SECRET #6: MANAGE INVESTMENTS BY
ZOOMING OUT-AND-IN
Secret #6:
Zoom Out-and-In• Zoom Out: Understand your
complete portfolio performance
• 80:20 Rule: Identify the winning groups
• Zoom In: Compare at the Supplier / Group level
• SKU Level: Granular economics
Complete Portfolio
Supplier/ Product Group
SKU
Zoom Out
Zoom In
SECRET VI: Zoom Out-and-In
SECRET #7: BUILD A COMPETITIVE TEAM
SECRET VII: Build a competitive team
Build a competitive team • Petronas Twin Towers in
Kuala Lumpur, Malaysia
• 2 Competing Contractors for each tower
• Build a winning culture
Questions?
