This Issue's TLDR...
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Look, I know a few things about Amazon from working there. But, like most, I have to figure things out along the way, as the marketplace evolves. And one of the problems that has stumped me for the better part of this year has been... How can I get my products into FBA faster? Now, before you reply to this message and suggest AWD or a Middle Mile solution, know that...I've already gone down those paths and costed them out. Either the math doesn't math, or there are other overriding blockers. So, I'm still muddling around, trying to find an answer to the question above. I should probably spend a minute here on why I'm seeking an answer to this question... You see, since Q2-2024, coincident with the launch of Amazon's new FBA Inbound Placement Fees and its restructuring of nodes in its fulfillment network to nIXDs, rIXDs, and FCs, I've been dealing with consistent inbounding delays, driven by Partnered Carriers missing their LTL pick-up appointments at my warehouse. In the beginning, I chalked this up to carriers...sucking. But as I dove in, and talked to folks inside and outside of Amazon, I learned that these carriers weren't missing their pick-up appointments out of incompetence. They were missing them because Amazon was allowing me to set up a shipment and choose an LTL pick-up date that may or may not coincide with available receiving dates at an nIXD/rIXD/FC. Put differently, and to paraphrase T-Swift: "Amazon, hi, it's you. You're the problem, it's you." And how big has that problem been? I created a metric for my business, VarPU -- Variance to Pick-Up Date -- and calculated it going back ~18 months. In 2H-2023, VarPU was 3.2 days. Carriers were, on average, missing their assigned pick-up dates by 3.2 days. In 1H-2024, VarPU was 5.1 days. Higher than 2023, but not meaningfully different. In 2H-2024, VarPU has skyrocketed to 16.3 days. These delayed pick-ups have been nothing short of devastating. But, I maybe had a root cause here. So...I created a plan to *hopefully* address the root cause. And that plan involved...Amazon Freight. But not in the way you think. If you don't know, Amazon Freight as an FTL option offers some unique ways to get products into Amazon's network faster. (If you want to know more, just email me; I don't want to go off on a tangent here) BuT jOn, ArEn't YoU tRyInG tO gEt PrOdUcTs InTo AmAzOn FaStEr?? Well, yes. The problem is...I don't always have a FTL worth of product to send in and, with Amazon Freight, you book the full truck. So I don't want to be paying for empty trailer space. Instead, the way I'm using Amazon Freight is to spy on Amazon. Or, at least scope out nIXD/rIXD/FC availability. If you don't have an Amazon Freight account, you can't do this. If you do have one, you know that when you type in a delivery destination, you see a 2-week calendar of pick-up appointments which, to my understanding, are based on FC receiving availability and travel time from the shipper's location. So, when my shipment plan gets assigned to a fulfillment node, using Amazon Freight, I can see pick-up date availability and book a Partnered Carrier pick-up appointment that aligns to that. I've been testing this since mid-November, and my sample size is small (5 LTLs). But, preliminarily, this strategy...seems to be working? Of those five loads, four were picked up on time, and one was delayed by two days. Not bad compared to the 16.3 day VarPU that I've been enduring for most of the year. BEST from my InboxQ: Hey Jon, what did you think of David Zimmerman's ranking of FBA reimbursement providers? ME: He put a lot of time and thought into researching providers and building a scoring model. I have a ton of respect for David and his work on this, and the other tools/services that he's reviewed. I'm not surprised that TrueOps came in at #1. I tell people all the time that FBA reimbursements has become something of a commodity. And, if people out there are still willfully and knowingly paying providers 20-25% commissions when there's a great option for 10%, then those folks are probably a few bricks short of a full load. * PS: Here's the video that this reader was referencing: BEST from LinkedInMy LinkedIn and AMZ Innovate friend, Fred McKinnon, is speaking my love language this week, getting in the weeds on a small, but meaningful, change to Amazon's disbursement policy. A little bit of a history lesson here... DD+7 (or EDD+7, as it was called internally at Amazon) is not new, per se. Back in 2016, I remember it being discussed internally, at length, as a fraud prevention mechanism (holding funds until after confirmed delivery reduces the financial benefit from fraudulent orders). At the time, it was rolled out surgically, applied to accounts that carried the highest fraud risk. Over time, all new accounts were subject to DD+7, but old accounts had no changes to their disbursements. Now, DD+7 has been rolled out to all accounts -- old and new -- resulting in larger amounts of funds held by Amazon than before. You can watch Fred's deep dive below. BEST from XThree "quick hits" from the world of X this week. First, a super useful sign-in hack from Aaron Cordovez:
Second, an important "watch-out" from Larry Lubarsky (FYI, this has happened to me, and my team now audits for this):
And finally...surprise, surprise...AWD is getting more expensive:
I've seen countless businesses come to market because of partner fall-outs. I think that's a big reason why people go down the path of ETA, or entrepreneurship in general, alone. But there's no Thanos-esque inevitability that leads all partnerships to implosion. Successful partnerships take "pre-work"; they require honest reflection on what you bring to the table and what you expect from your partner. Personally, everything entrepreneurial that I do involves a partner. For one thing, I have blind spots, capability gaps, and weaknesses, and my partners close those gaps. But also...entrepreneurship is hard and lonely. And, psychologically, it helps to have someone to bear the ups and downs with you. If you're inclined toward finding a business partner, but worried about that real risk of implosion, Nik has some great advice on how to make things work.
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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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