Issue 110: How Kate Farms Unlocked 6-Packs on Amazon with MyFBAPrep
Hello, MyFBAPrep Sellers!
In this newsletter we share how Kate Farms used MyFBAPrep to make their products more accessible by breaking down 12-packs to 6- and 4-packs to sell on Amazon, Walmart Marketplace, and beyond.
How Kate Farms Used MyFBAPrep to Make Their Products More Accessible With 6-Packs
“We needed someone that was responsive, quick, and the fact that you create the FBA shipments and Walmart shipments and track them through all of that has just been perfect.” — Dean Evenson, Kate Farms Senior Director of eCommerce Marketplaces
Kate Farms’s shakes and formulas were traditionally sold in packs of 12 with a single flavor. As Dean notes, their products are “big and heavy, and they’re premium-priced because they’re a premium product.”
Reducing the minimum purchase from 12 packs to 6 made it accessible to consumers interested in trying Kate Farms, but didn’t have the space or budget for 12 at a time.
Cold Chain Logistics and Fulfillment: The Ins and Outs of Dtc Prep for Cold Storage Items
A Forbes study found 61% of shippers outsource cold storage and warehousing to some degree. This is primarily due to the significant costs of investing in and maintaining temperature-controlled logistics, which includes special equipment and established processes for temperature-sensitive items. Here are the basics of temperature-controlled logistics you should know about, whether or not you outsource.
Temperature monitoring
Shelf life and temperature ranges can vary drastically from product to product. They usually fall into two main segments: chilled and frozen goods. However, items can fall anywhere within that range, making it impossible to keep everything at a single, uniform temperature. You must establish a process for keeping track of acceptable temperature ranges to reduce waste and regulate temperatures 24/7. That’s true even if you ship items with different temperature requirements (e.g., meat and produce alongside frozen goods).
Regulatory compliance
Complying with local, state, and federal safety regulations is crucial for preserving the safety and quality of perishable goods. One such statute is the Food Safety Modernization Act (FSMA), which requires shippers to complete temperature reports and maintain documented sanitary practices.
New regulations are proposed all the time, so be sure to check them regularly to stay up to date and in compliance. Working with a 3PL brings experts who manage compliance for you, which can save considerable headache, especially when it comes time to report or cooperate with an audit.
Equipment and insulation
The type of storage you use has a massive impact on the quality of cold goods. You can choose from various refrigeration equipment like refrigerated containers, blast freezers, cold rooms, or pharmaceutical-grade cold storage. The goal is to keep temperatures consistent and prevent exposure to outside elements, so do your research to select the right type of unit for your cold goods.
MyFBAPrep utilizes various state-of-the-art temperature control equipment to ensure products are stored at consistent temperatures and free from exposure to external elements.
The art of cold packaging
Packaging cold storage items requires great care, as mishandling can lead to diminished product quality or spoilage. The greatest challenge at this stage is ensuring temperatures stay within an acceptable range and preventing external factors like humidity from ruining the item. Give careful attention to the following elements:
- Packaging: Opt for lightweight, heat-resistant packaging, such as Styrofoam boxes, foam planks, insulated liners, or insulated pads. Also, consider water-tight plastic bags that help keep products dry, packing materials that hold items in place, and outer corrugated boxes that offer extra protection. The general rule of thumb is to prepare for a transit time of around 30 hours.
- Coolant: Gel packs and dry ice are the most common refrigerants used in cold shipping. However, dry ice can be difficult and costly to work with because it’s considered a hazardous material. It also can’t be used in airtight packages and must meet various requirements. Wet ice isn’t a recommended alternative because it’s heavy and melts.
- Arrangement: How you layer and seal your packages could be the difference between safely transported products and spoiled goods. Ensure your coolants are evenly distributed when putting together your packages so no portion of the shipment is at risk of falling below safe temperatures. Aside from securing your products, you must also account for possible leakage and perspiration. Double-bagging, absorbent pads, or cellulose wadding can help combat those potentialities.
- Special requirements: You’ll need to affix appropriate labels to your packages, such as dry ice labels, expiration dates, dietary claims, and “Keep refrigerated” stickers.
If you sell on third-party marketplaces like Amazon, you may also be required to provide information like the shipper’s name and the location where the contents were grown or manufactured.
Learn more about cold chain on the blog.
Ensure your food, beverage, healthcare, and other items are stored, shipped, and arrive at the perfect temperatures
Use MyFBAPrep to unlock temperature-controlled storage and shipping. We can even time deliveries so items ship frozen and arrive ready-to-enjoy.
A Guide to Omnichannel Inventory Management Across Multiple Brands and Channels
Each sales channel has unique inventory management characteristics, such as different order processing times, shipping methods, and packaging standards. Consequently, you must juggle various tasks simultaneously to ensure smooth operations. Below are the inventory management requirements for some of the most popular sales channels:
Amazon
- Adhere to Amazon’s FBA requirements, such as packaging, labeling, and product preparation
- Comply with Amazon’s storage and restock limits and Inventory Performance Index (IPI) thresholds
- Understand Amazon’s fulfillment and long-term storage fees to minimize costs
- Create product listings according to Amazon’s guidelines, including accurate inventory levels
- Stay on top of Amazon’s policies regarding product restrictions and prohibited items.
- Maintain a 28- to 60-day stock for all items in FBA based on sales throughput to avoid penalties and additional fees
- Restock products in quantities to avoid product placement fees wherever possible
eBay
- Ensure accurate inventory levels to avoid overselling and order cancellations, which can negatively impact your seller performance rating
- Adhere to eBay’s listing requirements and policies, which entails creating precise and accurate product descriptions and images
- Understand eBay’s fee structure — including insertion, final value, and listing upgrade fees — to optimize inventory costs
- Manage fulfillment processes according to eBay’s guidelines, such as offering various shipping options and maintaining accurate delivery times
Walmart Marketplace
- Comply with Walmart’s listing and product content guidelines, including accurate inventory levels and product information
- Adhere to Walmart’s shipping and delivery requirements, such as offering free shipping options and meeting the specified delivery times
- Understand Walmart’s fee structure, which involves referral and subscription fees for fulfillment services
- Ensure a seamless returns process in accordance with Walmart’s return policy and guidelines
Shopify
- Manage inventory levels and sync them across sales channels, as Shopify allows you to sell on different platforms like Facebook, Instagram, and Amazon
- Comply with Shopify’s product and content guidelines, including accurate product information, images, and pricing
- Select and integrate the right shipping and fulfillment options, like third-party logistics (3PL) providers or in-house fulfillment
- Understand Shopify’s fees, including subscription, transaction, and payment processing fees
Learn more about omnichannel inventory management.
Top Industry News
Another Amazon Prime Day is Here — and TikTok is Joining the Fray (MarketWatch)
Adobe on Monday said it expects shoppers to spend a record $14 billion online at U.S. retailers on Tuesday and Wednesday, a 10.5% jump from last year’s Prime Day, helped by deeper discounts and the timing of the event this year, which lands closer to the back-to-school season.
Prime Day Isn’t Just for Amazon Anymore (Vox)
Did you enjoy Target Circle Week last week? Or Walmart’s July deals? TikTok Shop just had its Deals For You Days from July 9 through 11, while Temu Week, running through July 18, slashes prices by up to 90 percent. Now, this week, Amazon Prime Day is upon us. All this comes not a moment after retailers’ July Fourth holiday sales, turning the entire month into a blur of bargains.
Pinterest’s VP of Retail Talks Shoppable Content and its Growing Gen Z Audience (Retail Brew)
Of the searches pinners make, 96% are not branded (rather than “Nike running shoes” they’re looking for “new shoes,” for example), indicating a “fertile open mind” that makes them welcoming of all content, including ads, how Pinterest makes it revenue. Therefore, Pinterest has been working to make all surfaces on the platform seamlessly shoppable.
Prime Day is Set to Generate $14 Billion in Online Spend, Adobe Says (Retail Brew)
Amazon’s annual Prime Day is set to generate $14 billion in online spending this week, according to data from Adobe Analytics. This would mark a 10.5% increase from last year and set a new record for the two-day sales event. The research firm said steeper discounts will drive the increase in spending, with electronics seeing some of the biggest markdowns from listed prices: 22%, compared to 14% last year.
Amazon Sellers Lose Coveted Buy Box Ahead of Prime Day After Target Discount Snafu (CNBC)
Amazon has long relied on algorithms that continuously scan the internet to match or beat the price of products listed elsewhere. During Target’s sales event this week, Amazon’s automated systems detected a bag of VitaCup coffee was available there for $13.43, about $1.50 cheaper than his listing on Amazon.com. He wasn’t worried about how it would affect his business on Amazon, but he certainly didn’t expect his sales there to “fall off a cliff.”
Thrasio Slims Down in Comeback Attempt (Practical eCommerce)
Thrasio’s hypergrowth during the pandemic landed the eCommerce aggregator in bankruptcy. Now it’s back and on a path to profitability, according to newly-minted CEO Stephanie Fox. As part of its rebirth, the aggregator is winnowing its holdings to about 50 brands, selling them off where viable or otherwise winding them down.
Rufus, Amazon’s AI Shopping Companion, Rolls Out Nationwide (PYMNTS)
Amazon beta launched the shopping assistant in February, saying Rufus would initially be available to a small subset of customers using the company’s mobile app and then would be rolled out to more customers in the U.S. in the following weeks. The AI-powered tool is trained on Amazon’s product catalog, customer reviews, community Q&As and information from across the web.
Until next time,
Rachel Andrea Go
Marketing Director, MyFBAPrep