2018 amazon virtual summit - day 2

Copyright 2017 - Q4 Amazon Virtual Summit

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The 2018 Amazon Virtual Summit

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Today’s logistics

• Session Recording + Slides Will Be

Sent Out

• Join in the Poll Questions!

• Submit Questions to Our Panelists

Copyright 2018 – Q1 Amazon Virtual Summit

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Day 1Do You Know How To Win On Amazon’s Sponsored Products?

Day 2How To Set Your 2018 Goals & Smash Them

Day 3Secrets To A Lean Amazon Supply Chain

Amazon Virtual Summit Details

Overview

Founded in 2007

Google Premier Partner

400+ Active Retail Clients

Top 50 Fastest Growing Company San Diego

D E L I V E R I N G

L A S T I N G

R E S U L T S F O R O U R

C L I E N T S

Solutions

Retail-focused PPC & Shopping

Amazon Sales Acceleration

Facebook Performance Marketing

Creative Services

About CPC Strategy

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FEEDVISOR SOLUTION

FEEDVISOR’S

SOLUTION

An AI algorithmic platform that enables

online retailers make accurate business-critical

decisions and to act in real time in constantly

changing market conditions.

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The Tools We Offer

SMART ANALYTICS SMART SCOUTINGALGORITHMIC REPRICER

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Aaron Ellis Technical Account Manager

Lotem AlonBusiness Strategy Expert

Today’s speakers

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Today’s Agenda

• From 2017 to 2018

• Planning framework

• Why - Intent

• What - Goals

• How - Initiatives

• Prioritizing and assessment

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Where we are now?

• 2017 performance

• Market development

• Opportunities

• Challenges and issues

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OMG Electronics

FBA

Expansion into

Private Label this year

Electronics

5 Years

Growing Steadily

Profit margins up

Sales growth

decreasing

~10K SKUs

Competing for

Buy Box

Return rate 10%-15%

50% slow movers

OMGElectronics

Main goal: Increase total profit by 20%

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Planning framework

How do we get there?

What do we want

to achieve?

Why are we

doing this?Intent

Goals

Execution

Copyright 2018 – Q1 Amazon Virtual Summit

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Planning framework

Goals

Execution How do we get there?

What do we want

to achieve?

Copyright 2018 – Q1 Amazon Virtual Summit

IntentWhy are we

doing this?

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Intentions for 2018

Copyright 2018 – Q1 Amazon Virtual Summit

Reduce shipping costEnlarge offering of

new items

Focus on high moving

profitable items

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Planning framework

Execution How do we get there?

Copyright 2018 – Q1 Amazon Virtual Summit

GoalsWhat do we want

to achieve?

IntentWhy are we

doing this?

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Setting SMART goals

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Goal 1: Ensure 95% in stock for items generating

80% of the profit by Q1

Goal 2: Reduce return rate to 7% by Q2

Goal 3: Reduce inventory value of slow moving

SKUs to 30% of total inventory value by Q3

Objective: Optimize product

portfolio to focus on

high moving,

profitable items.

Setting smart goals for our first objective

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Planning framework

Execution How do we get there?

Copyright 2018 – Q1 Amazon Virtual Summit

GoalsWhat do we want

to achieve?

IntentWhy are we

doing this?

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Initiative 1: Set up process to regularly replenish

profitable items

Initiative 2: Set up process to identify pricing

opportunities to increase profits

Initiative 3: Set up process to regularly review

non popular slow movers and liquidate them

Initiative 4: Invest in advertising to encourage

sales of items with high profit margin

Objective:

Optimize product

portfolio to focus on

high moving,

profitable items.

Our first goal has several initiatives

Initiative 1:

Set up process to regularly replenish profitable items

Initiative 3:

Set up process to regularly review non popular slow movers and liquidate them

Each initiative should have a timeline, owner and resources

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Initiative #1

Goals: Top selling items should be in stock at least 95% of the time

• Review replenishment plan and know your lead times

• Review your inventory levels on a weekly basis for your top 20% selling products

• Owners: John Smith – Inventory Manager

• Timeline: Weekly Checks – Reassess End of Quarter (Q1)

• Resources: Inventory Management System, Repricing, Seller Central

• Estimate the days of coverage based 7 day velocities

• Check more frequently during promotions or during holidays

• Raise margins to slow down velocity

Copyright 2018 - Q1 Amazon Virtual Summit

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Initiative #3

Goals: Get rid of dead product & free up cash flow for reinvestment

Lower FBA/In-house storage fees

• Identify slow movers (< 0.3/day), overstocked products and non-selling items

• Develop a Bi-Weekly liquidation system

• Owners: Jill McDonald – Repricing Manager

• Timeline: Bi-Weekly review - All items should be moving by start of 2nd Quarter (Min. 0.1 Velocity)

• Resources: Repricer, Sales data, Inventory data

• Estimate the days of coverage based 7 day velocities

• Set timelines for each SKU that is to be liquidated

• Keep lowering margins until you hit that golden velocity

Copyright 2018 - Q1 Amazon Virtual Summit

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How to Prioritize

There is so much on the table. How do we prioritize?

• Urgency

• Impact

• Financial Investment

• Duration

• Effort

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Prioritize Based on Impact vs. Effort

Quick win / Low hanging fruit

Why aren’t you doing this now?

Copyright 2018 – Q1 Amazon Virtual Summit

Forget it

Friday afternoon quadrant

Strategy / Requires planning

Break down quadrant

Thankless task / Think about

Don’t even think about it (yet)

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Summary

• Set your objectives for 2018

• Decide on the goals and targets

• Identify and prioritize initiatives

• Review your progress vs. target on a

bi-monthly basis and adjust the plan

where needed

Copyright 2018 – Q1 Amazon Virtual Summit

How can Feedvisor Help?

Market

Pricing

Demand

Competition

GrowthTrends DecisionsAlgorithmsBig Data Smart

Analytics

Questions?

Aaron Ellis Technical Account Manager

Lotem AlonBusiness Strategy Expert

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THANK YOU