Download - 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


9Copyright 2018 – Q1 Amazon Virtual Summit

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


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Planning framework

Goals

Execution How do we get there?

What do we want

to achieve?


IntentWhy are we

doing this?

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Intentions for 2018


Reduce shipping costEnlarge offering of

new items

Focus on high moving

profitable items

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Planning framework



GoalsWhat do we want

to achieve?

IntentWhy are we

doing this?

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Setting SMART goals



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



GoalsWhat do we want

to achieve?

IntentWhy are we

doing this?

18Copyright 2018 - Q1 Amazon Virtual Summit

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


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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


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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?


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


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

Download - 2018 Amazon Virtual Summit - Day 2

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