How Amazon merchants can learn from Prime Day and prep for the holidays
It’s no secret that Amazon Prime Day 2017 set new records for both Amazon and its merchants. In fact, sales soared over 60% compared with last year’s Prime Day. Granted, all that exposure is great, but when merchants forfeit such significant portions of their margins to Amazon in fees alone, what other ROI can they glean from selling on the world’s largest marketplace on its biggest day of the year? At the very least, merchants can learn from their Prime Day data and adjust their strategies to fully maximize sales during the upcoming holiday season. Here’s a 5-step plan for priming those profits:
1. Get a sense for overall profit:
After deducting marketplace fees, shipping costs, and promotions, calculate the profits (or loss) of your top-selling items
2. Learn what the optimums were:
For each SKU you sold, plot out all your final selling prices and units sold at each price — the results should look like a cloudy curve.
Now, take those sales prices and remove all the costs associated with each product (cost of the product, shipping, marketplace fees, etc.) and you’ll get a new curve that shows profit per item and units sold.
Multiply the units by the price for each of the curves and you’ll be able to find price points that drove maximum revenue (first curve) and maximum profit (second curve). These should be your book-ends for future pricing of the SKU.
3. Fix issues before the holidays:
Check in with your logistics team or provider to figure out where things broke. Were there late shipments? Out of stock items? False alarms because data wasn’t updated between systems?
Understand what caused those problems. Maybe a disorganized warehouse, orders got lost, technical difficulties, system delays, under-staffing.
Find a solution and a backup before the holiday rush.
4. Be better prepared for the Holidays:
Take results from steps 1 and 2 and use them to update your projections for the 2017 holiday season.
5. Once you’ve optimized the third step, update again and enjoy feeling prepared for a great holiday season!
Originally published in eCommerceBytes. Learn how Webgility’s Unify platform can simplify your retail operations.
How this neglected and abused role is really the secret savior of modern business
Looking around at job boards, I see two trends in the area of user research:
More businesses are hiring for this role and skillset
Most companies fill this position later in their lifecycle
We live in a world where user research must be a priority and appear earlier both in a company’s lifecycle and in a product’s lifecycle. Very similar to other tacit roles like product management and UX design, companies assume that the skill or function gaps of the position are being covered with overlapping roles from other departments. Take Product Management, for example. Before a company hires their first Product Manager, they assume the engineering, marketing, and executive teams are performing all the core Product Management functions. Somehow, this disparate group is expected to handle the wide ranging functions of a Product Manager, but it often falls short to the detriment of the entire company.Given their importance, why do user research roles show up at larger companies too late? #Unify Click To Tweet
Most of us know the unfortunate reality of using a product that was designed with user experience as an afterthought—it’s just no good. But that’s exactly what results when a designer gets their first crack at improving the experience only when the product is in the final stages of engineering instead of when it’s in first-draft or just a fledgling idea. Of course the product will be lackluster, even after the designer wages a harrowing yet futile battle to make it useable and beautiful. Continue reading →
Clean, graphical UI offers more insights, clearer calls to action than ever before
Today we unveiled a powerful new dashboard for our flagship product Unify, giving users more insights and clearer calls to action than ever before. This is the first of several product releases aimed at helping retailers like you easily take the next right steps for their e-commerce business. Unify is known to be the first e-commerce solution that connects and unifies all revenue streams and expenses so multi-channel businesses can have better perspective, make smarter decisions, and run all operations from a single view. And now it’s even easier to use.
Helping our customers conquer the challenges that come with being multi-channel and letting them run and scale their business exactly the way they want, Unify connects their financial data rather than forcing them to switch platforms. With this new dashboard, Unify users can access visualized data from across their entire company, showing quickly what is in sync and what is not across their sales channels and accounting. The Unify dashboard offers a clear call to action, suggesting next steps based on analytics and behavioral psychology insights gained from users’ past business decisions. For example, with one look, e-commerce leaders can tell if their sales and inventory levels are properly aligned, and—if they are not—receive a suggestion for how to correct the problem. Future iterations of the dashboard will propose more actions and provide additional recommendations.
By illuminating and explaining what needs to be done to move your business forward, the new Unify dashboard brings increased intelligence, engagement, and psychological motivation to e-commerce businesses. Unify is designed to gather all information to one place, and now we have taken the next step and making it easy for companies to quickly engage with and act on that data. As we reach the peak of the holiday season, this agility will be critical to our customers’ success.
The new Unify dashboard is now available to all current customers.
Given the complexity of the payment system and the important part it plays in your business, it’s no wonder there are so many different fees associated with a simple transfer of money. When you add up a year’s worth of sales, these fees can be alarming. Some of the most common payment processor charges retailers find themselves responsible for are the start-up or annual fee, monthly statement fee, discount rate, transaction fee, batch processing fee, minimum monthly fee, gateway fee, chargeback fee, address verification fees, and termination fees. Continue reading →
What’s going to set your business apart from the masses?
There’s no denying the tech world, regardless of industry, has had a messy love affair with the buzzword “disruptor.” Disruption in the world of e-commerce usually means selling or manufacturing something that changes the nature of the product, how the product is sold, or that product’s industry at large. For example, selling mattresses, razors, or eye-glasses online introduces much needed competition and variety to these formerly fallow brick-and-mortar industries. In spite of, or likely because of, the over-use of the word, it’s time to take a deeper look at what it really means in the world of e-commerce to be a disruptor.Can you identify the next #ecommerce #disruptor? It may save your #business. #unify Click To Tweet
Amazon was perhaps the first large-scale e-commerce disruptor, at first tackling an arguably entrenched and highly regulated book industry. One could view the situation as Amazon starting with one category and optimizing the heck out of pricing and the sales process to get adoption in the market. Another perspective is that Amazon understood what a majority of book-buying customers wanted: ease of discovery and purchase, low price, and fast results. Any way you look at the scenario, it worked. Read the rest of the article on Retail Info Systems News.