Dreyton S. Hilton

Hot take: Don’t focus on product unit margins to expand profit on Amazon. Focus on LTV instead. Say I successfully haggle my supplier down by 5% on production costs (this would be a huge win in supplier negotiation). Because of the markups you need to make Amazon a viable model, you probably only increased your margin by around 2%. If instead I spent that time getting new customers to buy 2 units on average throughout the year instead of 1, this would have a 10% to 30% impact on overall margin for the Amazon brand. Plus, it increases revenue at the same time. This is why LTV is so powerful and important. I just jumped on with Marc Piwko Romero - Senior Strategist at Sophie Society - to walk through how we use brand analytics to measure LTV for our brands and why it's so important for every brand to do (video below).   Amazon doesn't give you LTV directly, but it gives you related repeat purchase data that allows you to back calculate LTV yourself. What gets measured gets managed. Once you start measuring LTV, you will inevitably start focusing on how to improve it over time.   Enjoy - and if you want our tool that takes Amazon's repeat purchase data and spits out LTV, LACoS, and LTACoS, comment "LTV" and I'll send it over.

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Every Amazon seller knows that an unexpected bump in sales is only temporary. But, with the right strategy, it doesn’t have to be short-lived… Here are a few things you can do to keep the momentum and delay its decline: Before I jump into the explanation, it’s important to consider why a bump in sales always reverts back to the mean. - A bump in sales on Amazon results in a spike in your product’s sales rank. - As a result, Amazon sends you more organic traffic. - The higher traffic volume casts a broader net across your category, resulting in a slightly lower relevance — People are browsing the category broadly and potentially looking at related (but less similar) products. - This results in a lower Conversion Rate on that traffic: With the broader audience, your product tends to be compared to better-performing (or better-reviewed; or lower-cost) products. - Since you don’t convert as much of the traffic from that initial spike, you slowly lose your sales rank until you fall back to your prior rank. It’s the process of a marketplace equilibrium, if you will. The good news is that this sales rank decay process usually takes weeks, allowing a clever seller to capitalize on the temporary boost. Here are a few things you can do to prop up the sales number and prolong the decay: - Offer a coupon - Offer a discount on the product - Offer better shipping terms to buyers These strategies allow you to prop up the sales rank and, therefore, traffic volume, by artificially propping up CONVERSION. Your sales rank position can be held if your content keeps improving: Better images, better reviews, better prices, and better shipping. A related phenomenon happens on big sales days like Prime Day — Large sales spikes result in a sales rank shakeup. This means that this phenomenon can work the opposite direction as well. A sales spike from competing products may displace your product in the rankings, pushing the rank lower. Eventually, your reduced ranking will “decay in reverse”, returning your product to its original ranking (as the spiking products decay back to their pre-spike level). So, my parting advice is this: - Learn which marketing campaigns reliably trigger a profitable sales bump - When a sales bump does occur, capitalize on it and prolong it for as long as possible - Hold on tightly to your rank - - - - - Want to learn more about how to own your category as an Amazon seller? Follow me for weekly explainers, tips, and whitepapers 📦

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The future of your business might hinge on Q-Commerce. I've posted Quick Commerce growth statistics repeatedly. It's out-pacing the growth of virtually everything commerce related. But we might just be getting ramped up. McKinsey reports that Q-Commerce fulfillment costs could drop by 40%. Which means lower customer costs. And even faster fulfillment. (Like 7-Eleven's 10-minute goal.) Here are 5 Q-Commerce fulfillment technologies that are reaching an inflexion point: 1. Cognitive robotics. Amazon, others, expanding use of robots equipped with generative AI. 2. Autonomous vehicles. Walmart and Kroger are both piloting their fleets. 3. AI powered route mapping. FarEye, others, are using AI to power route mapping. 4. Drone delivery. Research & Markets predicts it to be a $29.06B Market by 2027. 5. Autonomous mobile stores. 1MRobotics' prototype is currently in Microsoft's Pegasus Program. If you're thinking, "this stuff will never happen", hang onto your knickers grandpa. Every single one of these is at least in the piloting phase. Participation in Q-Com shouldn't be overwhelming. In fact, it's easy. Lean into 3rd Party delivery platforms like Instacart and DoorDash. Lean into 1st Party delivery platforms like Kroger, GNC, Macy's, Whole Foods, or whatever retailers you're in. And just like that, you're in the game. ——— 🔹Driving retail velocity in Kroger, Whole Foods, Albertsons, Costco, Walmart, Sprouts, and More 🔹DM me or book an appointment for help! #ecommerce #retailmedia #retailvelocity #retail #cpggrowth #instacart #cpg #tradespend

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As a sales leader, I LOVE this post from Christian Krause talking about what you need to do in a discovery call. Often the most underrated meeting, I've seen far too many salespeople sleepwalk their way in & out of these meetings. In many ways, the Discovery call is the best meeting because it is where the salesperson gathers all critical information (Power?) to understand the Business Issue (Problem, Pain, etc.). Once you know those things, you can show the customer how you can help them (Solution, Value)! If you don't know their pain, the BUSINESS ISSUE, you shouldn't be trying to sell them!! Shout out to Joe Billelo for sharing! "go deliver freaking *value* on the 1st call" Let's Goooooo!!! #GetHyped #SalesManagement #ValueSelling

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5 ways retailers are surviving the Era of Amazon. There’s no question. Amazon is a monster. It did nearly 7% of total retail sales in 2023. (7% out of 1.06 Million US retailers.) It did 40% of total US E-com sales in 2023. (40% out of 27 Million online retailers.) And it owns the World’s largest cloud company. And Whole Foods, and a freight company, and ports… Yet somehow, a lot of retailers are thriving. Here are 5 strategies we can bet on (and learn from): 1. The ‘Treasure Hunt’. -> Retailers offer rotating options at high value. -> Ross, TJ Maxx, Home Goods, Grocery Outlet. 2. Careful curation. -> Shoppers know what they’re going to get. -> Abercrombie, Erewhon, Ulta, Saks. 3. First-to-Market. -> Customers can expect fresh and new lineups. -> Sprouts, Patagonia, Fresh Thyme, Fast Retailing. 4. Personal Connection. -> Employee connection is part of the experience. -> Chic-Fil-A, Nordstrom, Wegmans, Sephora. 5. In-store experience. -> IKEA, Tesla, Selfridges, Bonus: Skip-the-line options. -> Focus to curbside and delivery. -> 2 hour delivery, vs 2 day delivery. -> Walmart, Target, Instacart, DoorDash. Retail is not dead. But bad retail is dying. What Amazon-proof retailers am I missing? https://lnkd.in/ejrcptvw https://lnkd.in/e2aT4KBW https://lnkd.in/eu2PA8r9 https://lnkd.in/ebyhKsxU ——— 🔹 We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers. 🔹 We grow brands on Amazon. #cpg #cpggrowth #retailgrowth #retailvelocity #omnichannel #retail #amazonagency #retailmedia #shoppermarketing #instacart #retailtech

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If I were restarting selling on Amazon today Here would be my tech stack (on a budget) 👇 - Ownr to help set up my business registration - sellerboard or MerchantSpring for proper profit/loss statements - Data Dive Tools for product analysis, research & SEO - AMZ Prep for the logistics / FBA Prep (I'm so biased it's stupid) - TrueOps for refunds/reimbursements on Amazon (really good feedback so far and local Canadian company 🇨🇦 ) w/ Joel MacPherson, CPA - Oceans to recruit a remote team overseas for some work - Canva for the graphic design work (Destaney Wishon made a beautiful post on this) - Flieber for inventory forecasting (such an incredible tool for growing brands) - I love the founders of too many Amazon agencies, so I am not going to mention one here 😭 - Loop Financial for my banking in the US / Canada, cross-border exchange + eComm loans - Luminous (not on day 1, but as you grow over a few million) - they are the Netsuite for DTC brands. I see them becoming a top player. - For advertising / PPC, I'd do it myself to learn tbh but tools like Trellis, Perpetua, and Pacvue are good choices - Titan Network if you want a mentor group, heard great things about them - You can throw in a Helium 10 if you'd like for just overall data + Chrome extension I love promoting other brands and founders. Tag the best ones you know below that I missed 👇

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Ecommerce businesses I would NOT start in 2024: - Single SKU with no recurring revenue component. Too much pressure on first purchase and will crush your MER as you scale - AOV below $35. Too much pressure on CPA. - Anything in the game category. Board games, card games, etc. Too many copycats, Amazon-dependent, and the lowest quality customers in ecomm - Sexual health/wellness. All the restrictions on ad platforms as THC/CBD, without the astronomically high LTVs - Any brand with >10 SKUs that is NOT apparel/accessory. It's a drag on your P&L and overcomplicates your acquisition strategy/forecasting tenfold - Anything seasonal or gifting-driven (flowers, holiday, etc). Makes media buying a nightmare. - Any business where your average gross margin is less than 65% - Any non-vertically integrated "marketplace" style business where you aren't making the product yourself (see above) - Anything liquid. Shipping costs are too much of a drag on gross margin, and the beverage category is a nightmare to stick out in Do you disagree? Am I missing anything? Stay tuned for my next post, ecomm business I WOULD start in 2024 😀

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Time for part 2... Ecomm businesses that I WOULD start in 2024: - Supplements in underserved categories with massive TAMs and a demo that spends time on Facebook (think: cholesterol, menopause, etc) - Visually driven apparel (streetwear, escapewear, graphic tees, hats) is still the best category to scale on Meta if you have design chops. Low CPMs and unbelievably forgiving of poor website experiences - THC/CBD brands are well worth the compliance headaches thanks to their insane LTVs. You're literally selling drugs. - Anything in telemedicine/telehealth. Go after the long tail prescriptions that Hims & Hers/Ro haven't dominated yet. - Anything with a genuine R&D moat or a new form factor that isn't a liquid in an existing category ("the world's first _____" is compelling for ads, landing pages, and PR) - Anything in the pet category (zero price sensitivity, still growing) - Anything made-to-order or personalized, like astrology jewelery or personally inscribed products (this is a massive acquisition lever) assuming margins aren't terrible - Anything where you have a competitive channel advantage. Are you a paid search/SEO wiz? Launch a line of niche, high-priced chandeliers and dominate the search landscape - Any creator-led business where you're partnering with a celeb with a built-in, relevant audience who understands their role as a content creator for the biz

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What are the primary P&L expense/income buckets for a software company? For example, this is DTC. By just putting everything in these categories is pretty easy to manage P&L COGs DISCOUNT RETURNS SHIPPING INCOME FULFILLMENT SHIPPING COST ADVERTISING FIXED OPEX VARIABLE OPEX PROFIT What are the equivalent categories for software companies?

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Profitability is key, but not at the expense of long-term success. One of the biggest mistakes I see in Amazon advertising is focusing too narrowly on immediate returns—judging every click that doesn’t lead to an order as "wasted spend."  Here’s the truth: Not every click will convert. And that’s okay.  A click might lead to an "Add to Cart" or a "Save for Later." It could spark interest or create an opportunity for future engagement. These touchpoints are part of a larger ecosystem driving overall success.  When evaluating performance, it’s critical to look beyond spend. Metrics like average conversion rate and customer journey insights are essential to making informed decisions.  Advertising success isn’t just about short-term wins; it’s about building sustainable growth. Let’s shift the focus to strategies that deliver both today and tomorrow.  What metrics do you prioritize when analyzing ad performance? Let me know in the comments!  

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🚨 I’m looking for 5 to 7 ops leaders working to improve their inbound freight management processes to join a virtual roundtable we’re hosting later this month 🚨 Maybe you’ve figured out how to save money by working with multiple 3PLs and freight forwarders in parallel + you feel like your approach to holiday fulfillment this year is particularly dialed. Or maybe you are grappling with rising freight costs and are looking to connect with other leaders in the space who are facing similar challenges. This roundtable will be an opportunity to meet with a small group of peers working through the exact same issues as you — and you’ll have the opportunity to talk shop about what’s working, what’s not, and how to navigate the next few months. If you’re interested, there’s a form in the comments to let me know you’d like to participate.

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One of my favorite areas to dive into Amazon data is Search Query Performance Report and the swath of insights that can be found there. Two of my favorite use cases with this data (+ Helium 10): - Top 3 ASINs click share = what % of total clicks do the top 3 ASINs own on a given search term. This metric can be taken both ways. High = bad, a 'hard to compete' term. Or the opposite, high = good a term with really only a couple competitors. Either way, looking at who's owning the pie and why is critical. - Click to Conversion % ratio. This one is gold. Easy way to identify chinks in a competitors armor, or understand leakage from your PDP's due to content pricing, pack size, etc. This ratio shouldn't have a far off gap, and understanding what terms this ratio is 1:1 or greater can really empower you to make strategic assortment or advertising changes.

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Walmart DSP is quickly catching up to Amazon DSP. The gap keeps closing. Walmart’s innovative Demand-Side Platform (DSP) has helped it solidify its position in the ecom sector. In cooperation with The Trade Desk, Walmart offers unparalleled first-party omnichannel data including its 4,000+ physical stores. More and more Walmart brands are seeing the value in DSP. The relevance of Walmart's success with its DSP cannot be overstated for Amazon sellers aiming to stay ahead in the competitive marketplace. More US Amazon sellers need to jump onto Amazon DSP. Without it, they’re leaving money on the table. Here’s why embracing Amazon DSP is crucial for Amazon sellers: ⇒ It’s a strategic move to enhance online and offline conversions by leveraging unique store and online data, implementing features like geotargeting based on weather conditions. ⇒ Amazon DSP can significantly elevate a seller's advertising strategy by managing ad frequency across all campaign touchpoints effectively. This is especially relevant for targeting and retargeting consumers efficiently. ⇒ Sellers can target audiences more precisely thanks to advanced data analytics and user behavior insights. It provides a competitive edge, allowing sellers to use Amazon’s vast data troves for precise audience targeting. ⇒ The digital marketing landscape is increasingly data-driven. DSP optimizes ad placements and bidding processes in real-time, making them indispensable tools for modern sellers in highly competitive environments. ⇒ Cost-effectiveness is a huge one. Advertisers can manage budgets more flexibly and maximize outreach without significant financial commitments. This is particularly beneficial for SMB enterprises looking to expand their reach without exorbitant advertising costs. Amazon sellers MUST NOT underestimate the power of Amazon DSP. It's not just about staying competitive; it’s about leveraging advanced technology to predict, understand, and influence consumer behavior, thereby driving performance and growth. Integrating Amazon DSP into your marketing strategy is imperative to thrive in today’s competitive marketplaces. Want to dive into Amazon DSP but have no idea where to start? Reach out to us here on LinkedIn or through our BidX website! #AmazonDSP #WalmartDSP #Automation #SMB #AmazonAgency

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Massive Amazon Hack & Tip List - Day 139/365📝 Why you should NEVER negotiate with your suppliers: I've spoken with hundreds of sellers in the last month and I've discovered why negotiating with your suppliers is just a plain, no good, very bad idea. 1) They hate surprises! Most of them had one or two too many surprise birthday parties. And now any negotiating by you is sure to send them into a tailspin. 2) You're already at your lowest possible price. They couldn't possibly make the product for anything less. Don't you know they have four Maserati's to pay for? 3) Their cashflow is extremely strained and giving you net terms would 100% put them out of business. 4) Buying more and storing items at their warehouse is a terrible idea. There's just no space in their warehouse for your things. I mean, they've got to put their Star Wars memorabilia somewhere, right? 5) No way they'd do a volume discount. Suppliers like to produce the least amount of product possible. Less work for them! ♻️ Instantly Repost with a friend who needs to hear this :) See you back here tomorrow at 10:15 EST for the next one (I post at the same time every day) -- #amazonfba #amazonfbaseller #amazonseller

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Amazon v. Temu Historically, Amazon always tried to NOT be competitor focused, but this Amazon Haul launch feels like a reaction to a competitors offering. And that competitor may have already evolved. Amazon sells the Anker Prime 250W Charger for $169, Temu sells it for $34 less for $136. Both ship it from a US based fulfillment center in as fast as one day. If I search for the Anker Prime on Amazon Haul, it can't find Anker and suggests I search on Amazon. If I click the "search on Amazon" link, it just takes me to the Amazon home page where I have to repeat the search on my own. Temu claims that 25-50% of their goods are shipped from FC's already in the US. Haul ships everything China, taking advantage of the De Minimis provision (when that provision is at serious jeopardy of changing or going away). Temu has social proof and gamification that Amazon Haul does not yet have. And of course, Temu is all in a Temu. Amazon has a legacy business that they don't necessarily want to erode into Amazon Haul, so they have to be much quieter about their marketing/promotions. Lastly, Amazon has the siloed shopping carts for Amazon and Haul, while at the same time they are getting rid of the cart silos in Grocery (Whole Foods, and Amazon Fresh). I do admire Amazon's willingness to try new things, and of course they can be a fast iterator, so it won't surprise me if they iterate Haul into something powerful, but I'm not sure that version one is going to move the needle. One thing is for sure, with Salesforce forecasting that Chinese e-commerce sites (Temu, Shein, AliExpress, and TikTok Shops) will account for 21% of global E-commerce holiday sales outside of China, we are all facing a very different competitive market than just a few years ago.

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Holiday is always a busy time for Commerce news. Here are some of the key news items I'm tracking on LinkedIn this week:   Amazon Haul (Temu competitor) launched last week and is getting a lot of discussion this week. https://lnkd.in/g_4QiD7p Perplexity launched its “Shop Like a Pro” native commerce experience for AI Search this week, in partnership with Shopify. This has the potential to be a game changer for commerce. https://lnkd.in/gsjfMRqD   Walmart announced earnings. US Comp sales were up 5.3% for Q3. This compared favorably with the overall US Core Retail industry which grew 3.5% in Q3, but not as strong as Amazon’s estimated GMV growth in the US of 10%. Temu/Shein/Tik Tok Shops are likely growing much faster. Walmart e-commerce grew an impressive 22% (27% globally). Walmart connect grew 28%. Sam’s Club did even better with 7% US Comp Growth, and 26% e-commerce growth. Most encouragingly, they increased their full year guidance from 4.8% to 5.1% income growth. https://lnkd.in/gggWc7Ky   October retail sales data came in and was surprisingly strong with 4.6% year over year growth. That could either be a sign that we’re going to have a stronger than expected holiday (most forecasts are 2-3% growth for holiday), or it could mean that all the October sales pulled in demand, November and December are likely to be soft. https://lnkd.in/gvZQMW7K https://lnkd.in/giNM2XJM   We’re getting the first reads on November sales and it’s concerning. Earnest is reporting November (Nov 1 – Nov 13) sales are down 1.4% versus last year. If it proves to be accurate and holds for the rest of the month, this would be the first time November sales go down since 2008. There are clear winners and losers emerging for Holiday 2024. The Chinese DTC's are dominating (Tok Tok, Temu, Shein). Amazon and Walmart are near flat. A lot of the US specialty retailers are underwater. https://lnkd.in/gyv2jbbg   This lines up with Salesforce forecast that at one in five (21%) purchases this holiday season will be made on Chinese shopping apps such as Temu, Shein, AliExpress, and TikTok.

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How to Avoid Amazon Long-Term Storage Fees? Yep, Amazon will charge you if you have stored items in their warehouses for more than 180 days. The rates vary depending on how long the item has been in storage: 181-210 days: $0.50 per cubic foot 211-240 days: $1.00 per cubic foot 241-270 days: $1.50 per cubic foot 271-300 days: $3.80 per cubic foot 301-330 days: $4.00 per cubic foot 331-365 days: $4.20 per cubic foot So, how can you avoid this fee? The simplest answer is to project your sales out so that you can forecast your inventory needs. But I know Amazon is super competitive now, especially for a new seller. So, my advice is to "know yourself, know your market": - Forecast demand for your product (you can use sales data and trend forecasting). - Watch your inventory like a hawk. Add discounts and flash sale campaigns to clear inventory if needed. - Take advantage of Amazon's removal and liquidation programs to clear out excess inventory. - Use inventory management tools. I've created a cheat sheet with all the information you need to know to avoid Amazon long-term storage fees. Check it out below. P.S. If you are having problems with Amazon's long-term storage fees, book a FREE consultation with us here: https://lnkd.in/g5BmPqGU Our goal is to simplify Amazon selling for you.

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Selling on Amazon is Getting Difficult? Think Again… The New Fees in 2024 are going to bring some serious improvements. Amazon has introduced new fees in 2024, including: → Referral fee reductions for apparel products priced below $20 → FBA fulfillment fee changes → FBA monthly storage fee and aged inventory surcharge changes → FBA New Selection program changes → FBA fee changes for removals, disposals, and manual processing fee Amazon has also reduced fees in certain areas and removed others. For example, off-peak monthly inventory storage fees for standard-size products will be reduced by $0.09 per cubic foot starting April 1, 2024. Additionally, Amazon has removed some fees, such as the high-volume listing fee for sellers with fewer than 100,000 products listed. #amazonseller #ecommercegrowth #feechanges #amazonupdates

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