This Issue's TLDR...
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I'm going to show you two images that should be nightmare fuel for you, if you're an Amazon seller: In case you're not following, taken together, these two images imply one thing: Costly return costs for your business after the holiday season. Best case scenario, you deal with a normal amount of returns. Or, rather, an amount of returns that doesn't exceed the category thresholds above and, in turn, trigger Amazon's punitive Returns Processing Fees. Worst case, and maybe more likely, scenario...your return rate spikes in January, as customers return unwanted holiday gifts. And, because Amazon's return rate thresholds were set based on "normal" shopping periods, this higher rate of returns tips you over the line. Point is...Many of us are probably facing some significant penalties in January and February. But what if...there was a (simple!) way to avoid Amazon's Returns Processing Fees? I have good news for you:
And that way is... You can go read the help page linked above, but here's the key excerpt: So, if you're worried about high returns over the rest of the holiday season, toggle on FBA Returnless Resolutions. (You can turn it off after the holiday returns die down) It will help you dodge a financial bullet in the new year. BEST from my InboxMomentum Commerce is a treasure trove of deeply technical, (big) data-driven research insights. And I can't get enough of it. Recently, they published research that found that there's a correlation between the number of distinct products in a category and the share of total search volume captured by the top 100 search terms in that category. This is sort of intuitive, when you think about it, but nevertheless great to see that there's data that supports intuition here. According to Momentum Commerce, the implications of this, if you're a brand, are:
1) For newer or less populated categories on Amazon, focus on top terms. This likely will result in higher ACOS, but it's going to be the best path to driving meaningful sales volumes
2) Build a competitive edge that matches the shape of the category you play in. For categories with a higher share of traffic going to top terms, brands need to maintain a tight focus on budget allocation, campaign structure, product quality, pricing, and branding.
3) For categories with a lower share of traffic going to top terms, brands need to be more agile and willing to invest to break past stagnating growth. One simple method that can help in ensuring that auto campaigns are feeding into manual campaigns based on predefined conversion criteria.
Thanks, Momentum Commerce team, for this great research! BEST from LinkedInI love a good HOT take. And my new LinkedIn friend, Steve Rolle, just delivered, with this takedown of the User Generated Content industry. I'll admit...I rely on UGC a lot. For my brands, and for client brands. It's often one of the most economical ways to source above-average (and sometimes, great!) creative content. I've never run into the problems that Steve describes, but that doesn't mean this kind of shadiness doesn't happen. So, it's good to know that it exists. Thanks, Steve, for this hot take! BEST from YouTubeMy good friend Vanessa Hung absolutely crushed it at the 7-Figure Seller AI Hacks Summit recently. In case you don't follow her, she's definitely leading the conversation around how to succeed in an Amazon world increasingly moving toward by RUFUS-driven product discovery. During her 5-minutes at the Summit, she gave a step-by-step walk-through of how to optimize for RUFUS. You should all go watch (she starts at the 24-minute mark).
Great thread here on comment DEAL KILLERS. In my experience, here are the Top 3 reasons that I see Amazon FBA deals die:
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I'm a former Amazon marketplace leader and current 8-figure seller. I write about advanced strategies and tactics for Amazon brands, that you won't read about anywhere else. Not for beginners.
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