2020 Q4 Prep

3. Inventories Need Purging

Now’s the time to check your stock for items that might be forbidden. Think promo units, expired perishable items, inventory marked for disposal, or items with expired test certificates. Also, double-check your invoices before you list any units. Make sure that every invoice is itemized and issued by an authorized supplier.  

While you’re at it, take time to downgrade items. Some may have acquired visible signs of shelf wear since they were listed. To avoid further damage, consider shrink wrapping them. With another wave of suspensions right around the corner, it’s crucial that you remember the #1 rule of listing on Amazon: New means New. 

4. Generous Return Policies

On Amazon, orders shipped this year from Oct. 1 to Dec. 31 can be returned until Jan. 31. Sellers are expected to match this offer. But don’t assume a generous return policy means you’ll lose money. Research shows that the longer the return window the less likely buyers are to return. So, be sure to check your return policy. 

To make sure your Return Dissatisfaction Rate doesn’t go over the 10% threshold, be sure  to point out to your readers the basic rules of Amazon returns, as explained on the official help page. Phrase your return policy so that it’s easy to understand and spell out these 3 simple rules:  

• gift-wrapping costs are non-refundable.
• you’re only obliged to refund the cheapest shipping service you offer.
•  you can deduct shipping costs if you offer a personalised pre-paid return label. 

5. Restocking Isn’t Cheap

Amazon’s MFN restocking fee policy has changed. As before, you must process refunds in 48 hours. But you can’t withhold money from the buyer willy-nilly. The item must have been used, damaged, or returned out of policy. Note: you need to upload a photo of the item if you’re charging the buyer 20% or more to restock. 

When you price your item, be sure to factor in this wear and tear. Also include the cost of keeping a Before & After database for Amazon. Also, while MFN returns are more transparent and fairer to sellers than FBA returns, the same 20% Refund Administration comes out of your pocket, whichever fulfillment method you use. 

6. Smart & Fair Pricing

Which brings us to the issue of pricing. COVID showed us there’s a fine line between getting one over your competitor and breaking Amazon’s fair pricing rules. With a wave of suspensions imminent, now is not the time to push Amazon’s buttons. The best way to win the Buy Box and drive marketplace sales safely is Sellery.

For one thing, Sellery can make sure you don’t violate Amazon Fair Price Policy with a misleading or unreasonably high price. And it prevents you from breaking Minimum and Maximum Price Validation rules with a price 6 times higher than normal. Simply set a rule based on the MSRP. Sellery will carry it through. 

Sellery can also help you avoid the kind of price wars where competitors lure you into price gouging. Using competition filters, you can select the kind of merchant you want to compete against (e.g. FBA seller, vendor, SBA). You can also ignore competitors with high-risk price levels or blacklist specific sellers altogether. 

Also, you can set up Smartlists for risky items and monitor their prices. So, for instance, when the competition dwindles, you don’t hike up your price right away and catch Amazon’s eye. Instead, you can let Sellery increase the price gradually and safely to maximize profits while avoiding a suspension. 

7. Impulse Buyer Demographics

Shopping online and impulse buying tend to overlap. Finder says 88.6% of North Americans ended up spending impulsively online last year. Oddly, couples buy the most, but separated people spend the most on impulse buys. All the more reason for you to focus on these buyer groups when you list and price items on Amazon. 

8. Location, Location

Finder also claims that online impulse shopping is widespread in some states. For example, over 10% of the people who live in Florida, Ohio, and Illinois have developed a daily online shopping habit. Also, Floridians, Michiganders, and Alabamans splurge the most online. So, why not adjust shipping options for these states?

9. Penchant for Private Label 

According to a poll carried out last year by IRi, most shoppers are bargain hunters and private-label buyers, regardless of income bracket. But eMarketer says a fifth of US adults put off buying big-ticket items this year. So, those who weren’t financially hit this year have even more to spend on private-label items in Q4.

10. Boost in Bargain Hunting 

Valassis claims that more and more young adults across the USA think of themselves as impulse shoppers. This year, the percentage grew to 35%. And despite the pandemic, nearly half of young adults actively seek coupons and discounts to buy fun things. Hence the importance of vouchers and listing on Amazon Outlet.

11. Untapped Markets

According to the Harris Poll “COVID-19 Wave 24”, 39% of low-income adults had no plans to purchase anything in the near future.  But a recent article shows that US adults who earn over $100k are far more eager to buy clothes, electronics, and sports gear this Q4 than other groups. 

12. Overarching Values

But Valassis also points out that youngsters are more likely to base their buying decision on a company’s values. Millennials and Gen Z are particularly picky. They try to connect with a brand’s corporate values before shopping. To showcase your values, look into FSC certificates or even the Climate Friendly Badge.

13. Toy Selling Toils

This year’s Holiday Selling Requirements in Toys & Games are clear. Merchants who want to sell FBM toys between Nov. 2, 2020 and Jan. 3, 2021 must fulfil five conditions to be eligible. With less than a week to go, sellers must avoid cancelling and shipping late to keep those 3 important performance metrics in check.