Day 2

In the vast digital landscape, where online marketplaces have revolutionized how we buy and sell goods and services, questions arise about the potential for these platforms to become monopolies.

Giants such as Amazon reign supreme, but even the others are all looking for dominance.  

In this episode, Shirish Nadkarni, a seasoned entrepreneur and author of the book "Winner Takes All: Case Studies in How Online Marketplaces Are Creating Modern Monopolies," joins me to shed light on the dynamics of online marketplaces and their potential for monopolistic dominance.

Online marketplaces have become the beating heart of commerce, connecting millions of buyers and sellers across the globe. But beneath their seemingly benign façade lies a captivating tale of ambition, innovation, and the relentless pursuit of dominance.

Imagine a world where a single marketplace/platform controls the fate of entire industries, where a select few wield power to reshape economies, and where the rules of engagement are rewritten before our very eyes.

The question consumers and regulators are left to grapple with is, are online marketplaces destined to become unstoppable monopolies? Can any force unseat these titans once they attain critical mass? 

Shirish and I explore these burning questions, providing you with an intimate understanding of the complex dynamics that govern the digital marketplace landscape.

This thought-provoking conversation challenges traditional perceptions and delves into the factors that contribute to the rise of dominant players like Amazon.

Join us as we delve into online marketplaces and the intricate dance of competition, innovation, and the quest for market dominance.

Key Takeaways

- How Shirish created the largest language marketplace (00:32)

 - The network effect of marketplaces (10:03)

- How eBay lost in China (14:44)

- How Amazon displaced eBay (20:14)

- What is critical mass for a marketplace (23:26)

- How regulators can ensure a level field (26:02)

- Amazon's self-preferencing behaviors (30:09)

- The next big marketplace (32:07)

Additional Resources:

- Winner Takes All Book

- Connect with Shirish Nadkarni

Website

LinkedIn 

Twitter 

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue7Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Amazon, the ecommerce powerhouse, is renowned for its frequent launches and experiments, often unveiling new features in April and October.

It is continuously innovating and ceaselessly exploring new avenues and refining its offerings to defend its huge ecommerce market share and even grow it.

Glimpses of Amazon's latest tests and innovations have started to emerge, offering a tantalizing preview of what's in store.

Amazon's relentless pace of change and continuous testing can be overwhelming for sellers. While being an early adopter of new features may not always yield long-term benefits, staying informed is crucial for making informed decisions for your business.

Keeping a finger on the pulse of Amazon's developments, businesses can adapt their strategies to harness opportunities and provide an exceptional shopping experience.

In this episode, Shannon and I explore some of the most intriguing developments that have caught our attention. From estimated units sold and AI-driven review summaries to the return of Seller Fulfilled Prime and strategic partnerships, Amazon continues to push boundaries and reshape the online shopping landscape.

Tune in to learn more about the new features Amazon is testing and what Shannon and I think about them.

Key Takeaways

- Estimated units sold appearing on the search results page (01:48)

- Amazon is summarizing Reviews with AI (05:18)

- Small Business Brand Names disappearing from titles (10:10)

- The return of Seller Fulfilled Prime (13:02)

- Posts have officially moved to the Ad Console (20:23)

- Shop similar items feature in infographics (23:28)

- Amazon's deal with Pinterest to make pins "shoppable" (25:15)

- Amazon sued by the FTC (31:29)

- Prime Day shopping event (34:07)

Additional Resources:

- Amazon Hands Out ‘Small Business’ Label to Huge Sellers By Theo Wayt

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue7Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

In today's episode, I am joined by Malia Kim, Director of Presence at Avenue7Media, and James Ford-Bey, Head of Catalog at Avenue7Media, to discuss the complexities of variations, multipacks, and bundles on Amazon.

While these tactics can be beneficial for sellers, it's crucial to understand what is allowed, what is not allowed, and how to avoid potential problems with Amazon and fines from the Federal Trade Commission (FTC).

The recent lawsuit and hefty fine imposed on The Bountiful Corporation for "review hijacking" by the FTC has caused quite a stir in the Amazon seller community.

This review hijacking or variation strategy, which has been employed for years across millions of listings, suddenly became a violation of the law. Malia shares her insights on what made this case different from the average rank-boosting variation.

Additionally, we question whether Amazon holds any responsibility, considering they allow the sharing of reviews. Could this issue have been avoided if Amazon permitted variations with separate reviews for each variant?

To prevent falling into the same predicament as The Bountiful Corporation, it's vital for sellers to familiarize themselves with Amazon's Variation Policy.

Malia explains that variation relationships, also known as parent-child relationships, involve sets of products related based on attributes such as size, color, or flavor. These relationships allow buyers to compare and choose products on a single product detail page.

James, having encountered numerous TOS violations while managing catalog listings offers his expertise on how sellers can avoid such infringements. It is crucial to stay up to date with Amazon's policies, fix any incorrect listings promptly, and ensure compliance with the guidelines.

Tune in as Malia, James, and I explore the best practices to approach variations, multipacks, and bundles correctly, following Amazon's rules and guidelines and potential fines from the FTC!

Key Takeaways

- What's happening with FBA orders and performance (01:31)

- The problem with In-Stock Head Start Program  (06:36)

- FTC case on review hijacking (09:05)

- How to be compliant with variation policy (12:56)

- Best practices for Amazon listing variation (15:40)

- Bundles are not part of a variation family (21:32)

- The right way to do a bundle (26:59)

- Physical vs. Virtual bundles (29:25)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue7Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Amazon offers a plethora of ways for customers to save money while shopping. However, understanding which discount option to choose and which will yield the best results can be daunting for sellers.

While offering coupons, promotions, and deals can boost visibility, click-through rates, and conversion rates, it's crucial to integrate them into a holistic strategy.

A comprehensive approach includes driving traffic to optimized listings, utilizing advertising for greater visibility, prioritizing customer service, and employing effective forecasting techniques, among other strategies.

You also need to track the results of any promotion on Amazon, not just from the number of units sold but from the long-term impact on your listing.  

In this episode, Shannon and I dive into the world of Amazon coupons, deals, and promotions, exploring their pros and cons and how you can effectively utilize them to grow your profitable sales on the platform.

Key Takeaways

- The 4 key goals of promotions and discounts (03:26)

- How brands can best leverage Amazon coupon codes (09:00)

- The deal types that Amazon offers (12:49)

- The crazy money Amazon makes from deals (17:21)

- Prime Exclusive discounts (22:02)

- How to run promotions on Amazon (24:17)

- Tips for upcoming Prime Day (29:30)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue7Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

On May 4th, Shopify made headlines with its announcement to sell its logistics business to Flexport. This deal involves Shopify receiving 13% equity in Flexport, bringing its ownership to the high teens.

Flexport, led by Dave Clark, a former logistics leader and head of worldwide operations at Amazon, has a strong background in building logistics and final-mile businesses during his 20-year tenure at Amazon.

It's worth noting that Shopify had previously acquired Deliverr for $2.1 billion, showcasing its commitment to bolstering its logistics capabilities. Flexport, on the other hand, has raised $2.3 billion to date, with a primary focus on ocean, air, truck, and rail freight forwarding and brokerage services.

Additionally, the integration of 6 River Systems, which specializes in warehouse automation and robotic solutions, adds further depth to the partnership.

In today's episode, I am joined by James Kelly, a former Amazon insider and current Amazon and DTC seller, as well as the CEO of Woolly.Clothing and other ventures.

We dive into this intriguing partnership and explore how Shopify's recent divestment of its logistics business to Flexport has implications for both companies and the broader e-commerce landscape.

Tune in!

Key Takeaways

- Shopify and Flexport integration (04:01)

- Is Flexport now a viable competitor to Amazon FBA? (06:56)

- Buy with Prime on social platforms (13:53)

- Why Shopify doesn't have logistics DNA (17:24)

- Customer behaviors and traffic (23:15)

- Will Shopify and Flexport eventually become one company? (31:04)

- How the Shopify-Flexport deal impact sellers (36:15)

Additional Resources:

- Check out James Kelly's brand here: woolly.clothing

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Today we have a special guest, Rohit Kulkarni, Managing Director and Senior Research Analyst covering Internet and Capital Markets at ROTH MKM Ventures. With almost 25 years of experience in the field, Rohit brings valuable insights into the world of technology products and investment banking.

Rohit and I dive deep into Amazon's recent earnings call in this episode and discuss the key takeaways.

Amazon's cost-cutting measures have garnered attention and concern among investors. Just as we observed last episode with Malia Kim, it is possible that the red pen got a little too thick-lined and cut not just to the bone but to the marrow.

Andy Jassy's budget cuts are causing disruptions in the FBA system, which is leading to delays and inventory issues.

From the revenue numbers standpoint, Amazon is surprisingly doing very well. Compared to other companies, the investment community received their earrings call well, though it didn't lead to a higher share price.

Rohit and I break down the various revenue streams for Amazon, including online store sales, physical store sales, third-party seller services, subscription fees, advertising, and AWS.

As the numbers show, Amazon's marketplace is the king and drives a lot of cash to their top line. Amazon obfuscates many of the numbers coming from sellers and vendors, leading to the mistaken notion that AWS is the cash flow king.

Looking ahead to the next quarter, Rohit and I discuss the factors investors will scrutinize before influencing Amazon's stock price. Third-party seller services and AWS will continue to drive Amazon's cash flow.

Join us in this episode as we analyze Amazon's numbers and what they mean for sellers and brands. 

Key Takeaways

- 2022 – the year to forget (03:04)

- Insights from the Amazon earnings call (07:40)

- Andy Jassy's cost-cutting impact (10:20)

- Amazon's pillars of revenue and profitability (17:10)

- Amazon revenue numbers line by line (18:22)

- The juggernaut that is Amazon advertising (23:10)

- Amazon ecommerce vs. AWS (26:58)

- How much FBA is driving towards Amazon's bottom line (33:43)

- Is Buy with Prime sticking around? (41:10)

Additional Resources:

Rohit Kulkarni's email: rkulkarni@roth.com

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue7Media

----

Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

As Amazon continues to evolve, it's essential for sellers to stay on top of changes in the marketplace that could affect their businesses.

One recent development that's causing concern among many Amazon sellers is the restructuring of the Fulfillment by Amazon (FBA) program.

Andy Jassy, the CEO of Amazon, recently released his second Annual Shareholders Letter in which he talked about the company's efforts to "rearchitect fulfillment."

While these changes may ultimately benefit Amazon and its customers, some sellers are experiencing issues with the FBA program. In particular, many items that are supposed to be in stock are not being delivered on time, leading to frustration and loss of trust among Amazon Prime shoppers.

One program that was intended to help with this issue is the In-Stock Head Start program, which allows temporarily out-of-stock products to be automatically made available for purchase by customers when a new shipment is on its way to the fulfillment center.

However, sellers are finding that this program is not working as intended, and products are not becoming available as expected.

There seems to be a lack of oversight in many of the programs that Amazon offers, including FBA and Prime. If these issues are not resolved soon, it could spell big trouble for Amazon's business.

So, what can Amazon sellers do in light of these issues?

In this episode, I am joined by Avenue7Media's Director of Presence, Malia Kim, who has a wealth of knowledge and experience, first as an Amazon insider and now as helping sellers, brands, and vendors fight for their rights.

Tune in to learn more.

Key Takeaways

- Andy Jassy's shareholder's letter (01:27)

- Why Amazon Prime and FBA are showing signs of breaking (04:47)

- Pending order problems with Amazon Prime (08:15)

- The problem with the In-Stock Head Start program (14:24)

- What sellers need to do in light of these issues (21:10)

- Why you should pause the In-Stock Head Start program (22:01)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

In Amazon's fast-paced and highly competitive landscape, brands need to take advantage of every tool and opportunity available to them to succeed.

One such opportunity is Amazon Storefronts, which allows brands to create their own branded web store within the Amazon platform.

However, many brands fail to leverage the benefits and best practices of Amazon Storefronts and often create a Storefront without knowing why or how to prioritize it.

In this episode of the Day2 Podcast, Shannon speaks with Carolina Maldonado, our Brand Content Manager at Avenue7Media, also known as the "Brand Whisperer," about Amazon Storefronts and how brands can effectively use them to build their brand and grow sales.

So, why should brand owners have an Amazon Storefront?

One of the biggest benefits is creative control. It's the only place shoppers can shop the brand's entire catalog without being distracted by competitors' products.

Brands can also drive external traffic from Google search results to their Storefront and have access to valuable metrics and insights, such as where shoppers are coming from and how much they are spending.

If you're a brand owner looking to gain a competitive edge with Amazon Storefront, make sure to listen to this episode of the Day2 Podcast and learn from the "Brand Whisperer" herself, Carolina Maldonado, and Shannon Roddy.

Key Takeaways

- Why brands need a storefront (00:52)

- Storefront vs. Product detail page (03:55)

- How to leverage Storefront to get the most value for your business (07:29)

- The current requirements to have a Storefront on Amazon (16:08)

- Modules brands can add to their Storefront (20:18)

- How to create a great storefront that converts (22:54)

- Best practices when building Storefront (29:50)

- Mistakes brands are making with Amazon Storefront (33:41)

- Seasonal branding for your Storefront (35:37)

- Missed opportunities with Amazon Storefront (38:48)

Additional Resources:

- Learn more about Amazon Storefront

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Amazon is a highly competitive marketplace, and many businesses rely on Amazon agencies or consultants to navigate the complexities of the platform to grow and scale their business.

However, not all agencies and consultants are created equal.

Some may make unrealistic promises or use manipulative tactics to secure your business, while others may lack the necessary expertise or experience to deliver results.

Finding the right agency or consultant can be a challenge. From slick brochures that oversell and underdeliver to outright hucksters who are out to fleece clients, the risks of hiring the wrong partner are high.

In this episode, Shannon and I discuss the top 10 red flags that may indicate a less-than-reputable partner.

Key Takeaways

- They promise you they'll get specific results (03:08)

- They create projections and forecasts without any real data (09:27)

- Their prices are suspiciously 'low' (12:24)

- They haven't worked with clients in your industry (15:02)

- They have a slow response time (19:03)

- They lack proof or case studies (20:12)

- They have poor client retention (22:18)

- They don't ask about your challenges; they only sell their services (27:34)

- They rely on outsourcing instead of in-house talent (29:01)

- They don't take time to vet you as a client and gain alignment (32:57)

Additional Resources:

Links to the news story:

- https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-takes-action-stop-dk-automation-kevin-david-hulse-pitching-phony-amazon-crypto-moneymaking

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Our guest today joined us last year for our “When Sellers Attack” episode. This time we revisit a story we briefly mentioned on that episode that everyone in the Amazon space is talking about this week.

In September 2020, Spencer Soper of Bloomberg reported that several employees in India were indicted along with 6 Amazon consultants by the DOJ for a bribery scheme worth $100mm dollars to those involved.

One of those accused was Ed Rosenberg, Founder of ASGTG, a membership group for sellers looking to get ahead on Amazon and share expertise. Ed’s company consultants paid for Account and Listing Reinstatements, among other things.

This week, after swearing the allegations were false, Ed went onto Social Media to admit that he had been lying all along and that we were, in fact, guilty of bribery.

Ed has now changed his not-guilty plea to guilty.

My friend and guest today, Chris McCabe, former Amazon employee and founder of eCommerce Chris, and firm that provides the valuable service of Account and ASIN Reinstatements.

However, Chris, like our director, Malia Kim, here at Avenue7Media, doesn’t break the law and doesn’t send suitcases full of cash to Amazon employees!

He has followed this case closely and shares what it's all about. Tune in!

Key Takeaways

- The background to the bribery story (01:54)

- The federal indictments and guilty pleas (03:51)

- Bribery, Lies, and Scandal (05:19)

- The road to hell is paved with good intentions (11:14)

- Ignorance of the law is no defense (16:22)

- Two wrongs don’t make a right (26:08)

- How the bribery scheme affected other sellers and brands (28:06)

- It’s not worth it to soil your relationship with Amazon (30:25)

- Has Amazon done enough to weed out the bad practices (33:53)

Additional Resources:

Links to the news story:

- https://www.bloomberg.com/news/articles/2020-09-18/amazon-ex-employee-charged-by-u-s-in-merchant-bribery-scheme?leadSource=uverify%20wall

- https://www.cnbc.com/2023/03/27/amazon-seller-consultant-admits-to-bribing-employees-to-help-clients.html#:~:text=Ephraim%20%E2%80%9CEd%E2%80%9D%20Rosenberg%20wrote%20in,on%20Amazon's%20third%2Dparty%20marketplace

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- Chris McCabe LinkedIn

- Click here to contact Chris McCabe

----

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

----

Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

In this episode, Shannon and I provide an in-depth recap of The Prosper Show 2023, one of the leading eCommerce conferences in the United States, and the Roth Capital Conference, both of which we attended.

THE Roth Conference is held annually at Dana Point, where big and small companies looking to pitch and deep-pocketed investors meet. 

In this year's conference, I was invited for a panel discussion on Amazon Vs. E-Commerce: A Post-Pandemic Tipping Point Coming Up? It was a fascinating discussion, but one thing we all agreed on was we are not seeing a decline in revenues from the Amazon channel for our client bases.

The Prosper Show is one we always look forward to attending every year. It is an event that brings together thousands of Amazon sellers, eCommerce professionals, experts, and business owners from all over the world to share knowledge and insights on the latest trends, tools, and strategies in the eCommerce industry.

In this year's show, Shannon had a presentation on Amazon SEO which he undoubtedly delivered excellently, while I was moderating the Trends and Prediction Panel, which is always a popular session.

Overall, Shannon and I felt the quality of the presentations and attendees, the networking opportunities, and the energy at the Prosper Show were great and improved from previous years. There was a lot of learning, community building, and networking going on.  

One key takeaway from both conferences was that a recession is coming. However, this is not the time to hunker down and cut down on your advertising; it's time to pounce and eat into your competitor's market share.

But we have so much more for you in this episode from both conferences. Tune in!

Key Takeaways

- Recap of the Roth Capital Conference (01:43)

- Amazon Vs. Shopify debate (05:08)

- Will 'Buy with Prime' last (08:01)

- Prosper Show 2023 recap (11:36)

- What are you doing to prepare for a recession (25:23)

- Gaining market share in a recession (26:47)

- There's always an opportunity to pounce (28:53)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

The US Supreme Court is about to deliver an opinion that could undo the law many believe made the internet possible. This opinion might drastically affect Internet giants such as Amazon, Google, and Facebook.

But smaller businesses, such as Amazon sellers, might also be impacted.

The case, Gonzalez v. Google, questions the protections offered to Big Tech companies by Section 230 of the Communications Decency Act.

The internet likely would not exist today without the protection afforded it in 1996 by this Act. But the times have changed, and websites are not merely conduits for information to innocently be passed back and forth. These websites are processing, recommending, and doing things to keep you engaged on their site…so they can serve more ads and make money…a lot of money.

As a seller or vendor, it's wise to protect your business by following the law and producing safe products. It's also important to make claims that are supported by evidence. Amazon's actions in the last few years seem to suggest they know a time is coming when they won't be protected, so protect yourself, your customers, and your business first.

Our guest, John Bergmayer, is here to help us make sense of this case and how its outcome may impact the internet. He has spent a career tracking the effects of Section 230 and is paying particularly close attention to this latest case.

He's here today to unpack what's going on and how a decision may affect you, the Amazon Seller or Vendor.

Key Takeaways

- History of Section 230 (03:02)

- Does Section 230 cover today's issues (10:50)

- Is Amazon liable for what's sold on their platform (19:45)

- Holding Amazon liable as a seller vs. as a third-party content platform (21:39)

- Section 230 as a shield for the internet (28:09)

- What are the possible outcomes if the Gonzalez family wins (31:02)

Additional Resources:

Connect with John Bergmayer:

- https://www.linkedin.com/in/john-bergmayer-a745b2102/

- https://twitter.com/publicknowledge

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

----

Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

To FBA or FBM, that is the question... If you're a seller on Amazon, you're probably familiar with these two terms - FBA and FBM. But which one is right for you? As we hum along in 2023, it's essential to understand the different Amazon fulfillment strategies to make the right choice for your business.

So, what exactly are FBA and FBM? In short, FBA (Fulfillment by Amazon) means that Amazon takes care of the storage, packing, and shipping of your products, while FBM (Fulfillment by Merchant) means that you handle all of these aspects yourself. Each option has its advantages and disadvantages, and we'll be exploring these in detail in this episode.

With FBA fees increasing every year, sellers are asking the ONE question, why can't I just do FBM? It costs less, and it's less headache.

But don't make the switch just yet, we may have a lot of complaints about FBA, but there's a reason why it's so popular.

If you're looking to expand your Amazon business or just starting, you won't want to miss out on this value-packed episode.

But that's not all; Shannon and I discuss FBA vs. FBM, the pros and cons of each, and the mythological SFP (Seller Fulfilled Prime) and why having the Prime Badge can increase your sales exponentially.

So, let's get started!

Key Takeaways

- The FBA Prime advantage (01:26)

- Prime members spend 3 times more than non-Prime members (03:06)

- That Prime badge is very powerful (07:21)

- The Seller Fulfilled Prime challenge (09:00)

- Fast shipping moves the needle (13:37)

- FBA vs FBM vs SFP (15:42)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

There's never a dull moment when it comes to Amazon and Amazon sellers. This time, it's all about the Federal Trade Commission. For the very first time in their history, they are cracking down on Amazon review hacking.

The FTC has taken action against a supplement marketer known as The Bountiful Company for abusing Amazon's features to deceive customers. They have fined them a whopping $600,000.

The FTC has accused Bountiful of using review hijacking, a tactic they claim is deceptive, to merge its newly introduced supplements on Amazon with well-established products that had more product ratings, reviews, and badges to create an impression of higher product ratings and reviews, as well as "Amazon's Choice" and "Best Seller" badges.

The tricky thing about this decision from FTC for Amazon sellers is that some things that we never thought were illegal are now deemed illegal by the commission. Some of these aren't even against Amazon's TOS.

Bountiful took advantage of Amazon's feature that allows vendors to create variation relationships between similar products that differ only in narrow, specific ways such as color, size, quantity, or flavor. 

Products with a variation relationship share the same product detail page on Amazon.com and appear as alternative choices, so shoppers can compare and choose among similar products.

They used this loophole to create numerous variation relationships for their new supplement products with different formulations.

But according to the FTC, this practice has no place in the ecommerce space. It's a misrepresentation whose only purpose is malicious intent to deceive customers through false claims.

To unpack what this means for Amazon sellers, I am joined by Shannon Roddy.

Key Takeaways

- The case against Bountiful (01:51)

- Legitimate and illegitimate variations of Amazon listings (04:20)

- Amazon's responsibility to warn sellers (10:21)

- How Amazon can provide listing transparency to customers in their platform (13:03)

- Why the FTC is looking to clean up reviews for ecommerce platforms (18:17)

- The issue of product reviews on Amazon (20:58)

Additional Resources:

Article in question

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

The honeymoon is over for Amazon sellers. The ecommerce boom of the past few years is now over. It doesn't matter if you are big or small; you must be focused on driving more cash to the bottom line.

Profitability is what everybody is talking about today, not more sales.

In this episode, I am joined by Tyler Jefcoat, the Founder & CEO of SellerAccountant. He also leads the Sellers Roundtable, an exclusive mastermind for 7 & 8-figure sellers.

Prior to this, he built a 100-employee firm in the home healthcare space and exited. The best way I like to describe my friend Tyler is that he's the CFO, Controller, Business Shaman, and friend of Amazon Sellers everywhere.

Whether you are looking for an exit or financial freedom, there are some basic profit metrics you should be paying attention to. Unfortunately, many sellers don't know about them.

Yes, Amazon is raising fees, and it sucks, but compared to other channels where you're paying for Google or Facebook traffic, Amazon isn't a bad gig when you have a clear strategy. If for no other reason, you should be there to defend your brand.

Stay tuned because our guest today is the most knowledgeable person I know when it comes to getting your Amazon financial house in order.

Key Takeaways

- Tyler's background and superpowers (01:50)

- FBA fees in 2023 (04:25)

- Gross and net margin in Amazon VS D2C Shopify sites (08:57)

- How sellers should be looking at profitability (15:25)

- Inventory turn and inventory velocity metrics (20:28)

- Building your ecommerce strategy around your objective (22:58)

- The aggregator's valuations boom (26:46)

- Get a handle on your cash flow (34:09)

- What Amazon sellers should do to prepare for a recession (40:40)

- 2023 Amazon/ecommerce predictions (43:37)

Additional Resources:

Connect with Tyler Jefcoat

Website: https://www.selleraccountant.com/

LinkedIn: https://www.linkedin.com/in/tylerjefcoat/

Twitter: https://twitter.com/SellerAccountan

Podcast: Return On Podcast

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Return rates on Amazon are getting crazy, and so are the negative reviews. 

Many Amazon sellers have been frustrated by this whole experience around returns and the ridiculously awful fees involved because Amazon FBA sucks at processing returns.

But one seller did the unthinkable…

They developed a solution to this problem, approached Amazon, and convinced them that they should allow sellers to communicate directly with the customers to reduce customer returns.

Amazon listened, and the 'Get Product Support' Feature was incorporated. 

The "Get Product Support" feature or "Product Lifecycle Support (PLS)" helps brands save tons of money by avoiding unnecessary product returns, reducing negative product reviews, and learning about customer pain points with their product while achieving direct contact with the customer completely in line with Amazon terms of service.

In this episode, I am joined by Shannon and Joseph Abitbol, the entrepreneur who developed this feature.

This solution is a no-brainer for any e-commerce entrepreneur. It solves many problems we face with the return process and the associated negative reviews. 

Tune in to hear why this is a must-have product for any serious Amazon seller.

Key Takeaways

- Joseph's Amazon journey (01:20)

- How brands speaking directly to Amazon, customers reduces returns (05:00)

- The idea behind the Get Product Support button (10:31)

- How the Get Product Support Button works (15:36)

- How the button reduces return rates (21:44)?

- Product lifecycle support (25:25)

- All the issues that the support button solves for Amazon Sellers (25:48)

- Fix those problems before a negative review (37:18)

Additional Resources:

- Contact Joseph Abitbol joe@onsitesupport.io

- Website: onsitesupport.io  Use Code PROSPEROS for $200 Off

- LinkedIn: https://www.linkedin.com/in/joseph-abitbol-75035780/

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

In 2020, Thrasio raised hundreds of millions of dollars and eyebrows, then the floodgates opened. By 2021, billions of dollars had been raised for as many as 100 Amazon aggregators.

Everyone was doing it.

By 2022, the Covid bump slammed shut the floodgates, and the aggregator's magic was gone - all thanks to supply chain and inventory management issues which are absolutely critical to an Amazon business.

The gold rush of free money and outrageous aggregator valuations is over. Big aggregators are missing their obligations, and the rumor mills have it that it's about to get worse. We might even see some bankruptcies soon.

Amazon aggregators and their venture capital backers are beginning to learn the hard way what my guest and I learned a long time ago.

Amazon is different, it's hard, and it's all about the BRAND.

Building a great, beautiful, and trusted brand continues to be the pathway to success and wealth. You can't sling commodities on Amazon today and hope to have success.

In this episode, I am joined by my friend, James Kelly, to discuss Amazon aggregators, brand building, and 2023 predictions.

If you have wanted to understand the Amazon Aggregator business model or have been looking to sell to an aggregator, then this is a must-listen episode as we go through some great points.  

Key Takeaways

- The state of Amazon Aggregators 2023 (03:42)

- What to look for when selling to an aggregator (09:52)

- The keys to running a successful Amazon business (11:49)

- What the rumors are saying about aggregators (15:25)

- Will one of the bigger aggregators file for bankruptcy? (21:28)

- What it takes to build a great brand on Amazon and beyond (25:19)

- Content is the king (28:59)

- Get the reps in (32:27)

- Amazon predictions and trends for 2023 (35:45)

- A new era for ecommerce? (39:15)

- Diversifying from Amazon (40:54)

Additional Resources:

- Check out Jame Kelly's brands here: https://www.woolly.clothing/ and https://www.bloom.city/

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- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

----

Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

For many years big brands and manufacturers have taken a passive approach to Amazon, allowing resellers to sell their products on the platform provided they abide by MAP.

But the reality is that Amazon is unlike any other sales channel. Failing to control and defend your brand can have devastating consequences well beyond the platform.

To highlight this point, many sellers will start their product research on Amazon, even if they buy from another website or a brick-and-mortar store. If no other reason we give you in this episode persuades you, then this one should.

The only way to gain control of the marketplace is to establish yourself as the only seller of your brand on Amazon. Allowing multiple resellers creates additional complexities and ultimately harms your business and your customers.  

The question then is, why don’t brands do it?

The HUGE obstacle brands face is the internal belief that it’s okay to let resellers stay on the Amazon Platform. They view themselves as only B2B.

In this episode, Jason and Shannon break down the false beliefs behind this mindset and why being the only seller of your brand on Amazon is the best and only way to succeed.

Key Takeaways

- Why brands are unwilling to enforce channel control (03:03)

- Why MAP is not a channel control strategy (05:03)

- Obstacles brands face on Amazon (07:58)

- Profitability on Amazon vs. other channels (09:14)

- The distributor model is dying (10:53)

- Problem with allowing multiple sellers of your product on Amazon (12:26)

- Advertising attribution issues with multiple sellers (14:41)

- Value of having a direct relationship with consumers (19:42)

- If you’re not on Amazon, you’re totally susceptible to counterfeiters (22:02)

- The benefits of controlling your brand (24:39)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

Let's face it folks, 2022 was nuts.

We started the year with COVID supply chain issues that carried over from the previous year. Russia invaded Ukraine, which led to a disruption of global trade. 

We had midterms here in the US that didn't go exactly as predicted, inflation took off, and we ended the year in a constant threat of a looming recession.

But even with all this, we made it to 2023.

In this episode, Shannon and I recap the events of 2022 and their impact on Amazon and Amazon sellers and predict what's to come for 2023.

Without a doubt, the biggest issue for 2023 is the threat of a looming recession. Many sellers and brands are worried about what this means for their businesses.

Having been in this game for more than 20 years and gone through the great recession, this is not the time to be afraid. This is the time to get ready to pounce by keeping your growth mindset.

Some of your competitors who are looking at this the wrong way will wither away and die. It's your chance to eat into their market share. Some of the biggest well-known brands in the world started and became famous during a recession because they didn't give in to it.

Tune in to this episode to hear our predictions on what's coming up for Amazon and Amazon sellers and how best to take advantage of upcoming opportunities.

Key Takeaways

- What's happening with Andy Jassy at Amazon (03:32)

- Customer engagement on Amazon (05:48)

- Amazon acquisitions in 2022 (10:35)

- Role of influencers on the Amazon platform in 2023 (13:41)

- What's coming up on the Antitrust front? (17:22)

- Buy Box Suppression in 2023 (21:24)

- Will Walmart eat into Amazon's market share (25:37)

- Amazon advertising predictions (28:07)

- Optimizing Amazon listings for mobile (36:40)

- How recession will impact Amazon sellers (42:01)

Additional Resources:

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!

To create a product listing on Amazon, you must have a unique product identifier known as a GTIN (Global Trade Item Number).

GTINs make your products easy to find, buy, trace, and fulfill by providing a standardized digital language to communicate seamlessly across the supply chain. 

Think of them like fingerprints for your products that gives retailers, marketplaces, and consumers confidence that they can trace products to their owners.

GTINs and UPC codes help standardize product identification for recalls, brand protection, and consumer safety and protect against bad actors.

Previously, sellers could obtain these numbers from many places, but the valid numbers are issued directly by GS1 and licensed to brand owners. Amazon considers GTINs obtained from elsewhere invalid, which means you cant list your product.

GS1 runs a database that is the single source of truth for licensed GTINs and the legal entities associated with them. Amazon will often check the database for the validity of GTINs/UPC codes provided for a listing.

But many Amazon sellers have a problem differentiating between a GTIN, a UPC code, EAN, and a barcode. They are often used interchangeably, but there is a small difference.

In this episode, Jason and Shannon interview Michelle Covey of GS1 US about the importance of GTINs (Global Trade Item Numbers), UPC Codes, EAN, and Amazon. 

We also discuss some of the recent changes Amazon has made regarding UPC use, as well as hijacked UPCs and the right way to purchase a GS1 Prefix License.

Key Takeaways

- How GS1 all started (01:27)

- GTIN vs. UPC vs. EAN codes (06:23)

- Best practices for getting GTINs from GS1 (12:27)

- Minimum number of GTINs you can buy (15:05)

- Common mistakes sellers make inputting UPC codes on Amazon (22:48)

- GTIN hijacking scenario on Amazon (24:11)

- How to get Amazon to allow updates of UPC codes on a listing (27:05)

- Transferring GTIN prefix ownership at GS1 (30:11)

- Laying the foundation for success on Amazon (33:35)

- Amazon errors messages related to UPC/GTINs (39:26)

- What's coming up for unique identifiers in 2023 (42:09)

Additional Resources:

✅GS1 US: https://www.gs1us.org/ 

✅GEPIR: https://www.gs1us.org/tools/gs1-company-database-gepir 

✅Get Started: https://www.gs1us.org/upcs-barcodes-prefixes/how-to-get-a-upc-barcode 

GS1 US SOCIAL Pages 

✅https://www.linkedin.com/company/gs1-us/ 

✅https://www.facebook.com/GS1US 

✅https://www.youtube.com/user/GS1US

----

- Schedule a FREE consultation with the Ave7 team

- Grab the FREE Amazon Seller Central Checklist

- Get the book “The Amazon Jungle” book by Jason Boyce

- Learn more about Avenue 7 Media

----

Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).

Follow us on your favorite podcast platform so you never miss an episode!