Author: Tom Wicky

What to do about the upcoming FBA inventory limitations (and price increases)

Just when we thought selling on Amazon couldn’t get more expensive, it has.

Amazon delivered the blow that service fees will be increasing once again. This price hike now joins the inventory limits and rising ad costs sellers must contend with in the most critical selling season and beyond.

To give you an idea, third-party sellers in the US and Canada will have an extra $0.35 tacked on to their bill from the 15th of October 2022. This figure may not seem like much at a glance but can add up fast when selling large volumes and impact your store’s ROI.

So how can you build a profitable Amazon business while navigating the rising costs, reduced space in Amazon’s warehouses, and shaky global supply chain? In this post, we’ll show you how.

Need a way to reduce costs in your Amazon business? Build an efficient fulfillment process with MyFBAPrep. 

What’s happening to inventory limits and selling fees?

These days, everywhere you turn, there’s talk of change, and the same goes for selling on Amazon. Knowing what lies ahead for your business will be critical in keeping its growth on course. So let’s break down the two of the latest and most significant shifts on Amazon:

Selling fee rises

Not only are referral fee decreases missing from this year’s Amazon shakeup, but Amazon has also implemented price increases across the board for sellers. Stores on Amazon now have higher costs for services such as FBA, storage (off-peak and peak), labeling, FBA Prep, long-term storage, and removal and disposal solutions.

Some of the most notable changes include:

  • Nearly 10.5% price increase for standard and oversized products during the off-peak season (January – September). Prices will remain as is for peak season.
  • Small standard-size products have the most significant price hike at an average of 7.5%.
  • Small oversize items will pay 2.8% more.
  • Medium-sized products now have a 12.1% additional charge.
  • Large oversize items have a 7.8% uptick in price.
  • Standard-size goods have experienced a 4.8% uptick in selling fees.

Storage space restrictions

Inventory limits

Inventory limits have yoyoed in the last couple of years, with Amazon imposing a much-loathed 200-unit blanket restriction at the height of the pandemic. At present, you’ll receive a warehouse space allowed in cubic meters.

Your inventory limit allocation is Inventory Performance Index (IPI) score-influenced and also depends on the account type you have. Individual seller accounts have a 10 cubic meter cap, and professional sellers have a minimum 25 cubic meter allocation for standard-size, oversize products, clothing, and footwear items. No inventory limits exist for extra-large products, no matter the inventory age or your IPI.

You need an excellent IPI (currently above 400), or you could face restrictions and cuts to your space allowance. However, as mentioned above, there are no inventory limits for extra large products no matter the inventory age or your IPI.

Restock limits

In February 2022, Amazon also changed restock limits from the ASIN level to the storage level. This change means you can now share your restock allowance across ASINs. Your restock limit determines how many replenishment items you can send into Amazon FBA based on your past and predicted sales.

Inventory limits are IPI score-influenced, measured by cubic meters and not by unit. Your warehouse space allowance also depends on your account type (e.g., individual seller accounts have a 10 cubic meter cap, and professional sellers have a minimum 25 cubic meter allocation).

Want to make your Amazon store more profitable? Let MyFBAPrep show you how.

What Amazon’s selling fee hikes and storage restrictions mean for sellers

With the Amazon selling cost hikes and storage adjustments in full swing, it’s normal to feel apprehensive about how they will impact your business. To give you the knowledge needed to come back swinging, let’s explore how the changes will alter your Amazon selling journey:

Product selection will take center stage

While it’s been a long time since sellers could launch average products into the market and make a killing, product selection will now play an even more prominent role.

You’ll need to assess your products based on their ability to deliver high profits and ROI with low competition, reasonable cost per click in ads, and customer satisfaction.

Robust logistics and restocking processes will be your secret weapon

Since you’ll have fewer products in Amazon’s warehouse, the odds of going out of stock will rise. You’ll need a solid system to monitor inventory levels and quickly send replenishments to Amazon’s warehouses.

Also, with the price increases for Amazon’s already costly prep services, you’ll need to rethink high volumes and how you prepare goods for sale.

Killer negotiation skills will be critical to keeping your budget in line

When you combine the Amazon cost increase with the looming recession and global supply chain chaos, every penny will count in the days ahead. Finding suppliers, manufacturers, vendors, and carriers that offer great deals and excellent service will help you keep costs low.

Boosting your revenue and liquidity will be vital to maintain options

Amazon is notorious for changing its requirements, rules, and privileges it gives to sellers. And if Amazon’s track record is anything to go by, these price and storage adjustments are just the beginning.

Therefore you will need to make your business as agile as possible. A great way to do this is by building more liquidity in your store’s finances to increase your speed in responding to Amazon’s changes.

Worried about the pending Amazon price hikes? Make your supply chain more efficient with MyFBAPrep.

How to overcome Amazon’s changing landscape

Now we’ve set the record straight on the latest changes sweeping the Amazon world; the next question is “how do we tackle these shifts to build a thriving store?”. You’ll need to make a series of strategic moves in tandem. Let’s break them down.

Move your goods into Amazon, stat.

If you take one thing away from this blog post, it should be this; get your inventory into Amazon’s warehouse NOW. This hack will allow you to take advantage of your storage capacity before the changes come into effect. At MyFBAPrep, we’ve had some merchants send all the inventory they were storing with us into FBA to reserve that space.

Revaluate your product portfolio

To maintain healthy profits in the changing Amazon world, it’s essential to upgrade your product portfolio. Eliminate items with lackluster performance. For best results, decide which products you can keep in your portfolio based on factors like:

  • Amazon FBA cost
  • Product demand
  • Item size and weight

From here, implement offers to increase average order value and focus your product sourcing high-margin products. Also, be strategic about where you sell particular products to reduce costs. For example, you could fulfill heavy items from retail locations via customer pickup or ship goods in-house.

Top tip: Shift popular yet low-margin products to be Fulfilled by Merchant or sell on your own website with external fulfillment.

Go multichannel and unify your shipping

If Amazon FBA is proving too expensive,  don’t despair as you have options. Many selling sales channels come with their own fulfillment channels. Some viable alternatives to Amazon include:

However, an even better way to approach fulfillment is to pool stock into a fulfillment house and have them prep and ship goods across channels, according to each one’s requirements. This approach will help you circumvent Amazon’s inventory limits and high selling fees.

Get help from an Amazon fulfillment service

One of the simplest and fastest ways to overcome the rising Amazon selling fees is to take control of your shipping and partner with an experienced Amazon prep and pack service.

Your fulfillment provider should help you:

  • Organize and send goods to Amazon quickly
  • Distribute stock in key locations goods close to demand
  • Fulfill orders affordably
  • Store replenishment stock

To put this into perspective, MyFBAPrep has an extensive warehouse network with 50+ locations globally, and strategic partnerships with premium freight services.

Top tip: Have FBM and FBA stock for your most popular listings to avoid disruption if your Amazon stock runs out.

Maintain a healthy IPI score

To maintain your selling privileges and the perks that come with them, like warehouse space and restock limits, it’s vital to keep your IPI score in tip-top condition. Some ways you can improve your figure include to:

  • Pull excess stock from the Amazon warehouse
  • Address stranded inventory issues
  • Keep your popular ASINs in stock
  • Run polls on social media on which products you should launch next
  • Get rid of excess inventory in the Amazon warehouse
  • Address customer questions and complaints fast
  • Implement product upgrades based on reviews to encourage more sales and up your FBA-sell-through rate
  • Negotiate product prices so you can pass the saving on to customers

Make income generation a priority

“Money makes the world go around”, especially on Amazon. So look for ways to up cash flow, reduce expenses, and increase your access to liquid capital. There are many ways to make your store more financially stable, here are just a few:

  • Run promotions and offers to increase sales velocity
  • Save a portion of your profits into a rainy fund
  • Liquidate slow-moving and deadstock
  • Pay down business debts
  • Negotiate your contracts,
  • Put it into your agreements to renegotiate fees quarterly or after you hit a specific order volume
  • Use a digital wallet to save money on currency conversions
  • Get eCommerce funding such as a credit limit or cash advance for peak periods

Rise above challenges to scale your Amazon store

As we face rising Amazon selling costs and an uncertain global market, diligence will be paramount to building a profitable eCommerce business.

The bottom line is to take advantage of the privileges, be it more storage space or lower fees, for buying your store some more time.

Look for ways to increase your spending efficiency for backend tasks like stock buying and fulfillment. Additionally, use slow burner marketing tactics and assess products from a customer value perspective and ROI viewpoint.

Keep your foot on the selling gas pedal and as you start to see results from your optimizations, save, save, save!

Before you know it, you would have built an eCommerce business that succeeds regardless of the challenges that come its way.

 Don’t let clunky processes and fulfillment erase your margins. Optimize your Amazon store with MyFBAPrep.

Amazon Brand Protection: Report highlights

As Amazon continues to experience record growth, it’s attracted small and medium-sized businesses in droves. However, it hasn’t been smooth-sailing. Dubious sellers have slipped through the net using black hat tricks to improve their rankings and sales while sabotaging their competition, with schemes like hijacking and review manipulation. This problem has wreaked havoc on Amazon’s prized customer experience, not to mention the progress of good sellers.

Spotting this damaging development, Amazon has been on a quest to wipe out malpractice. In 2021, Amazon banned more than 3000 seller accounts for terms of service violations sparking a mass exodus of 600 brands overnight.

But even Amazon knows account closures aren’t enough to keep the opportunists and scammers at bay. That’s why Amazon has gone to great lengths to offer its sellers more security through its program, Amazon Brand Registry.

Amazon has now launched its 2022 report on Brand Protection, detailing its development and execution of tools and programs to combat criminal activity and abuse on its platform. 

To help you optimize your Amazon selling strategy, we’ll explore what brand protection is and why it’s worth the investment to enroll. We’ll also highlight the must-know details from the 2022 progress report and how to take advantage of it as a participating brand.

Table of contents

  • What is Amazon Brand Registry? 
  • Pros and cons of Amazon Brand Registry
  • Amazon Brand Protection Report: Top updates
  • Quick tips to reinforce your Amazon brand protection measures
  • Wrapping Up – Secure your eCommerce brand on Amazon and beyond

Unsure how to protect your brand on Amazon? MyFBAPrep can get you up to scratch.

What is Amazon Brand Registry?

In 2017, Amazon decided to tackle the issues brand and shoppers were experiencing at the hands of criminals with the launch of the renowned Brand Registry program.

Amazon Brand Registry is a free protection service designed to shield brands from harmful actions such as counterfeiting, intellectual property (IP) infringement, and listing tampering. Whether you sell on Amazon or not you can enroll if you have a registered trademarked brand.

Solutions under Amazon’s Brand Registry umbrella have already racked up some impressive wins. These include more than 4 billion bad listings blocked before going live in stores. Also, more than 3 million counterfeits were detected, seized, and disposed of.

What is Amazon Brand Registry?

Pros and cons of Amazon Brand Registry

Interest may wane over time for some marketplace programs, but that’s not true for Brand Registry. In 2021, 700,000 businesses enrolled, a 40% jump on 2020. Brand Registry’s expansive protection measures and knowledge make it necessary for any eCommerce serious about scaling on Amazon.

But that’s not to say the Brand Registry program is faultless. To get a clearer understanding of Brand Registry’s value, let’s explore some pros and cons:

Benefits of Brand Registry

  • Build a trustworthy image on Amazon: Being on the Brand Registry program doesn’t just protect your business. You can build a solid brand with access to A+ content, access to Vine, Sponsored Brand Ads, and brand analytics, and create multipage stores to mimic a typical eCommerce store experience.
  • On-hand support for your brand: When things turn sour, dedicated teams and tech solutions will be on the case. For example, you can track suspected trademark infringements through tools like Amazon Patent Evaluation Express (APEX) and counterfeit identification through its Transparency solution and initiatives like Project Zero and Counterfeit Crimes Unit (more on these later). These protective measures allow you to avoid high reoccurrences of issues that affect your inventory turnover and customer experience.

Drawbacks of Brand Registry 

  • Slow approval process: Amazon requires a registered trademark as part of the approval process; for some brands, it can take 6 months or more. As a result, it can take a long time to enroll your brand, leaving it vulnerable. (However, if you use the IP Accelerator program, you can sign up with a pending trademark).
  • Brand Registry isn’t a set and forget security solution: While Amazon’s tools and projects can catch and prevent harmful actions, it’s not a failproof solution for compliance or protecting your brand. You’ll need to stay vigilant and continually upgrade your security strategy and tools.

Have your current measures made your brand vulnerable to scammers? Discover how MyFBAPrep can secure your goods.

Amazon Brand Protection Report 2022: Top updates

Over the last few years, Amazon has invested heavily in expanding and improving its brand protection tools and initiatives, to uplevel the coverage it provides its enrollees and customers. Let’s breakdown the latest and most significant developments:

1. Amazon brand protection tools gather pace

Combining machine learning, automation, and data pooled from Brand Registry, Amazon has crafted innovative solutions such as the following Brand Registry tools: 

Report a Violation tool 

The Report a Violation tool helps sellers get support quickly when infringements arise. As a brand owner, you can not only look for and spot offending actions, but also submit a ticket and track its progress in a specially crafted dashboard. This tool continues to make positive contributions to the fight against infringements. In fact, Amazon saw a 25% drop in breaches since 2020.

Amazon Patent Evaluation Express (APEX) service

Tackling the complex world of utility patents, APEX focuses on helping brands protect themselves by submitting requests to Amazon to review potential violations. Amazon enlists the help of using an objective, third-party patent lawyer to assess the dispute. This approach allows for accurate case deliberation, protects brands, and preserves market competition. 

Transparency solution

Fortifying Amazon’s position in the war on counterfeits, Transparency enables brands to play an active role in blocking fake goods from infiltrating their supply chain. The tool equips Amazon to verify each product sent to its warehouses’ authenticity by scanning the Transparency-enabled code.

It also empowers brands to amplify their goods authentication strategy and gain customers’ trust credentials through their customers, to access this innovative solution on the go via a dedicated mobile app. Equipping customers to validate products increases your protection, without multiplying your team’s workload.

Transparency solutionProject Zero

Project Zero has unlocked new levels of security coverage for Brand Registry participants. The initiative combines Amazon’s high-tech brand protection tools, self-service counterfeit listing removal capabilities, automated protections, and expansive knowledge of IP and counterfeit detection for a well-rounded defense.

For example, under Project Zero, the brand can remove harmful listings and can set automated protections that guard their interests around the clock. The multipronged approach to brand protection has been ground-breaking, with Amazon stating for every 1 listing removed by a brand in Project Zero, automated protections booted more than 1000 suspected violations.

Project ZeroIP Accelerator 

Noticing that the lengthy approval process for obtaining trademarks prevented brands from adequately protecting themselves, Amazon launched the Amazon IP Accelerator. This program speeds up the timeline for brands to gain IP rights and brand protection on and off the Amazon marketplace. 

Amazon’s IP Accelerator gives enrollees access to an extensive network of reputable IP companies at fair rates. The program continues to gain ground and is now available in places such as the US, EU, Canada, Brazil, Mexico, Singapore, and Australia.

IP Accelerator 

2. Collaborative Brand protection projects take center stage

In the past, Amazon focused its security-boosting measures on removing improper listings and deterring sellers from breaking the rules with stiff penalties. But the 2022 Brand Protection report revealed Amazon’s ambition to take a more holistic approach to security on their platform. Some notable changes include:

Enhanced seller verification for quality control

Verification on Amazon used to consist of an online application document submission, which Amazon Support would later approve or reject. However, the lack of in-person vetting made the process susceptible to manipulation.

As a result, Amazon has scaled up in-person verifications. Prospective sellers speak with an Amazon team member in a one-to-one online setting and confirm details such as their proof of identity, physical location, and payment method.

The enhanced security checks support Amazon’s machine learning vehicles. These analyze large data sets at scale, highlight threats, and help prevent people from securing seller accounts illegitimately. The new technology is so sophisticated that it can even identify connections to past bad actors.

Accountability as a security strategy

Gone are the days when an Amazon selling ban was the biggest retribution for shady sellers. Amazon has started to use the strong arm of the law to hold fraudulent sellers accountable. This has included setting up the Amazon Counterfeit Crimes Unit (CCU) in 2020 and suing 600 scammers and counterfeiters in 2021. 

Cross-industry partnerships strengthen counterfeit prevention

To combat fake goods, Amazon has joined forces with industry associations around the globe. These include associations such as the Michigan State University’s Center for Anti-Counterfeiting and Product Protection (A-CAPP), Imaging Supplies Coalition (ISC), and International Anticounterfeiting Coalition (IACC).

Together they’ve created a memorandum of understanding to form best practices, trial new counterfeit prevention measures, and spot trends. Also, Amazon’s CCU leans on knowledge from those with backgrounds as data analysts, federal prosecutors, FBI agents, and law enforcement. 

The Amazon CCU understands the importance of keeping up with industry trends to create innovative ways to find and stop bad actors. Consequently, they’ve brought suppliers, logistics companies’ sellers, fake invoice issuers, and even social media influencers to justice through counterfeit goods seizures and civil lawsuits.

Cross-industry partnerships strengthen counterfeit prevention

Customer guarantees and support help Amazon preserve the customer experience after the counterfeit breach

As the battle continues against counterfeits, some customers will inevitably encounter bogus products in the marketplace. So Amazon is now using its generous customer refunds policy to stop the spread of counterfeit products and keep customers returning if they encounter fake products on the platform. 

For example, if Amazon notices a product is not the real deal, they will contact the customer. Then alert them of the issue and offer a full refund without the customer needing to act. This approach protects the customer experience and sellers’ brand reputation.

Amazon elevates customer awareness to combat the spread of fakes

Putting into action the famous saying “knowledge is power,” Amazon is spending resources to boost customer understanding and awareness of counterfeiting. Some key activities include: 

  • Supporting the US government’s STOPfakes project.
  • Launched a blueprint on how public and private sector partnerships can help stop counterfeits.
  • Discussions about the blueprint between Amazon and policymakers on data sharing on criminal counterfeiting networks, government assistance, and attempted imports of counterfeit goods.
  • A partnership with the International Trademark Association’s (INTA) Unreal Campaign and the Girl Scouts of Greater Los Angeles to educate Gen Z shoppers about trademarks, intellectual property, and brand protection.

Quick tips to reinforce your Amazon brand protection measures

  • Use tools like Helium 10, SellerSprite, and AMZAlert to track IP violations, hijacking attempts, and poor reviews.
  • Monitor correct spellings and misspellings of your brand name with an IP monitoring tool to lead you to potential IP violators.
  • Track and keep updated records on authorized sellers of your products.
  • Update listings regularly to avoid missing issues and mistakenly flagging other sellers.
  • Get proactive with your brand protection. Share your protective measures in your marketing and encourage shoppers to get involved.
  • Phase-out products without the Transparency code. Work with manufacturers or fulfillment prep service to print or attach them to packaging.
  • Take note of items in your portfolio that are continually flagged for counterfeits and find ways to deter counterfeits from selecting them.

 Wrapping Up – Secure your eCommerce brand on Amazon and beyond

While Amazon continues to make huge strides towards building a safe, fair marketplace. This is only the beginning of the journey. Security on the Amazon marketplace is everyone’s responsibility. So, be proactive. Invest in trademarks and patents to shield your brand on every selling platform you use.

Also, implement robust preventative measures and monitor their effectiveness, tweaking them as you gain more intel. Encourage shoppers to be part of your protective measure by selling the value they gain and lean on technology to find potential violations and suspicious activity.

Get your brand protection strategy and your selling experience on Amazon right, and it will be a smoother, more enjoyable, and profitable ride.

 Need a hand protecting your Amazon products? Learn how MyFBAPrep can help.

“Protecting brands against infringement requires constant vigilance and continuous innovation. The valuable information provided by brands via Brand Registry allows us to proactively prevent infringing products from surfacing in our stores worldwide. We take great pride in our mission to protect brands and customers.” Raj Kizhakkekalathil, Director, Brand Registry, Amazon

A practical guide to switching 3PLs

The secret is out — eCommerce is on the up. Digital buyers have soared from 1.3 billion in 2014 to 2.14 billion in 2021, and sales are set to reach $7.3 trillion by 2025. But a lesser-known fact is that supporting services like 3PLs are also expanding and elevating, with the 3PL industry set to reach $1.78 billion by 2027.

Put the strengths of these two expanding industries together, and you have the materials to build an online selling powerhouse. But as you traverse the eCommerce road, there may come a time when changing 3PLs is the best move.

We’ll admit there’s much to plan and execute to make a 3PL switch successful, but don’t despair. We’ve compiled everything you need to know about making a seamless jump and up-leveling your fulfillment services.

In this guide, we’ll:

  • Uncover the top scenarios jumping ship from one 3PL to the next makes sense.
  • Explore the fulfillment choices available and how to set the stage for success.
  • Reveal some things to watch out for along the way to help your business stay on track.

In the market for a new fulfillment service? Look no further than MyFBAPrep.

7 Eye-opening signs it’s time to switch 3PLs

If you’re questioning whether it’s the right season to move on from your 3PL or if their actions warrant such drastic action, you’re not alone. Timing and objective reasoning are essential to making the right decision. To help answer the burning questions on whether it’s time to cut ties with your 3PL, let’s explore some common issues eCommerce entrepreneurs have encountered that inspired them to pull the plug:

1) Constant inventory and shipping errors and inaccuracies

Did you know great customer experience is so important that 86% of shoppers are willing to pay more to get it? If your 3PL’s lack of service negatively impacts your brand experience and reputation, causing one too many sleepless nights, change is imminent. Without shift action, loyal customers may turn elsewhere and, worse still, tell their friends about their poor experience.

2) Fast yet unsupported business growth

Say your business has exceeded its growth targets and shows no signs of slowing down. It’s a great scenario, except your 3PL can’t cope with your growth rate. Their internal processes become overwhelmed with no remedy. If this sounds like the challenge your business is experiencing, it could be time to say goodbye.

3) A need for increased efficiency

As your eCommerce business scales, you may notice inefficiencies holding back its profitability, productivity, and smooth running. If your 3PL isn’t trying to upgrade their services and performance, you’ll soon outgrow them, dampening your business’ potential.

4) Your logistics and fulfillment are too expensive

Perhaps your 3PL has had a few price hikes; warehousing has become more expensive in the network your 3PL uses, or a change in couriers has caused charges to shoot up. Either way, it could be time to go if the margins no longer make financial sense.

5) Lack of technology-enabled solutions

In today’s digitized, hyper-competitive market, basic systems, and old-school technology hold your brand back from its potential. Soon, missed opportunities and threats, haywire order management, and lack of supply chain visibility become the norm, wiping away your competitive edge. So, if it feels like you’re running your eCommerce business’ operations in the dark ages, it’s time to move on.

6) Poor communication

Does your fulfillment provider disappear for days and sometimes weeks, only to reach out in a panic with an emergency? This setup puts your business on a fast track to costly disasters that will obliterate all of your hard work and progress. Don’t wait for issues to arise; get out while you still can.

7) Limited services stifling growth and expansion

Perhaps you run an international store and ship orders around the clock, yet your 3PL only has 8 hours of customer support at one timezone. While this may seem harmless on a good day, when issues arise outside of these service hours, you’ll be left to fend for yourself, which could spell huge trouble for your business.

Fulfillment and logistics: What are my options?

Fulfillment and logistics: What are my options?

Once you’ve decided to part ways with your existing 3PL, the next task is to examine the replacement fulfillment options available. Let’s cover some of the best services for a growing eCommerce store along with their advantages and drawbacks:

1) Choose another traditional 3PL

A 3PL takes over the management of critical tasks in your supply chain to drive optimal productivity and efficiency rates. While the 3PL assists your store with fulfillment-related tasks, you’ll maintain control of your supply chain. Such tasks include:

  • Stock distribution
  • Inventor management
  • Storage
  • Transportation
  • Fulfillment (picking, packing, and shipping)

There are 3 kinds of 3PLs you can explore (note some 3PLs may combine these services):

  • Distribution/warehousing-driven 3PL: Concentrates on storing inventory, shipping, and managing returns.
  • Transportation-centered 3PL: Focuses on the movement of goods for your store. E.g., shipping the stock from manufacturers to warehouses and from storage facilities to customers.
  • Data/finance-focused 3PL: Assesses your industry’s trends and helps you optimize operations and finances accordingly. Some services they offer include cost accounting, inventory management, and freight auditing.

Pros of traditional 3PLs

  • Maintain flexibility: Unlike a fixed logistics setup, most 3PLs allow you to scale services up or down quickly without much trouble, helping your brand stay nimble. So, whether your store has slow seasons that require reduced fulfillment operations temporarily, or has plans to expand overseas, a 3PL can help.
  • Improve specific fulfillment tasks: Since you can cherry-pick which fulfillment tasks you hand over to a 3PL, you have the opportunity to optimize select parts of your supply chain. This way, you can maintain any strategies or processes that produce positive results, while upgrading any underperforming areas.
  • Track inventory easily: One of a 3PLs greatest strengths is inventory tracking. From the moment your stock enters the 3PL’s ecosystem, you can get (sometimes live) information on where the product is. This trait is especially beneficial if your store holds many SKUs or high volumes.
  • Going pro can lead to quicker growth: Access to professional help from an experienced and reliable 3PL allows you to focus on your core competencies and scale faster. In other words, you’ll get the chance to work “on” instead of “in” the business.

Cons of traditional 3PLs

  • Costs may rack up: Depending on your business’ size, you’ll spend significant cash during the switch. This is due to things like needing a new order processing set up, backorders, and admin.
  • 3PLs are restricted to optimizing logistical operations: You can’t depend on a 3PL to optimize your entire supply chain and may have restrictions in their tech capabilities. You’ll need to seek additional fulfillment solutions elsewhere to boost productivity and efficiency.
  • It can be difficult to distinguish between different 3PL services: When you’ve been burned by 3PLs promising stellar results with similar services but don’t deliver, it can be challenging to know what solutions will work for your business and who you can trust. 

2) Opt for a modern, all-inclusive fulfillment service

Modern fulfillment services offer everything 3PLs provide and more. Some call themselves 4PLs, while others opt for names like an all-inclusive fulfillment solutions provider, helping you to execute your supply chain and fulfillment quickly and easily.

These service providers have expansive warehousing and fulfillment networks, allowing them to offer ancillary services from marketplace prep services to freight forwarding for direct-to-consumer and B2B retail goods.

Most modern fulfillment providers’ tech-backed structure enables them to compile large data pools. These help them spot potential threats and opportunities in your supply chain and global markets.

Pros of modern fulfillment providers

  • Access to more growth-fuelling solutions: Modern fulfillment services offer a wider selection of services than typical 3PL providers. These allow you to uplevel your whole supply chain instead of just operations involving packing and shipping goods to customers. For example, you can get help with tasks like customs clearance, access to warehouses in key locations, shipping networks, and faster, more cost-effective transportation.
  • Optimize operations to fit your brand mission and goals: The possibilities are endless when you team up with a modern fulfillment provider. For example, if customer satisfaction is your top priority, you could work with the fulfillment provider to offer services like paperless returns, same-day shipping, and pick-up. In short, you’ll get all benefits from a 3PL plus more.
  • Keep your store in everyone’s good books: From Wish to Amazon, selling on marketplace platforms comes with specific requirements and strict rules. These duties tally up to a considerable amount of work for a fledgling eCommerce business. Handing over the reins to a fulfillment house will help you avoid mishaps and provide exceptional service to customers.

Cons of modern fulfillment providers

  • May not be cost-effective for low volumes: Many modern fulfillment providers have high minimums for fulfillment services to ensure their services make financial sense for their business. As a result, even the lowest service tier may be unprofitable if you can’t guarantee your brand will hit the minimum units you sign up for.
  • Cutting ties is no easy feat: It can be challenging and expensive to move on from a 4PL because they weave into your entire supply chain, and you hand over oversight of key supply chain management duties.
  • Loss of control: While you will have strategic input and overall power since modern fulfillment services take over the management in key areas in your supply chain, you’ll lose the ability to make day-to-day decisions on your inventory, transportation, and fulfillment.

Looking for a way to get ahead? Give your fulfillment services a makeover with MyFBAPrep.

How to switch fulfillment services seamlessly

While changing your fulfillment solution can be a long and winding road, you can still ensure the process runs smoothly. For this, you’ll need a plan and a can-do attitude to execute it. Here are the steps to take:

Understand your business needs

No eCommerce has the same circumstances. So, gaining clarity on your store’s existing and upcoming needs is critical. So, examine how the following areas impact your fulfillment requirements:

  • Monthly orders: Crunch your numbers to find an average order amount. This number will help you filter through the set order minimums from fulfillment providers.
  • Seasonality: Do sales drop suddenly in the summer? Or maybe you experience accelerated sales velocity in the fall? Map out your sales peaks and valleys to understand how much fulfillment supports your store’s needs and when.
  • Supplier relationships: Take note of which suppliers are easy to work with as well as the unreliable ones that need replacing to make a switch over successful.
  • Manufacturing timelines: Jot down how long it takes to create and package each SKU and how this impacts restocking times and shipping options.
  • Growth projects: Compile all of the projects you have underway or in the works that will help your business scale, e.g., cross-border expansion and going multichannel.
  • Scaling goals: Define where your store will be in the next 1-5 years and the revenue goals you intend. Observe how many units you’ll need to hit these targets to share with potential fulfillment partners.
  • Marketing: If you have any seasoned ad or influencer campaigns that generate large orders, observe how many orders they produce and how it’ll impact your inventory and fulfillment needs.
  • Sales channel(s): Understand how the results each store you have produces each quarter, and the setup needed to maintain fulfillment speed, cost-effectiveness, and customer satisfaction. 

Tip: Distinguish between nice-to-haves and essential services to keep solutions and costs lean.

Define your obligations under your existing 3PL contract

Legal troubles can slow down your 3PL switch over or even bring it to a screeching halt. Checking your duties to your current 3PL is essential to avoid legal disputes. Some questions to ask include:

  • Does it make more financial sense to cancel the contract or see it through to completion?
  • Will we need help from a lawyer to terminate the contract early?
  • How much will it cost to enlist, and how long will it take?
  • Does your contract require the services to end immediately, or is there a defined handover period?

Vet potential fulfillment providers

Once you know where your business stands strategically and legally, it’s time to sift through fulfillment providers to find your match. While no solution will be perfect, the right provider will tick the right boxes, considering your business goals, needs, and circumstances. Some traits to look for in your fulfillment provider include:

Experience

Your new fulfillment provider should have the knowledge and skills needed to serve fast-scaling online stores and facilitate the necessary pivots you’ll undertake. They should also know how to handle the products you stock or intend to carry, and the channels you plan to sell on.

High-grade technology

It’s essential your fulfillment provider has high-spec technology that sharpens your execution in key tasks from order delivery to cost minimization. For example, it has tech tools that allow for budget preservation through shipment bundling and shipping box optimization. These solutions will help you maintain a competitive advantage and boost ROI.

Full supply chain visibility

Having a fulfillment partner that allows you to monitor your supply chain from end to end is a must-have for long-term success. It’s also helpful if they can provide alerts on any potential issues or needs, e.g., restocking and shipping delay alerts.

Transparency

From pricing to processes, transparency should be part of your prospective fulfillment providers’ culture. This information will help you keep operations profitable and effective.

Fair pricing

Nobody likes surprises on their monthly invoice from costly fulfillment services. Big bills can not only wipe away your margins but can also cause you to dip into budgets set aside for growth-related projects. However, it’s also not a great idea to opt for the cheapest solution, leaving you questioning what you should do. The answer is to work with a fulfillment provider whose service quality matches their pricing and doesn’t leave your business operating with slim returns.

An expansive fulfillment partner network

Fulfillment doesn’t exist in a vacuum. Your provider will need to lean on other providers for things like warehousing, freight services, couriers, and more. So, they should make a continuous effort to improve and expand their network.

Varied and expanding capabilities

eCommerce is constantly changing, and as a result, your store needs to stay ahead of the curve with its tech stack and strategy. Consider each potential 3PL or 4PLs best skills and how they fit into your eCommerce business plans. For example, say you run a coffee-growing business and want to launch a new product collection each quarter in different countries. Your chosen fulfillment provider would need to:

  • Have temperature and moisture control storage and shipping
  • Adequate warehouse availability in key regions within each country
  • Enough staff to serve orders on the existing and new products

Reviews and references

No matter how accomplished a fulfillment provider appears, always do your due diligence. Obtain references and recommendations from trusted sources such as people in your network and trade journals. This approach will help weed out fulfillment providers that are a poor fit, lackluster performers, or scammers. Don’t forget to look at their disaster recovery plans to make sure they have the procedures to stay operational if trouble strikes.

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Create a realistic transition plan

To ensure your store switches successfully while maintaining good operations, establish the project scope in terms of time, cost, and effort required. You should also consider how you will monitor the budget, key milestones, and deliverables to stay on track. As a guide, some tasks to complete during your handover are to:

  • Conduct internal risk assessment
  • Create a detailed project plan, including each phase and target launch date (plus time buffers)
  • Schedule meetings with a potential solution provider
  • Conduct an onsite analysis
  • Share product profiles
  • Sell off overstocks
  • Write off and dispose of deadstock
  • Pack stock for relocation
  • Arrange transport for stock removal
  • Ensure adequate stock distribution for each key location
  • Test run your potential fulfillment providers with one location or product
  • Test your systems
  • Ensure equal service quality across locations
  • Confirm onboarding targets with the new fulfillment provider
  • Validate Statement of Work agreement details with your new fulfillment providers
  • Understand billing requirements and put them into the new contract
  • Negotiate your billing schedule to maximize your cash flow
  • Move stock from your existing to the new solution
  • Communicate with customers that there may be some backorders and delays as you switch

Top tip: Don’t clear out your entire stock from your existing fulfillment provider as you make the switch. Keep enough units per SKU to avoid stockouts during the transition period (plus a few additional pieces as a buffer).

6 Things to watch when switching 3PLs

6 Things to watch when switching 3PLs

With global supply chain issues, changing customer preferences, and evolving market trends, it’s important to stay in the know on the latest information to keep your new 3PL partnership on track as you change over. Here are some scenarios to consider:

1) How changes in service requirements impact fulfillment costs

Most eCommerce businesses don’t stay with the same strategy they started out with. However, a turnaround in your product type, shipping carrier preferences, or market can cause pricing to fluctuate. So, monitoring how adjustment impact will impact your fulfillment profitability is vital.

2) How communication impacts inventory protection during transportation

To protect your stock investment, it’s critical you communicate the transportation and storage requirements for every SKU in your product portfolio. Highlight any items that require temperature control, gentle handling (e.g. fragile and flammable items) along with any specific dunnage, boxing, and unloading required to get your plan together for the safe transportation of your stock.

3) The time needed for adequate tech and systems syncing

Your dashboards must be properly configured to share sales data and supply chain information accurately. So, you’ll need to think about how long it will take to onboard each product SKU and ASIN. Also, you’ll require time estimates for integrating your 3PL or 4PL’s warehouse, inventory, and transportation management systems with your supply chain’s tech solutions.

4) The way product loading styles affect costs

Shipments requiring extra attention can become costly and slow to process. To keep your supply chain running efficiently, work with your manufacturers and suppliers to pack goods in a way that will avoid hefty unloading and processing charges. Some tactics to implement include are:

  • Avoid floor-stacked containers. Opt for single or double-stacked pallets
  • Separate boxes on a per SKU basis
  • Ensure each product has a scannable barcode (unless you have requested prep services)

5) How new warehouse locations will impact fulfillment speed

It’s unlikely your new provider will have warehouses in the exact locations of your existing provider. Consequently, shipping speed can change from what you’re used to. Ensure your new warehousing and fulfillment sites can meet the service speed and quality levels your customers are accustomed to, map out new warehouses and distribution centers and formulate a plan to move goods. For example, suppose your new warehouse locations are further out than your existing 3PL or 4PL. In that case, you could pool top-selling goods in optimal areas within each warehouse and increase the number of delivery pickups for faster dispatch.

6) How adequately do your contract terms protect your business

Trust is important in any relationship, but when you consider things like inevitable management changes, market shifts, and business shakeups, it’s easy for responsibilities to become muddled without guidance outlined on paper. It’s wise to have detailed contracts outlining your 3PL or 4PL obligations and your store’s responsibilities. Some key information to add includes:

  • Shipping targets (speed, accuracy, cost)
  • Service terms and conditions
  • Who will pay for damaged and lost goods
  • Insurance coverage given
  • Product safety and quality assurances

Wrapping up – Changing 3PLs the right way

When you’ve become comfortable with a 3PL, yet its results start to wane, it’s easy to go back and forth on whether switching will harm or hinder your progress. However, when done correctly, moving on from a 3PL can supercharge growth, customer satisfaction, and financial rewards.

Making the switch will take hard work, strategic planning, capital, and detective-like vetting of prospective service providers. Take the opportunity to implement new services that will help you grow and be prepared to stay the course to iron out any kinks in your new partnerships. Soon, fulfillment issues will be headaches of the past, and your store will have a 3PL partnership it can rely on for its next growth phase and beyond.

It’s never too late to upgrade your fulfillment services. Discover how MyFBAPrep can set you up for success.

What is 3DS (3D Secure) and how to use it

Unless you’re new to eCommerce, you’ll be aware of the business dangers of online fraud, and they aren’t going away anytime soon. LexisNexis’ 2021 study reported both the cost and volume of fraud are increasing significantly year-on-year, not the type of growth we want to see.

Security systems like 3DS are vital to combating fraud. This checkout process is a requirement for eCommerce stores selling in Europe (including the U.K.). Yet, the path to 3DS implementation hasn’t always been smooth-sailing.

Here, we take a look at the importance of 3DS and how merchants can use it. We will also be sharing actionable steps to reduce the risk of failed transactions or abandoned carts.

What is 3DS (3D Secure)?

3D Secure is an online fraud protection protocol. From your customer’s point of view, this means an extra step to verify their identity.

You’ve almost certainly experienced 3DS as a customer. Before completing your purchase, you have to enter another password, or agree to the transaction on a mobile app. This process helps prove it was you making this purchase, not a fraudster.

But what if you’re on the other end of the transaction? From a merchant’s point of view, the most important step is to enable 3DS. It’s mandatory for anyone selling into the European Economic Area (EEA), as well as other countries like India.

Putting legalities aside, setting up 3DS is a sensible step to take wherever you’re selling. As WorldPay clearly states, not enabling 3DS will result in declined transactions, losing you valuable business.

3DS stands for Three-Domain Secure. This refers to the data shared between the three domains involved at checkout: the customer’s bank sending money, the merchant’s bank receiving money, and the infrastructure in between (the internet, website, server, and so on).

You may see references online to ‘3DS2’. The ‘2’ merely signifies the newest version of 3DS. For example, as 3dsecure2.com explains, this newest version allows for ‘dynamic authentication methods’ like biometrics (such as FaceID on your iPhone), providing even tighter protection against fraud. Other advantages of 3DS2 include improved design and two different authentication flows.

How 3DS protects your eCommerce store and customers

How 3DS protects your eCommerce store and customers

There are a lot of ways that implementing 3DS can protect you, the eCommerce store owner, and your customers.

Protecting eCommerce stores and customers from fraudulent activity

Picture this: a fraudster enters the details of a stolen bank card at checkout. Instead of immediately being able to purchase the item, they’re challenged to prove their identity. They’re unable to provide the extra password or dynamic authentication so the purchase is declined.

In the above scenario, everyone benefits (except, of course, the fraudster). The eCommerce business doesn’t lose revenue to fraudulent activity. Consumers benefit because their bank details aren’t illegally used. Banking partners of all involved spend less time and resources investigating and compensating fraud.

Minimizing chargebacks for eCommerce stores

A further financial benefit to eCommerce stores is the avoidance of ‘chargebacks’. Chargebacks happen when a cardholder disputes an unrecognized payment on their bank statement. This ‘dispute’ costs banks non-refundable fees, which are passed on to the merchant. Plus, the merchant may also have to return any money taken in the transaction. 

3DS (specifically 3DS2) protects your eCommerce store against chargebacks.

As Judopay explains, 3DS2 reduces chargebacks by shifting liability. Instead of the merchant paying chargeback costs, liability is shifted to the customer’s bank because 3DS2 enabled them to check the customer’s identity. In other words, it’s not the merchant’s responsibility if a fraudulent transaction was checked by 3DS2.

Improving customer loyalty

Aside from the technicalities of declined authorizations and chargebacks, 3DS has huge potential benefits for customer loyalty. Shopping from a website that uses fraud prevention like 3DS is a sure sign that the store takes financial security seriously — a sure-fire way to increase potential customer trust.

Trust is a big game in eCommerce. The World Economic Forum points out that it’s often harder for suppliers to gain consumers’ trust online compared to offline. This challenge increases when a merchant is in a different country from the customer. 

In a survey by the Centre for International Governance Innovation (CIGI), 22% of consumers said they don’t shop online. Almost half of those non-online shoppers said it was because of a lack of trust. When asked what online behavior changes people were making, 12% responded ‘making fewer online transactions’, meaning lack of trust may also be preventing repeat customs as well as new business.

CIGI’s survey was run in early 2019 so we suspect the data would have changed since, especially given the consumer impacts of lockdowns. But it remains a fact that making your online store feel, and be, as safe as possible for all involved is a win-win situation.

How to use 3DS for your eCommerce store

You’re now clear on the benefits of 3DS. Whether it’s building customer trust or minimizing fraud, adding 3DS to your eCommerce store can offer great advantages.

So, how do you implement it?

Luckily, setting up 3DS is a relatively straightforward process.

The first step is to check whether your payment gateway supports 3DS. Chances are it will, especially if you’re using one of the main players. Worldpay, Braintree, N26, PayPal, and Stripe are all examples of some of the payment gateways offering 3DS.

If your payment gateway doesn’t support 3DS or makes it difficult to implement the latest standards, it’s time to consider moving. Use this blocker as a chance to review your wider approach. Start by taking a look at our blog How to optimize your checkout process.

So now you’ve got a 3DS payment gateway. What next? We’ll use Stripe as an example. 

Setting up 3DS with Stripe

Enable Stripe to automatically display 3DS in countries or areas with mandates or regulations such as Europe’s Strong Customer Authentication). While 3DS is optional in other countries, you can still use it as a way to reduce fraud. 

Stripe lets you manually set parameters in the API so customers are prompted to complete 3DS authentication. 

In fact, Stripe offers three default rules for dynamically requesting 3DS during the checkout process. These default rules make it easy to implement 3DS on your site.

When implementing 3DS, make sure the secure flow is displayed to customers throughout the transaction. If you are using Stripe, they will automatically do this. 

Stripe will also automatically redirect customers to their bank’s website to complete authentication. Once the authentication is complete, customers will be sent back to your site. You can choose where customers land when being redirected back to your site so be sure to set this as your order confirmation page.

While you can’t choose what 3DS looks like, you can decide how and where it will be shown on your site. Most merchants opt for a modal dialog above the payment page.

As with most payment gateways, Stripe uses 3DS2 as the highest standard in preventing fraud. However, if the customer’s bank can’t support that protocol, it will ‘fall back’ to the original 3DS with its more static, yet still protective, features.

Payment gateways are vying for business like the rest of us, so their websites and documentation are helpful. Check out the nitty-gritty details of Stripe’s 3DS process here

The impact of 3DS in Europe

As we’ve touched on above, 3DS is mandatory in Europe. This requirement of 3DS in Europe came into effect following the phased implementation of the revised Payment Services Directive (PSD2).

The European Commission proposed PSD2 back in July 2013. However, the final compliance deadline wasn’t until December 31 2020 for Europe. The U.K. had an extension until September 2021 due to Brexit.

All this means that 3DS is relatively new to Europe. With the newness of 3DS in Europe come many tales of teething issues. When 3DS first came into effect, we saw stories of merchants experiencing increased rejection rates after implementing 3DS.

The main reasons why 3DS transactions fail

The main reasons why 3DS transactions fail

To better understand the impact of 3DS and the issues merchants may face, we need to remember that there are three main reasons why 3DS transactions fail. These are:

  • Fraud – as discussed, the ‘payer’ is unable to verify their identity due to not being the legitimate card holder
  • Abandonment – customers find the 3DS process too taxing, and abandon checkout
  • Transaction failure – technical issues mean that checkout doesn’t complete

This third reason is especially frustrating for all involved, as no party (merchant, customer, or bank) gains anything from the situation. By constantly reviewing your site performance and keeping an eye open for potential issues, you can minimize the risk of 3DS payments failing due to transaction failure.

In addition, work on your cart abandonment rate to identify ways to speed up the checkout process and reduce abandonment rates. We will cover how to avoid this below.

The reasons behind technical issues are wide-ranging. The Mastercard Payment Gateway support site lists some of the potential issues that are within the merchant’s control – branding of iframes, month formatting, and descriptions, to name a few. As you can see, there are many things you can be doing to reduce 3DS technical issues.

With that said, transaction failures are sometimes caused by the customer’s bank which eCommerce stores have very little sway over. In these cases, you simply have to be patient and understanding. And hope that your customer will return once the issue has been resolved at the bank’s end.

As Vlad Macovei wrote on The PayPers in October 2020, “it is known that issuers are more ready in some countries than in others” and this readiness is evident in 3DS performance. Fraud prevention company Ravelin analyzed millions of payments and found a huge variation in how the top twenty global banks performed. According to Ravelin, acceptance rates ranged from 68-92% between the top 20 global banks. As Ravelin’s research was conducted in 2021, we would like to hope that many of these issues have been since been resolved as banks work on their 3DS compatibility.

Macovei’s warning was further proven when different countries experienced hugely different failure rates after implementing PSD2. According to dynamic payments company Forter, the U.K. (which was known to be more prepared) experienced a 9% failure rate. While 9% is still a significant chunk of potentially missed revenue, it pales in comparison to France’s 71%.

The good news is that, according to Forter, “over 80% of the transactions that fail are the result of abandonment and issuer bank failure. This means that many of these failures could have been prevented.”

How to mitigate the risks of 3DS

eCommerce sellers can’t do much about customers’ banks. As 3DS has now been mandatory since December 2020 in Europe, many banks have made vast improvements to their 3DS performance. We suspect that if Ravelin ran their study today, they would find much-improved acceptance rates.

Asides from technical issues on the bank’s side, there is plenty in your control regarding 3DS failure due to cart abandonment.

Educate customers

Firstly, educate your customers. Tell them about 3DS before they reach checkout. It’s not exactly the most riveting of information, so publish little signposts everywhere that people might notice: in product page footers, at the basket stage. You could even share more in-depth information about 3DS on your blog or social media pages so potential customers can read more if they wish. Educate them about the importance of fraud prevention, and they might just thank you for it.

Increasing education around 3DS and how it combats fraudulent activity could also work wonders for increasing your trust score. 

Prioritize the user journey

Secondly, ensure the user journey from browsing to payment completion is smooth regardless of the device used. Test your website flows and ensure your payment gateway provider is as well integrated as possible across different mobile and desktop devices.

Be sure to continually test performance too. If you’re seeing a high volume of cart abandonments, it just may be a sign that something is broken. So, routinely test the 3DS is performing as expected and fix any issues as soon as they arise.

Switching to 3DS2, rather than 3DS, can also improve the user journey. 3DS2 introduces Frictionless Flow which allows issuers (banks) to automatically approve transactions deemed to be low-risk. This automatic approval reduces the number of steps required to complete the payment.

Prepare to fail

Thirdly, prepare to fail. 

While telling you to get ready to fail isn’t the most inspiring advice we’ve shared,  it may be the most useful. 

What do you want your customer to do if their 3DS transaction fails? Contact you? Try again?

By preparing to fail, you’re putting assurances in place to help customers seamlessly move forward from a payment failure. You are providing solutions long before problems arise.

You could add a section to your payment FAQs about the next steps customers should take in the event of 3DS failure. The Trainline has a great example of this on their site from 2018 when 3DS failure was much more common.

Trust the process

Finally, take comfort in the fact that the latest version of 3DS was designed to be an improved protocol, even if it had a somewhat rocky start in some areas. All tools, services, and products experience problems in their early days. You, more than anyone else, can likely relate to the need to reiterate designs and improve product quality. It’s all about testing and improving.

As 3DS becomes more and more commonplace, we suspect that the 3DS implementation will become easier, connections with payment gateways will become more seamless, and technical issues will be minimized.

Removing common pain points such as static passwords can simplify the user experience too. As we know, simplifying the user experience can help improve cart abandonment rates. 

Your next steps for 3DS eCommerce

With all these variables and actions to take, we’d understand if 3DS was beginning to sound like a headache – but we encourage you to think of it as an opportunity to improve eCommerce security for your customers.

Implementing 3DS will make your presence safer, more welcoming, and, ultimately, more profitable. After all, if customers don’t believe your checkout process is secure they are more likely to drop off without completing their purchase.

Ultimately it is up to you as a merchant whether you decide to implement 3DS. But in a world where eCommerce is only getting more competitive, it makes sense to grasp the advantages — especially when they overlap with preventing fraud and improving consumer trust.

The ins and out of headless commerce: What it means for growing brands

With eCommerce now tipped to reach $1 trillion in 2022, an acceleration of two years, and 95% of orders expected to be completed online by 2040, the eCommerce market is the place to set up shop.

As the market continues to change rapidly, headless commerce is becoming a must for brands who want to remain competitive, attractive to customers, and scale their revenue. But the term “headless commerce” isn’t well known outside the programming and coding spaces, yet it plays a huge role in the eCommerce world’s shakeup today. 

In this post, we’ll clarify headless commerce and how it operates. We’ll also cover some benefits you can look forward to when you go headless and some pointers for success on your journey. 

Table of Contents

  • What is headless commerce?
  • How does headless commerce work?
  • 7 ways headless commerce up-levels your brand
  • How to go headless for big eCommerce wins 
  • Wrapping up – Get ahead without your head

What is headless commerce?

While the name conjures up images from scary movies, rest assured, headless commerce is a bonafide tech term.

Headless commerce consists of an eCommerce solution where the front end, dubbed the “head” is separate from the backend. For instance, under a headless commerce setup, the customer-facing shopping interface is split up from the background tools and operating systems.

You can distinguish headless commerce from traditional commerce by looking at the characteristics. Traditional commerce adopts a rigid structure where the front and backend combine with coding and programming. It requires input from an IT team to make the slightest adjustment to your website interface or user experience.

A headless commerce store needs an effective fulfillment setup to match. Upgrade yours today.

How does headless commerce work?

A great example of headless commerce in action are solutions like Shopify and BigCommerce, which have set the stage for headless commerce for growing brands.

How headless commerce works is you upload and edit a theme or template with photos, text, layouts, and other customization features on the front end. The distinctive trait is that you won’t have to touch backend features like dashboards, order management, shipping tools, stock counting functions, and SEO management tools.

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7 ways headless commerce up-levels your brand

Perhaps your store runs on a custom-built program requiring developer input for updates, or you sell on an online marketplace and want to branch out to your own site. Either way, headless could be your next best action. Let’s examine some ways going headless can help your business reach new heights:

  1. Reduced admin and maintenance costs: No more paying out for programming and developer hours each time you want to tweak your eCommerce site. All you need to do is make an API call or edit in-line on your website’s interface when armed with a headless commerce infrastructure.
  2. Design flexibility and freedom: No coding background? No problem! Headless commerce is built with non-coders and business agility in mind. For example, you can customize your website to fit your goals and brand, from its content to the design.
  3. Uplevel customer experience: Shoppers’ wants and needs, along with market trends, are continually changing. It’s vital your store does the same quickly to get the lion’s share of sales. With headless commerce, you can take more risks and experiment, knowing you can return to previous settings without much hassle.
  4. Responsiveness that fuels your competitive advantage: With a headless commerce setup, you’ll have the necessary tools to outpace your competition. For example, you’ll speed up the time it takes to launch and test front-end elements, customer experiences, and interfaces.
  5. Take the pressure off your team: Having a laundry list of optimization tasks for your programmers and developers to tackle on top of their usual duties is no way to build morale. And, if it happens too many times can leave your team stressed and overworked, dragging productivity and business performance. Headless commerce releases your team to focus on core tasks to scale your business.
  6. Go omnichannel stress-free: Headless commerce system allows you to get more out of your existing store since you can disburse your content assets across different channels. This characteristic will increase how many markets you can tackle without multiplying your workload.
  7. Integrate with tools more seamlessly: Whether you need a countdown timer on your site or want to test a new design element, going headless will allow you to implement more tools without disrupting your existing store. As a result, you can optimize your site faster, increasing your competitive edge.

How to go headless for big eCommerce wins 

As you go along on your eCommerce journey, it’s important to find ways to increase your odds of success and lighten your team’s administrative burden. That’s where going headless can be beneficial. It can help create more room to focus on growth-related tasks. But you’ll need a well-rounded plan to be triumphant in headless commerce. Let’s dive into the steps you should take to secure impressive results:

Decide whether going headless fits your business goals

To ensure investment in going headless is the best route for your brand, it’s vital to assess your business goals and needs. To put this into perspective, here are 3 eCommerce business scenarios to consider:   

  1. Fast scaling eCommerce business: If you have a site with customer-facing content that changes constantly, it could be a good fit. Alternatively, you could adopt a hybrid approach to accommodate any complex customizations you can’t achieve with plugins, themes, or software.
  2. Steady growth B2B wholesale store: Say your store only requires a simple or static site that doesn’t require many updates or a sophisticated interface, switching from a traditional to a headless store may be futile.
  3. New eCommerce store ready to launch: If your store is yet to create a website and you’ve been selling in retail stores primarily. It may be wise to test the eCommerce waters with a headless store. This will allow you to pivot and keep costs low as you grow.

Select your eCommerce platform wisely

eCommerce platforms come in different shapes and sizes. Therefore, it’s essential to research each solution’s features and benefits before setting up shop. As a guide, some traits to look for in your chosen online selling platform include being able to:

  • Serve a headless commerce system
  • Easy to understand processes
  • Integrate with your fulfillment house’s tools
  • Offer on-hand support

Get the right team together

Your team’s skillset and willingness to adopt headless commerce will significantly impact the results you achieve going headless. It’s vital you sell the benefits of going headless to your core and executive team and utilize their skills in your new headless commerce store to breed confidence and a sense of mission. To conduct the switch effectively, observe each team member’s skill set and update their roles according, e.g., For example:

  • A UX designer can take care of user experience building and testing
  • A web designer can create banners and images
  • A marketer can handle content creation and copywriting 
  • A programmer can create any advanced customizations you need

Understand the time and financial investments involved

While up-leveling business processes and systems are part and parcel of scaling an eCommerce business, you’ll want to avoid being blindsided by a deluge of work. So, take note of how much commitment the project will require to come to fruition, such as:

  • How easy or difficult it will be to migrate
  • The teams you need to involve
  • Tasks to outsource

Once you have this information, outline the steps you’ll need to take to move to headless commerce successfully and how much each will cost. Then create a timeline adding in buffers for unexpected charges and events.

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Wrapping up – Get ahead without your head

In recent years headless commerce has caused a stir in the online selling world. But the question remains: To go headless or not to go headless? The answer is, that it depends. Your company goals, team workload, budget, and willingness to embrace change will determine whether going headless is the best option for your store. Outsource to experts wherever possible so you can focus on scaling. Soon the project will have paid for itself, and you’ll be operating an online store that runs like clockwork, delights shoppers, and boosts conversions.

Kickstarting your headless commerce journey? Learn how MyFBAPrep can position your brand for success.

eBay Fulfillment: Everything you need to know

Debating an eBay debut for your brand? If so, it’s easy to see why. With over 159 million users and 19 million sellers plus $10.4 billion in revenue in 2021, eBay holds a world of opportunity for ambitious eCommerce entrepreneurs.

When competing in such an expansive marketplace, it’s vital to stand out and make a memorable impact in your target customer’s world. That’s where your fulfillment setup comes in. With the right approach, your brand can wow its customers and rise to the top as one of eBay’s top performers.

But how do you go about crafting an effective fulfillment strategy? In this post, we’ll dive into eBay’s latest fulfillment service and share some simple tips for huge success on this titan marketplace.

Table of contents

  • Does eBay have a fulfillment service?
  • eBay Fulfillment by Orange Connex: How it works
  • Pros and cons of eBay Fulfillment by Orange Connex
  • 4 tips for showstopping success on eBay

Want to scale your eBay store? Learn how MyFBAPrep can help.

Does eBay have a fulfillment service?

If you’ve never heard of eBay’s fulfillment service, you’re not alone. Despite being tipped to be a rival to Amazon FBA, the service has flown under the radar.

The fulfillment solution called eBay Fulfillment by Orange Connex is a relatively new service. It launched in the US in July 2019 before expanding services in Germany in 2020 and adding a fulfillment option for the UK in late July 2021, and Australia in February 2022.

This isn’t eBay’s first rodeo in a fulfillment-related project. In 2019, eBay created a fulfillment service called Managed Delivery but shut it down shortly after in 2020. These days eBay acts as a broker with a select few delivery partners, combining their prep and shipping services with eBay’s tech tools.

Got big growth goals for your eBay store? Discover how MYFBAPrep can make your goals a reality.

eBay Fulfillment by OrangeConnex services and fees: How it works

eBay Fulfillment by OrangeConnex services and fees: How it works

Like most prep and shipping providers, eBay Fulfillment by OrangeConnex has rules, processes, and fees you’ll need to get accustomed to for a successful partnership. Let’s explore some essential details:

Onboarding process

To get accepted and enrolled in the eBay Fulfillment by OrangeConnex program, some steps you’ll need include:

  • Sign up to register your interest in the service, and an eBay rep will call to discuss your fulfillment needs.
  • Choose a fulfillment partner from the lineup.
  • Prep goods for shipping into the warehouse or request assistance with this task.
  • Send goods to the specified warehouse.

Storage and shipping processes

Once your goods are in eBay’s fulfillment network, you’re ready to start shipping goods. The partner fulfillment company will take responsibility for tasks such as:

  • Picking, packing, and shipping
  • Providing delivery updates
  • Processing returns

Fulfillment fees

eBay will invoice your business according to the fulfillment services you use. Fees for eBay’s fulfillment service consist of 3 parts:

  1. Fulfillment service fee: a flat fee for each order according to the package weight, and if it has more than 1 item, you’ll incur an extra charge per piece
  2. Storage fee: For every cubic meter your products require, you’ll be charged daily
  3. Additional services charges: From product labeling to disposal, you can pass on prep-related tasks and will incur charges depending on what service you use.  

There’s never been a better time to level up your eCommerce store. Get started with MyFBAPrep.

Pros and Cons of eBay Fulfillment by Orange Connex

For many brands, eBay Fulfillment by Orange Connex will be a much-anticipated saving grace. However, the service isn’t perfect. To help decide whether eBay’s fulfillment partnership is right for you, let’s examine some of its pros and cons:

Benefits of eBay Fulfillment by Orange Connex

  • Attractive, customer-focused shipping perks: Late cut-off times, same-day handling, international shipping, next day, and same-day delivery options are just a few perks eBay Fulfillment by Orange Connex offers. These benefits can positively impact your customer experience and boost conversions.
  • End-to-end inventory management: From the moment you send goods to eBay Fulfillment by Orange Connex, you’ll have full visibility of your stock’s whereabouts. As a result, you’ll have more peace of mind and the ability to plan stock purchases with greater accuracy.
  • Seller protection on errors: No more worrying about costly fulfillment errors. If eBay’s service is at fault, your brand won’t be penalized and will reimburse your business. You’ll also get performance-related boosts when you sign up. For example, eBay will wipe all “Item Not Received” notes on your account.
  • Multichannel fulfillment capabilities: eBay Fulfillment by Orange Connex allows you to fulfill orders on other platforms using your stock in their warehouses. This perk will reduce the capital and time investment your brand needs to sell across channels.
  • Gain shoppers’ trust with transparent delivery updates: eBay shares its service delivery up-to-date tracking and delivery information on orders. You can pass this on to customers to drum up excitement and reassurance.

Drawbacks of eBay Fulfillment by Orange Connex

  • Service quality could vary: The broker-like setup of eBay Fulfillment by Orange Connex could mean shipping service quality varies depending on your chosen delivery partner. This makes it difficult to know what service level your customers will experience.
  • Storage fees could rack up quickly, impacting your ROI: Since this program charges storage fees daily, you could end up with huge bills, especially if you send high volumes to the warehouse or have bulky items.
  • Your items may not be eligible for the service: Some items are prohibited by Orange Connex, which could render you unable to use their service. Some forbidden products include: 
    • strong poisons
    • Biochemicals
    • Explosive items
    • Flammable liquids
    • Natural resources, e.g. plants
    • Fertilizer and raw materials
    • Foods

4 tips for showstopping success on eBay

4 Tips for success on eBay

Whether you have a new store or have been selling on the eBay marketplace for years, there are some timeless and strategic moves you can make to improve your results. To get started, let’s break down a few:

1) Pick the right products

Your product selection can make or break your conversion rates on eBay. Therefore, it pays to keep a catalog that meets your target customer’s needs and reflects growing trends. Some steps you can take to uplevel your product portfolio:

  • Conduct research to find attractive goods your target customer is looking for.
  • Select items with high-profit margins to accommodate shipping and ad costs.
  • Monitor and adjust your prices according to market rates with a pricing tool to stay competitive.
  • Test different product bundles

2) Select the best fulfillment provider for the job

Getting your fulfillment processes right plays a huge role in success on eBay. But to ensure you have a profitable system, it’s vital your fulfillment provider is the best fit. So, assess your options against your business’ current growth stage and goals. Some additional pointers on what the ”best” fulfillment service looks like are:

  • Experience in eBay selling
  • Capacity to scale services up and down (fast)
  • Offers services that complement your targets
  • Is fairly priced

Top tip: Excellent shipping and return options combined with fantastic products can help you achieve the highly coveted and profit-boosting “Top Rated Seller” status.

3) Make your listing stand out

Your listings are your products’ stage. Ensure they don’t fade into the background by improving key aspects of your listings and splitting testing for continuous improvement. For some pointers, here are steps to take:

  • Optimize your listings: Combine SEO with high-quality images and product descriptions to display your items in the best light and make buying from your brand the best option. Also, test different listing formats, e.g. auction and fixed price, to find the optimal blend for your product portfolio.
  • Offer free shipping to attract shoppers: eBay states winning over hesitant shoppers and business growth as just a snippet of the benefits you can experience with free shipping. So, tweak your pricing to make free shipping possible and impress shoppers with fast options. Also, provide a generous returns policy to decrease friction in the buying process.
  • Price products low when launching products: To gain sales velocity and reviews, aim to price your new offers 10-33% lower than your intended future selling price and your competitors’ current asking price.
  • Drive your own traffic: To get more engagement on your listing, tap into organic traffic with social media and experiment with influencer campaigns and paid ads. Then split test with eBay’s promoted listing campaign. Nearly 16% of products on eBay have promoted listings, leaving many opportunities for your brand to get noticed.
  • Use good reviews to drive more sales: Utilize user-generated content in your social media and email marketing campaigns to attract shoppers to your listing.

4) Encourage buyer reviews

A review is so powerful it can determine whether a shopper buys from your brand or your competitor. So, make it a priority to secure reviews from buyers by providing an outstanding product and service, delivering on your promises, and shipping goods promptly.

You can also request an honest review from buyers via the eBay platform, and package inserts encourage buyers to contact you if they have any issues or concerns. Also, appeal negative reviews you can’t resolve with the customer. For example, say you ship the right product and the buyer mistakenly believes they received the wrong item and won’t remove the review, even after you’ve contacted them. You can contact eBay to request they remove the review.

Build a successful eBay fulfillment strategy

From handling shipping in-house to outsourcing fulfillment services, many options are available to take your eBay fulfillment from good to great. But to maintain customer satisfaction and a healthy bottom line, you must explore what fees your business can handle compared to the service level it requires and use it to guide your fulfillment strategy. Stay updated on your store’s fulfillment requirements as it scales, and be ready to upgrade when needed. Follow these tips and tricks, and it won’t be long before your brand outdoes its competitors and thrives.

Ready to level up your eBay store’s results. Partner with MyFBAPrep.

What MOQ means for eCommerce sellers and using it to your advantage

If you work with suppliers or buy stock from manufacturers, you probably have experience with minimum order quantities (MOQs).

eCommerce sellers are often faced with MOQs when working with suppliers. Whether ordering boxes for shipments or restocking your product lines, suppliers often set MOQs you need to reach before ordering.

However minimum order quantities aren’t only reserved for supplier-seller relationships? You could set a MOQ for your customers too. Setting a MOQ for your eCommerce products could boost average order values, present wholesale opportunities, and get slow-stock moving.

Discover how you can use MOQs to your advantage as an eCommerce seller from both a supplier-seller and a seller-customer perspective. 

What is MOQ?

The abbreviation MOQ stands for minimum order quantity. It’s the minimum number of units someone has to buy before they can complete their order.

As an eCommerce seller, this could be the MOQ you need to work with suppliers or it may be the MOQ you require from customers before they buy certain products. For example, your supplier might request that you purchase a minimum of 10 units when ordering.

The set MOQ could be applied to one product line or, in some cases, it could be redeemable against a variety of products. In the latter scenario, this is known as a minimum order value (MOV).

MOQs may be a set number based on units or price. Alternatively, MOQ may work on a tiered system whereby the more products you order, the more money you save.

You may set a MOQ of 10 units for one of your products but offer a percentage-based discount in increments of 50 units. So, buying 50 items would offer a cheaper cost-per-unit than buying 10 items.

eCommerce sellers can use MOQs to take advantage of buying products at scale. After all, the cost of mass-producing something is usually far cheaper than just producing one unit.

Setting product MOQs could also increase cart value. If your products have small profit margins, MOQs could ensure customer orders cover the product costs and provide healthier profit margins. 

From a supplier-seller perspective, buying inventory items in bulk could reduce your individual product costs. MOQs can be a powerful tool for eCommerce sellers, as long as you know how to use them.

What MOQ means for eCommerce sellers

What MOQ means for eCommerce sellers

Setting a MOQ could be a game-changer for your eCommerce business. The most notable advantages of having a MOQ are that they offer a better price per unit and could result in an increased average order value.

Yet, that isn’t the only way MOQ impacts your business. As an eCommerce seller, MOQs can change the course of your business in more ways than one — making it more efficient and cost-effective. 

On the other hand, complying with a MOQ from suppliers could result in higher up-front costs and a need for increased inventory space. Expecting customers to meet MOQ requirements could also turn some customers away if they only intend to buy one unit. 

There are a lot of factors to consider when using MOQs as an eCommerce seller.

Here are some ways having a MOQ could impact your eCommerce business.

Supplier impact

MOQs could influence which suppliers you order from as an eCommerce seller. 

You might have to be more selective about your chosen suppliers if your eCommerce business has a limited budget for inventory purchases. ECommerce sellers with limited funds may be limited to working with suppliers that don’t have any MOQ requirements. 

One way to get around the financial limitations associated with MOQs is to pass the MOQ on to your customers. Encouraging customers to buy products in larger quantities could make it easier for you to buy larger MOQs from your suppliers. 

Let’s say you sell stationery products. If your supplier requires a MOQ of 100 units for pencils, you could pass this on to your customers by setting a MOQ of five units for those pencils. Therefore, you only need 20 orders to meet the supplier MOQ as opposed to 100 orders without a MOQ.

MOQs may impact the suppliers you have access to. By being smart and passing the MOQs onto customers, you could gain access to better supplier MOQs and open up the pool of suppliers you could work with.

Average order value

Establishing a MOQ strategy for your online store could encourage higher average order values (AOV). Rather than buying just one or two products, customers will buy a product in larger quantities and, as such, your AOV will increase.

For instance, a DTC drinks brand might choose to sell cans of soda at a MOQ of 12 units per order. This would encourage a higher AOV as consumers will buy a set of 12 cans at once, rather than a single can.

Increasing your average order value will also help offset the cost of packing and shipping orders, making this a double advantage of using MOQs.

Retail and wholesale partnerships

If your eCommerce store has only ever worked on a direct-to-consumer basis, setting MOQs introduces the potential to establish strong retail and wholesale partnerships. This diversifies your store earnings by adding another arm to your eCommerce business. Plus, it will offer greater brand visibility as you get your product on more shelves, marketplaces, and eCommerce stores.

You could set up a wholesale area on your eCommerce site where retail partners and wholesalers can access exclusive discounts when purchasing set MOQs. You can use this strategy to get your products into more sales channels.

When setting MOQs for new retail partners, offer an introductory MOQ that is lower for their first order. This helps secure new retailers and wholesalers by allowing them to test product performance with less risk. 

Adding a wholesale channel to your eCommerce business will allow you to sell products at larger volumes. While this may come at a discounted rate, the increased volume will mean more money in your pocket. 

If you sell products to wholesalers for $10 per unit when they buy a minimum of 100 units, you would make $1,000 in one wholesale order. 

Compare this to selling the same product direct to consumers for $20. The end customer may only want to buy one unit at a time, which would mean you would need to secure 20 orders. But you don’t know how long it will take to secure those 20 orders. 

The wholesale route offers greater control over product inventory and supply. This allows you to sell more products at once to receive a cash injection into your business.

Be mindful of product costs when calculating MOQs for retail partners and wholesalers. Make sure you are not selling products at a loss by calculating costs of goods (COGS), inventory costs, demand, and the break-even point.

Bulk orders

Incentivize customers to buy higher product quantities by offering bulk order discounts. Offering bulk purchase discounts when customers buy higher quantities will also encourage larger order values making this a win-win strategy. 

Presenting customers with multi-buy offers, bulk order options, and bundles is a smart way to introduce MOQs to your online store, without stating the obvious that it is a MOQ. Instead of seeing a product with a label that states “you must buy 10 units to order this item”, customers will see products that are already packaged up as a multi-buy offer.Cave Man Foods

A great example of this is Caveman Foods which offers nutrition bars in pre-determined bundles. There is no option to buy a single bar. Therefore customers have to buy the MOQ of 12 if they want to place an order. 

Present multi-buy options as a way customers can save money. Offering a 20% discount when buying in bulk may be enough to incentivize customers to buy products with MOQs. 

After all, your customers will get more products for their money, and you get more money from your customers.

Slow-moving stock

Breathe new life into slow-moving SKUs by adding enticing MOQ offers. 

Every retailer likely has some product lines that didn’t perform as expected. You launched a new product confident it would rake in sales and then… nothing. If you have products gathering dust as they sit on your warehouse shelves, you could use MOQs to sell those SKUs and create space for new products.

Using MOQs to sell products at a reduced price will be far more cost-effective for your eCommerce store than paying to keep those products in inventory. 

Set up a promotional MOQ for retail partners and wholesalers as a way to clear this slow-moving stock. The wholesaler may sell these products easier due to having a better product-market fit. In this case, you both win as you get to move dead stock and they get great new products at a reduced rate.

Alternatively, you could set a customer-facing MOQ to encourage customers to buy the product in bulk and save money. This works best if your product is a slow-mover due to being something people tend to bulk-buy.

For example, a coffee brand might find some of their coffee filters don’t sell very often because people prefer to buy in bulk. Adding a MOQ to your coffee filter products will entice people to look toward you for bulk purchase savings. You get to clear your slow-moving products and your customers get to stock their cupboards.

Consider the reasons behind slow-moving stock when deciding whether to go down the wholesaler or customer route. A wholesale partnership may be your best option if stagnated stock is due to the product not being a good market fit for your store.

Warehousing space

Working with MOQs means you will need more storage space for your inventory. Whether buying large MOQs from suppliers or planning to sell MOQ products to customers and retail partners, your inventory management process needs to be well-optimized.

Your inventory levels will naturally be high when working with MOQs as most of your revenue will be tied up in physical inventory assets. Purchasing products from suppliers at a high MOQ might result in you holding stock for longer, reducing your inventory turns. 

Allocate adequate warehouse space for wholesalers and retail partners wanting to purchase high MOQs. Not having enough inventory space could result in products going out of stock due to not having enough inventory on hand.

Understand your demand and inventory reorder points and optimize inventory management accordingly. Appointing a third-party logistics (3PL) partner to support wholesale orders can minimize the risk of supply chain bottlenecks. Pass fulfillment to a DTC fulfillment partner so they can handle order prep while you focus on growing your eCommerce brand. 

How to handle MOQs from suppliers

How to handle MOQs from suppliers

MOQ requests from suppliers can be daunting if you aren’t prepared to purchase large quantities of stock. 

Many small eCommerce businesses are bootstrapped, meaning they don’t have a large footfall of cash to inject into inventory. If you are struggling with a supplier requesting high MOQs, research other potential suppliers and manufacturers to see if there is anyone with a lower barrier to entry.

There is also no harm in reaching out to the supplier to explain your situation. Let them know the MOQ you’re able to meet, your forecasted inventory turnover, and reorder frequency to see if there is room for negotiation on their requested MOQ.

US Trade Database

Research your competitors to see which suppliers they engage. This is a great way to find suppliers that already operate within your niche. It may also give you access to a broader range of minimum order quantities.

Tools such as ImportGenius’ TradeBase let you tap into a database of US imports. This tool is great for seeing which suppliers US merchants have worked with.

Be mindful of cash flow when working with suppliers that require a MOQ. While it may be tempting to succumb to high MOQs to receive greater cost savings, it’s not worth risking your current financial positioning.

Buying stock with MOQs results in your eCommerce business being asset-rich but cash-poor. So, don’t order more than you can realistically move. Also, be aware of how tying your money up in stock might impact the future growth of your store.

Finally, see if suppliers will let you “mix and match” the MOQ across various products if you are struggling to meet the MOQ for a single product. Rather than buying 1,000 units of one product line, ask if they would let you split the MOQ across three or three product lines. You’ll get a greater variety of products to sell to consumers and the supplier can move 1,000 units of stock.

The best advice we can give to handling supplier MOQs is to simply talk to them. Have a chat with suppliers to see what they can offer to ensure you have a cooperative long-term relationship.

Wholesale implications of MOQs

Adding a MOQ to your online store opens up the possibility of working with wholesalers.

Establish wholesale relationships by setting MOQs on your eCommerce site. These MOQs will ensure wholesale partners buy a certain quantity of stock to then re-sell through their sales channels. It’s a lucrative opportunity to diversity your eCommerce store.

It’s important to be mindful of inventory turnover when working with wholesale partners. If you expect wholesale partners to frequently buy a large volume of units, ensure you have products in stock ready for them to order. Calculate your inventory turnover to help accurately forecast inventory demand. This will ensure you always have the right amount of inventory on hand.

Setting up wholesale partnerships can also be a great way to meet supplier MOQ requirements. Bulk buy stock from manufacturers as per their MOQ, then split these units across your sales channels and resell to wholesale in smaller quantities. You could, for example, buy products from a supplier with an MOQ of 1,000 units. You could put 250 units aside for your sales channels. Then, sell the remaining 750 through wholesale partners at an MOQ of 250 units.

In the above scenario, wholesalers will get access to product lines at lower MOQ. This means there is less risk involved and you get to leverage supplier MOQs without sitting on excessive inventory.

Wrapping up — Using MOQ to your advantage as an eCommerce seller

Minimum order quantities can offer a unique selling advantage to eCommerce brands. From encouraging larger cart sizes from online shoppers to developing wholesale partnerships, MOQs have the power to enhance your eCommerce store’s return on investment.

MOQ on the supplier-side needn’t be an issue either when you find strategic ways to handle them. See MOQs as an opportunity to grow your eCommerce business and soak up all the advantages they have to offer.

10 common eCommerce scams and how to avoid them

The world of online shopping brings a load of exciting opportunities for consumers. However, this presents a similar amount of opportunities for eCommerce scam artists and fraudsters.

The best way to protect your store and customers against eCommerce scams is to take preventative measures, keeping you one step ahead of fraudulent behavior at all times.

What is an eCommerce scam?

eCommerce scams encompass any type of fraud that takes place on, targets or impersonates an eCommerce site or platform. The COVID-19 pandemic saw a dramatic shift towards online shopping. As more and more people joined this shift, eCommerce fraud jumped 18% over the previous year and surpassed a total of $20 billion in losses.

The eCommerce ecosystem makes it easy for cybercriminals to get their hands on consumers’ card details, create convincing-looking eCommerce scams, and trick people into believing they are genuine, all while masking their identity. Compared to the pre-internet days, the ease and anonymity of eCommerce scams make it all too appealing to scam artists.

66% of consumers wouldn’t buy again from an online store where their account was compromised. Therefore, if your store is targeted by eCommerce fraud, you run the risk of losing customers and money.

The long-term impact of eCommerce fraud can be hard to recover from. Rebuilding consumer trust isn’t a fast process and lost revenue won’t materialize on its own.

Be vigilant and make sure you’re familiar with the common eCommerce scams that could impact your store and customers.

10 Common eCommerce scams to avoid

From brand impersonation to click fraud, chargeback fraud, and phishing, eCommerce scams are everywhere. Here are some common eCommerce scams, how to spot them, and the steps you can take today to protect your store and customers from fraudulent activity.

1) Brand impersonation

Brand impersonation is the name given to situations where someone pretends to be a trusted brand or company to trick consumers into disclosing personal information, including their bank account details.

This impersonation can come in many forms. Cybercriminals may use brank hijacking to impersonate a company email address, so they can send emails that look official. Alternatively, they may use service impersonation where they pretend to be part of a brand’s customer service team to glean sensitive and personal information from customers.

Brand impersonation can happen online, over the phone, by email, or even by postal mail. Therefore it’s important to remember that just because you’re an eCommerce brand, it doesn’t mean all fraud attacks happen virtually.

If you notice a brand impersonation attack circulating, take action immediately. Publicly address the spam and inform customers of how to recognize brand impersonation. Also, what to do if they suspect fraudulent activity.

2) Google Ads click fraud

Google Ads click fraud is an eCommerce scam that can significantly harm your bottom line.

Click fraud occurs when someone fraudulently clicks on your pay-per-click (PPC) ads to generate advertising charges that exhaust your advertising budget.

Google Ads click fraud can be committed by competitors, click bots, web crawlers, or click farms. Competitors may repeatedly click your Google ad to waste your budget so they can claim the number one advertising spot. Meanwhile, click bots, crawlers, and click farms are designed to click your ad thousands of times to deplete your budget and unnaturally inflate engagement.

It’s estimated that advertisers will lose over $100 billion globally to ad fraud by 2023. You could even be committing click fraud against yourself if you ever click your paid Google Ads link over the organic result in search engine results.

Thankfully, Google Ads has a robust anti-click fraud program in place to minimize click fraud occurrences. This program uses machine learning to detect and filter invalid clicks before advertisers are charged. You can also report suspicious activity to Google Ads for review.

To further prevent click fraud, we recommend setting up IP exclusions for suspicious IP addresses, being mindful of competitor activity, and adjusting ad targeting to remove any locations with a high volume of invalid clicks.

3) Card Cracking (AKA card testing or CNP fraud)

Also known as card testing or CNP fraud, card cracking is a credit card scam in which the scammer will use a person’s credit card information despite the card not being present (hence the abbreviation CNP).

Card cracking can weigh heavy on your bottom line. If a customer detects their card has been used on your site for CNP fraud, it’s your responsibility to reimburse them. This means you lose out on any product shipped during fraudulent transactions, plus the reimbursement that has to be made to the real customer.

You could be putting your customers at risk of card cracking if your eCommerce store doesn’t have security measures in place to protect their personal information. To protect your customers from CNP fraud, ensure sure your payment gateway provider requires their billing address and CVV verification to authorize their payment.

4) Phishing scams

Phishing happens when cybercriminals use emails, phone calls, or text messages to trick consumers into giving away sensitive information.

Customers targeted by phishing scams might unknowingly give away their passwords, memorable information, bank account details, billing address, or Social Security numbers. The tactics scammers use to gain that information vary, as does the activity they commit with them.

While phishing scams might change from time to time, there are some common signs you can use to recognize phishing scams.

Phishing scams tend to look like they’re from a known or trusted company. This could be a bank, credit card provider, or eCommerce store, for example. Phishing scams can look scarily real. Tactics used during phishing scams include:

  • Saying they noticed suspicious activity on your account
  • Stating that there is a problem with your account or payment information
  • Insisting you confirm personal information
  • Encouraging you to click a link to make a payment or provide personal information
  • Offering a coupon or offer

Protect your customers from phishing scams by making them aware of any currently active phishing activity and inform them of what signs to look for.

5) Chargeback fraud (or friendly fraud)

Chargeback fraud, or friendly fraud, is an eCommerce scam committed by customers. When committing chargeback fraud, customers will make a purchase with their credit card, then request a chargeback from their bank after they have received their order.

By contacting their bank, consumers can bypass the merchant and get their bank to reimburse them for the cost of the purchase.

Customers might intentionally or accidentally request a chargeback. Reasons for chargeback disputes include:

  • The customer is dissatisfied with their purchase
  • A customer doesn’t recognize the charge on their bank statement
  • The customer is expected a refund but hasn’t yet received one
  • A customer was charged more than once for a purchase
  • The customer intentionally requests a chargeback so they can get their money back and keep the purchase

Friendly fraud can harm your brand. From product loss to chargeback fees, revenue, and operational costs, there is a high number of costs associated with chargebacks.

6) Account takeover fraud

Account takeover fraud (ATO) takes place when cybercriminals impersonate genuine customers by accessing their eCommerce accounts and making unauthorized transactions.

Scammers committing account takeover fraud might use phishing or another type of fraudulent activity to gain access to customers’ login credentials. Once they have access, scammers can use the customer’s account to make fraudulent purchases. They will likely try to cover their tracks by changing the account information or password.

If you spot ATO, pause the transaction and investigate the situation by comparing the order information with previous transactions from the same customer. Monitoring account activity can help you identify any behavior that might indicate account takeover fraud.

7) Refund scams

Refund scams are similar to chargeback fraud except, rather than going to their bank, customers will request a refund directly from the merchant.

Customers committing refund scams will fraudulently request a refund by claiming the item was never received. Consumers will attempt refund scams because they believe they can get away with it. If they didn’t sign for a package, it can be hard for merchants to prove the customer received their order.

Thankfully, if you use a reliable shipping provider, you should be able to debunk refund scams by providing evidence that the customer received their order. From signature requests to taking a photograph of the customer receiving their parcel, you can collect proof of delivery that helps minimize the risk of refund scams.

8) Mail interception fraud

Mail interception fraud happens when cybercriminals place an order using another customer’s account and then after tries to intercept the parcel after the order has been made.

To start with, they’ll keep the customer’s original billing and shipping address. After the order has successfully been confirmed, the fraudster will attempt to redirect the parcel to their address. They might do this by contacting the merchant while pretending to be the real customer and asking them to reroute the package to a new address. Alternatively, they might bypass the merchant and go straight to the shipper to get the parcel rerouted.

Not allowing customers to change shipping information after placing an order will help minimize the risk of mail interception fraud. If a customer tries to change their shipping address after placing an order, inform them they can cancel their order and place a new order. This allows you to minimize the chance of cybercriminals committing mail interception fraud.

9) Triangulation fraud

Triangulation fraud is a complex eCommerce scam where fraudsters will set up an illegitimate storefront so they can steal the credit card information from any customers on their website.

These storefronts will look genuine and might even exist on reputable marketplaces and eCommerce platforms such as Amazon or Shopify. The storefront will likely sell high-demand products at low prices as a way to entice consumers to place an order. Once customers have placed an order, the scammer behind the storefront will use their credit card details to fraudulently purchase the products from another site, then send the goods to the customer.

The customer will think they are getting a good deal without realizing that they’ve actually paid for their order twice. Once when placing an order on the fake site. Then a second time when the scammer uses their card details to place their order with a genuine merchant. It can be damaging to your brand reputation if your eCommerce store is used as part of triangulation fraud. Customers will lose trust in your brand if they see your branding on shipments that have been delivered as part of triangulation fraud.

10) Affiliate scams

With many eCommerce brands using affiliate programs as part of their marketing strategy, there has been an increase in affiliate scams.

Affiliate scams happen when affiliate users fraudulently inflate their affiliate clicks or code uses to gain more commission from the brand. Consumers might use click farms to falsely increase their affiliate activity. They may also go against the affiliate policy by sharing their referral link on pages that will result in mass activity.

Affiliate scams can be prevented by using a reputable affiliate network that can detect spam clicks or suspicious activity. These networks will be able to recognize fraudulent activity and prevent merchants from unknowingly paying out for ingenuine behavior.

How to spot eCommerce scams

How to spot eCommerce scams

Knowing how to spot eCommerce scams is crucial for preventing your store from being financially impacted by fraudulent activity. The sooner you can spot eCommerce scams, the sooner you can take action to prevent fraudulent activity.

If you see any of the following behavior when a customer places an online order, it could be a sign that someone is trying to commit an eCommerce scam:

  • Conflicting customer information
  • Invalid contact details
  • Larger than average orders
  • Unusual purchase location
  • Multiple shipping addresses
  • Numerous transactions in a short timeframe
  • Multiple orders from different cards
  • Several declined transactions in a row

The best thing to do if you think your store has been targeted by an eCommerce scam is to put a hold on the order and immediately investigate.

How to prevent eCommerce scams

How to prevent eCommerce scams

Knowing how to spot eCommerce scams isn’t enough to protect your store and customers. You need to have strong preventative measures in place to stop eCommerce scams from ever happening in the first place.

Early detection + preventative measures = increased security against eCommerce scams.

Implementing high-security procedures on your store will protect your consumers from being targeted by eCommerce scams. Plus, it will help your store stand strong against fraudsters.

Some security protocols you should adopt include:

  • Following PCI Standards for card security
  • Developing a multi-level fraud prevention strategy (e.g. setting purchase limits, implementing returns policies, limiting how much customer data you collect, and using HTTPS, for example)
  • Deploying layers of security throughout your entire eCommerce tools and processes
  • Conducting frequent site security checks and updates
  • Analyzing device fingerprinting
  • Using an Address Verification Service (AVS)
  • Use a reverse social media lookup to see if the user has a social footprint
  • Implementing an eCommerce fraud prevention tool such as SEON or Riskified

The tighter your security protocols, the harder it will be for fraudsters to commit eCommerce fraud on your store. Implement as many fraud prevention measures as you can and make sure they work harmoniously together. Finally, routinely check and update your security measures. This ensures your store is always protected from the most recent types of eCommerce scams.

Wrapping up – Reducing eCommerce scams

Scrub up on your eCommerce fraud knowledge and put strong preventative measures in place to protect your store and customers.

eCommerce scams come in many different shapes and they are constantly evolving. Cybercriminals are always looking for new ways to deceive unwitting customers and merchants. Therefore, you need to make sure you fully understand how to spot eCommerce fraud. Also, what to do if your store or customers are targeted.

5 Costly eCommerce aggregator mistakes and how to avoid them

Since April 2020, funds raised stand at a whopping $14.9 billion with 47% of deals fetching between $2-$5million each. The secret is out. The eCommerce aggregator business model is now one of the hottest opportunities for making vast amounts of money online.

However, running an aggregator isn’t all sunshine and rainbows. With multiple brands on your books, the stakes are high. A simple error can lead to eye-watering bills, unhappy customers, and lackluster returns. 

But before you write off this stellar opportunity, know that despite the challenges that come with scaling a brand aggregator, you can still make your goals a reality. All you need is an awareness of the landscape and strategy to make it happen.

In this post, we’ll uncover the 5 costly eCommerce aggregator mistakes and how to avoid them and grow to become a powerhouse business.

Looking for a way to level up your aggregator’s result? Get your fulfillment processes right with MyFBAPrep.

Top 5 mistakes eCommerce aggregators make

Whether you’re just starting out or a veteran in the eCommerce aggregator space, the fast-paced nature of the business makes it easy to trip up. These mistakes range from the face palm bloopers you can recover from quickly to the scary, business-altering errors that keep you up at night. So, to know what to keep your eyes peeled for, let’s dive into some common mistakes eCommerce brand aggregators make:

1.  Buying the wrong brands

Some brand aggregators are distracted by shiny objects, like great publicity and high revenues, while others are lured by super-niche products. But behind the “cool” aesthetic, lie items with small markets that can be difficult to scale and weak branding that pulls down the eCommerce brand’s perceived value.

In both scenarios, the brand aggregator has picked the wrong brand based on surface-level qualities and will need to course-correct by improving the vital metrics like profits, ROI, and margin (more on this later).

2.  Taking on difficult-to-market products

From having access to relevant territories to reaching your target customer, many factors go into successfully marketing an eCommerce product. Although some brand aggregators find themselves in hot water when they choose brands with offers that are challenging to market. Some issues that crop up include:

  • Legal, regulatory, and cost-related issues slowing down advertising launch
  • Product(s) prohibited on specific advertising channels, decreasing the brand’s reach
  • Selling seasonal or highly competitive items that make reducing brand visibility

3.  No fulfillment strategy in place

Perhaps the eCommerce brand you’ve chosen started small with haphazard fulfillment, like impromptu post office runs and pickups from carriers. This setup may have worked just fine in the early stages, but as the brand scales, managing orders without official processes becomes increasingly difficult. On the flip side, some aggregators pick brands that have been a little too proactive in their fulfillment setup, causing them to use many carriers daily and missing out on the structure and deals that come with 1-2 reliable shipping providers.

4. Lack of funding

Ecommerce brands are notorious for being cash-intensive for good reasons. Not only do you have to bare slow pay-outs from sales channels, but you’ll also need to cover large upfront investments in inventory to stay in stock.

Also, it takes significant cash injections to level up the brand to achieve your aggregator’s growth goals and exceed competitors’ offers. A lack of cash can result in you settling for less than top-tier strategies and processes, holding your brand aggregator back from the success it’s capable of. A great example of this capital shortage in action is aggregators putting their brand acquisition dreams on the back burner due to cashflow shortages.

5.  Unprepared to navigate global supply chain issues

Although not an issue reserved for eCommerce brand aggregators, shipping delays and supply chain issues continue to rock the globe. This problem has made it more difficult to obtain goods fast without destroying their margins. Since the global supply chain chaos is far from over, every business needs a strategy to get and stay in stock quickly and affordably. Yet some brand aggregators are yet to get their procedures down, with knock-on effects on customer experience, sales, and ultimately growth.

Need a hand in building a winning fulfillment strategy? Look no further than MyFBAPrep.

How to build a successful eCommerce aggregator for online stores: The 4 big challenges and how to fix them

How to build a successful eCommerce aggregator for online stores

If you’re stuck wondering how to make gainful returns from your brand aggregator in the uncertain market, you’re in the right place. Let’s breakdown some key steps you should take:

Make profitability a must

When deciding whether to take an online store under your wing, it’s vital you make profitability a requirement for both the business and its products. Also, look for traits like:

  • Business age (at least one year)
  • Solid sales volume year-round
  • A handful of profitable SKUs
  • Customer loyalty
  • Growing brand presence
  • Capital generating opportunities within the brand
  • Sells on multiple sales channels

For example, an Amazon business could have high ROI items, loyal customers, and consistent subscription revenue, but its costly fulfillment strategy wipes all the profits. So, if you could make the fulfillment process cost-effective, you’d have a winner on your books.

Tip: If you’ve mistakenly bought an unprofitable brand, don’t panic. Look for places to slash costs, increase perceived product value, and build recurring monthly revenue through subscriptions to turn the brand’s trajectory around.

Secure eCommerce funding

A great hack to grow your brand aggregator is to leverage external capital to bridge cash flow shortages and increase your buying power. More alternative eCommerce funding options are available than ever before, waiting to help you achieve your biggest eCommerce goals.

So, don’t settle for traditional options like bank and government loans which can be inflexible and hard to obtain for eCommerce businesses. Instead, seek out a dedicated eCommerce funding solution. Some traits to look for include:

  • ECommerce expertise
  • Fair rates and fees
  • Simple application process
  • Provides resources and on-hand support
  • Has flexible rules on funding usage

It’s time for your brand aggregator to shine. Learn how MyFBAPrep can put your business in the limelight.

Build memorable brands for each eCommerce store

A solid brand is a gift that keeps on giving. It can cause shoppers to single out your items in the online sea of offers and increase how much your brands charge for their products.

So, boost your brand above its competitors by investing in things like:

  • Global trademarks
  • Brand registry
  • A+ content
  • Sponsored brand and product ads
  • Professional photos emulating the brand’s style
  • Branded products and packaging

Expand your horizons when sourcing eCommerce businesses

Cross-border eCommerce is now a huge business, and as a brand aggregator, taking advantage of this trend can strengthen your portfolio and supercharge growth. In addition, looking further afield for potential brands to purchase reduces the risk of having all your eggs in one basket. So, if disaster strikes in one territory, your brand aggregator can stay operational.

For example, if your brand aggregator consists of US-based brands, look at upcoming brands in Asia, Canada, Australia, the UK, and the EU.

Streamline supply chain operations

Leveling up each supply chain within your brand aggregator is one of the best ways to save money, maximize sales opportunities, and boost profitability. To ensure your supply chain runs like clockwork, you’ll need to take a two-pronged approach. Let’s zoom in on these steps:

Step 1: Conduct a supply chain assessment

Look at the supply chains with your brand aggregator and ask:

  • Which steps aren’t essential?
  • What is costing us the most money?
  • Where are we wasting the most time?

Once you’ve identified unprofitable tasks in your eCommerce brands’ supply chain, eliminate them or find ways to reduce them.

For example, after assessing the brands within your aggregator, you may discover you’re spending a lot of time on money labeling and packaging products with prep centers before shipping them to warehouses and Amazon. You could rectify this by asking your suppliers to complete these tasks during the manufacturing process.

Step 2: Optimize key contributors in your supply chain

Next, optimize critical areas in your supply chain to improve efficiency, productivity, and error rates. 3 areas to tackle are:

Technology: Use AI-backed solutions to optimize things like inventory forecasting, PO creation, and freight bundling. Also, take advantage of these tools dashboards to identify potential threats and opportunities for each eCommerce brand in your ecosystem. 

Fulfillment: Create 1-3 fulfillment strategies for specific product categories, types, or sizes, then assign products within your brand aggregator to them accordingly. Unifying the supply chains within your brand aggregator will allow you to save time and take advantage of economies of scale.

To make this move without increasing your team’s workload, partner with a reliable fulfillment service provider house that can scale with your brand and has affordable rates. (Don’t forget to maintain a relationship with another fulfillment house as a backup).

Suppliers: Audit suppliers to identify your top performers and consolidate production among them. Also, work with these suppliers to increase product quality, reduce production time, and lower product costs.

The secret to huge brand aggregator wins

The secret to huge brand aggregator wins

Scaling an eCommerce brand aggregator is an exciting opportunity with huge upside potential for ambitious entrepreneurs. But to build an aggregator that can stand the test of time and produces sustainable returns, you’ll need to be proactive.

Put profits first, create a standout brand, and ensure you have the finances for the journey to build each eCommerce brand within your aggregator’s reputation and sales.

Also, keep an eye out for rising star online stores in other territories and focus on acquiring brands in specific product categories. This way, streamlining suppliers and fulfillment processes will be easier, and you can take advantage of higher total order volumes to get better fulfillment prices.

From here, your brand aggregator will be on a solid trajectory towards consistent returns, higher margins, and massive growth.

Are costly fulfillment strategies dampening your brand aggregator’s results? Get profitable with MyFBAPrep.

How to build a winning Amazon aggregator fulfillment strategy

The Amazon brand aggregator market is expanding rapidly and becoming one of the top eCommerce opportunities for ambitious entrepreneurs. More than 90 businesses have signed up and they’ve raised nearly $15 billion to date.

However, the expansive nature of Amazon brands means managing operations can be challenging as their aggregator. Additionally, it’s easy to believe that managing countless dashboards, strategies, and suppliers is just the way things are in the market, but there’s a better way.

In this post, we’ll uncover the top problems Amazon aggregators face while scaling, managing Amazon aggregator fulfillment, and how MyFBAPrep can help you tackle these issues head-on for great returns.

Stressed out trying to manage multiple supply chains? Discover how MYFBAPrep simplifies operations for pain-free fulfillment.

Managing an Amazon aggregator’s fulfillment: The 4 big challenges and how to fix them

Managing Amazon aggregator fulfillment: 4 Top challenges and how to fix them

From attempting to replicate past successes to trying to accurately project each Amazon brand’s growth, scaling a profitable brand aggregator comes with its challenges. One of the most common areas brand aggregators encounter is fulfillment. Let’s take a look at some of these problems and how to resolve them:

1) Too many 3PLs, too little time

Managing operations in the early stages of your Amazon brand aggregator journey is time-consuming, but manageable, as you typically have a handful of brands.

However, many teams become so preoccupied with managing the brands on their books, that they don’t have time to prepare for the fulfillment-fueled storm ahead. Here’s where you unknowingly sign up for the looming deluge of ops-related tasks as an Amazon brand aggregator.

Each brand you add to your umbrella tends to come with a legacy of 3PL relationships, each with its own rules, procedures, and pricing. Not to mention the fulfillment requirement methods needed depending on the product.

Quickly, you can end up with 30+ 3PL relationships to upkeep. That’s 30 dashboards, 30 invoices, and 50+ meetings on a good month, assuming there are no fulfillment hiccups. This approach isn’t scalable and will drown you in admin instead of scaling your business.

How to resolve time issues:

  • Create 1-3 fulfillment strategies according to a product category, weight, or size.
  • Outsource all fulfillment tasks to one reliable full spec fulfillment provider.

2) You pay more for fulfillment than necessary

When your Amazon brands’ fulfillment channels and strategies are fragmented, it’s tougher to profit from economies of scale.

This setup can cause your Amazon brand aggregator to lose out on negotiating power and the most favorable deals from carriers, warehouses, and 3PLs.

Plus, you’ll drag down your brand aggregator’s margins as you pay more for fulfillment services.

How to fix overpayment issues:

  • Shop around for fulfillment services with the best quality and prices.
  • Once you’ve allocated a fulfillment strategy per brand, use an estimated total order volume of all the brands under that specific strategy for bargaining power.

3) Developing contingency plans becomes tricky

Having a disaster recovery plan is essential for every eCommerce business. However, it becomes more difficult to create contingency plans for each brand in your aggregators when they each have different fulfillment strategies.

Soon, this setup could leave some brands without a good backup plan, making your brand aggregator vulnerable.

How to reduce business vulnerability

  • Group brands within your business based on commonalities (e.g. products, categories, or territories) and create a backup plan for each group.
  • Forge a relationship with another dependable 3PL as a fallback plan in the event that your primary fulfillment service becomes inoperable.

4) Complexity breeds frustration

The more fulfillment strategies and services your team has to grapple with, the more you open your business to costly mistakes and stressful work environments.

Team morale and productivity can dip significantly, with costly knock-on effects like absenteeism and staff churn.

How to eliminate the complexity of fulfillment

  • Lean on tech tools wherever possible (e.g. managing stock, creating POs, ordering freight)
  • Outsource manual fulfillment tasks like prep and packing to an experienced service provider.

Say “no” to wearing multiple hats in your Amazon aggregator’s fulfillment. Team up with MyFBAPrep to streamline logistics.

How My FBA Prep removes the hassle of fulfillment for brand aggregators

How MyFBAPrep removes the hassle of fulfillment for brand aggregators

Find yourself struggling to manage your Amazon brand aggregator’s fulfillment? There’s a simple solution. Team up with a reliable, experienced, and affordable prep and fulfillment provider. MyFBAPrep ticks all of these boxes above and more. Below, we’ll outline how we can help you get ahead in the Amazon brand aggregator niche.

Agile fulfillment no matter your business’ size

Big eCommerce companies using a fixed fulfillment strategy can quickly lose flexibility as they scale. Such rigidity makes it difficult to gain a competitive advantage from strategic positioning, like distributing stock across territories.

With MyFBAPrep, you can tap into multiple locations based on current market demand, to gain maximum agility and boost your fulfillment’s profitability. For example, our company has 6 million square feet across 50+ warehouses globally, allowing us to accept and prep your items as close to their final destination as possible.

In addition, MyFBAPrep provides VIP access to the world’s best 3PLs that can scale with your brands like SEKO, Ryder, and Maersk. Typically only brands clearing millions of orders per month have access to this setup.

With MyFBAPrep’s expansive client base and business network, it allows us to leverage economies of scale to secure these game-changing deals for our merchants.

Simplify fulfillment to reclaim time

Another benefit we provide merchants is warehouse consolidation into one easy-to-control network. We’ll streamline your process down to one invoice and one dashboard, making managing fulfillment swift and painless while saving time and energy.

For example, if you decide to keep multiple 3PL partnerships, we can absorb them and manage them within the MyFBAPrep ecosystem. You’ll also have the option to branch out to the big 3PL players to build a new, profitable supply chain system.

Use our Amazon knowledge to gain a competitive edge

Without extensive FBA expertise and experience, many 3PLs make costly mistakes. Soon you could find yourself with a hefty bill or worse, without an Amazon account.

MyFBAPrep stays updated on Amazon’s ever-changing rules and platform product requirements, from its specific pallet type specifications to shipping box size limits and IPI score requirements.

As a result, our actions will keep your brands within Amazon Terms of Service and avoid getting in Amazon’s bad books (which, trust us, is somewhere you don’t want to be). Also, our processes and knowledge allow us to get items into FBA quickly, maximizing selling time and avoiding stockouts.

High-quality fulfillment without breaking the bank

MyFBAPrep is on a mission to provide high-quality fulfillment services that don’t destroy margins. We believe in keeping our processes and pricing simple and transparent. Many aggregators are used to getting 3 pages of invoices per 3PL, not to mention those unexpected charges.

To give you an idea, we quote prep and fulfillment services based on just three things:

  1. How many cartons do you intend to send in per month, for example, for inspection, counting, or dock-to-stock?
  2. Quantity of product you want to store in our warehouses?
  3. How many cartons you’d like us to send out per month, for example, outbound out to Amazon and omnichannel fulfillment?

Spot growth opportunities with tech-powered fulfillment

At MyFBAPrep, we understand your supply chain’s success relies heavily on your tools to operate it. That’s why we offer access to our trademarked solution, Preptopia.

Preptopia will take the pressure off your team to achieve growth targets for each brand within your aggregator. For instance, you’ll have access to this information for each on one easy-to-digest dashboard. Here are just a few ways Preptopia can help your Amazon brand aggregator get and stay ahead of the pack:

  • Understand each brand’s inventory and order statuses
  • Identify scaling opportunities
  • Calculate profits with ease
  • Make sending goods to Amazon a seamless process

Build a lucrative Amazon aggregator headache-free

Whether you’re in the beginning stages of scaling an Amazon brand aggregator or have many years under your belt, your fulfillment strategy is a defining factor in your success.

Build a simplified ops strategy to handle every stage from product manufacturing to fulfillment so your business can support brand acquisitions at scale. Ensure the method you choose has opportunity spotting built into it, so your business always has the finances lined up to help it thrive.

Soon managing multiple supply chains and strategies will be a walk in the park. Your team will have more time to focus on business scaling tasks, positioning you to take your Amazon brand aggregator market by storm.

Don’t settle for chaotic fulfillment strategies and services. Build your winning ops strategy with MyFBAPrep.