Izzy Benoliel’s Post

Anyone notice 3 facts on Amazon’s recent corporate strategy and join the dots? 1. Profits on advertising are up a metric ton. More expensive sales. Thank you 3rd party sellers 2. Investment in FBA system is smaller percentage of Capital expenditure going forward. So less fulfilment capacity relative to demand. Screw you, 3P sellers. 3. % of Capex going to AWS is booming. Thank you 3P sellers. My take? If you’re selling on Amazon, you are helping Amazon pay for its expensive AWS system while you should expect to pay more and get less for fulfilment. Oh and pay those ludicrous new punitive fees if one single SKU isn’t shifting. Not good news.

Amazon is raising the stakes with more fees for high return-rate products. The frustration is real. Amazon’s recent reminder about the return penalty fee changes is shaking up the community. Starting June 1st, if your products see a high return rate, get ready to pay more. Sellers are questioning the fairness, especially when returns are due to Amazon's own errors. Amazon clarified some points, but the confusion and concern remain. Here’s what you need to know: → Track your returns Amazon will monitor returns over three months. Exceed the threshold, and you pay. → Sell more than 25 units If you sell fewer than 25 units in a month, the fee won’t apply. → Watch your categories Fees vary by product category. Ensure your products are correctly categorized. Amazon's complexity is growing. For sellers, it's a game of constant adaptation. Are your products optimized to minimize returns? How will this impact your pricing and margins?

This ISN'T just another Amazon fee update. (It's a fundamental shift you can't afford to miss): Amazon's latest fee shake-up has alarm bells ringing. Their recent move is a crystal-clear signal: They're steering sellers... Towards specific logistics strategies. And this isn't just a change. It's a potential game-changer for inventory replenishment across the board. Hesitation is understandable. It might feel too early to pivot completely. But make no mistake: Ignoring these fees will cost you. We're talking severe profit erosion. Especially for products priced under $50. Let's unpack this: 1. Amazon's profitability push: This isn't just about revenue, it's about optimizing their own bottom line. 1. The squeeze on sellers: Those without robust inventory strategies will get crushed under the weight of new fees. 1. Time for proactive planning: The winners will be those who adapt quickly, not those who wait and see. My team is already digging into this. We're analyzing the fallout. We're designing strategies... There'll be minimal impact on our clients. I'll keep you updated as things crystalize. To my fellow e-commerce folks: What are your thoughts on this? How might it impact your operations? PS. Comment down below... ⬇️

Controlling distribution protects profit margin, brand awareness, customer trust, consumer experience, improves sell through, creates more open to buy for future seasons, results in fewer requests for margin relief........... The downstream impact by not managing the marketplace is real. #stopproductdiversion

Optimize Amazon Prices for Maximum Profit and Visibility! Many sellers need help to get their Amazon pricing right. But strategically priced products are key to healthy profit margins and a competitive edge. Let's look at some common pricing challenges and how to avoid them. 1) Underpricing Dangers: While underpricing may seem a good way to rank higher in search results, it often backfires by destroying your profit margins. You must account for all Amazon fees and leave room for a reasonable markup. 2) Overpricing Risks: On the flip side, overpricing makes your products uncompetitive and turns customers away. Monitor competitor prices closely and aim to price attractively while still preserving profits. 3) Variations: If you are selling product variations, inconsistent pricing across those variations will only breed confusion. Customers expect logical, easy-to-understand price differences between sizes, colors, etc. 4) The Ideal Balance: Effective Amazon pricing strikes the perfect balance between competitive positioning, profit preservation, and conveying value to the customer. It's both an analytical and creative exercise. 5) Repricing Automated:  With thousands of competitors and constantly fluctuating prices, automated repricing tools are a lifesaver. They will dynamically adjust your prices every time based on your parameters. You should perfect your pricing strategy so that you will protect profits, attract more buyers, and maintain a competitive edge on Amazon. It is an effort that pays dividends for sustaining long-term business growth. #AmazonFBA #SellerTips #PricingStrategy

NEW 2024 AMAZON FEES QUICK UPDATE HERE ⬇️ There will be new updated fees on Amazon over the next few months. You can read in-depth all of the changes on this link: https://lnkd.in/gZmzX-2n …BUT let us save you a few hours and boil it all down to a dozen notable changes. We got you! 💯 Here is the quick NEED TO KNOW: • Fees are changing but not too crazy. • There will be a slight increase on Feb 5, 2024 • then a slight decrease on April 15, 2024 • Fulfillment fees are getting a little cheaper starting in April 2024.  The average cost is decreasing by about 3%. • There is now a "placement fee" for sending in inventory. The average cost will be  $0.27 per unit.  • There are now more fulfillment tiers. They are charging in 0.25 lbs increments instead of 0.5 lbs increments. • Storage costs are getting a little bit cheaper. They will be about 10% cheaper now. • Oversized" is being renamed "Large bulky" • You will be charged extra if your returns are too high. This is category-specific, but the threshold hasn't been published yet.  • If you are storing more than 22 weeks (5 months) of inventory, you will get screwed! • However, you will be charged extra if you average less than 1 month of inventory now! • IPI score isn't a big deal anymore. 🤯 What actions should I take? First of all, DON'T PANIC. Nothing too crazy is happening. Annual cost changes always happen in the first half of the year. 👉 Check what actions Titan Leader, Andrew Erickson will be doing… “The biggest thing I will be changing is how much inventory I keep at Amazon. We have a KPI to keep between 30 and 45 days of inventory at Amazon (we do weekly drops from a 3PL). Amazon is signaling that storage is easier now and that they will penalize you if you have too little stored with them. We will be changing that to 50-70 days of stored inventory starting April 1, 2024.” 🙌 Comment below if we have missed anything you think is important! Like and share this post for visibility to other Amazon Sellers. #amazonsellerfbatips #amazonfba #amazonfees #amazonfeechanges #amazonbusiness #amazonupdates #ecommercebusiness

🔍 Amazon Mistakes Alert❗ Avoid these biggest mistakes that Amazon sellers make. Every single ASIN within catalog is rarely going to be at the exact life cycle of the exact same stage. Sellers having multiple ASINS at different stages in this life cycle evolves over time. Sometimes ASINS get stuck in certain stages for a quite long time. Sometimes it moves quickly, sometimes it falls backwards. Amazon will not ever sell all of your ASINS as perfectly as you desire. Also, Oftentimes when we see new inventory fees we interpret them like oh! man, another way Amazon is stealing money from us but in reality, there is a new opportunity within these new fees that are coming. Follow for more. #amazonppc #amazonmistakes #amazonselling

If you're an Amazon seller, you know that profit margins can make or break your business. But what exactly constitutes a "good" or "healthy" net profit margin? As the world's largest online marketplace continues to evolve and expand, it's more important than ever to understand the metrics that matter. But first thing's first: 👇👇 What is a good net profit margin for Amazon sellers in 2024? A good net profit margin for Amazon sellers in 2024 is 20 to 30%. Anything above 25% is considered excellent, whereas dipping and staying below 8% can soon run your business into the ground. Most Amazon sellers average around 20% to above - a good sign for new sellers wanting to begin their online journey today.😊 #amazonfba #amazonppc #skills #experience #learning #profitmargins #amazonproduct #privatelabel #marketanalysis #marketdemand #dataanalysis #amazonvirtualassistant #amazonseller #average #highlights #followers

Low Inventory Fee Update: Amazon will start charging sellers for keeping less than 28 days of inventory. AT THE SAME TIME, Amazon's Inventory Performance Index (IPI) already has a component called "sell-through" where Amazon encourages us to keep inventory relative to sales as LOW as possible. "Sell-through" is considered "Good" if it's above 2.0 and "Excellent" if it's above 7.0. If understand it correctly, these ratios are based on 90 days sales. But what about the math here? If you keep your turnover above 7, that means you're keeping an average of 90/7=13 days worth of inventory? Meaning that anyone with Excellent Sell-Through would be hit with the highest level of "low inventory fees". Surely this can't be right?! Even just to qualify as "Good" you'd need to get in under 90/2 = 45 days. A much more reasonable number, but very tricky if you're trying to stay between 45 and the punishable 28. That's quite a tightrope to maintain at all times. But it's not as nonsensical as being punished for Excellent performance. #amazonfees #amazonfba #amazonnews #sellercentral