7 Figure Seller Summit

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80/20 Of Ecommerce – June 17, 2022

US Import Volume from China “Drop off a Cliff”

  • US Import demand dropping dramatically 36% YOY… Why?
    • Inventory glut – excess inventory
    • Inflation crunching US consumer purchasing
    • Container volumes from CN to US continue to decline 

Image Credits: FreightWaves

According to FreightWaves, Inc, U.S import demand is dropping dramatically by 36% year on year from June 2022 from 2021 to 2022. This decrease happens due to some leading causes; the first is inventory collide. These retailers have excess inventory. Second, consumers are getting crunched due to inflation. Thirdly, this is causing container volumes from China to drop as well.

So, you see fewer imports into the U.S. The good thing is that this is benefiting the shipping price and that the shipping prices are starting to go down; the Freightos index is around $9,000 per container. However, this may be a sign that the economy is slowing down.

Amazon Prime Day 2022 Dates Announced

Image Credit: About Amazon

Amazon has already released dates for their Amazon Prime Day 2022. This will be a two-day savings event starting July 12 at 3 a.m. EDT until July 13, 2022. Prime Day is launched for Prime members in countries like Austria, Australia, Belgium, Brazil, Canada, China, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Portugal, Singapore, Spain, the U.K., the U.S., and for the first time in Poland and Sweden. 

Early bargains begin on June 21, with up to 50% off particular Amazon gadgets, up to 50% off Fire TV, and more from popular brands like De’Longhi, Dove, and SodaStream. From June 21 to July 11, Prime members may win large prizes by supporting local companies.

The new Small Business Badge allows Prime members to find and browse products from small business companies in Amazon’s marketplace. Members will be able to recognize products from small company brands and artisans with the help of this new badge.

Amazon’s global transportation network will offer fast and free delivery of Prime Day orders. 

Takeaway: Prime Day is less than a month away so make sure that you have enough inventory in-stock in your Amazon Fulfillment Centers. Also, do not forget to prepare your marketing campaigns.

Amazon drones are starting to fly for deliveries in California

Image credit: Amazon

Amazon plans to launch its drone delivery later this year in Lockeford, California. Residents will have access to sign up for a free “Prime Air” delivery. 

These drones have the capacity to carry parcels weighing 5 pounds. Air eligible items include beauty, office supplies, tech gear, and household products. 

Amazon claims to have developed a sophisticated technology that allows its drones to recognize and avoid obstacles such as airplanes, people, pets, and other people. According to them, they created their sense-and-avoid system for two critical scenarios: safety in transit and safety approaching the ground.

The drone service will be expanded based on feedback from the California operations.

Takeaway: Amazon’s retail rival Walmart and other major tech firms are already incorporating drone delivery into their logistic operations. Amazon needs to keep up with the competition as the mode of delivery is ramping up Walmart’s delivery service.

Amazon Brand Analytics Removes Features

Image Credits: Tamebay

Brand Analytics is a feature that gives Brand Owners vital information to help them make informed, strategic decisions regarding their product portfolio and marketing/advertising efforts.

Amazon Seller Central said in their news piece that brand analytics is removing two features: item comparison and alternative behavior dashboard. This implementation is effective on June 30th, Thursday. 

According to Amazon, seller feedback and usage data indicated that the dashboards were not as helpful as they thought. As a result, the retail giant has decided to eliminate the said dashboards and brainstorm on the new features in 2023.

Takeaway:  According to seller feedback and usage volume data, these dashboards don’t always provide impactful and actionable insights, so Amazon is looking into adding deeper customer behavior analytics in 2023. It’s reassuring that they’re still working to improve the Amazon Brand Analytics insights they provide.

Join us for a live [Sourcing Masterclass] Negotiating Your Way to Success When Sourcing From India on Wednesday, June 22nd, 2022 at 8 PM EST 

After the 7 Figure Sourcing Summit, I’d like to spotlight India which is the fastest sourcing alternative to China. I’ve invited India Sourcing experts, Meghla Bhardwaj and Margaret Jolly of India Sourcing Network to walk us through negotiating your way to success when sourcing from India. 

In this 60 min live Masterclass, Margaret Jolly and Meghla Bhardwaj, Co-Founders of India Sourcing Network will share strategies for negotiating with Indian manufacturers to learn:

  • Proven negotiation strategies to get you the best price 
  • When to start negotiating 
  • What to negotiate apart from price 
  • Cultural sensitivities when negotiating so you don’t offend them
  • Common mistakes to avoid that could cost you time and money

Join us live on Wednesday, June 22nd, 2022 at 8 PM EST 

Excited to know how to source from India and scale your business? RSVP and submit your questions to Meghla and Marg here.

See you inside!

[REPLAY] Sourcing Experts from China, India, Mexico, Vietnam, Europe, and the US discussed how to source from their countries

Earlier this week, we had two live panels with a dozen sourcing experts to share with you valuable insights and I’d like to share the replay with you in case you missed it live. 

Watch the replay to get all of your sourcing and supply chain questions answered such as:

– Can I source my product from X country?

– How can I find a trustworthy supplier from X country?

– Will it be cheaper than China? 

– What scams will I need to watch out for?

– The #1 negotiation tip that will save you tens of thousands of dollars

– What’s the best online platform you use to source and why? Alibaba vs Global Sources 

– Certification and Testing – this is causing suspensions – what needs to be done? 

– How to differentiate your product even if you don’t have any design skills

– And much more.

In session 1 we covered Sourcing in a Post-Pandemic World. I invited six sourcing experts from China, India, Mexico, Vietnam, Europe and in the US to deep dive into the topic.

Watch the replay here: [Sourcing Masterclass] Sourcing in a Post-Pandemic World

On day two, we had an Advanced Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies on a live Panel as well. So, make sure to check this one out to get the right strategies in your next shipping transaction. 

Watch the replay here: [Sourcing Masterclass] Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies

Watch the replay now and get your sourcing questions answered by the top sourcing experts in the industry.

Day 1 – [Sourcing Masterclass] Sourcing in a Post-Pandemic World

Day 2 – [Sourcing Masterclass] Shipping, Quality Control, Negotiations, Product Design, and Advanced Supply Chain strategies

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – June 3, 2022

China Sourcing Updates

Update 6/3/22

As of Wed. June 1st, 2022 Shanghai has lifted the COVID lockdown according to Reuters.  

Source: Reuters/Aly Song

While the people are starting to resume a normal life and offices are now open, in terms of the supply chain it can be best summed up as “Everything is happening at once” according to Jarrod Ward, a supply chain executive from Yusen Logistics based in Shanghai. 

Further reports from supply chain professionals say that “I think the best way to describe it is that the firehose has been turned on full but the water is being forced through a sieve.  There’s massive back pressure and splatter as everyone is trying to figure out how to make things work while complying with the new reg(ulations).” 

Takeaway: While this is great news it may be a bumpy ride ahead in the near future as the supply chain tries to get back on track.  

The Sourcing Shift Away from China? 

As of mid-2022 China is no longer the only sourcing game in town. 

We have seen a shift away from China in the last 3 years as other sourcing destinations are gaining a share of the sourcing market.  

According to a survey of US and European businesses by QIMA, the top sourcing destination has shifted away from China.  In 2019 China represented 61% but it fell by 14% to 47% in Q1 2022.

Similarly, India’s sourcing market share has risen dramatically from 6% to 10% in the past 3 years.  

The takeaway is we are seeing a shift in the sourcing and supply chain base towards countries like India and Vietnam.  

Another key trend is “Nearshoring” as buyers are shifting their sourcing to nearby destinations such as Mexico for US buyers and Europe for buyers in the EU.  The thinking is that this close proximity will reduce shipping costs, lead times, and lower duties and tariffs. 

A key point to consider is that while buyers are shifting sourcing, they are not completely moving out of China because China is “too big to ignore”.  

No other single country can replace China.  In fact, the big players such as Apple and Nike have been adopting a China +n strategy.  They are outsourcing some products to other countries while keeping the non-movable production in China.  They have been doing this China +n for years.  Shouldn’t you? 

Good news – you probably don’t have a sourcing or supply chain department in your business so I’ve done the work for you.  

Introducing the 7 Figure Sourcing Summit (June 13th – 14th, 2022)

I’m super excited to announce the 7 Figure Sourcing Summit – The A to Z resource for all your Sourcing and Shipping Needs launching online June 13-14, 2022. 

It’s like the 80/20 of sourcing from around the world. 

You won’t find a resource like this anywhere else and you will learn sourcing strategies directly from 7 to 8 Figure Ecommerce sellers and sourcing experts.  

You can get your free pass right now at http://7figuresourcingsummit.com/ 

See you inside!

Amazon Ad’s Prime Day Summit is just around the corner

Image Credits: Amazon.com

Prime Day has signified a peak period for Amazon Sellers. This event also ensures that merchants reach out to customers, increase sales, and simultaneously build their own and Amazon’s businesses.

Amazon has established the Amazon Prime Day Summit. It will be held on June 7th and 8th, from 9:00 a.m. to 12:00 p.m. Pacific Time.

The first step is to create an account on your Seller Central dashboard. This can also help you create or improve a Peak Advertising Campaign and create powerful product description pages. It’s even better if you use the sessions to assist you set up and monitoring practices for your firm’s advertising side.

The summit will also give sellers an overview of numerous reports and a more excellent grasp of applying what they’ve learned to achieve success. There will also be live Q&A sessions to address vendor problems and questions.

Takeaway:

Constant learning is an essential variable to the growth of your business. Stay relevant and innovate, especially in implementing strategies to keep up with the competition. Events similar to this Prime Day Summit can help.

Remote Fulfillment with FBA adjusts its fees

Image Credits: eCOMMERCE BYTES

Businesses that participate in FBA in the United States have been permitted to employ remote fulfillment with FBA since 2018. This is to make their merchandise in the United States available for purchase in Canada and Mexico. Customers have benefited from the program since it has expanded their options and made it easier to sell outside of the United States.

Amazon’s Remote Fulfillment with FBA takes advantage of domestic and foreign marketplaces. Amazon has made considerable efforts to assist its sellers better, nearly doubling the number of fulfillment facilities available. Over 750,000 full-time and part-time jobs were also added. All of this comes with an increasing hourly salary, ranging from $15 to $18.

However, beginning June 30, Amazon will adjust remote fulfillment fees with FBA fulfillment fees. These increases are believed to be comparable to or less than the industry average for fulfillment services. To better comply with the conventional FBA rate structure, they will also incorporate a dimensional weight adjustment in their rate calculation.

Takeaway:

This initiative helped retailers to expand their business. However, we need to go to 2022 remote fulfillment with FBA fee changes to study how the shifting prices of fulfillment, shipping, storage, and customer support can influence our business.

[Video Replay] The Sourcing Algorithm Live Webinar

Did you know that Sourcing can make or break your business?

Gary Huang, founder of the 7 Figure Sourcing Summit and 80/20 Sourcing just provided a valuable discussion 

 In this masterclass, Gary shared the landscape of the supply chain around the world, what are the major changes that you have to know in 2022 and the 80/20 of the different areas of the world you can source from.

In this 60-minute live webinar, you’ll learn:

[2:48] Which of the countries most of you are interested to source from?

[3:20] Where most of you are currently sourcing from?

[4:09] Sourcing is Changing

[6:26] China – Sourcing King

[9:40] Q&A: What platforms should we use for sourcing apart from Alibaba

[11:08] India – Rising Star

[15:32] Mexico – Pura Vida

[19:44] The 9-9-6 work culture in China

[21:00] Vietnam – Big Players

[25:41] Q&A: How to get connected online with Vietnam sellers?

[27:34] USA – The American Dream?

[31:09] Q&A: What is the best country to source for Amazon Middle East and Australia?

[32:05] Sourcing Countries At A Glance

[32:45] Type of products you can get from different countries

[40:05] The 7 Figure Sourcing Summit – The A to Z resource for all your Sourcing and Shipping Needs

Watch the full replay here

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – May 27, 2022

China Sourcing Updates

What we know

  • Port congestion in Shanghai could lead to airfreight congestion
  • Shanghai aims to lower down restrictions on June 1
  • Beijing authorities are strictly monitoring business ad residents

Image credits: Pexels

According to South China Morning Post, Shanghai aims to lower down restrictions on June 1. However, the production backlogs could lead to airfreight congestion in the coming weeks as they decide to loosen the pandemic restrictions. Despite this, the vast majority of shops, restaurants, and enterprises remain closed, and a work-from-home policy remains in effect.

Beijing on the other hand is still the Covid-19 hit capital of the country. As a result, they continue to tighten their zero-CoVid approach imposing consequences and punishments on businesses and residents that will not follow the mandate, Rappler Asia Pacific reported on Wednesday.

Despite the damage it has caused to the world’s second-largest economy and global supply networks, the government continues to focus on the zero-COVID policy. After a series of incidents involving a private logistics company within its control, certain employees of the state-run Beijing postal service were either fired or given a strong warning.

A few employees at a Beijing branch of the state railway corporation disguised their trip history and have been placed under police investigation.

According to the Shanghai local statistics bureau, exports from Shanghai, the world’s biggest container port, tumbled 44% year on year last month, while imports fell 33%, the steepest decrease since at least 2011.

E-commerce retail Q1 2022 report: a blip in the radar?

Image credits: Pexels

According to data provided by the US Department of Commerce on Thursday, US retail e-commerce sales in Q1 2022 totaled roughly $250 billion, up only 2.4 percent from the previous quarter.

According to the DOC, seasonal fluctuations were considered, but not price hikes. When you factor in inflation, the 2.4 percent increase in sales effectively flattens the e-commerce growth curve, which has been sagging since the third quarter of 2021, when e-commerce retail sales fell -0.7 percent from the previous quarter.

Overall retail sales in the United States were predicted to be $1.75 trillion in Q1 2022, up 3.7 percent from Q4 2021. Total retail sales grew 10.5 percent year over year in the first quarter.

As the Covid-19 lockdowns loosen, more customers are opting for brick-and-mortar retail. The e-commerce giant retailers are not an exception to the downward slope in the e-commerce growth curve during the onset of the pandemic. Amazon lost over $4 billion in the first quarter, its first quarterly shortfall since 2015.

Yet, this does not hamper the e-commerce sector from pooling the considerable market share gains. The annual e-commerce sales approach $1T, a double of the past three year’s sales. 

While YOY comparisons of e-commerce retail sales show a strong, mature online sector—DOC reported a 6.6 percent YOY increase in e-commerce retail sales in Q1 2022—the YOY growth rate in 1Q 2021 was an exponential 47 percent.

According to Prologis, e-commerce share will climb more exceeding its pre-pandemic trajectory. This is because of improved online sales technologies and same-day and next-day delivery strategies.

Takeaway: 

This report has two separate trajectories for ecommerce. Is a sign that e-commerce is slowing down or maybe it is just a bullish outlook? Do we really feel the slope going downwards, or this is just a blip in the radar?

Amazon Reportedly Ready to Dump Excess Warehouse Space

Image credits: Pexels

Amazon plans to lease some of its warehouse space to reduce excess capacity. The retail giant acknowledged it overbuilt its warehouses as it sought to meet pandemic demand. The company is finding ways to sublease the surplus of space estimated to be more than 10 million square feet. 

Amazon leased over 100 million square feet and owned 4.4 million square feet of fulfillment, data center, and other categories in North America at the end of 2019.

Depending on the market, other types of space are still being acquired by Amazon, such as Southern California office space, where it recently secured leases for a total of 439,500 square feet in Santa Monica, Irvine, and San Diego.

This big move from Amazon follows the first quarterly loss they incurred in April in which demand declined and affected the company’s warehouse operations. 

Takeaway:

Amazon sees a slowdown in their sales and is subleasing excess warehouse space and it could be a benefit to sellers in fewer inventory restrictions

Join me for a Live Training on Tuesday May 31, 2022 at 8PM Eastern Time about The Sourcing Algorithm

I’ve interviewed over 170 7-figure and 8-figure ecommerce experts and sellers. They said the ONE thing you need to get right is to choose a five-star profitable product.

After product selection, sourcing is the most important part of your ecommerce business. Because if you get it wrong, it can become a huge bottleneck and will bring forth bigger problems in the long run. 

Sourcing products for your eCommerce business is no longer a one-trick pony.

Previously everyone considered China as the first and often ONLY place to source and manufacture products for their ecom and FBA business.

Nowadays with the uncertainties with COVID and lockdowns continuing in China, many people are considering alternatives like India, Mexico, Vietnam, and even the US.  

If you want to source well, there’s a lot that you need to know.

But the ultimate resource you need to learn all of this from doesn’t exist yet. So, I decided to create one based on my over a decade of experience in sourcing and supply chains.

I’ve visited hundreds of factories on the ground in China, partnered with dozens of suppliers, and overseen millions of dollars of purchase orders with suppliers. In addition, I have an extensive network of sourcing and logistics contacts in India, Vietnam, and Mexico.

I’ve created The Sourcing Algorithm – the ultimate resource you need to start sourcing from China, Mexico, Vietnam, India, and the US. 

Join me as I will share this Sourcing Algorithm on a live webinar, Tuesday, May 31, 2022, at 8PM Eastern Time. 

Reserve your spot and send in your questions here: https://forms.gle/7FbSahBQaLXV619t8 

See you inside!

Get your Free Pass to 7FSS6 Evergreen now!

Registration is now open for the 7 Figure Seller Summit 6 Evergreen! Get ready to discover how 7 and 8 Figure Sellers think, overcome challenges, and strategize ahead of the e-commerce game. 

If you missed it the first time, good news! Due to popular demand, we have made 7FSS6 Evergreen. That means you can get a free pass to watch for a limited time right now!

You will learn how to do the following:

  • Develop the MINDSET of a million-dollar business owner and FUNDAMENTALS of creating a 7 Figure eCommerce business
  • Master MARKETING and Building a BRAND and Optimizing PPC to drive external traffic to your listings, build an audience that you can launch to, and rank your products with,
  • Implement strategies to SCALE your e-commerce business, so you’re working ON your business and not IN your business
  • Increase your PROFITABILITY, know your numbers, and cut expenses, so you keep more money in your pocket…
  • EXITS – How to build a business that will be attractive to buyers so you can SELL it

We’re excited to have over 30 outstanding entrepreneurs and experts speaking at this eCommerce online event. Enjoy over 30 hours of masterclasses and expert training! You will have 24 hours to view each session for FREE!

However, we believe that every individual, especially business owners, has a timeline and learning curve. 

Learn more about this 7FSS event and grab your free pass now!

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – May 20, 2022

China Sourcing Updates

What we know

  • Shanghai continues to be in lockdowns for over 6 weeks now
  • Tesla nearly stops production at its Shanghai plant due to a lack of component supplies A lot of companies experienced plunging sales this Q1
  • We are unsure when China can lift the lockdowns

As Shanghai enters its 6th week of lockdowns with no end in sight, the impact on the supply chain has already reached the global scale. Companies all over the world have felt the disruption. 

Automakers, fashion houses, breweries, tech firms, and other 180 companies considered China’s lockdowns key variables affecting their Q1 earnings. 

In fact, even Tesla has been forced to slow production nearly to a stop at its Shanghai plant this week because of a lack of subcomponent availability due to the Covid lockdowns according to a Reuters report.  

We will keep our eye on this as the uncertainty continues. 

Shopify is buying their way into the 2-day shipping game

Image Credits: Shopify News

Shopify recently bought the logistics company Deliverr for $2.1 billion dollars. This move is the largest acquisition Shopify has made in its history. 

The Shopify Fulfillment Network (SFN) and Deliverr have teamed together to simplify supply chains for merchants of all sizes, both on and off Shopify, democratizing access to end-to-end logistics for independent companies.

The company plans to combine Deliverr with its existing fulfillment network. They will also leverage this action to power their Shop Promise guarantee. It is a new service that aims to provide customers with a two-day or next-day delivery. 

Shopify seems to have taken this step to compete with Amazon’s Buy with Prime initiative to cater to third-party merchants searching for a faster and more reliable shipping solution.

Takeaway: 

The Ecommerce war between Amazon and Shopify is intensifying as Shopify is buying its way into the 2-day shipping game to compete against Amazon Prime. 

Walmart’s e-commerce sales were flat in the most recent earning report

Walmart recently released its earnings report on Tuesday. The numbers fell far short of Wall Street projections as rising gasoline prices and greater inventory levels pressure the nation’s largest retailer.

Specifically, according to CNBC, their e-commerce sales increased by only 1% since last year, and 38% based on two-year progress. 

Takeaway:

Is this flatness in e-commerce a temporary blip on the radar from Walmart or a sign of more significant slowdowns ahead?  

[Video Replay] Amazon Business Optimization – Learn How To Scale And Grow The 5 Main Business Functions

Did you know that Optimization can help scale your Amazon business exponentially?

Yoni Mazor from GETIDA just provided a valuable discussion on Amazon Business Optimization – how you can scale and grow your Amazon business with the right optimization strategies. In this masterclass, Yoni shares how you can start to scale your business by optimizing your 5 Main Business Functions.

You’ll learn:

[2:40] Who’s this session for today and why should they watch?
[8:08] Optimization Overview

[8:44] Optimizing the Accounting side of your business

[11:56] Know your profit and loss so you can react in real-time

[16:18] Human Resources – Platforms where you can hire and outsource your operations

[21:30] Hire and invest in people who are smarter than you

[24:50] Logistics – Best practices and platforms to optimize your logistics

[26:51] Air shipping “First Choice Shipping” – Get your products more quickly

[29:26] Shipstation – streamline orders from e-commerce marketplaces across the board

[31:00] Expand your Product Distribution at any given time

[36:05] “I have a manufacturer that I love, how do I know if I’m saving money?” 

[36:50] Operations – Platforms that will help you optimize operations
[37:55] Spott – Insurance policies for selling on Amazon
[41:45] Textme app – get a virtual biz phone number for calls and texting

[49:39] Tools you should consider to scale your business

[52:55] GIMP – like free Photoshop
[58:07] Scaling on amazon is a game of tools

[58:30] Full Amazon Scaling Blueprint List

[59:01] Auditing – The Rules of the Game

[59:47] Why do you need help auditing FBA – Case Study: A Seller that got a 7X multiple during an Exit

Watch the full replay here.

Join the Orange Klik x Dragonflip Barcamp on June 9 -10

Next month, in Portugal, there will be an in-person international Amazon Barcamp event called Orange Klik Barcamp. This could be a good opportunity for you if you are selling over Amazon and you want to network with and surround yourself with like-minded e-commerce sellers in Europe.

This English-speaking Amazon FBA seller is coming up on June 9-10th in Lisbon, Portugal! 🇵🇹 

Organized by Orange Klik and Dragonflip, this Barcamp event will bring together hundreds of like-minded attendees whom you’ll have the chance to network with, address your e-commerce problems, and pitch ideas to fellow sellers.

By attending this “unconference” type of event, you will have a chance to:

✅  Learn from 100+ international sellers in one place

✅  Get only attendee-generated content that solves your biggest issues

✅  Choose the content that you want to learn about the most

✅  Discuss only the most important and hottest topics to help you grow your FBA business

✅  Network, meet new friends and business partners

👉 Limited tickets are available now. First come, first served. https://orangeklik.com/barcamp/ 

Orange Klik will offer a 50€ discount when you register through this link and use my code: 7FSS

Note to be transparent – I’m an affiliate of Orange Klik and I believe that this is going to be a great event.  If you do purchase a ticket I will receive a small commission to help us keep creating the best award-winning content to help you grow your e-commerce business.  And it helps pay for my coffee!  Thanks!

Get your Free Pass to 7FSS6 Evergreen now!

Registration is now open for the 7 Figure Seller Summit 6 Evergreen! Get ready to discover how 7 and 8 Figure Sellers think, overcome challenges, and strategize ahead of the e-commerce game. 

If you missed it the first time, good news! Due to popular demand, we have made 7FSS6 Evergreen. That means you can get a free pass to watch for a limited time right now!

You will learn how to do the following:

  • Develop the MINDSET of a million-dollar business owner and FUNDAMENTALS of creating a 7 Figure eCommerce business
  • Master MARKETING and Building a BRAND and Optimizing PPC to drive external traffic to your listings, build an audience that you can launch to, and rank your products with,
  • Implement strategies to SCALE your e-commerce business, so you’re working ON your business and not IN your business
  • Increase your PROFITABILITY, know your numbers, and cut expenses, so you keep more money in your pocket…
  • EXITS – How to build a business that will be attractive to buyers so you can SELL it

We’re excited to have over 30 outstanding entrepreneurs and experts speaking at this eCommerce online event. Enjoy over 30 hours of masterclasses and expert training! You will have 24 hours to view each session for FREE!

However, we believe that every individual, especially business owners, has a timeline and learning curve. 

Learn more about this 7FSS event and grab your free pass now!

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – May 13, 2022

China Sourcing Updates

What we know

  • China disruption continues to hurt the international supply chain
  • International companies are having hard time restarting operations
  • It is difficult to predict when will this dilemma come to end

Image Credits: Pixabay

As a world manufacturer, China’s disruptions are impacting the global economy and adding another danger to the inflation picture. The government attempts to restore production in Shanghai, where most of the populace has been under lockdown for five weeks. 

However, many international companies claim they are still unable to begin operations. China’s inflation report will be scrutinized as food and other product shortages, exacerbated by lockdowns, drive up prices. Consumer price rise is expected to go up, but factory-gate inflation is expected to stay high. 

On the global scale, businesses like Tesla Inc. and Apple Inc. are still experiencing disruptions in their supply chain. “Global port congestion is intensifying and spreading, according to RBC’s Head of Digital Intelligence Strategy, Michael Tran, and colleague, Jack Evans,  admitting it was difficult to predict when things would ease.

Takeaway:

As Amazon sellers, we must be aware that some macro concerns like this may impact our companies. During these times, we must be hands-on with our business. We can only plan, plot, and design strategies to decrease the impact because we are the ones who are experiencing it.

Two Amazon employees tied to Staten Island Union Effort dismissed by Amazon

Image Credits: Amine M’Siouri from Pexels

Amazon fired two employees who are members of an organizing effort at a Staten Island warehouse. This warehouse is where the workers voted to participate in a union last month. The said employees are Mat Cusick and Tristan Dutchin.

Both of them worked in a new organization founded by current and former Amazon employees, the Amazon Labor Union, to organize workers at its Staten Island warehouses. Amazon informed Dutchin that he had fallen short of the company’s productivity targets, which call for staff to choose hundreds of shipments every hour. Thus, they fired him last Saturday after his shift despite his manager’s recent compliment on his improved performance.

On the other hand, Cusick was dismissed last week after using “Covid care leave,” which lets staff care for sick family members with Covid-19. On May 4, Cusick received a letter from Amazon stating he was fired due to job abandonment. The HR department approved his leave until April 29, for the record.

Takeaway:

It’s certainly unethical and against the law to dismiss union organizers, but the consequences are so minor that they may pay off for the company. It’s also challenging to prove that a person was rejected for union participation rather than not showing up on time or failing to execute their job efficiently.

2022 Ecommerce Fulfillment Trends that Every Seller Should Know

Image Credits: Stock

According to a WD Partners poll, e-commerce is now the preferred mode of purchasing for 68 percent of customers, up 52 percent in 2020. By 2024, e-commerce sales will account for 20% of overall retail sales.

There’s no disputing that online shopping will continue to grow. However, there are still a lot of e-commerce aspects that need improvement. Most of the issues were exposed due to the Covid-19 pandemic.

The first one on the list is shipping. With the rise of e-commerce, order volumes, rising rates, and capacity congruently balloon. The most prevalent fulfillment issues were delivery expectations (45 percent) and transportation capacity (36 percent).

Additionally, labor shortages also became a problem that affected the operations in fulfillment centers. Warehouse space also had low vacancies. Inventory management has become one of the top issues of companies. Technology limitations were also brought to the table.

Despite these challenges, specific preventive and strategic solutions are implemented to offer flexibility, scalability, and multiple fulfillment sources. Companies are starting to attract workers, increase demand for space, make technological investments, and enhance inventory management practices.

Takeaway:

As e-commerce is starting to establish its roots in the business industry, it is customary to see specific issues. However, as an Amazon Seller, you need to continuously innovate and keep up with the times, especially technology and various managerial practices, to cope with challenges in the area.

Changes to the Buyer-Initiated Order Cancellation Process

Image Credits: iStock

The response from Seller Central has been received. Many sellers expressed a need for a better way to manage buyer cancellation requests without searching the buyer central messaging platform for them. They can quickly go overlooked when several at once, resulting in product returns and refunds.

Since May 10, 2022, this has been in effect. If you utilize seller central, notifications and cancellations that were previously communicated via buyer-seller communications are now displayed on the manage orders page for each buyer-initiated cancellation.

If you use order reports to process orders, you can enable the buyer requested cancel field to see cancellation requests in your order reports. As for the changes, if you use APIs, you can view the buyer cancellation request through your own systems by using the list order items API.

Once you import, you can continue to cancel orders through API feeds on seller central or with a file upload. You will still continue to receive email notifications for all buyer-initiated order cancellation requests.

Join us for a Live Training on Thursday, May 19, 2022 at 8PM Eastern Time with Yoni Mazor of GETIDA

Founder of JC Penney and renowned businessman James Cash Penney once said, “Growth is never by mere chance; it is the result of forces working together.”

Scaling your business is not an overnight thing that you can sleep on and magically wake up to a 7 Figure business. To grow your business you have to get the right balance between calculated strategies and pure hard work. There are no shortcuts in scaling!

However, you can always optimize your business operations to make the scaling easier and more achievable. With proven and tested strategies, Yoni Mazor of GETIDA will help us learn all of these in a live training.

You’ll learn:

  • How to optimize your  Amazon Accounting, HR, logistics, operations, and tools.
  • A detailed plan on how you can scale your amazon business
  • Real Case Study of how a seller grew a 7x multiple during an exit
  • The rules of the game in Auditing

Join us live on Thursday, 19th May at 8PM ET for a live training on Amazon Business Optimization – How Sellers Can Learn To Scale And Grow their 5 Main Business Functions.

RSVP here and send in your questions for Yoni:

See you inside!

PPC Mastery Summit on May 17-19, 2022

Paid advertising is one of the absolute best ways to grow your business and increase

your sales… if done right. If not done well, it can be a drain on your business.

Let’s face it, advertising is only getting more competitive as costs continue to rise. That

is why it is so important to will learn actionable, proven strategies and tactics of how you

can more effectively grow your sales on and off Amazon (at lower costs).

That is why I am excited to invite you at the upcoming PPC Mastery Summit, May 17-19,

2022 put on by Maximizing Ecommerce.

With over 20 amazing and caliber speakers who are going to cover a wide range of topics on paid advertising (on and off Amazon), you would need to fly to a conference, stay in a

hotel, and pay for overpriced hotel meals.

For about the cost of a fancy drink at Starbucks, you can grab a ticket to walk away with

actionable strategies and tactics you can implement to increase your sales, decrease

your ad costs, and ultimately keep more money in your pocket (aka higher profits).

If you are serious about running more profitable campaigns, I highly recommend you

click here to grab your ticket to the summit. 

Are you ready to take your PPC ads to the next level?

Get your Free Pass to 7FSS6 Evergreen now!

Registration is now open for the 7 Figure Seller Summit 6 Evergreen! Get ready to discover how 7 and 8 Figure Sellers think, overcome challenges, and strategize ahead of the e-commerce game. 

If you missed it the first time, good news! Due to popular demand, we have made 7FSS6 Evergreen. That means you can get a free pass to watch for a limited time right now!

You will learn how to do the following:

  • Develop the MINDSET of a million-dollar business owner and FUNDAMENTALS of creating a 7 Figure eCommerce business
  • Master MARKETING and Building a BRAND and Optimizing PPC to drive external traffic to your listings, build an audience that you can launch to, and rank your products with,
  • Implement strategies to SCALE your e-commerce business, so you’re working ON your business and not IN your business
  • Increase your PROFITABILITY, know your numbers, and cut expenses, so you keep more money in your pocket…
  • EXITS – How to build a business that will be attractive to buyers so you can SELL it

We’re excited to have over 30 outstanding entrepreneurs and experts speaking at this eCommerce online event. Enjoy over 30 hours of masterclasses and expert training! You will have 24 hours to view each session for FREE!

However, we believe that every individual, especially business owners, has a timeline and learning curve. 

Learn more about this 7FSS event and grab your free pass now!

Have a great weekend!

-Gary

The 80/20 Of Ecommerce – May 6, 2022

China Sourcing Update 5/06/22 

What we know

  • There are no recent changes in policies and rules implemented in China.
  • Shanghai is still on lockdown, and our sources on the ground estimate that this will go on for another 2 months.
  • Beijing is also under restrictions, and many areas are strictly monitored to prevent worsening the Covid situation.
  • The Covid lockdown in China is still affecting logistics, deliveries, and trucking, and nothing has improved yet.

According to Fitch Ratings, near-term profitability constraints are developing for Chinese enterprises in various industries. Domestic and international consumer demand is being hampered, while a slew of travel restrictions is hindering supply chains inside China to halt the spread of Covid-19 cases.

Given weakening consumer confidence and the impact of lockdowns, China’s retail sales growth is expected to slow to the mid-single digits in 2022. Tourism, leisure, and luxury items, which benefit from discretionary expenditure, are expected to underperform basics.

This may put downward pressure on the ratings of more liable companies in these discretionary industries. Furthermore, gentler consumer demand in developed markets will increase demand pressures for Chinese corporations. This event is due to tighter monetary policy, normalization of demand patterns following the pandemic’s increase in goods purchases, and high inflation.

Image Credits: zhang kaiyv from Pexels

Lockdowns and supply chain disruption to accelerate Apple’s move away from China, with India a likely beneficiary, analysts say

Image Credits: Nana Dua from Pexels

According to analysts, there is an excellent chance that Apple will shift its operations away from China. It has been weeks since Shanghai and other nearby provinces have been experiencing strict lockdowns. 

As a result, the disruption to transport and production in Apple’s value chain has caused losses. There are two main reasons why Apple is directly affected by the events in China:

First, China is Apple’s assembly center. The components of devices from South Korea and Taiwan are assembled in the country’s factory. Second, the country itself is the second-largest market on the list for Apple devices. 

According to Luca Maestri, the chief financial officer of Apple, if the lockdown persists, the company’s revenue will decrease to $8 billion in June.

More than half of Apple’s 192 suppliers with internal manufacturing sites, including Foxconn, Pegatron, Quanta, Wistron, and Compal, have lockdown-hit Shanghai and Jiangsu production facilities.

Furthermore, two Foxconn factories in Shenzhen were forced to shut down for several days in March due to a local lockdown. And the most significant iPhone assembly compound in Zhengzhou has been short on labor due to Covid-19 restrictions, which have made it difficult for migrant workers from other areas to reach the Foxconn factory there.

Ming-Chi Kuo, an analyst at TF Securities, said that China had already been losing Apple’s trust even before the pandemic, yet the onset of the Covid-19 accelerated the process. 

Other possibilities include India, where land and labor are far less expensive than in the U.S. Due to the closure of China’s roadways and ports, iPhone production in India increased by 50% year over year in the first quarter of 2022. 

According to Indian media sources, this was facilitated by Apple’s choice to build the iPhone 13 in a Foxconn facility near Chennai, India.

Amazon serves as a cushion for profitless e-commerce companies

Image Credits: Karolina Grabowska from Pexels

Amazon’s first-quarter report has reflected the apparent status of the e-commerce industry. Both items sold by Amazon and its third-party sellers on their marketplace were experiencing a flatlining demand compared to the past year. 

Currently, the demand is inversely proportional to cost. Amazon’s shipping expenses increased by 14% per the year leading its operational revenue to be slashed in half. Amazon’s massive network of warehouses, distribution centers, trucks, and planes cannot keep up with the escalating supply-chain expenses.

Amazon is a giant, and as it slows down its expansion to better meet demand, it can wring out costs and enhance efficiency. Other e-commerce businesses without the same advantages are in for a challenging ride.

Companies that do not sell on Amazon must pay the increased expenses of shipping items to customers. Their business strategies revolve around convenience, which is becoming increasingly expensive.

Amazon aggregator Thrasio begins layoffs, names new CEO

Image Credits: Thrasio

Thrasio, the largest aggregator of Amazon businesses, scooping up and merging third-party Amazon vendors, will be laying off a portion of its team members on May 13th. 

That announcement comes as Thrasio announces a leadership change: Greg Greeley, a former president of Airbnb and a longtime Amazon executive, will join the company’s board of directors and take over as CEO in August.

Carlos Cashman, one of the company’s co-founders, will continue to serve on the board of directors of Thrasio.

The layoffs and new CEO appointments are the latest in a string of ups and downs for Thrasio in the past six months, highlighting some of the challenges of the aggregator business model. The layoffs are not a joke, unfortunately. The business verified the rumors. Their supervisors will tell workers over the next two days (Tuesday and Wednesday).

The message stated that the corporation “took the decision to reduce the size of the Thrasio team,” although it did not specify how many workers would be affected. It received roughly $3.4 billion in investment from investors to expand its company and acquire hundreds of businesses. 

It was buying firms at a rate of 1.5 per week and had several hundred brands in its portfolio when it raised its $1 billion round last October.

Takeaway: Thrasio has been expanding very quickly and now they’re starting to slow down their growth. If you are considering an exit, it may make sense to adjust your expectations.

Join the Orange Klik x Dragonflip Barcamp on June 9 -10

Next month, in Portugal, there will be an in-person international Amazon Barcamp event called Orange Klik Barcamp. This could be a good opportunity for you if you are selling over Amazon and you want to network with and surround yourself with like-minded e-commerce sellers in Europe.

This English-speaking Amazon FBA seller is coming up on June 9-10th in Lisbon, Portugal! 🇵🇹 

Organized by Orange Klik and Dragonflip, this Barcamp event will bring together hundreds of like-minded attendees whom you’ll have the chance to network with, address your e-commerce problems, and pitch ideas to fellow sellers.

By attending this “unconference” type of event, you will have a chance to:

✅  Learn from 100+ international sellers in one place

✅  Get only attendee-generated content that solves your biggest issues

✅  Choose the content that you want to learn about the most

✅  Discuss only the most important and hottest topics to help you grow your FBA business

✅  Network, meet new friends and business partners

👉 Limited tickets are available now. First come, first served. https://orangeklik.com/barcamp/ 

Orange Klik will offer a 50€ discount when you register through this link and use my code: 7FSS

Note to be transparent – I’m an affiliate of Orange Klik and I believe that this is going to be a great event.  If you do purchase a ticket I will receive a small commission to help us keep creating the best award-winning content to help you grow your e-commerce business.  And it helps pay for my coffee!  Thanks!

Get your Free Pass to 7FSS6 Evergreen now!

Registration is now open for the 7 Figure Seller Summit 6 Evergreen! Get ready to discover how 7 and 8 Figure Sellers think, overcome challenges, and strategize ahead of the e-commerce game. 

If you missed it the first time, good news! Due to popular demand, we have made 7FSS6 Evergreen. That means you can get a free pass to watch for a limited time right now!

You will learn how to do the following:

  • Develop the MINDSET of a million-dollar business owner and FUNDAMENTALS of creating a 7 Figure eCommerce business
  • Master MARKETING and Building a BRAND and Optimizing PPC to drive external traffic to your listings, build an audience that you can launch to, and rank your products with,
  • Implement strategies to SCALE your e-commerce business, so you’re working ON your business and not IN your business
  • Increase your PROFITABILITY, know your numbers, and cut expenses, so you keep more money in your pocket…
  • EXITS – How to build a business that will be attractive to buyers so you can SELL it

We’re excited to have over 30 outstanding entrepreneurs and experts speaking at this eCommerce online event. Enjoy over 30 hours of masterclasses and expert training! You will have 24 hours to view each session for FREE!

However, we believe that every individual, especially business owners, has a timeline and learning curve. 

Learn more about this 7FSS event and grab your free pass now!

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – April 29, 2022

China Sourcing Update 4/29/22 

What we know

  • Manufacturing and export hubs in China are on the verge of halting their operations.
  • The Covid lockdown in China is pushing the logistics chaos
  • Region to region entrance requirements are negatively affecting truckers

Image Credits: iStock

As we have shared in the past weeks, Shanghai is the hotspot of China’s current Covid-19 outbreak. Because of this, nearby regions like Wenzhou impose strict entrance policies. 

Truck drivers must show several health declaration forms to prove that they are Covid-free. It is also essential that they have not been in virus hot spots in the past two weeks. On-site Covid tests are also required.

However, even though drivers meet all the criteria, authorities are still eager to isolate them for a minimum of two weeks within the quarantine center. Passing all the requirements is perceived as useless as some local officials would still push the isolation. As a result, these decisions hampered the transport of foods.

As the lockdown continues its fourth week, the logistic services become non-operational, especially in the Yangtze River Delta. Manufactured goods are piling up in warehouses due to trucking delays. Manufacturers also expect to pause their operations as they, too, experience delays in receiving raw materials.

Some people suspect that lockdowns may be lifted in the first week of May. Trucking and shipping companies will then cope with their backlogs and lulls in production. Kentaro Yoshida, general manager of Yasuda Logistics, said it would be in July that international logistics return to its regular operation. “The current scenario at the Shanghai port is like rubbing salt into the wound,” he continued, referring to Shanghai’s troubles as atop already crippled international logistics systems and supply networks.

Falling sales and rising costs hurt Amazon’s profitability

Image Credits: Financial Times

Due to a drop in online sales and rising costs, Amazon has recorded its slowest sales growth in Q1. Their aggressive decision to scale amid the Covid-19 pandemic caused them to face overstaffing and capacity excess.

Additionally, this downward sloping performance was expected due to issues in logistics, supply chain, inflation, and increasing staffing costs. The unceasing war between Russia and Ukraine also became a challenge.

In the first quarter, operating income of $3.7 billion fell short of analysts’ forecasts of $5.3 billion, compared to $8.9 billion the previous year. Amazon’s online retail sector saw sales of $51.1 billion in January-March, down from $52.9 billion the last year.

Amazon forecasts a similar modest revenue increase of between 3% and 7% for the current quarter. On Thursday, April 28th, during after-hours trading, results show that the company decreases its shares. 

Key Takeaway:

As an Amazon Seller, we should understand that some macro issues may affect us and our businesses. We need to be hands-on with our company during these times. Since we are at the receiving end of all the impact, the least we can do is the plan, strategize, and devise ways to lessen the impact.

Amazon opens up Prime delivery service to other retailers

Image Credits: iStock

Amazon opens its Buy with Prime delivery service to other online merchants. This service allows third-party merchants to leverage Amazon’s massive shipping and logistics network to fulfill orders on their websites while also appealing to Amazon’s 200 million+ Prime subscribers.

However, sellers cannot use Buy with Prime for free. Prices may vary depending on payment processing, fulfillment, storage, and other costs. The e-commerce giant hopes to expand the service later on to merchants using rival platforms such as BigCommerce and Shopify.

The service will only be available to Amazon FBA sellers for the time being. Only those sellers who receive an invitation can join this service. 

Merchants have to pay for their products to be held in Amazon’s warehouses. They can leverage the company’s supply chain and delivery operations using this service. Shortly, this will be extended to other merchants, even those who aren’t Amazon sellers.

According to Bob O’Donnell, founder, and chief analyst at Technalysis Research, Buy with Prime has the potential to expand into a profitable service for Amazon despite being undersized at first. 

Key Takeaway:

Because their goods are already kept in Amazon fulfillment centers, merchants utilizing FBA may add Buy with Prime to their online store in minutes. It will provide a new approach for e-commerce merchants to expand their businesses. Amazon perceives that sellers can strengthen their customer relationships with this service’s fast and convenient shipping processes.

[Video Replay] How to know your numbers and turn around declining sales for Amazon Sellers

Do you know your numbers? What is your actual ecom business profit?

Marc Jepsen from ManageByStats just provided valuable discussion to help you know your numbers if you are running an Amazon business. He shared in this masterclass the 4 Vital Signs Of Your Amazon FBA Business To Boost Your Profitability And Prevent A Heart Attack. 

In this training, I invited Marc Jepsen from ManageByStats for you to know How to know your numbers and turn around declining sales for Amazon Sellers.

You’ll learn:

[10:54] You need to know the 4 vital Key Performance Indicators

[11:30] If your sales go down, what do you do?

[12:20] KPI: Sessions – How many times your listing is being seen

[13:00] KPI: Conversions – Measures the Average Number of Units Sold per Session

[15:03] KPI: Profit – What is left after deducting direct overhead costs, COGS, Amazon fees, Ad costs and Tax

[16:56] KPI: Average Reviews – One of the most important points of your Amazon Listing

[18:35] Q&A: What if I don’t have reviews? Do I have to launch below the average cost in the market? 

[21:35] What do you do when sales go down? – Using KPIs to evaluate your numbers

[25:26] Q&A: Do we need to enter any information manually or does it connect to Amazon and uploads all of this information?

[31:00] PPC Units and Organic units 

[39:00] Q&A: Is this Best for FBA or FBM?

Watch full replay here.

Get your Free Pass to 7FSS6 Evergreen now!

Registration is now open for the 7 Figure Seller Summit 6 Evergreen! Get ready to discover how 7 and 8 Figure Sellers think, overcome challenges, and strategize ahead of the e-commerce game. 

If you missed it the first time, good news! Due to popular demand, we have made 7FSS6 Evergreen. That means you can get a free pass to watch for a limited time right now!

You will learn how to do the following:

  • Develop the MINDSET of a million-dollar business owner and FUNDAMENTALS of creating a 7 Figure eCommerce business
  • Master MARKETING and Building a BRAND and Optimizing PPC to drive external traffic to your listings, build an audience that you can launch to, and rank your products with,
  • Implement strategies to SCALE your e-commerce business, so you’re working ON your business and not IN your business
  • Increase your PROFITABILITY, know your numbers, and cut expenses, so you keep more money in your pocket…
  • EXITS – How to build a business that will be attractive to buyers so you can SELL it

We’re excited to have over 30 outstanding entrepreneurs and experts speaking at this eCommerce online event. Enjoy over 30 hours of masterclasses and expert training! You will have 24 hours to view each session for FREE!

However, we believe that every individual, especially business owners, has a timeline and learning curve. 

Learn more about this 7FSS event and grab your free pass now!

In case you missed it:

Have a great weekend!

-Gary

80/20 Of Ecommerce – April 22, 2022

China Sourcing Update 4/22/22 

What we know

  • There is mass marine congestion on the east coast of Shanghai amid COVID lockdowns.
  • Experts warn us for the next global shockwave of China’s harsh lockdowns.
  • Chinese lockdowns are starting to hurt the American and European supply chains
  • The lockdown status is almost the same as last week

Image credits: MarineTraffic

Amid the city’s COVID lockdown and worries about its financial and social impact, Marine Traffic photographs reveal massive sea congestion off the east coast of Shanghai and surrounding its port.

We received information stating that the river system is still operational for cities such as the Long River. You can still move your shipment through a riverboat to the Shanghai seaport. However, not everyone knows about this information since not all shipping companies offer this service.

Another partner in China shared that the lockdown updates were as similar as last week. However, they expect all operations to go back to normal on the 1st of May. 

As Shanghai was still locked down, Ningbo suffered a lot of pressure for shipping. Many cities are semi-closed or only allow local people in, especially in Beijing and surrounding cities. Everything works fine, except for trucking to the port warehouse, which suffered a lot.

Yiwu, a city in the Zhejiang Province, is okay. There are very sporadic pockets of lockdowns in small towns. There are temporary lockdowns, usually for one to two weeks affecting the manufacturers located in the said cities.

If a COVID case happens in these small cities,  that specific area would immediately be locked down, but it is very irregular. Nobody knows when and where the subsequent lockdown occurred. 

We are seeing delays in FedEx and shipping out of China in air shipping. Some airports are affected, such as the Shanghai Pudong International Airport. So, they may need to route packages to distant airports, which would cause additional delays. Check with FedEx if you are shipping by air. 

We are seeing delays in FedEx and shipping out of China in air shipping. Some airports are affected, such as the Shanghai Pudong International Airport. So, they may need to route packages to distant airports, which would cause additional delays. Check with FedEx if you are shipping by air. 

Amazon added an extra 5 percent fuel and inflation charge for third-party sellers 

Image credits: Bloomberg and Getty Images

Amazon CEO Andy Jasssy discussed on CNBC last Thursday, April 14, that the inflation alongside the pandemic and the war between Russia and Ukraine poses many rising costs for the company.

Because of this, specific supply chain issues have been served to the table. The challenges include expensive and time-consuming product shipping, especially for more extended distance packages. 

Amazon added an extra 5 percent fuel and inflation charge for third-party sellers in the United States who utilize its storage and shipping services to cope with this dilemma. Jassy emphasizes that they cannot keep absorbing all the costs and expect the business to run economically.

The said surcharge will be implemented in two weeks for FBA sellers. Many sellers are not happy with this and have expressed their frustration since it was only in January when they had the recent FBA cost increase.

Takeaway:

The ongoing global problems give businesses a pressing need to increase their product and service costs. The lockdowns in China also contribute to this decision-making of Amazon. Amazon sellers and the company should communicate properly before sudden implementations and changes like this one. It will help lessen the impact for both parties if decisions are favorable to both sides.

Amazon FBA update: Small and Light and extra-large storage types

Image Credits: Amazon.com

On Monday, April 18, 2022, Amazon added news storage types for FBA sellers. The storage types include “extra-large” and tweaks to the “Small and Light” program. 

According to them, the new reclassification of the packages will provide sellers more flexibility in managing their inventory limits, especially for more oversized items. Amazon would like their sellers to check the “Extra-large FBA inventory” to understand this announcement for further information. 

Additionally, there is an increase in the price threshold for FBA Small and Light eligible products from $8 to $10. Amazon expressed that the said change will open the doors for sellers to receive more fulfillment discounts.

Small and Light helps sellers sell more of their low-cost items to the hundreds of millions of Amazon consumers who shop in Amazon shops worldwide by lowering fulfillment costs on eligible items.

Takeaway: 

Amazon sellers should know more about this announcement to understand the expected impacts on their business. You can go to FBA Small and Light Seller Central Help to read about this change.

Amazon product liability insurance: why is it important?

Image credits: Compliance Gate

Commercial liability insurance will protect you from mishaps arising from the items you sell, allowing you to focus on building your business. In doing business, there will always be uncertain times. 

When things go wrong, especially if you are a private label and you manufacture your product, this insurance will help you ensure that no claim can take you out of business. E-commerce sellers, especially those that sell on Amazon, are recommended to have their product liability insurance. 

Sellers are obliged to get and maintain commercial liability insurance within 30 days of exceeding $10,000 in gross revenues in one month on Amazon.com, or if otherwise asked by Amazon, under section 9 of the Amazon Services Business Solutions Agreement.

Sellers can purchase commercial general, excess, or umbrella liability insurance. When choosing insurance coverage, sellers should ensure that it covers all the items they advertise for sale on Amazon.

To avail of this insurance policy, sellers need to meet specific criteria and documents, which can be found in the Amazon Seller Central under the Program Policies > Insurance Requirements. You can choose any insurance provider that fulfills Amazon’s standards if you presently do not have liability insurance or are seeking new coverage. 

However, sellers should make sure that their insurance carriers are inclined to e-commerce, especially Amazon, to represent them in the best way possible.

4 Vital Signs Of Your Amazon FBA Business To Boost Your Profitability And Prevent A Heart Attack – Live Training on April 28th at 8 PM ET with Marc Jepsen, COO of ManageByStats

Do you know your numbers? What is your actual ecom business profit?

One of the keys to running a successful e-commerce business is you need to know your numbers. Peter Drucker said, “Whatever gets measured, gets managed”. Do you know your numbers? What is your actual ecom business profit?

Did you know that according to ManageByStats, about 90% of people do not know what their actual profit is? If you do not know your numbers, it is like taking shots in the dark. You simply will not hit the target.

To help you know your numbers if you are running an Amazon business, I invited Marc Jepsen from ManageByStats to share how you can know your actual profits so you can SCALE and prevent your sales from decreasing over time. 

In this live webinar on Thu, April 28 at 8 PM EST, you’ll learn:

  • How sellers can know their actual profit
  • Strategies to take if your sales volume goes down 
  • Importance of knowing profit down to every penny
  • 4 Vital Signs Of Your Amazon FBA Business To Boost Your Profitability And Prevent A Heart Attack

To join, RSVP here: https://forms.gle/VSWojG9XCbFo1mrY9  

Helium 10 Sell + Scale Summit in Las Vegas Sept 20-22, 2022

Want to learn proven strategies that are guaranteed to help your business find lasting success? Then register now at this year’s Sell + Scale Summit!

Sell + Scale Summit is a new in-person ecommerce conference hosted by Helium 10.  

This offline event brings together a community of sellers, experts, and speakers for 3 days of education, networking, and world-class entertainment in Las Vegas.

Taking place September 20-22 at the Virgin Hotels Las Vegas, this year’s event features some amazing special events, including a LIVE Welcome Party performance from Grammy award-winning rap superstar Nelly and an inspiring keynote address from serial entrepreneur Gary Vaynerchuk. 

I think this will be a great in-person event to connect with other sellers and I was able to get a special discount to our readers. 

Helium 10 will offer a $100 discount when you register through this link and use my code: S3PAXGARYHUANG 

Note to be transparent – I’m an affiliate of Helium 10 and I believe that this is going to be a great event.  If you do purchase a ticket I will receive a small commission to help us keep creating the best award winning content to help you grow your ecommerce business.  And it helps pay for my coffee!  Thanks!

To learn more, visit  today!

In case you missed it:

Have a great weekend!

-Gary

 The 80/20 Of Ecommerce – April 15, 2022

China Sourcing Update 4/15/22 

What we know

  • Shanghai is still under lockdown and nobody knows when things will get back to normal
  • Though the Shanghai Port and Terminals are open, trucking products to and from the port is a big problem
  • Other regions of China such as Shandong are opening up but still feeling the effects of lockdown

Rumor: Ningbo and Suzhou are pretty close to a full lockdown

As of April 15, Shanghai and its 30 million residents are still under lockdown with no end in sight.  

Anecdotally speaking, my friends and family in Shanghai have been having problems getting enough food since the lockdown began.  Not only can they not go outside, even food delivery services have been suspended.  

The Ports in Shanghai are open and operational but the problem is getting the trucks to the ports.  There have been many road closures and Covid PCR test points which are causing delays and even quarantines when drivers test positive.  A number of drivers are refusing even to accept deliveries when they need to cross through multiple regions and checkpoints so they don’t risk going into quarantine.

All this means that the supply chain is under a lot of stress and facing disruption in many parts of China. 

A total of 193 expressway exits and service areas have been shuttered in Jiangsu and Zhejiang provinces. As a result, the country’s delivery network from electronic to raw materials has slowed down. 

I have even heard rumors that Ningbo and Suzhou are going under lockdown soon due to a rise in Covid cases.

In Shandong province, factories have been reopening which is good news, but on the other hand the bad news is the supply chain is not operating as normal.  For example, domestic shipping options have been severely restricted due to the COVID lock downs.  In one instance we tried sending samples from our supplier in Weifang, Shandong, to our partner in Zhejiang province. However, the courier simply couldn’t take up the samples at all so we were stuck and we couldn’t send the samples out.

So on the surface, even though lockdowns may be lifted, in reality there are still many weak links in the supply chain that you need to watch out for. I recommend that you communicate with your contacts on the ground in China to get real world information and to minimize disruptions as much as possible. All in all I would add an additional buffer in the delivery lead time of 50% longer than expected and to plan your orders accordingly.

Amazon Delays changes to buyer cancellation process

Image Credits: iStock

Amazon has deployed changes to the buyer cancellation process and provided further information about the changes. Amazon will launch the new approach on May 10th rather than April 27th.

All buyer-initiated purchase cancellation requests will still be sent to sellers through email. They won’t need to download order data to observe buyer-initiated cancellations as a result of this. Sellers can activate the Buyer-Requested Cancel field in their Order reports to see cancellation requests.

It’s regarded as an unofficial cancelation if a consumer requests a cancellation exclusively through the buyer-seller chat channel, and canceling it will affect your cancelation rate data. The buyer must go to Your Account, Your Orders, then Request Cancellation to cancel their order.

Sellers can send a critical message if the buyer does not answer the merchant’s request through the buyer-seller messaging tool. Even if a buyer opted out of receiving non-critical alerts, the email will be sent to them.

Takeaway: Buyer-initiated cancellations are pretty frustrating. It’s important to remember that it’s all part of the selling process. Whether or not you dispatched the order will determine how you handle cancellations. The vendor can only cancel orders that have not yet been dispatched. If the order has already been dispatched, different steps must be followed. It is based on whether the shipping was handled by Amazon or a third-party carrier.

How Amazon plans to fix its multi-billion dollar returns problem

Image Credits: iStock

As Amazon’s market share grows, so does the number of returns, creating a considerable worry for Amazon and the environment.

Last year, the National Retail Federation said that a record $761 billion in merchandise was returned, resulting in 5.8 billion pounds of landfill garbage.

The company has already committed to a “zero product disposal aim” while also making returns more free and straightforward, from boxless returns to encouraging customers to retain certain items.

Amazon, therefore, has created liquidation, donation, and resale services for returns. According to the company, customers are more likely to repurchase and deepen their loyalty if returns are made more accessible.

Takeaway: As an Amazon Seller, returns can impact profit. However, even when there are times when buyers seem unreasonable, you need to deal with them helpfully and politely. Keep your return records, reach out to the buyer, and determine why the items were returned. Lastly, do not forget to inspect your returns. Managing your returns and returns properly will protect your account and reputation in the marketplace.

Helium 10 Sell + Scale Summit in Las Vegas Sept 20-22, 2022

Sell + Scale Summit is a new in-person ecommerce conference hosted by Helium 10,  

This offline event brings together a community of sellers, experts, and speakers for 3 days of education, networking, and world-class entertainment in Las Vegas 

Taking place September 20-22 at the Virgin Hotels Las Vegas, this year’s event features some amazing special events, including a LIVE Welcome Party performance from Grammy award-winning rap superstar Nelly and an inspiring keynote address from serial entrepreneur Gary Vaynerchuk. 

I think this will be a great in-person event to connect with other sellers and I was able to get a special discount to our readers.  \

Helium 10 will offer a $100 discount when you register through this link and use my code: S3PAXGARYHUANG 

Note to be transparent – I’m an affiliate of Helium 10 and I believe that this is going to be a great event.  If you do purchase a ticket I will receive a small commission to help us keep creating the best award winning content to help you grow your ecommerce business.  And it helps pay for my coffee!  Thanks!

To learn more, visit  today!

In case you missed it:

Have a great weekend!

-Gary

Supply Chain Remain In Chaos Amidst Lockdown In Shanghai, Scaling An Amazon Business From $144k To $1m, 80/20 Of Ecommerce – 04/08/22

China Sourcing Updates – Thursday, April 8th, 2022

Image Credits: Saunak Shah from Pexels

While some parts of China are returning to standards, like Shenzhen and Shandong province, Shanghai is still experiencing a severe sustained lockdown. There are mixed reports on whether Shanghai ports and logistics are operating as usual.

The status is changing day by day, if not hour by hour. My main recommendation is to work with your suppliers and freight forwarders to get the latest information on how to minimize the disruption.

In terms of civilian life in Shanghai, many families are stuck at home. Going out to walk their dogs in their apartment complexes seems impossible. Meat and seafood are in short supply. So, it is a very chaotic time. As to when the lockdown in Shanghai will end, nobody knows for sure. Some people suspect that it may last until the end of the month.

Trucks are still able to enter Shanghai despite the lockdown. However, several local governments in other places refused to allow Shanghai truck drivers to pick up products. A shift to FOB Ningbo, 250 kilometers from Shanghai, might be preferable.

Takeaway:

Amazon sellers should strategically plan on their restocking and inventory to avoid taking a loss due to delays. To avoid interruptions caused by the pandemic, continue monitoring and engaging with your suppliers.

Goldman Sachs Sees More Overstocking Than Reshoring by U.S. Firms

Image Credits: Ihsan Adityawarman from Pexels

Economists at Goldman Sachs, an investment management firm, have seen three effective solutions for companies in the U.S to strengthen the supply chain — reshoring foreign production, diversifying supplier networks, and overstocking inventories.

However, between reshoring and overstocking strategies, the latter is used by those offering durable goods. According to the survey, companies studied by Goldman Sachs are striving for inventory-to-sales ratios that are on average 5% greater than before the pandemic. At the same time, reshoring appears to be limited. 

The analysts also discovered that businesses that rely heavily on suppliers from countries with more substantial virus restrictions would have lower revenue growth in 2020. In 2021, those businesses were more likely to diversify their supply base. To quote Goldman Sachs economists, they wrote “Greater supply chain resilience comes at a price, and some investors worry that these trends will add to inflationary pressures,”

Takeaway:

As an Amazon seller, proper inventory management is vital to stay ahead of competition especially amidst the disruptions in the supply chain. Taking the time and effort to weigh your options between reshoring foreign production, diversifying supplier networks, and overstocking inventories should be your priority to combat delays. See what works best for your business and implement it strategically. 

Be efficient and ensure that you have the necessary supplies on hand to be on top of the game.

Popularity in liquidation store treasure hunt helps online stores like Amazon

Image Credits: Karoliba Grabowska from Pexels

Increased activity in online shopping has been the reason for the liquidation of stores like Quick Pick and Krazy Binz to come up. 

They sell overstock and returned items from giant retailers like Amazon for a lower price.

Recently, liquidation stores have been opened in Ottawa. Gilles LeVasseur, a University of Ottawa business and management professor, believes that more similar stores will come to Ottawa due to its proximity to the Amazon warehouse.

He explained that the liquidation stores are paid a percentage of the sales. “That’s the beauty of the system for Amazon,” LeVasseur explained, “They can liquidate and have quick growth of genuine additional things that they were not able to sell.”

Takeaway:

Returns and surplus inventory have become unavoidable as online shopping has gained popularity. FBA liquidations assist FBA sellers in recouping the value of their products. Sellers can also avoid paying Amazon warehouse storage costs for old inventory. In a word, the FBA liquidation program is a cost-effective and lucrative way to get rid of unsold and returned merchandise.

[Video Replay]Scaling From $144k to $1m: Best Practices How Sellers are Winning in 2022

How to Scale from $144k to $1m with the right strategies?

Don Henig from AccrueMe just provided valuable training on the best practices of how successful sellers are scaling from $144k to $1m in 2022. In this special training, he enumerated the different ways you can scale your business to 7 figures with the right strategies, right partners and significant effort.

In this 1 hour training I invited Don Henig to give a masterclass on Scaling From $144k to $1m: Best Practices How Sellers are Winning in 2022

You will learn: 

[6:00] Biggest mistake made by sellers when scaling

[6:40] What’s the most important term when considering financing your growth?

[7:35] The most important factor in financing your growth

[8:25] Begin with the end in mind- Having a different end goal in mind will change your perspective in your business

[10:11] “I never hit my goals – I don’t want to hit my goal – when I get close to it, I make it huge and go farther out“

[13:06] What is your vision for your company, and how you can achieve it

[17:40] Go after growth, like a man whose hair is on fire – searching for a pond

[19:20] Wholesale Case Study: 500% profit increase in 9 months

[20:02] Private Label Case Study – From $100 profit to $40k

[32:54] Key Concept # 1: Monthly Payments = Lost Profit

[34:30] Key Concept # 2: The Waste of Idle Cash

[40:15] Can you grow faster with an extra $100,000?

[41:30] Revenue based: $100K with 10% of revenue repayment (no growth)

[44:17] Term Loan: $100K @ 10%, 9-month term

[46:05] Success-based: $100K, zero interest, zero fees, no required. payments. (fast growth)

[49:10] What about Payback?

[55:00] Did this growth happen because of capital injection or is it a combination of capital and coaching?

[55:59] Will you invest in my business if I am not making a profit yet?

[57:54] Would this model work if you are trying to pay down high-interest credit card debt?

Watch full replay here.

Apply here to get a capital investment from AccrueMe and a $500 bonus that you don’t need to pay back!

In case you missed it:

Have a great weekend!

-Gary

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