THE 2015 GUIDE TO FULFILLMENT BY AMAZON
Featuring the New FBA Fee Structure
for 2015
THE 2015 GUIDE TO FULFILLMENT BY AMAZON
How Professional Sellers Can Strategically Implement FBA
Table of Contents
Introduction
3
Fulfillment By Amazon: The Basics
5
How FBA Affects Product Discoverability & Buyability
9
FBA Fees
20
The Pros & Cons Of FBA
28
Conducting A Catalog Analysis For FBA Inventory Selection
35
Final Thoughts
39
Appendix
43
Copyright ? 2015 CPC Strategy & FeedVisor
The Fulfillment By Amazon Guide: How Professional Sellers Can Strategically Implement FBA
3
Introduction
"Amazon Optimization" is not a term seen very often, but it's a very real concept that professional and sophisticated Amazon sellers are reaping the benefits of. Just as an ecommerce store would invest time and resources into optimizing campaigns for Google Shopping, PPC text ads, affiliate marketing, social advertising, or retargeting, Amazon is a sales channel that should receive a well-thought-out, comprehensive strategy focused on growth--and deservedly so.
For a brand or reseller, Amazon--along with Google--is the top online destination where highintent retail queries are occurring, so it's vital that a seller's offers are front-and-center when a shopper indicates a high likelihood of converting.
This white paper dives into arguably the single most influential "lever" third-party sellers can pull to optimize their Amazon strategy: the Fulfillment by Amazon program, or FBA for short.
Knowing which segments of inventory to deploy for FBA is a huge advantage in both driving sessions to listings and owning a higher share of detail page conversions.
Copyright ? 2015 CPC Strategy & FeedVisor
The Fulfillment By Amazon Guide: How Professional Sellers Can Strategically Implement FBA
4
The Amazon Plateau
A discussion of Fulfillment by Amazon should begin with a discussion of a concept that many Marketplace sellers encounter before ever even considering FBA. This concept is called The Amazon Plateau.
The Amazon Plateau is a late-stage phase that most Amazon sellers languish in. The narrative has been retold many times before:
A seller has either a great, unique product or a wide assortment of wholesale inventory, and so they decide to sell on the Amazon Marketplace ? the largest online marketplace in the world. The products are simply "thrown up there" and the seller sees what sticks, checking in on performance every now and then. Sales start to come in consistently. That's it.
Without further optimization, the seller will hit the proverbial wall. The Amazon Plateau is a long-term period of stagnant sales growth due to the seller spending the majority of their time "in the weeds," focusing primarily on operations and not on strategic insights.
The result? Customer service overburdens the seller's already limited resources. The competition consistently dominates Buy Box share. Top selling products aren't receiving enough visibility on the Amazon SERP (Search Engine Results Page). Sales become flat-lined.
This is why a powerful, controllable lever like FBA is such a significant piece in a seller's overall Amazon Marketplace strategy.
Confused Uncertain Frustrated Inefficient Stagnant
Sales
Copyright ? 2015 CPC Strategy & FeedVisor
Fullfilment by Amazon:
The Basics
Copyright ? 2015 CPC Strategy & FeedVisor
The Fulfillment By Amazon Guide: How Professional Sellers Can Strategically Implement FBA
6
Fulfillment by Amazon: The Basics
Adding a strategic layer that sits on top of Amazon operations is the solution to surpassing the Amazon Plateau. While there are many aspects of Marketplace management that can be evaluated and improved, one of the most immediate and significant changes a seller can make is utilizing Fulfillment by Amazon for key catalog segments.
What is FBA?
Fulfillment by Amazon is a program where third-party Marketplace sellers can leverage Amazon's expansive and efficient fulfillment infrastructure to:
Warehouse units Pack and ship orders to customers Provide customer service for those orders
FBA services cost an extra percentage of the order ? on top of the existing Marketplace referral and variable charges (see page 21). FBA can actually be used for fulfillment on channels outside of the Amazon Marketplace (ex. the seller's site, eBay, etc.), but this white paper will focus on FBA's role in the Amazon Marketplace only.
Copyright ? 2015 CPC Strategy & FeedVisor
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