80/20 of E-Commerce Newsletter – February 02, 2024

Amazon soars Q4, US economy at risk, 6 Bridges to Japan – From Hokkaido

Hey Everyone,

This week I’m writing to you from snowy Hokkaido Japan.  It was my birthday last week and my family and I are taking a trip in the northern part of Japan. 

Even in the most remote areas of Japan, Amazon fulfills.  

I even got snow gloves and a sleigh for my son delivered here by Amazon Prime Japan!

There are some highs and lows to report in this week’s edition of the 80/20 of Ecom newsletter.

Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon

According to EcommerceBytes “Amazon grew sales 13% in the fourth quarter of 2023, the same for each of its segments – North America, International, and AWS – when factoring out the impact of exchange rates.” 

The recent 2023 numbers show improvement as “North America segment operating income was $6.5 billion, compared with an operating loss of $0.2 billion in fourth quarter 2022; and International segment operating loss was $0.4 billion, compared with an operating loss of $2.2 billion in fourth quarter 2022.” 

Amazon FBA 3rd party sellers continue to account for the majority of sales on Amazon as they accounted for “61% of worldwide paid units” in Q4.  

Takeaway: Amazon continues to be the dominant ecommerce platform worldwide as growth and margins improved in Q4.  Also 3rd party sellers continue to be the dominant force on Amazon. 

The U.S. economy may be at risk due to the Red Sea disruptions 

This problem is getting serious guys.

The US government House of Representatives Coast Guard and Maritime Transportation held meetings this week to review the shipping problems caused by the Houthi rebel pirate attacks on commercial ships along the Red Sea. 

For US importers, the most affected route is from Asia/China to the US East coast because traffic is being diverted south of Africa (Cape of Good Hope).  This adds hundreds of thousands in fuel costs and thousands of more miles in distance.  

Source: Sayed Hassan via Getty Images

To avoid the backlog shippers are diverting traffic from Asia to the West Coast (e.g. Long Beach).  

Then they are using rail to move the goods inland to the get the products to the east coast final destination.

This is causing longer lead times and delays.  

And added costs.

“Rail dwell times are starting to tick up, and that rail car imbalances combined with increased demand could later lead to even greater congestion and dwell.”

“Shipping experts warned of possible congestion and higher inflation if the situation prolongs.“ 

Takeaways: 

Now’s a critical time to review your supply chain and gauge whether to source closer to your marketplace or diversify to other sourcing destinations and marketplaces.

Amazon looks to improve inbound fulfillment processes in 2024 | Supply Chain Dive

The master of shipping Amazon is using Generative AI to make their logistics even more efficient.  

The best is getting even better. 

Amazon President/CEO Andy Jassy said on a recent earnings call “Amazon aims to improve its inbound fulfillment processes and inventory positioning this year as part of its continued push to reduce costs in its logistics network.” 

Source: Justin Sullivan via Getty Images

According to Supply Chain Dive “Amazon is using generative AI to help its inventory positioning efforts, as it has built an application using the technology that forecasts how much inventory it needs in each of its fulfillment centers” according to CEO Andy Jassy.

Takeaway: If even Amazon is using AI to optimize their supply chain and logistics to cut costs – we should definitely learn from them.  How can you use tools like AI to cut your shipping costs?  Make shipments more efficient.  And boost your bottom line? 

6 Bridges to selling on Amazon Japan – 40 min training

Given the ongoing supply chain challenges and the fact that Japan is right next to the source, it makes sense to consider Amazon Japan as a marketplace if you want to expand your business in 2024.

I know many of you have questions about selling on Japan so I’d like you to signup for my “6 Bridges to Selling on Amazon Japan” at the “Convert More Clicks Summit” online on Feb 8th.  

I will walk you through each of the 6 Bridges to sell onto Amazon Japan and what tools you can use to get started right now (even if you don’t speak the language).

You can [REGISTER HERE] for $9.

I put a lot of time and effort into making this a valuable training for you.  If you feel it adds value, I would appreciate it if you would vote for me for the “Most Valuable Presentation”.  

7 Figure Seller Japan Mastermind in Okinawa, Japan Apr 8-10, 2024

Japan is the niche that smart Amazon sellers are focusing on in 2024.  

Did you know that in Japan, a “bestseller” yoga mat only has 3.9 stars and 373 reviews!?

This is a prime marketplace, 4th biggest Amazon marketplace in the world and growing.  

This is a 3 day in person event in Okinawa Japan where you will learn:

• Updated 2024 Roadmap how to sell on Amazon Japan
• New strategies to sell on Rakuten Japan
• How to get into offline retail stores
• External marketing strategies to instantly generate more sales 
• How to use AI to scale your business in Japan without speaking the language

You also will mastermind with 7 and 8 Figure Amazon Japan sellers like Nick Katz, Brandon Young, Tim Jordan and more.  

But we are keeping this mastermind intimate to maximize the experience for each seller.  You will get all your questions answered on how to sell up to an additional $300k to $965k in Japan in 2024.

Limited tickets are still available at https://7figuresellerjapanmastermind.com/

Thanks

Gary

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