Category Archives: Seller Central

Understanding the Amazon Inventory Index – The Magic Score of 350

I’ve been getting a lot of questions about whether inventory will be limited, and when the magic date comes into effect for FBA inventory limitations. With the new FBA Inventory Storage Limits, if your Inventory Performance Index is less than 350 for six weeks before the end of a quarter you will be notified of your potential storage limits. If your score is still less than 350 on the final day of the quarter, the limits will apply for the next quarter. This means that your score of less than 350 for six consecutive weeks before the current quarter ends and at the end of the current quarter will have a limited storage.

In order for your FBA Inventory Storage Limits to be unlimited, you may need to maintain your score of 350 or greater than for standard-size, oversize, apparel, and footwear items. You will only have storage limits if your Inventory Performance Index score is less than 350 six weeks before the end of the current quarter and on the last day of the current quarter. In this example, you would not have storage limits if your score is more than 350 first score check which is six weeks before the quarter ended or the final score check.

Quarterly storage limits are based on 1) your sales volume, 2) your historical Inventory Performance Index scores, and 3) available fulfillment center capacity. Sellers with consistently higher scores will receive higher storage limits, adjusted for sales volume and available capacity. When setting limits for an upcoming quarter, both your recent sales volume and seasonal volume from the last year are considered.

Seller Central Help File: https://sellercentral.amazon.com/gp/help/GXLRKWL8L5BMSHWB?referral=A3TI3F8839JJFF_A2VMNEEYCY3YGZ

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Amazon 2018 Prediction of Massive Seller Acquisition & Mergers MyAmazonGuy + Seller Accountant

Steven Pope (MyAmazonGuy) teams up with Tyler Jefcoat (Seller Accountant) to discuss their prediction that here will be a massive amount of acquisitions and mergers in the Amazon Seller world in 2018 and in the next 3 years. Investors are starting to gobble up brands selling on Amazon, typically brands that are 80-90% of their sales specifically on Amazon.

Amazon is entering the maturity phase.

Image result for maturity phase cycle

Amazon is entering the maturity phase.  Amazon has grown grown grown and now it’s maturing. What happens when a company like Amazon matures is they make it harder for sellers to participate as a seller on Amazon. Barriers and additional rules like Hazmat reviews, gating, higher threshold metrics that accounts have to adhere to, and increasing fees. It’s now ripe for sophisticated sellers to gobble up competition and bring additional resources into the same house. Investors can bring 5-20 different Seller Central accounts into the same company and have on person to run the following areas just like a single company:

  1. Marketing & Sales
  2. Accounting & Finance
  3. Merchandising & Product Growth
  4. Customer Service

By bringing multiple brands together, you can have deeper expertise focused in these areas. You can have a rockstar (who you pay exceptionally well) run all the accounts in any of those specific job function. As a single account you wouldn’t be able to afford that expertise. But as a group, you have one person over each of those areas.

So watch our discussion so you can learn what it means for you as an potential investor, or a seller (regardless of whether you are selling your business):

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How to look up a trademark with United States Patent and Trademark Office

Getting a trademark is more important to your business than ever. A trademark protects your products and your brand. Without it, you have no recourse to another person or company ripping off your stuff.

Today it’s never been easier to order something off Alibaba Express and start selling an item. We live in the Amazon private label age. If you spend time and money investing in a new idea and don’t get a trademark or patent in place, someone can start selling your exact product and piggy back off your success.

Sometimes even on your own Amazon listings they’ll show up with knockoffs. That not only damages your brand and product, but it could put pressure on your pricing and hurt your margins.

Trademark leads to Brand Registry on Amazon

Having a trademark allows you to get brand registry on Amazon, and you can report products and the sellers of those products for infringing on your trademark. The Amazon brand registry also allows you to build enhanced content, advertise headline ads, open a storefront with a vanity url of www.amazon.com/(your_brand_name_here), and better control your data.

It’s easier to get a trademark than a patent, so at bare minimum get a trademark in place for your brand. Trademarks currently heavily impact success on Amazon. In the near future they could impact other marketplaces and websites as well.

This video walks through how to look up a trademark with the United States Patent and Trademark Office. Which is a starting point for figuring out whether a trademark is in place for your brand name.

  1. Go to https://www.uspto.gov/trademarks-application-process/search-trademark-database
  2. Click “Search Trademarks” (lands you at http://tmsearch.uspto.gov/bin/gate.exe?f=tess&state=4810:tt6qdr.1.1)
  3. Click “Basic Word Mark Search (New User)”
  4. Type the name of the brand or trademark in, it is case sensitive.
  5. Find the live trademark in question to find the needed information.

You will need to do this if you’re trying to figure out if a brand has a trademark, whether you want to create a trademark, of if you have an Amazon account and want to file for Brand Registry but are unsure if a trademark exists.

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Amazon Accounting – Interview with Tyler Jefcoat CEO of Seller Accountant – Profit, Taxes, Books

I sit down with Tyler Jefcoat, CEO of Seller Accountant, which does ecommerce bookkeeping. As both an Amazon business owner and Amazon consultant I ask Tyler about several important areas that impact Amazon sellers and business owners.

1. How to calculate profit
2. When you should you start paying yourself, take profits?
a. Is it pie in the sky? Can you do both?
3. Importance of quality books
4. What is the best way to manage cash?
5. How to make investment decisions? Weather storms vs investing in growth and automation efficiency and profitability of business.
6. Sales tax properly

Important accounting questions to ask yourself: Will it increase my sales/save me time?/speed velocity to collect money/improve quality of life?

Measure every quarter with every expense for each of those questions.

https://www.taxjar.com/ – automatically file tax quarterly/monthly. Where are the states you have nexus in?

You can reach Tyler for a free ecommerce accounting consultation at http://selleraccountant.com/

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Pros and Cons of Starting Your Own Amazon Account vs Leveraging Another’s

It recently dawned on me after setting up a couple dozen seller central accounts that not every seller really needs their own account. And while there are pros and cons to both options, starting your own account, vs leveraging another seller central account, many first time sellers may want to consider using someone else’s. What I mean by using someone else’s seller account is – sell your products at wholesale to another retailer on Amazon. Or give them a rev share. They handle keeping stuff in stock, all the customer service messages, reviews, marketing etc.

You can open a Seller Central account here.

If you are a manufacturer or wholeseller and have never sold on Amazon before, you should at the very least hire a consultant (such as myself…). Whether you launch your own account, or leverage another seller’s depends on your mission and resolve.

 

 

 

 

Pros of using your own seller account:

  1. Visibility into daily sales
  2. Control
  3. Everything is tied to single tax id
  4. You can spend more marketing dollars out of your own pocket

Pros of leveraging another’s account:

  1. Save $40 per month in Amazon seller account fee
  2. Less time required and far less setup
  3. Customer service messages, shipments, and other items are more easily handled for me as a consultant (less $ you have to pay me)
  4. Faster sales velocity due to prior account history
  5. Marketer likely knows how to better spend dollars to get sales

How many skus do you have?

  1. If you have 10 or less skus and sales under 50k a year – you should use someone else’s account.
  2. If you have 10+ skus and sales over 50k a year – you should be on your own seller central account.

Distribution control and MAP can also impact which direction makes the most sense.

Problems that can come up when you open a Seller Central Account:

  1. Identity documents Amazon requests don’t match and you can’t finish setup
  2. Multiple accounts. If your email or phone number are attached to another seller account you may get flagged and unable to sell.
  3. Bad bank account information
  4. Tax ID issues

If you run into any of these issues I can help you sort them out steven@myamazonguy.com

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