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:

• China Sourcing Updates 05/13/22
• 2022 Ecommerce Fulfillment Trends that Every Seller Should Know
• Changes to the Buyer-Initiated Order Cancellation Process
• Join us for a Live Training on Thursday, May 19, 2022 at 8PM Eastern Time with Yoni Mazor of GETIDA
• Join the Orange Klik x Dragonflip Barcamp on June 9 -10
• [Amazon Masterclass] How to know your numbers and turn around declining sales for Amazon Sellers
• [Profitability Masterclass] Scaling From $144k to $1m: Best Practices How Sellers are Winning in 2022
• Get your Free Pass to 7FSS6 Evergreen now!

Have a great weekend!

-Gary

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