Author: Tom Wicky

Seller Survey Insights 2023: Navigating Industry Changes and Meeting Evolving Consumer Demands

a mobile phone with survey results on it, next to a plant

Over the last three years, millions of online businesses have displayed resilience in the face of the unexpected.

The COVID-19 pandemic accelerated the adoption and innovation of digital commerce, with online shopping increasing by 77% year over year in a matter of months.

By the end of 2023, eCommerce sales will make up one-fifth of all retail sales globally.

However, after years of lockdowns and restrictions, people crave meaningful connections across all aspects of their lives, including commerce. Physical spaces foster online and offline relationships between merchants and customers.

Now, brands must be flexible and responsive to challenges, adding flexibility to their products, strategies, and policies. To help you stay ahead of the curve, MyFBAPrep conducted a seller survey that sought to include eCommerce business owners across all channels and industries.

Our findings shed light on eCommerce merchants’ current priorities and challenges and highlight their priorities as they drive their businesses forward in 2023.

Join us as we explore the new eCommerce landscape and discover where it’s headed this year.

Where are retailers selling?

eCommerce merchants are selling their products and services in a variety of online marketplaces, including established marketplaces such as Amazon (47%), eBay (50%), Walmart (27%), and Etsy (33%).

Other merchants sell through their custom websites (14%) or on platforms such as Shopify (37%) and BigCommerce (12%).

According to our respondents, the top three sales channels are eBay, Amazon Marketplace, and Shopify. This clearly indicates that marketplaces are still thriving, but direct-to-consumer (DTC) sales are also gaining significant popularity.

Statistics reveal 43% of Amazon sellers generate between 25% and 50% of their revenue through Amazon sales, while 35% of DTC sellers generate a similar percentage. These numbers suggest that most merchants have transitioned to a multi-channel approach, leveraging a combination of marketplaces and DTC sales to drive revenue.

Where do retailers want to sell next?

As eCommerce continues to evolve, merchants are constantly searching for new sales channels to expand their reach and grow their businesses.

According to our survey, many sellers (39%) have their sights set on Amazon Marketplace as their next step forward.

For those already selling on Amazon though, the picture takes on a darker hue: Almost 30% are concerned about Amazon’s white labeling and potential competition with their products. It’s a valid worry that closely aligns with the second-most popular concern, which is a decrease in listing visibility or unfavorable algorithm treatment.

While Amazon is a powerful sales channel, these worries highlight the importance of diversifying sales channels, rather than relying solely on one platform.

Embracing a multi-channel approach

Amazon isn’t the only platform capturing the attention of growth-focused merchants; 31% of merchants also want to expand to Shopify. This shows an interesting exchange wherein retail and DTC sellers are interested in exploring Amazon, while retail and Amazon sellers are keen to pursue DTC sales.

These trends display how eCommerce is increasingly moving towards a multi-channel approach, with retailers utilizing a mix of sales channels to reach their customers. As a result, merchants can mitigate risk and take advantage of each channel’s unique strengths to further their business.

What is their average order value?

The data shows most merchants have an average order value (AOV) of $10–$50, with the second-most common AOV falling between $50 and $100.

If your cart sizes are smaller than this, consider employing AOV-boosting tactics to increase the value of each sale. These could include upselling and cross-selling, offering volume discounts, or creating product bundles. By focusing on boosting AOV, merchants can maximize revenue and improve profitability.

Which seller tools are merchants using?

Today’s eCommerce merchants use a multitude of seller tools to streamline their operations, improve efficiency, and enhance the customer experience. Some of the most popular tools include:

  • AMZScout (15%): AMZScout is a suite of tools designed for Amazon sellers to research and analyze data related to item sales, competition, and profitability. It provides a range of features and functionalities to help Amazon sellers make informed decisions about their products and business.
  • CedCommerce (15.6%): This multi-channel solutions provider offers various tools and services to help merchants sell their products online. CredCommerce boasts integration solutions for eCommerce platforms such as Magento, Shopify, WooCommerce, and BigCommerce, as well as marketplaces like Amazon, eBay, and Walmart.
  • Channel Advisor (15.6%): A cloud-based platform, ChannelAdvisor can integrate with popular eCommerce marketplaces including Amazon, eBay, Walmart, and Alibaba, as well as social media channels like Facebook, Instagram, and Google.
  • Ecomdash (11.2%): Ecomdash is a cloud-based inventory management software designed for small to medium-sized businesses. It helps merchants streamline inventory management, order fulfillment, and shipping processes across multiple sales channels.
  • GeekSeller (16.2%): This comprehensive eCommerce management platform provides a range of customization options that enable merchants to tailor it to their specific needs. They can customize their workflows and automate repetitive tasks, freeing up time to focus on other aspects of their business.
  • GoDataFeed (9.8%): Another cloud-based platform, GoDataFeed enables merchants to manage and optimize their product feeds for multiple sales channels. It automates the creation and updating of product feeds for marketplaces like Amazon, eBay, and Walmart, as well as shopping carts like Shopify and Magento.
  • Custom-built software (28.8%): One of the most noteworthy statistics to come out of our survey is the number of merchants using custom-built software. Custom software can give merchants a competitive advantage by providing unique and innovative features and functionalities unavailable in off-the-shelf solutions.

Which newsletters and podcasts do merchants subscribe to?

Staying current with the latest trends is essential in the evolving eCommerce industry. With so many resources available, like top marketing blogs and intriguing podcasts, there’s no shortage of in-depth topics and trends to explore.

Below are our results on the most popular podcasts and newsletters merchants are following:

  • Shopify Retail Radar: With nearly 1.7 million merchants selling their products through Shopify, it’s no wonder the platform’s newsletter is full of valuable resources and inspiring success stories. Subscribe to the free Shopify Retail Radar newsletter and receive monthly news about eCommerce updates, thought-leader interviews, and advice from industry experts. Whether you already run an online store on Shopify or are considering launching one, this newsletter is a must-read for anyone looking to stay ahead of the game.
  • Digital Commerce 360: Digital Commerce 360 is a leading research and media organization that provides objective B2B news, eCommerce analyses, and in-depth market research. When you sign up for their newsletter, you can choose to receive either retail or B2B news (or both) according to your interests. Both options will give you daily news and insights (Monday to Wednesday) about eCommerce trends and strategies from top experts in the field.
  • Ecommerce Playbook: Hosted by Andrew Faris, former CEO of an eCommerce aggregator and current VP of growth for an eCommerce growth agency, the Ecommerce Playbook podcast is packed with valuable insights and firsthand experiences. Andrew shares his personal journey, including both recent successes and past failures, with listeners. He also invites fellow entrepreneurs to join the conversation and recount their own eCommerce stories.

MyFBAPrep curates the best news in shipping and operations every other week. Subscribe to our newsletter to stay on top of the market and join over 3,000 fulfillment experts who enjoy the industry’s most relevant news.

What are the top acquisition channels?

The top acquisition channels for eCommerce vary depending on the specific business and industry. Here are our respondents’ top acquisition channels:

  1. Social media (62.2%)
  2. Amazon ads (36.6%)
  3. Referrals/Affiliates (30.4%)
  4. Videos (25.4%)
  5. Email outreach (27.4%)
  6. Paid social ads (28.2%)
  7. Influencer marketing (21.8%)
  8. Paid search ads (21.2%)
  9. Brand partnerships (16.2%)
  10. Content marketing/SEO (14.8%)

Looking toward social commerce

With social media coming in at number one, today’s merchants are obviously focusing more on social commerce.

Social media platforms like Instagram, Facebook, and Pinterest have introduced features to support social commerce, including shoppable posts and tags, buy buttons, and in-app checkout. These features allow users to browse and purchase products directly from their social media feeds without having to navigate to a separate website.

Social commerce sales in the U.S. are projected to grow by 34.4% this year, reaching $53.1 billion. Retailers who are able to overcome the trust gap will reap the rewards, attracting a wave of new shoppers and inspiring existing customers to spend more.

Capitalizing on Amazon ads and referral marketing

Amazon ads and referrals take second and third place, respectively. This underscores the large number of merchants utilizing Amazon as a key sales and acquisition channel, as well as the effectiveness of referral marketing.

Amazon ads are a powerful avenue for showcasing your products to potential customers. You can ensure your ads reach the right audience by using a range of targeting options like keywords, interests, and demographics.

Referral marketing is another highly effective acquisition channel for eCommerce businesses. By incentivizing current customers to refer their friends and family to your brand, you can tap into a network of new leads who are already interested in what you offer.

Implementing a loyalty rewards program is a savvy strategy for boosting customer lifetime value (CLV). Learn how to launch a successful referral program.

How are online retailers fulfilling orders in 2023?

The following are the most popular fulfillment methods for today’s merchants:

  1. In-house (60%)
  2. Amazon FBA (33.2%)
  3. Amazon multi-channel (27.4%)
  4. Third-party logistics (3PL) provider (21.4%)
  5. Dropship (17%)

Identifying logistics concerns

After years of digital transformation, unprecedented growth in eCommerce, and supply chain challenges, the industry experienced a significant shift in 2022. Rising costs and concerns about a potential recession contributed to a slowing of its upward trajectory.

This year, merchants are focusing on anticipating the changes that’ll shape the sector and identifying new opportunities. Their most pressing concerns include:

  1. Shipping mistakes (42%)
  2. Expensive shipping (37.2%)
  3. Lack of services (23.2%)
  4. Inventory loss, theft, or breakage (27.2%)
  5. Poor communication (28.2%)
  6. Inaccurate receiving (20%)
  7. Unreliable manufacturers (18.8%)
  8. Unreported damages (17.8%)
  9. Long prep turnaround time (15.2%)
  10. Limited visibility or no inventory reports (14.8%)
  11. Geographic constraints/Limited warehouse locations (13.2%)
  12. Backlogs and no SLAs (12.6%)
  13. Unfamiliarity with FBA standards (11.2%)
  14. Containers sitting idle (10%)
  15. No reverse logistics processes (7.2%)

Overall, merchants need to pay close attention to logistical concerns to ensure their operations are efficient, cost-effective, and sustainable while also meeting their customers expectations.

Top 3PL providers

For those merchants using 3PLs, their most commonly used partners are:

  1. FedEx (58.9%)
  2. UPS (43.9%)
  3. Amazon Multi-Channel Fulfillment (35.5%)
  4. USPS (28.9%)
  5. eFulfillment Service (23.4%)

An overwhelming majority of our respondents found their 3PL through social media (39%), with friends or family (15%) coming in second.

When choosing a 3PL, these online retailers consider price (56%) and delivery speed (46%) to be the most influential factors, with reliability (45%), ease of use (40%), and customer service (33%) closely following.

What are merchants prioritizing in 2023?

In 2023, eCommerce merchants are prioritizing a range of strategies to remain competitive and meet evolving consumer demands.

Increasing customer retention (32%), growing teams (32%), and content marketing (29%) are top points of focus for retailers this year. These goals are in line with experts’ predictions for the coming year.

The emphasis on retaining existing customers is based on the statistical probability of selling to an existing customer versus a new prospect: While the likelihood of selling to an existing customer is 60%–70%, the chances lower to just 5%–20% for new prospects. This underscores the importance of building strong customer relationships and providing exceptional experiences that keep customers coming back.

Wondering how to optimize your post-purchase experience to boost customer retention? Our blog explains how to deliver a memorable experience for your customers.

Other priorities for merchants in 2023 include building brand awareness (26%), optimizing fulfillment (25%), and catalog expansion (21%).

Wrapping up — The only constant in eCommerce is change

Our Seller Insights survey highlights the significant shifts and challenges that the eCommerce industry has experienced in recent years. From changing consumer expectations to supply chain disruptions, merchants have had to adapt quickly to remain competitive.

Looking ahead, sellers are prioritizing strategies like customer retention, multi-channel selling, brand awareness, and data-driven decision-making to optimize their operations and meet evolving consumer demands.

By staying informed and agile in the face of these ongoing fluctuations, eCommerce merchants can weather the storm and continue to drive growth and success in their businesses for years to come.

How to use email marketing to drive conversions

A computer screen with an open email on displayed on the screen

I​n eCommerce, having a solid marketing mix helps your brand stand out from the competition and remain at the forefront of your current and prospective customers’ minds. One of the most impactful marketing channels eCommerce businesses can leverage is also one of the most traditional: email. Email subscribers are already invested in your business because they’ve opted in to your communications. They’ve probably purchased from your company as well and so can be reengaged for future sales.

A​ successful email marketing strategy can expand your reach, grow your revenue, and develop your brand image. In this article, we’ll explore what email marketing is, how email can support your other marketing channels, and effective ways to leverage this method of communication.

What is email marketing?

Email marketing provides a direct line of communication between businesses and their customers. It’s a cost-effective way to reach a large audience and is valuable for building customer relationships, promoting products and services, and generating sales.

An effective email marketing strategy begins with a well-defined target audience. This allows businesses to tailor their messages to the interests and needs of their consumers. Then, companies can craft a series of targeted and personalized emails that deliver value to the recipient.

Your communications can take various forms, from simple, text-based letters to more sophisticated designs with images and graphics. Email marketing platforms like Mailchimp, Constant Contact, and Campaign Monitor make it easy for businesses to craft and send emails, as well as manage their mailing lists.

Diversify your sales channels and add new revenue streams by embracing email marketing. It’s an effective strategy that allows you to reach your audience on a personal level through customized messages.

What to push with email marketing

An appealing advantage of email marketing is the ability to include clear calls-to-action (CTAs) with links that send your audience to a specific place. That decision depends on what you want to highlight and the desired action you want your recipients to take. We’ve listed some top places and events to push via email marketing to maximize your campaigns’ return on investment (ROI).

New sales channels

If you’re scaling your business and adding new sales channels, a targeted email blast is a great way to announce it to your existing customer base. Expanding to a marketplace like Amazon or Walmart makes for especially enticing email copy, as customers will be excited to shop diverse products and sellers in the same place.

T​o maximize this type of email communication, it’s critical to include a clear CTA that brings email recipients directly to the new channel and communicates what action they should take (e.g., “log in” or “sign up”). Additionally, highlight any perks such as coupons or savings upon their first purchases through this channel to sweeten the deal.

Your store

A​ common strategy in eCommerce email marketing is to transport recipients to your business’s website, Amazon shop, or another online store. Doing so increases traffic to your website and, with the right promotions and timing, even sales.

Event registrations, demo sign-ups, and related surveys

Email marketing paves the way for savvy businesses to deliver an incredible customer experience and build relationships, so you shouldn’t limit its reach to typical pages.

From live shopping on social media to webinars or in-person, invite-only events, leverage emails to encourage your audience to register for events and sign up for demos. Further, you can send surveys to capture feedback on their experience and understand what kinds of products, services, and events they’d like to see from you.

Product landing pages

P​ushing your email audience to a product page reduces the number of clicks it takes for customers to reach the final purchase stage of their journey. CTAs that direct to a particular product page are also a great way to promote a new product or highlight special promotions.

Newsletter sign-up

Launch a separate newsletter with tips and tricks or other valuable information. Newsletters can effectively build brand loyalty and provide greater value to your customers without running the risk of sales spam. Invite your customers to sign up for it in your next product marketing email.

How email marketing supports your overall strategy

Businesses both eCommerce and not must constantly vye for customers’ attention. As such, email marketing provides a targeted and cost-effective opportunity to reach potential customers and retain existing ones. It offers several benefits that prove it’s an essential addition to your marketing mix.

Direct, personalized communication

Email marketing brings a level of personalization that’s difficult to achieve through other marketing channels. With the help of customer data, you can create targeted campaigns that speak to recipients, providing them with relevant information, offers, and promotions that encourage them to buy. This helps build strong relationships with your customers, increase brand loyalty, and, ultimately, drive sales.

High ROI

Another advantage is the ability to reach a large audience with minimal costs. Unlike other marketing channels that can be expensive, email marketing allows you to communicate with thousands of customers at a fraction of the price. For small businesses especially, it’s a cost-effective way to compete with larger companies.

Email marketing also makes it easy to track and measure your campaigns. This data provides valuable insights into their effectiveness and can inform decisions about future marketing strategies. Track metrics like open rate, click-through rate, and conversions to fine-tune your campaigns, achieve better results, and increase your ROI.

Even more appealing, you can automate email marketing campaigns to send personalized messages to customers at the right time — no manual intervention necessary. Set up automated communications such as welcome emails, abandoned cart reminders, and birthday greetings with triggers based on specific actions or events. This saves time and resources and ensures consistent and engaging communication with customers.

Supports multi-channel marketing efforts

Based on the longstanding Rule of Seven, an eCommerce customer needs to hear (or see) a brand’s messaging an average of seven times before they make a decision to buy. With this in mind, you can use email marketing to support your multi-channel marketing efforts.

I​t might start with a pay-per-click ad on Google, then a Meta ad delivered on Facebook or Instagram. Then TikTok. Back to Meta. An email. A trip to your website. Retargeting, and so on. The digital shopping journey can be lengthy, but email helps you target your customers at each stage with relevant messaging and products.

Drives customers to your physical locations

In part due to Covid-19 restrictions being lifted around the world, in-person shopping experiences are on the rise, with customers seeking unique experiential opportunities to engage with their favorite brands. Promote these physical sales channels through emails for fruitful results, highlighting aspects like location, hours, special promotions, and other perks for:

  • In-store shopping at brick-and-mortar stores
  • Pop-ups at other locations like gyms or markets
  • Experiential shopping opportunities, such as Sip and Shop or Try Before You Buy events

Different ways to use email marketing

We’ve explored ways to drive your audience to other sales channels, but you can leverage email marketing in other ways to grow your brand, which we discuss below.

Launch a newsletter (that doesn’t focus on sales messaging)

One of the most effective email marketing tactics to grow your brand is to launch a newsletter. This regularly scheduled email should include a variety of content, such as company updates, industry news, and educational articles.

The key to a successful newsletter is to avoid focusing on sales messaging. Instead, feature valuable content your subscribers will find useful and interesting. This builds trust with your audience and positions yourself as an expert in your industry.

Also, include a clear CTA that encourages subscribers to engage with your brand. For example, you could ask them to follow you on social media, leave a review of your product, or share your newsletter with their friends.

Send informative emails

Another approach that yields lucrative results is to send informative emails that focus on how customers can get the most out of your product. These communications should provide tips, tricks, and best practices for using your product and be tailored to your audience’s needs.

By offering helpful information that enables your customers to thrive, you’ll increase their satisfaction with your product and strengthen their loyalty to your brand. You’ll also position yourself as a company that cares about its customers and is committed to their success.

When crafting these emails, employ a friendly, conversational tone that resonates with your audience. You should also include plenty of visuals, such as screenshots and videos, to illustrate your points and make your content more engaging.

Highlight your customers, suppliers, or your team

Email marketing offers a prime opportunity to highlight your customers, suppliers, or team. Showcasing the people who make your company successful creates a more personal connection with your audience.

You could send an email that features a customer success story, highlighting how your product helped them achieve their goals. Or, you could spotlight a supplier who provides high-quality materials for your product. You could even feature a member of your team and detail their expertise or experience.

By placing these people front and center, you’ll show your audience that your brand is more than just a product — it’s a community of people who are passionate about what they do.

Offer an email course

A less common but equally effective use of email marketing is to offer an email course. This is a series of emails sent over a period of time that are designed to teach your audience a specific skill or concept.

An email course is great for positioning yourself as an expert in your industry and providing a valuable education to your audience. This increases trust and credibility among them and can help drive sales by showcasing the advantages of your product.

When creating an email course, make sure to choose a topic that’s relevant to your audience’s needs and interests. You should also break your content into bite-sized pieces and make it easy to consume. By doing this, you’ll increase engagement and make it more likely that your audience will complete the course.

Tactics to try

B​eyond the applications we’ve covered in this article, you can employ other tactics to gain the most out of your email marketing efforts. Give the following strategies a try to help your brand stand out from the competition.

Alert your subscribers to social “live” sales

Send alerts to make your subscribers aware of social “live” sales and achieve maximum exposure. Social media platforms like Facebook and Instagram now offer live sales that allow businesses to showcase their products in real time and interact with customers in a more personal way.

By sending an email to your subscribers before a live sale, you’ll increase the likelihood of people tuning in and making a purchase. Include all relevant details, such as the date and time of the sale, the products you’ll feature, and any special discounts or promotions.

W​ant to really sweeten the deal? Offer a special email-only discount code!

Include “tell your friends” buttons for easy sharing

Make it simple for subscribers to share your emails by incorporating share buttons in your correspondences. This is a small but powerful way to increase your reach and attract new customers.

Include clear and compelling CTAs that encourage subscribers to share your content with friends, family, and their social network. You could even offer a reward, such as a discount or free shipping, for every new customer they refer to your business.

Leverage CTAs strategically

CTAs are the backbone of your emails. These buttons (or links) nudge subscribers to take a specific action, such as making a purchase or signing up for your newsletter.

To craft successful CTAs, make sure they’re clear, compelling, and relevant to the content of your email. For example, if you’re showcasing a new product in your communication, you should feature a CTA that encourages subscribers to learn more or buy.

Experiment with different types as well, such as offering limited-time promotions or free shipping. Make sure to track the results of your CTAs and adjust your strategy based on what works best on your audience.

Wrapping up — Capitalize on digital communications for greater conversions

Email marketing is a powerful and cost-effective avenue for eCommerce businesses to reach their target audience, build strong relationships, and increase sales. By crafting targeted and personalized emails that deliver value to your subscribers, you can expand your reach and grow your revenue.

At MyFBAPrep, we understand the impact of a successful email marketing strategy and we’re here to help you make the most of this channel. Enjoy streamlined operations, reduced costs, and greater business growth with our suite of services. Contact us today to learn more about our comprehensive eCommerce solutions and how we can help you achieve your goals.


How to prevent customer churn amidst a recession

a hand holding a magnet that's attracting customers

As the economy faces a potential recession in 2023, businesses across many industries contend with retaining their customers amid financial uncertainties. For eCommerce brands, customer churn can be a significant threat as consumers tighten their budgets and cut back on discretionary spending.

To prevent turnover, it’s essential to understand its causes in eCommerce. Common factors include poor customer experience, uncompetitive pricing, lack of relevant product offerings, and insufficient support, which can be exacerbated during a recession. In this post, we’ll dive deeper into these issues, then explore strategies for reducing eCommerce customer churn in a recession.

W​hat is customer churn?

In eCommerce, customer churn is a critical metric that indicates the percentage of customers who stop purchasing from a business over a given period. It’s an important factor that impacts business revenue, profitability, and long-term sustainability. Pinpointing its underlying causes is essential for eCommerce brands to take steps to mitigate it and increase their customer retention.

W​hat causes consumer churn?

In today’s highly competitive landscape, customers have a wealth of options, and multiple factors, both large and small, can easily drive them to your competitors. We’ve found the main culprits to be:

  • A poor customer experience: Customers expect a seamless and enjoyable purchasing process, from the moment they land on your eCommerce website through checkout and delivery. If the site design is confusing, or if the checkout process is lengthy or unreliable, shoppers may abandon their carts and never return. Slow shipping, inaccurate product descriptions, and poor customer support also contribute to a negative experience that can lead to churn.
  • Noncompetitive pricing: Consumers are highly price-sensitive and constantly seek out the best deals. Ecommerce businesses that sell their products or services at high prices will likely drive customers away, particularly during times of economic uncertainty. If a recession occurs in 2023, bringing with it a high risk of inflation, eCommerce businesses must be particularly careful about pricing to avoid customer churn.
  • Inflation: Inflation leads to higher costs of production and materials, which, in turn, affects the prices of products and services. As a result, eCommerce businesses have to adjust their pricing to keep up with the changing economic landscape, with customers becoming more sensitive to these changes. Inflation can also impact shipping costs and produce longer wait times for customers, and poor delivery experience is a sure-fire way to encourage customer churn.
  • Lack of relevant product offerings: Shoppers expect to find products that meet their unique needs and interests, and businesses that fail to deliver on those expectations may lose customers to competitors that do. During a recession though, consumers are all but certain to cut back on discretionary spending, so eCommerce businesses must offer products that are essential and relevant to their customers to avoid churn.
  • Insufficient support: Customers expect prompt and responsive customer service when they have questions or issues with their orders. Less-than-satisfactory support often causes customers to feel frustrated and turn to competitors that offer better customer service. In times of economic uncertainty, consumers may be particularly anxious about their purchases, so top-notch support is crucial to prevent frustration and churn.

H​ow does a potential recession impact customer behavior?

The possibility of a recession setting can have a significant influence on eCommerce customer behaviors. As people become more cautious and limit their spending, eCommerce businesses may find themselves facing increased competition, reduced sales, and higher than normal customer churn. Other effects are:

  • A shift towards value-based purchasing: Customers become more price-sensitive and look for ways to stretch their budgets further, such as purchasing discounted or clearance items. As such, eCommerce businesses may need to adjust their product offerings and promotions to cater to this shift.

This, in turn, could lead to greater competition, particularly among those that sell essential products or services. Companies that offer the best value and competitive pricing are likely to see an increase in customer traffic and sales.

  • Greater emphasis on customer service and support: As customers become more cautious about their purchases, they may seek out businesses that offer responsive and reliable customer support. Investing in customer service and support may thus yield increased customer loyalty and retention. Happy customers are repeat customers!
  • Slower shipping and longer delivery times: When faced with economic uncertainty, businesses may need to cut back on their logistics and supply chain expenses, which results in longer shipping times and limited delivery options. This change is likely to anger customers and can contribute to churn. Businesses that maintain fast and reliable shipping and delivery options even during a recession better position themselves for higher customer loyalty and retention.
  • Shaken customer trust and confidence: Customers may also be more wary of businesses that have a history of poor customer service, noncompetitive pricing, or inadequate support and choose to avoid them for safer options. So, it’s important to have an established reputation for trustworthiness, reliability, and quality.

T​ips to reduce churn

No matter how stellar your offerings or how optimized your operations, s​ome customer churn is to be expected, though the rate varies by industry and product type: For subscription businesses, a 5% monthly churn rate is considered average, while single-purchase businesses (e.g., skin care, fashion, lifestyle, personal products) should expect a much higher churn rate at roughly 75%. This equates to about one in four customers returning.

D​uring times of financial uncertainty, such as a recession, customer and buying behaviors inevitably shift. For eCommerce businesses, this might look like higher than usual rates of customer churn, which impact your customer lifetime value (CLV). Because this metric is important to your profit margins (and because it costs more to attract new customers than to keep existing ones), ensuring you reduce churn is especially crucial. Check out our recommendations below to maintain a healthy consumer base.

Stay in stock

Running out of stock of a particular product is a major contributor to churn in eCommerce. When customers are unable to purchase the products they want, they grow frustrated and are likely to turn to competitors who do have the items in stock.

To avoid this issue, regularly monitor your inventory and ensure you have enough stock of your most popular items. Additionally, communicate with consumers when you restock items; this encourages them to come back and make a purchase.

I​f you find yourself back-ordered, don’t despair: You have a few options to manage backorders more easily.

Push subscriptions and loyalty benefits

Providing loyalty benefits and rewards incentivizes buyers to remain loyal to your business. By encouraging customers to subscribe to your products or services, you can increase customer retention and reduce churn.

For instance, you could offer a discount or free product to customers who make regular purchases or reach a certain spending threshold. The more shoppers feel appreciated and rewarded for their loyalty, the more likely they are to make repeat purchases with you.

F​or a great subscription program to copy, check out Amazon Subscribe & Save.

Offer free shipping

High shipping costs can be a significant barrier to entry for customers looking to purchase. Offering free shipping reduces the likelihood of people abandoning their carts due to expensive shipping fees. It also increases customer satisfaction and loyalty, as they feel they’re getting a better deal and thus a more enjoyable shopping experience.

W​ant to really wow your customers? Offer free returns too.

Highlight value over price

While price is a significant factor in a purchase, highlighting the value of a product or service over its price is also an effective way to reduce churn. Emphasize the quality, benefits, and unique features of your items both to differentiate yourself from your competitors and justify higher prices.

Customers who feel they’ve found a high-quality product that meets their needs and brings additional value stay loyal to a business longer. This avoids having to race to the bottom on pricing and potentially cutting into your profit margins.

Craft unique bundles

Bundles of related products or exclusive items give customers something unique and appealing that they can’t find elsewhere. For example, include an item you don’t sell regularly in your product catalog. This encourages them to make additional purchases and stay loyal to your brand. Bonus: Bundling is a great way to boost your average order value.


Reducing customer churn in eCommerce requires a proactive and customer-centric approach, especially during a recession. You can increase your retention rate by ensuring stock availability, encouraging subscriptions and loyalty, offering free shipping, highlighting value over price, and assembling bundles and exclusive items. Invest in these strategies to nurture a loyal customer base and drive long-term success throughout various economic ups and downs.

Amazon multi-channel fulfillment: Benefits & drawbacks of MCF

a computer screen with charts and arrows pointing to a warehouse and shipping trucks

If you’re an eCommerce business owner, you’ve probably heard rumblings about Amazon Multi-Channel Fulfillment (MCF) and how it can help you grow your business. But you might be wondering, What exactly is Amazon MCF, and how can it benefit my business? In this blog post, we’ll answer those questions and more.

Don’t have time to dig in? Here’s the short version:


MCF is a fulfillment service that lets businesses fulfill orders from multiple sales channels, including Amazon, their own website, and other third-party platforms. The service has been in beta testing for almost a year and opened on January 31, 2023 to all eligible U.S. merchants.

So, how does MCF work?

Essentially, MCF uses pooled inventory stored in Amazon warehouses to fulfill orders via channels outside of the Amazon platform. So, if you’re a business owner who sells products on multiple platforms, MCF lets you streamline your fulfillment process, saving time and money.

One of the biggest advantages of this service is that it allows you to leverage Amazon’s extensive fulfillment network to fulfill orders quickly and efficiently. This is particularly beneficial for businesses that experience high levels of demand.

For brands already selling on the marketplace, MCF can simplify their fulfillment operations: Businesses can manage all their fulfillment needs from a single platform, improving the efficiency of their operations.

It also lowers the cost of fulfillment and shipping. Amazon leverages its massive logistics infrastructure to compete with large shipping carriers like FedEx, UPS, and USPS, which drives down shipping costs and provides a cheaper alternative to these big names.

Granted, there are some disadvantages to using MCF. For one, Amazon’s storage fees change frequently, and picking, packing, and shipping fees can be unpredictable. This can make it difficult for businesses to estimate their fulfillment costs.

Businesses must also meet certain eligibility requirements to qualify for MCF. One such criterion is maintaining minimum inventory levels in Amazon’s fulfillment centers, which can be challenging for businesses just starting out or that have limited resources.

W​ant the full details? Dig in below.

What is Amazon MCF?

The Amazon Multi-Channel Fulfillment service allows sellers to take advantage of the conglomerate’s fulfillment network to fulfill orders from external channels, such as their eCommerce websites or other marketplaces. MCF’s first-class fulfillment and shipping capabilities ensure customers receive their orders quickly and efficiently, regardless of where the orders are placed or sent.

The service works by integrating the seller’s non-Amazon sales channels with Amazon’s fulfillment network. When a seller receives an order from their eCommerce website or another marketplace, it’s passed to MCF, which then picks, packs, and ships the order to the customer. This eliminates the need for the merchant to manage their inventory or shipping processes, freeing them to focus on other aspects of their business.

MCF is particularly beneficial for sellers who have seasonal spikes in demand or who want to expand their sales channels without adding significant operational overhead. It also provides a consistent customer experience, as Amazon’s fulfillment network is known for its fast, reliable shipping and order handling.

To use MCF, sellers first need to set up their inventory in Amazon’s fulfillment network, either by sending their stock to an Amazon fulfillment center or by using Amazon’s FBA (Fulfillment by Amazon) service. Once there, sellers can then adopt MCF to fulfill orders from their other sales channels.

Sellers are charged a fee for the service that includes the cost of picking, packing, and shipping orders, as well as storage fees to store their stock in Amazon’s fulfillment centers. However, the savings in time and resources merchants would otherwise have spent managing their fulfillment and shipping processes offset these costs.

How do MCF and FBA differ?

The main difference between Amazon MCF and FBA is the sales channels they support: The former allows merchants to sell products on marketplaces other than Amazon (primarily their eCommerce websites) while still leveraging Amazon warehouses for fulfillment. Meanwhile, FBA only fulfills orders from the Amazon marketplace.

T​his is huge for eCommerce professionals looking to grow their web presence and diversify their sales channels — especially those with unique product offerings on each channel.

Benefits of Amazon MCF

Amazon MCF’s greatest advantage is that it allows businesses to leverage the marketplace’s extensive fulfillment network, which improves the speed and reliability of their order fulfillment. This can be a lifesaver for businesses that experience high demand and need to guarantee prompt and efficient delivery.

For brands that already sell on Amazon’s platform, MCF can save time and reduce the complexity of their fulfillment operations. Businesses can manage all their logistical needs from a single platform, simplifying these processes.

For small to medium-sized sellers, Amazon MCF also cuts costs on fulfillment and shipping. Amazon leverages their massive logistics infrastructure to compete with large shipping carriers like FedEx, UPS, and USPS and drive down shipping costs.

Drawbacks of Amazon MCF

While there are many benefits to using Amazon MCF, there are also some downsides to consider. For instance, Amazon’s storage fees change often, and picking, packing, and shipping fees are known to be unpredictable, meaning costs can add up quickly.

Merchants may also be required to meet minimum inventory levels in Amazon’s fulfillment centers, which can be challenging for businesses just starting out or that have limited resources. Additionally, there’s little to no access to your inventory, and Amazon may move it without notice.

Lastly, Amazon doesn’t offer customization options for packaging, which can be a major deterrent for brands wanting to make an impression on their customers.

Who should use MCF?

Amazon (MCF) is a valuable service that can benefit a wide range of sellers who want to streamline their fulfillment processes and expand their sales channels, such as:

  • Ecommerce retailers: If you have your own eCommerce website, using Amazon MCF can help you scale your business and reach a wider audience without having to build your fulfillment and shipping infrastructure. By integrating your website with Amazon’s fulfillment network, you can offer your customers fast, reliable shipping and handling, which improves their overall buying experience and increases customer loyalty.
  • Multi-channel retailers: If you sell products on multiple marketplaces or channels like eBay, Walmart, and Shopify, you can streamline your fulfillment processes and manage all your sales channels from one central location on Amazon MCF. This helps reduce errors and shipping costs, as well as optimizes inventory management and order tracking.
  • Seasonal sellers: For those who sell seasonal products or experience fluctuations in demand, Amazon MCF can help manage inventory more efficiently and avoid the costs of maintaining an internal fulfillment and storage infrastructure. Using Amazon’s fulfillment network, you can quickly ramp up or scale down your inventory as needed, without worrying about warehouse and shipping overhead.
  • International sellers: Amazon MCF is highly beneficial for merchants who sell products to customers in different countries, as it reduces shipping costs and provides a better customer experience. Amazon has a global network of fulfillment centers so you can store your inventory closer to your customers and cut shipping times and costs. As a result, you’ll compete better with local sellers and improve your international sales.
  • High-volume sellers: If you sell a large amount of products, Amazon MCF enables you to automate and streamline your fulfillment processes, which reduces errors, saves time, and improves customer satisfaction. Outsourcing your fulfillment to Amazon frees you to focus on other aspects of your business, such as marketing, product development, and customer service, while leaving the logistics to the experts.
  • New sellers: News sellers just starting out can leverage Amazon MCF to gain momentum quickly with no significant up-front investment in fulfillment and shipping infrastructure necessary. By capitalizing on Amazon’s world-class fulfillment network, you can build your brand and gain a foothold in your market faster than it would normally take.

Whether you’re a small eCommerce retailer or a large multi-channel seller, Amazon MCF can reduce your overhead, improve customer satisfaction, and scale your business more efficiently. If you’re interested in learning more about Amazon MCF, visit the Amazon Services website.

Wrapping up — Hone your logistics with Amazon MCF

Amazon Multi-Channel Fulfillment is a great option to improve the efficiency and reliability of your fulfillment operations. However, first consider the potential costs and requirements associated with this service to determine how profitable it could be for your business. If you’re a U.S.-based merchant wanting to expand your sales channels and streamline your order fulfillment process, Amazon MCF might be the solution to take you to new heights.

Die Bedeutung der eCommerce-Bestandsversicherung und die Auswahl des richtigen Anbieters

Ever suffered a stock loss?

If so, you’re not alone. In 2020, 15% of US retailers experienced an inventory shrink of 3% or higher, and only 10% said they saw stock losses between 1% and 1.24%. These figures may not sound like much, but losses can rack up to eye-watering amounts when operating with high sales volume or selling expensive goods.

Not only is this experience painful, but your business will have to foot the hefty bill solo without a lifeline.  Worse, the unrealized sales still impact your store’s profits and overall ROI, rubbing more salt into the already gaping wound.

Luckily, for an eCommerce business, that lifeline is inventory insurance.

In this post, we’ll explore what inventory insurance is and what it’s not. We’ll also share some perks of using this type of cover and tips on selecting the best insurer for your business.

Still nursing wounds from stock losses and damage. Learn how MyFBAPrep can keep your inventory safe.

What is inventory insurance?

Inventory insurance is protection you buy to cover physical stock in your business. While buying stock cover is a necessity for all eCommerce businesses, it becomes especially useful in scenarios such as:

  • Brands experiencing fast growth
  • Cross-border selling
  • Selling items that are known to have high defect rates, e.g., electronics
  • Retailing goods with a short shelf-life, e.g., consumables.

Costs can vary depending on the service level you choose along with factors like inventory spec, the type of cover you need, and your business’ claim history.

What does inventory insurance usually cover?

You can choose what issues and circumstances to cover by carefully vetting your provider and matching them to your store’s unique requirements. As a base, most insurers offer protection against issues like:

  • Theft
  • Loss
  • Damage
  • Late dispatch/arrival

What inventory insurance doesn’t cover

Inventory insurance doesn’t cover assets or areas in your business besides stock. For example, if you want indemnity for operational ceasing, litigation, or employees, you’ll need to seek additional insurance policies.

5 Tempting benefits of inventory insurance

By now, you probably have a few different policies in your eCommerce business and are questioning whether the extra financial commitment to inventory insurance is worth it. In short, it is! Let’s run through a few reasons why purchasing cover for your stock is always a good idea:

1. Security when disaster strikes

Whether it’s flood damage to inventory during peak season or a warehousing blip that leads to large stockpiles expiring, disasters happen. Getting inventory cover will ensure you can get back on track sooner by reducing your risk exposure, so you can rest easy at night.

2. Protect yourself from known issues

It’s easy to worry about the unknown sneaking up on you and neglect the stock-related problems you often encounter, that can derail your progress. For example, if you sell fragile goods or operate in an area where inventory theft is common, you could frequently find yourself with stock-related losses.

Buying inventory insurance can help you stay steps ahead of the common problem you encounter to minimize damage.

3. Get access to essential eCommerce services

For many services and solutions, insurance is a right of passage to do business. So, if you want to work with a fulfillment house, 3PL, or multiple carriers, inventory insurance comes in handy. You’ll have peace of mind knowing if anything happens to your goods while in their care, your insurance will kick in to save the day.

4. Show investors their cash is in safe hands

Nobody likes to lose money, not even investors. Inventory insurance can help reassure your investors their cash won’t go up in flames if you experience stock loss. It’ll also give them more confidence that your business can remain agile and recover in the event of stock losses.

5. Maintain a good buyer experience

Even when things go wrong, inventory insurance will give you the cash flow to fix problems for your buyers. As a result, your buyer experience can escape unscathed, protecting your brand reputation and future sales.

What to look for from your inventory insurance provider

To get the best provider and insurance cover, it’s critical to vet providers carefully. There are many questions you can ask and traits to require to whittle down the list of viable insurance options. Here are a few characteristics to look out for:

  • Fair terms, service levels, and rates. Whether you opt for the premium or basic cover, insurance that gives you your money’s worth is essential for solid ROI. Your provider should also offer fair terms and rates, with the option to upgrade or downgrade your plan.
  • Flexible policy periods and extensions. eCommerce is constantly changing, and your policy should be too. Opt for a plan that allows you to adjust its setup when needed. For example, switching from yearly to monthly payments is hassle-free.
  • Satisfactory claim windows. Ensure your plan offers reasonable terms on when you can begin claiming once signed up and the timeframe for making a claim when catastrophe strikes. This will help avoid stressful rushing to claim during peak seasons.
  • Low to no charges to make a claim and hikes following a claim submission. Choose plans with affordable claim charges that won’t punish you financially for making claims by imposing larger premiums. Depending on the big claim, a small hike in the premium price may be feasible.
  • Complete reimbursement for eligible claims. Buy insurance that will payout 100% of the cost of the goods when damaged to ensure you aren’t left out of pocket.
  • Multi-site coverage. Look for insurance covering multiple locations and territories where your inventory is stored and sold.

Is your store scaling fast?  Get the right fulfillment solutions for the journey.

Tips for picking the right inventory insurance plan

Now we know what to look for in an inventory insurer, it’s important to craft a strategy to choose the right service and know when to tweak it for optimal cover.

Let’s dive into the steps to take.

Record which items need insuring

First up on the inventory insurance to-do list is to create a physical asset list and decide which items need coverage. Use this list to set the budget and service level you require. Your stock list should include information such as:

  • Product name and a short description
  • Price and manufacturing dates
  • Current number of units in stock (per SKU)
  • The average number of units in stock per month (per SKU)
  • Item cost
  • Product recommended retail price (RRP)
  • Serial numbers

Tip: Take note of important details such as inventory location(s), the time it takes to produce each product, and the Units you sell per month to give insurers. This information will help them advise on the most suitable plan for your business.

Shop around

No matter how good the deal may look, never take the first offer. Explore different options and seek advice from multiple companies on the type of cover you should procure.

Obtain quotes, compare prices, and use them to get even deal quotes. It may seem like a lot of work upfront, but since your inventory will be an ongoing expense, it’s worth the extra time and effort to secure the best rates and services.

Only work with reliable and experienced providers

Make sure your inventory insurance plan is legitimate, and the issuing company is trustworthy and experienced to avoid issues later down the line. A few things to look for in your inventory insurance provider include:

  • A solid track record for dealing with cases justly
  • Overall positive reviews and testimonials
  • Good payout rate
  • Quick response rate
  • Excellent communication

Conduct annual reviews

As your business matures, its inventory may change along with its required cover. So keep your stock list updated for easy monitoring and track your claims frequency, reasons, and success rate. Also, make a note to re-evaluate your inventory insurance needs to guarantee it continues to meet your business needs. Some areas to consider when reassessing your inventory insurance are:

  • Portfolio size
  • Product complexity
  • Territories traded in
  • Number of claims that year

Have a cash buffer

Sadly, not all claims will be eligible for a payout like “acts of God” unless your policy outright says it’s covered. So, have sufficient emergency cash reserves to protect your business. This amount can vary depending on your product costs. However, aim to have enough cash to meet your minimum required stock units for your top products, manufacturing minimum order quantities, and funds for expedited shipping.

Need a hand managing inventory? Learn how MyFBAPrep can help.

Wrapping up — Strengthen your defenses with inventory insurance

Stock loss poses a real threat to eCommerce sellers’ and retailers’ long-term success. Inventory insurance creates invisible, ironclad walls around your eCommerce business to ensure it thrives come rain or shine.

Understand your business needs, research the best inventory insurance providers in your territory, and evaluate multiple quotes to find the best fit. Keep an eye on your business’s changing needs and adjust your insurance plan accordingly to ensure you don’t get left out of pocket when something goes wrong with your inventory.

Take these steps, and soon, you’ll have inventory insurance that protects investments and helps your store grow through the highs and lows of eCommerce.

Don’t let stock losses dull your store’s shine. MYFBAPrep can help you manage inventory with ease.

7 unverzichtbare Wachstumswerkzeuge für eCommerce-Verkäufer

With US eCommerce purchases expected to reach 31% of total sales by 2026 and digital buyers topping 2 billion in 2020, growing your eCommerce business, is where the money is at.

But when you have an ever-growing to-do list and not enough hours in the day to complete them all, scaling can feel like an uphill battle. Don’t fret. That’s where growth-focused tools come to share the load and get you paid.

In this post, we’ll share why investing in a robust tech stack is a good idea when taking your eCommerce brand to the next level. We’ll also share the best business areas to strengthen with tech tools and which solutions are worth your dollars.

Worried about blending in? Learn how MyFBAPrep uses technology to set eCommerce brands apart.

Why it pays to upgrade your tech stack when scaling

Whether it’s the latest social media craze or profit-boosting selling strategy, there are many worthwhile investments you could be making in your eCommerce business. So, you may be questioning whether up-leveling your store’s technology is the best move. We think so! Let’s explore some reasons why:

Gain a competitive advantage

Many brands focus on sales and marketing, but improving your backend processes can pay huge dividends. With top-tier tools in your corner, you can achieve incredible feats. These include removing inefficiencies, slashing costs, increasing brand visibility, and uplevel customer service. Plus, smoother processes and happier customers will improve brand loyalty and advocacy to get your store leaps ahead of its competitors.

Get more done with less input

Running a business doesn’t mean you and your team must wear all the hats. Take advantage of automation to streamline processes and uplevel key areas in your business without increasing your team’s workload. This way you’ll have more time and energy to focus on other important tasks that can’t be entirely automated like sales calls and product development.

See bigger growth and profits

You never want to scale for scaling’s sake. The numbers should make sense. That’s what makes technology so valuable for growing eCommerce brands. You can gain access to actionable insights and the right tools to help you improve key metrics like return on investment, customer lifetime value, and average order value for bigger profits and sales.

7 critical areas to optimize for massive growth

Now you have a clearer idea of why technology is so critical when scaling; the next question becomes which parts of your business you should improve for faster and sustainable growth. Let’s dive into the 7 areas to focus on:

1) Product research

Spotting upcoming product trends and launching new lines are essential for increasing and diversifying your store’s income streams. Investing in a reputable product research tool can help you make more accurate predictions on buying trends to expand your winning product portfolio.

2) Onsite optimization

It’s important to understand how customers behave on your website. From here you can tweak your store’s setup to increase the quality of their shopping experience and make buying irresistible. That’s where Conversion Rate Optimization (CRO) comes in.

Using conversion boosting solutions like heatmaps, split testing software, and landing page builders, you can uplevel your store’s CRO to squeeze more cash out of your sales pages, websites, and marketing campaigns.

 3) Cart optimization

With conversion rates plummeting to an all-time low of 1.75% in June 2022 and 68.8% of carts abandoned, maximizing every sales opportunity is essential.

Optimizing your pre and post-sale cart strategy is an effective way to get more sales through your digital doors. Some helpful tools include upsells and cross-sell software, cart recovery solutions, and live on-site customer support.

4) Analytics

Data can reveal hidden gems essential for molding your eCommerce marketing strategy to produce bigger and better results. For example, with eCommerce analytics software, you can zoom in on your store data to reveal things like your:

  • Top performing product(s)
  • Emerging customer and product trends
  • Best content assets
  • Most popular marketing channels

5) Product Listing

Listing optimization is another crucial task to add to your list. A dependable product listing solution will help you upload products to different channels and keep your listings fresh for better rankings.

Data from your chosen product lister can help you find the optimal messaging, branding, and imagery combinations that resonate with your target audience. A dependable product listing solution will help you upload products to different channels and keep your listings fresh for better rankings. Look for features like automated listing and dynamic content.

6) Product pricing

eCommerce has more players than ever, making it vital to competitively price to stand out. A product repricing solution will help you overcome pricing blocks that prevent lookers from turning into buyers. Find a tool that can change prices based on market trends and behavior for best results.

7) Supply chain management

From tracking purchase orders and product locations to monitoring stock levels and customer orders, you must know what’s happening in your store. Look for a tool to help you predict demand, monitor inventory levels, spot trends and opportunities, and save cash on shipping, transport, fulfillment, and more.

Pro tip: Work with a reliable fulfillment or prep house to level up your order processing and shipping and get more value from your supply chain management solution.

Don’t let archaic shipping processes hold you back. Give your brand the fulfillment help it deserves with MyFBAPrep.

7 growth-boosting tools for scaling eCommerce brands

Whatever growth stage your business is at, tools are available to help you reach your goals. But be warned, the tech market is huge and you’ll need to set aside time to find the best fit. To give you a head start on your search, here are our top picks by business area:

1) Product research: Helium 10

Product highlights: Keyword finder, product performance monitoring, listing optimizer, fraud alerts

Backed by ground-breaking AI and marketplace data, Helium 10 is one of the most powerful product research tools on the market. With this comprehensive solution, you can get product ideas, verify sales data, track product performance, and find keywords for Amazon and Walmart. Helium 10 also has a brand protection tool to help monitor inventory, track refunds, and spot listing fraud. Pick and mix the tools or opt for the full suite; the choice is yours.

2) Cart optimization: Optinmonster

Product highlights: Personalization, cart recovery, template library, behavior-based automation, A/B testing

With a solid reputation for helping brands drive more leads and boost conversions, it’s no surprise Optinmonster’s Cart Abandonment solution delivers. As a user, you’ll benefit from message personalization technology and behavior-led automation, an extensive template library A/B testing capabilities, and more. So, if abandoned carts are hurting your store’s growth potential Optinmonster is a solution to have on your radar.

3) CRO: Hotjar

Product highlights: Colored-coded heatmaps, live feedback boxes, surveys

From colored-coded customer movement tracking to real-time feedback and surveys, Hotjar opens up a whole new world on your website. Uncover what shoppers need on your website now to informed decisions on what optimizations to make for higher conversions. Plus, you can clip parts of your recorded insights to store and share with your team. This makes for easier and more precise insight distribution.

4) Analytics: Kissmetrics

Product highlights: High-spec analytics, simple-to-understand dashboard, sophisticated tools

Using innovative analytics and simple dashboards, Kissmetrics helps you understand your customer journey, marketing strategy, and product selection’s effectiveness to supercharge growth. Kissmetrics also reveals who your audience consists of and allows you to visualize funnels through detailed reports for easier optimization. If you need better insights that see shoppers as people and not data points, Kissmetrics is the ticket.

5) Product pricing: Repricer

Product highlights: Competitor spying, pre-defined pricing strategies, actionable dashboard insights, Cross-channel repricing

With billions of products adjusted each week and proud members of Amazon marketplace’s Developer Council and Google Partner program, Repricer knows what it takes to price competitively on eCommerce marketplaces. Combining accurate insight analysis with competitor performance tracking, Repricer helps you grab shoppers’ attention, secure more buy box wins and increase profits. Choose from pre-defined strategies and track your results on an action-focused dashboard to uplevel your pricing positions and get ahead.

6) Product listing: Zentail

Product highlights: Bulk listing, automated change management, custom reports, multichannel listing

A bulk listing tool, price management, inventory management, multichannel listing, and business analytics are just a few of the perks you’ll gain access to when you onboard Zentail.

Tap into Zentail’s alerts and timely advice for listing issues and revolutionary change management solutions that alter your data according to new requirements. With Zentail you can not only keep your brand remains within terms of service but scale product lines across channels with ease.

7) Supply chain management: Preptopia

Product highlights: warehouse communication channels, store and inventory analytics, threat and opportunity finder.

Leveraging store performance insights, native integrations, and analytics for opportunity and threat spotting, Preptopia ensures you have clarity on your supply chain 24/7. Communicate with your warehouses, monitor inventory levels, create stock orders, and calculate profits on the Preptopia platform to keep your business on track and customers satisfied. Plus, you can combine this solution with MyFBAPrep’s reliable fulfillment and prep services for a post-purchase experience your customers won’t forget in a hurry.

Looking for a supply chain management solution you can trust? Preptopia is all you need. 

Thrive with eCommerce technology

Investing in better eCommerce tools helps generate more sales and create higher customer satisfaction, margins, and efficiency. To ensure your tech stack is built to win, they’ll need to complement your support of your store’s biggest needs, accommodate existing marketing strategies, and put you in a position to make the vision for your store a reality.

So, research tools thoroughly, complete test runs, and continue to upgrade as your eCommerce business matures. Make the right investments now, and you’ll reap the rewards for years to come.

Innovative technology is essential for getting ahead in today’s competitive market. Discover how MyFBAPrep can help you win.

Wie Sie Shopify-Kollaborationen nutzen, um Ihr Marketing anzukurbeln

Thinking about giving influencer marketing a try? The stats are on your side.

Influencer marketing hit $13.8 billion in 2021 and is set to expand an extra 19% to $16.4 billion in 2022.

Whether you sell clothing or car accessories, influencer marketing effectively gets the word out about your brand, builds consumer trust, and drives sales.

And, if you sell on Shopify, good news!

Shopify is one of the latest brands to tap into the booming creator marketing industry with a new program, Shopify Collabs. Built to help brands like yours win big by working with influencers, this unique offer is causing a stir in the eCommerce and influencer marketing world.

This post will explore the ins and outs of Shopify collabs and how you can get in on the action.

Ready to take your eCommerce business to the next level? Partner with MyFBAPrep.

What is Shopify Collabs and how does it work?

Shopify has launched a free tool to help businesses collaborate with influencers. The aim of the game is to make eCommerce brands and creators more discoverable to each other and drive revenue for participating parties. Here’s a quick breakdown of how Shopify Collabs works:

  • The merchants using Shopify install the Shopify Collabs tool.
  • Creators sign up for a collabs account, which lets them view and search Shopify’s 1 million+ strong merchant directory.
  • Merchants can find and manage influencer collaborations on the platform, including sharing custom affiliate links and discount codes and creating curated shops together.
  • The influencer gets a cut when shoppers use their link to make purchases using their custom link or code.
  • Creators can also make their links shoppable by using Linkpop, Shopify’s eCommerce tool that turns the link in a bio into an online store and provides a landing page to house important links to share with their audience.
  • Shopify store owners enrolled in the Shopify Collabs program can monitor orders, stock levels, and customer orders via their Shopify admin panel. This makes it simple to track a campaign’s effectiveness.

Having the right fulfilment partner is critical to eCommerce success. Start afresh with MyFBAPrep.

Why Shopify Collabs is a huge opportunity for entrepreneurs and creators?

Before tools like Shopify Collabs, brands were left to fend for themselves when it came to learning how to collaborate with influencers successfully. This included managing fees, terms, and campaign optimization with multiple creators simultaneously.

The other alternative was to shell out for agency help. However, this choice increased their marketing spending with no guarantee of results. This made it only viable for brands with large advertising budgets.

Now brands big and small have tools like Shopify Collabs to make informed decisions on who to work with to increase their odds of success.

Shopify Collabs could also be a lucrative opportunity for creators hoping to go all in, increase their takings, or strengthen their brand. Just 4% of influencers currently create content full-time.

These factors combined help to enhance the available talent in the creator pool and willing participants in the merchant group, increasing the odds of good matches.

Scaling fast? Get a reliable fulfillment partner to match your speed.

How influencer marketing can help your brand succeed?

If you’re wondering whether Shopify collab and creator marketing are just more fidget spinner-style fads destined for the trash, think again! When used correctly, they can drive strong results for your brands. Let’s explore some perks you can expect:

Reach more people

Influencer marketing allows you to explore new audiences and territories to find more highly engaged buyers. Also, shoppers have different places they enjoy spending time online. Mixing up the creators you work with can also find other profitable audience segments you would have missed when focusing on alternative marketing channels.

Access user-generated content (UGC)

There’s something about UGC that screams authenticity and gets people buying. Email campaigns with visual UGC report conversion rates 25% higher than those without and UGC boosts web conversions and campaign results by 29%. So, UGC is worth its weight in gold, and with influencer marketing, you get it in droves. From audience members participating in influencer giveaways to heartfelt video testimonials crafted by creators, influencer marketing can help you secure this type of conversion-boosting content.

Improve your marketing ROI

PPC ad costs are on the rise. Google racked in $61.2 billion from ad revenue in Q4 2021, which amounts to a staggering $15 billion rise compared to the previous year’s final quarter results.

With these price hikes, you must look for alternative ways to market your brand and protect your margins and ROI. That’s where influencer marketing comes in. Boasting an ROI 11x that of banner ads, influencer marketing is a cost-effective investment.

Plus, with more AI-backed tools and collaboration-boosting platforms entering the market, influencer marketing is poised to be more profitable than ever.

Uplevel brand awareness

When you’re just starting out or in a competitive niche, it can be challenging to get the word out about your brand. Working with an influencer with a growing following can be just the push your brand needs to be seen,  pull your products into the limelight, and take your store global.

Elevate trust and credibility to supercharge sales

Some influencers have fiercely loyal followers who believe in and trust them, especially those with younger audience demographics. 62% of 18-29 year-olds surveyed said they trust influencers more than celebrities, and that figure jumps to 92% for micro-influencers. By working with creators, you can piggyback off their relationships with consumers. In turn, this will increase your perceived trustworthiness and credibility to skyrocket sales.

How to excel at influencer marketing with Shopify Collabs?

Competition for people’s attention online is growing stiffer. So to win at influencer marketing with the Shopify Collabs tool in hand, you’ll need some know-how, cash, and patience. Let’s dive into some steps to get the best results:

Learn how the Shopify Collabs platform works

Before you dive into working with influencers on the Shopify Collabs platform, it’s important to understand what’s in front of you. Take a tour of the Shopify Collabs tool, read its resources, and play around with the features until you have a solid understanding of the lay of the land.

Determine your goals and set a suitable budget

Is it more traffic you’re hoping for? Or perhaps it’s an uptick in qualified leads and sales you’re after. Whatever it is, it’s vital you jot down a clear objective for every campaign.

Next, create a realistic budget to match your plans. For example, if you want to focus on collaborations with micro-influencer, you can have a smaller cash pot for inventory and payment. On the other hand, if you intend to partner with celebs and well-established creators, you’ll need to account for higher reimbursements, legal fees, and admin.

Launch, assess, and adjust campaigns

Like most marketing channels, finding your sweet spot takes a few swings. There are a few things you can do to improve your campaign results. For example

  • Enter the influencer marketing game with a winner’s mindset and unstoppable attitude. In other words, be willing to try, fail, and try again.
  • Run split tests on top-performing campaigns. You can test areas like territory, target audience, topic, audience sizes, and campaign storyline.
  • Monitor your campaign performance, combining your store analytics data with social listening and customer feedback to make appropriate adjustments.

Share, share, and share again

Collaborating with influencers to create awesome content is critical. However, how you distribute it will decide how much you get out of a campaign. Some ways you can distribute your influencer marketing content for maximized utilization include:

  • Create a reposting schedule: Discuss posting times with influencers so your uploads don’t clash with them. Post the content to your social channels, pay attention to posting times, and use content formats native to them.
  • Get your followers involved: Encourage your audience to share your content (e.g., turn your campaign into a competition in which they share your content)
  • Use the content on your product pages: Place your influencer front and center on areas like collections, your homepage, and product photo reels.
  • Use the images and videos in your ads: Whether you advertise using email marketing or PPC, find ways to inject influencer content into your campaign. Insert quotes from testimonials and reviews from the influencer(s) and customer for added credibility.

The secret to making Shopify Collabs a money-making machine

Influencer marketing is one of the hottest opportunities for eCommerce brands and creators. But to see success in your influencer campaigns, you’ll need to go in with a documented plan and the desire to make it a reality.

Use Shopify Collabs to streamline your influencer research and negotiations. Work with influencers whose content style and image match your brand and tell exciting stories that resonate with your audience. Before you know it, you’ll have a profitable influencer marketing strategy to aid your store’s expansion.

It’s time to say goodbye to sleepy fulfillment processes. Learn how MyFBAPrep can help you boost backend efficiency.

3 Simple Strategies For Show Stopping eCommerce Product Listings

2.14 billion people shopped online in 2021. That’s 27.6% of the global population who came across a product listing, liked what they saw, and hit “buy”.

Product listings are one of the few areas in your eCommerce funnel that all potential customers will see before spending and play a massive role in influencing what consumers purchase.

In this post, we’ll cover why investing in product listings is always time and money well spent. We’ll also explore what goes into a fantastic product listing and some tips to help you craft winning listings of your own.

You are looking for a way to upgrade your eCommerce business? Start your fulfillment optimization journey with MyFBAPrep. 

Why investing in product listings pays off

With 63% of shopping journeys beginning online, most consumers encounter product listings early in the customer journey. As a result, product listings carry a lot of weight in the buying process, making upgrading product listings enticing. Let’s examine some reasons why you can’t go wrong with making improvements to your product listings:

Show products in the best light

In a world where website visitors decide whether they’re staying or going within 0.05 seconds, first impressions count. A well-crafted listing allows your products to stand out in the sea of competing offers, especially on marketplaces like Amazon, which has 12 million products vying for shoppers’ attention. Put another way; your product listing quality is so critical it can be the difference between whether a shopper takes a chance on your brand or opts for a competitor.

Accelerate sales around the clock

Sometimes the product listing is the first encounter shoppers have with your items, so a rockstar product listing is essential to highlight the pros of buying the item to get more clicks and sales. Product listings act like your 24-7 sales team, pitching your wares, convincing shoppers, and closing deals.

Improve consumer confidence

Unlike shopping in-store, customers can’t experience your products physically. They rely on your images, videos, and descriptions to aid their purchase decisions to make educated guesses on what using your product will be like. But no one likes to be wrong when buying goods, and taking a chance on a brand can be scary (especially for high-priced items) so there can be friction in the online buying journey.

A great product listing addresses this problem by incorporating different elements to put shoppers’ minds at ease by giving shoppers a relevant, well-optimized spot to land on. You can also reduce ad bounce rate, improve time on page, and lower buyer’s remorse. In turn, you can look forward to increased sales velocity, reduced customer returns, and improved store ROI.

Products gaining traction? Stay on shoppers’ radar for the right reasons with MyFBAPrep.

8 Building blocks of a high-quality product listing

Now that we know the value of a killer product listing, the next question is what goes into one? To get up to speed, let’s breakdown the makeup of a top-performing product listing:

1) High-quality images and videos

First up on the list are high-quality images and videos. With shoppers’ lives busier than ever, crisp images and videos are essential to grab their attention and help them get the information quickly. When done correctly, your efforts are bound to pay off. Not only can videos increase conversion rates by up to 80%, but shoppers that watch a video are also 144% more likely to add an item to their cart than consumers that don’t. Also, 50% of shoppers say photos helped them make online buying decisions.

2) Benefit-driven product descriptions

A great product listing answers the question on every shopper’s mind, “what’s in it for me?”. They should highlight your products’ USP and what gives your items a competitive edge to help shoppers understand why your product is the best choice. For example, shoe brand TOMS lets its site visitors know they make their items from sustainable materials, and a portion of the profits goes to charity.

3) User-generated content (UGC)

Candid reviews, honest testimonials, and creative snaps from customers show off the results your products have given your customers. They also provide prospects with ideas on how to use your goods, breed trust, and humanize your brand. Encourage and incentivize your customers to share their experience with your brand and products for easy access to UGC at scale.

4) SEO

SEO is the backbone of every listing that succeeds long-term. Use relevant keywords and optimized placements to attract customers to your products organically. This strategy lowers your required ad spend over time and boosts your ROI. SEO works whether you have listings on a marketplace like Amazon or your website.

5) Great products

Never underestimate the power of a phenomenal product on a listing’s selling potential. Winning products add a spark to listings like no ad or social media post can. To increase your odds of closing sales, your products should:

  • Be made using quality materials
  • Have a differentiating characteristic to separate it from competing items
  • Provide high perceived value

6) A compelling offer

In eCommerce, you’re only as good as your last offer. You should constantly be trialing new ways to give shoppers value for their money and enjoyment in the buying process. So, whether you ask shoppers what they want to see in your store, rejig past successful offers, or test different bundles, make your shopping experience exciting by keeping shoppers guessing about what’s next.

7) Trust boosting assets

A high-quality listing screams “you can count on us.” Using a mix of money-back guarantees, details on freebies, logos for reputable payment options (PayPal, Visa, Stripe), and information on any support services the customer will receive from your business will help to instill trust.

8) Recommendations for similar items

Make your listings more valuable to busy shoppers and boost average order value by adding suggestions for similar or complementary items. You can also highlight new and upcoming offers to gain more interest. Test different placements on the listing to find your optimal spot.

How to craft a show-stopping product listing

If you’re stuck on how to optimize your product listings for better results, don’t fret. Use the following tips to get started, put your work out into the market, reiterate, and before long; you’ll have a listing you can be proud of:

Conduct market research to find winning product listing elements

A great product listing starts with research. Investigate what’s on offer in your space and brainstorm creative spins on them to make your mark. Also, look for what images, messaging, colors, navigation, and layouts resonate with your target online audience. Don’t be afraid to search outside your niche at brands your target shopper frequents for ideas you can spin. This approach will help you build a strong foundation for a high-converting listing.

Implement conversion rate optimization techniques

Split test different page elements from the add-to-cart button color to the text placement to find the best fit for your brand. Also, use heatmaps to understand how shoppers navigate in your store and adjust based on your finding to upgrade listing conversions. You’ll improve user experience and improve conversions by finding optimal combinations. Some tools you can use are:

Upgrade your product description copy and imagery:

Want to have shoppers rushing to buy your items? Then it’s time to revamp your listing copy and visuals. Here are some areas to focus on:

  • Craft a compelling title: Explain your product and how it works succinctly. Don’t forget to include 1-2 keywords towards the beginning of the title. For example, if you sell a utensil sharpener set, your listing title could look something like this:

3PCS Utensil Sharpener Set, Knife Sharpener, Perfect for Kitchen, Cutlery, and Tools.

  • Use bullet points and short sentences: Keep the text snappy and focus on what the product does for the customers.
  • Apply persuasive language techniques: Blend in terms the target customer uses or understands as well as urgency and scarcity-focused words to encourage shoppers to take action sooner.

Top tip: you can use plugins to assist with persuasive triggers like countdown timers and popups indicating how many units are left and what shoppers bought recently.

  • Amp up your visual quality: Lifestyle images, video reels of the product in action, and close-ups are just some of the ways fantastic visuals bring the product to life. Avoid the stock content suppliers provide, making your brand appear amateur.
  • Include essential details: Ensure shoppers don’t have to search for information by clarifying vital information on your listing. For example, you can:
    • Highlight shipping terms
    • Create an FAQ tab
    • Clarify any crucial terms and conditions

 The secret to listings that sell

With growing competition online, up-leveling your product listing quality has never been more critical. Product listings offer an effective way to establish reliability, trust, and authority with your target audience. As the landing page, all shoppers encounter before buying, product listings are essential to the effectiveness of every marketing strategy you launch. So, put your best foot forward. Create scrolling-stopping images and videos, implement SEO best practices, and answer shoppers burning questions. Soon you’ll have product listings that rank well, attracts buyers in droves, and rakes in cash.

The time to get serious about your fulfillment processes is now. Discover how MyFBAPrep can help.

How to Generate And Use Social Proof in Your eCommerce Marketing

Need a way for your eCommerce brand to stand out? Turn your attention to acquiring and sharing social proof. From glowing product reviews to heartfelt customer shoutouts, social proof is one of the most effective ways to get your target customer’s attention, build trust and close more sales.

82% of consumers have purchased, researched, or thought about buying after seeing friends, family, or influencers post about something. To help you take advantage of this underutilized hack, in this post, we’ll dive into what social proof is and what it’s not. We’ll also highlight why getting social proof should be a priority when scaling and share some ways to secure attention-grabbing social proof.

You don’t get a second chance to make a first impression. Place your brand in the right light with MyFBAPrep.  

What is social proof exactly?

Social proof is a term born from the idea social influence impacts the way people behave, swaying their beliefs and breeding conformity. In action, this could look like getting a recommendation from a friend for a coffee brand you’ve never heard of and taking a chance on them by purchasing.

Social proof comes in many shapes and forms, which brands mix and match. Some formats useful for eCommerce marketing include:

  • Reviews
  • Word of mouth referral
  • Video and text testimonials
  • Professional recommendations, e.g., A doctor’s sign off

Each type of social proof will carry different authority levels depending on whether a third party generated it and who your target is. For instance, recommendations from an employee on your website will be met with less enthusiasm than a review from a fellow shopper on a regulated review site. Telling the world about your product’s benefits isn’t social proof and falls more into the broader marketing category.

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3 Reasons why social proof is a must-have for eCommerce brands

Perhaps your products have viral status, and more people are hearing about your brand each day or you may have mature sales and marketing strategies that have sales pouring in. Either way, it can be challenging to see the value of social proof as anything more than an acknowledgment of your hard work. But social proof can help your brand in many ways. Let’s run through a few:

1) Gain new shopper’s trust

Want to know one of the top things social proof generates for your brand?


Knowing a product has been tested and approved by peers reduces the perceived risk factor of buying, making shoppers more open to learning about your brand and completing the checkout process pause-free.

Recommendations and reviews can also reduce buyers’ remorse when shared as part of your post-sale marketing. These are just some of the reasons reviews play a critical role in a product’s success on a marketplace and why platforms like Amazon have had early reviewer programs and now the Vine program.

2) Improve conversions

Reviews don’t just make your brand look good; they make its bank balance, Average Order Value, and Customer Lifetime Value healthier. For example, Social proof can increase conversions by as much as 270%, and higher-priced products can benefit from a jump of up to 380%. Also, shoppers are likely to spend 31% more when a brand has fantastic reviews.

3) Boost brand authority

Social proof from the right people and in the correct quantity can take a brand from an unknown newbie to a rising star. And, if you’re an established player in the eCommerce world, getting shoppers’ approval tells other consumers why you’ve stood the test of time. In other words, the more social proof your brand acquires, its brand authority becomes stronger.

How to generate social proof on autopilot

No matter what audience size you have, you can garner social proof to drive more leads and sales. You’ll need a well-thought-out game plan to acquire different types of social proof. To get started, here are some ways you can gather reviews, shoutouts, recommendations, and more:

Run giveaways and contests

Giveaways aren’t just great ways to build your email list; they’re also a great way to garner social proof. For example, say you have a teeth whitening line, you could create a competition for your customers, offering 6 month’s worth of products for the best:

  • Before and after pics
  • Selfies with and displays of your products
  • Answers on why they love a particular item

Partner with influencers

Social proof produces the best result when you take a blended approach. So break away from the norm and trial different content types to create social proof with influencer marketing:

  • Q&A sessions
  • Diary style/day-in-the-life content
  • Inspirational images and short video clips (e.g., for social media reels)
  • Social media takeovers
  • Meetups for your most loyal followers to meet their favorite content creators
  • Share seals of approval from regulated bodies and industry experts (e.g., FDA, doctors)

Top tip: Not sure how to execute an influencer campaign? Check out brands in different niches with a winning strategy like Showpo, GymShark, and Frank Body.

Incentivize customer content creation from customers

Despite 9 out of 10 consumers reading reviews before making a purchase, on average, just 10% leave reviews. So sometimes, even your loyal customers need a little nudge to get talking. Give shoppers a reason to leave honest reviews by giving perks that they’ll be interested in. For example, you could offer a discount code, unlock a special deal on their next purchase or offer loyalty points.

Are customers complaining about your delivery processes? Discover how MyFBAPrep can help you win them over again. 

5 simple ways to drive conversions with social proof

Now that you know how to create different forms of social proof, the next step is to position them to supercharge conversions. Here are some ways you can fill your sales funnels and pockets with social proof:

1) Embed social proof into your web design

A fantastic way to get social proof in front of your potential customers is to mix it into your web design. Examine other brands’ social proof strategies for inspiration on how to present it in a way that’s native to the sales platform. For example, if you have a website, you could:

  • Have a page dedicated to reviews and testimonials.
  • Add a widget to product description pages to list reviews for the associated product.
  • Place reviews on your landing page and in email designs.

 2) Blend social proof into your social media strategy

Give your reviews, recommendations, and testimonials the shine they deserve by displaying them on your social channels. Test different formats like video, star ratings, and text to find which style resonates the best. Don’t forget to add a call to action for shoppers to buy the item and a link to the product in your bio to increase conversions.

Look through comments sections for shoutouts and impromptu testimonials your fans may leave on product posts and request permission from them too. Also, take note of how shoppers display their social proof for more ideas to trial.

3) Use case studies for wholesale account outreach

Whether it’s a sell-out launch, a 3-month long wait list, or increased profits, sharing case studies from your wholesale and corporate accounts can help you attract more customers.  Zoom in on crucial stats representing the positive changes your brand has brought other businesses and include positive quotes from customers to provide additional context and validity. You can also include snapshots from case studies in your outreach and adverts to up your meeting booking rate and account sign-ups.

 4) Highlight key numbers

There are some instances where tooting your own horn is entirely acceptable, and sharing your store’s most impressive milestones is one of them. So if you’ve secured 0 to $1 million in 60 days, 100,000 customers, 5 years in business, or something similar, it’s time to let the world know. This tactic will uplevel your brand value in consumers’ eyes, inspiring them to start their customer journey. Some other achievements you can share include:

  • Amount of positive reviews
  • Units sold
  • Units remaining

5) Get social media verified

Something about that little blue ticket on a social media profile makes people stop and pay attention. Yet verification is an overlooked way to showcase brand notoriety. So, research which social platforms your ideal shoppers spend the most time on and take action to get your brand verified on them. If you don’t have the time to dedicate to this task, hire a social media marketing agency to help you achieve the respected verified status.

Be the brand shoppers rave about

Gone are the days when shoppers formed their buying habits solely on word of mouth; social proof has gone digital. From online reviews to influencer mentions and expert recommendations, consumers are becoming more comfortable with the online vetting of products and brands.

With the right approach for gathering and distributing social proof, you can get more eyes on your stores, improve your product’s perceived value, and upgrade your brand’s reputation.

So start today. Collect and share notes, pictures, and videos from happy customers and share them with the world. Soon your products will be selling themselves with a trail of satisfied customers in tow.

 Don’t let archaic processes dim your brand’s light. Learn how MyFBAPrep can help you craft an unforgettable shopping experience to match your raving product reviews

What To Do About The Upcoming FBA Inventory Limitations (And Price Increases)

Holiday seller fees are increasing, but that doesn't have to mean lower revenue

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.