Welcome to another episode of The Ecommerce Braintrust podcast hosted by Acadia’s Head of Retail Marketplaces Services Julie Spear.

Today we’re joined by Senior Retail Marketplaces Account & Operations Specialist Tamara Vukovic to discuss the impact of the updated Amazon fees rolled out this year and how brands can navigate these changes effectively.

With these fresh updates, this episode aims to decode the new fee structures and provide practical strategies for optimizing operations amid evolving landscapes.

Make sure you tune in to find out more!

KEY TAKEAWAYS

In this episode, Julie and Tamara discuss:

Introduction of New Amazon Fees

• Reduced referral fees for apparel under $20.

• New size bands for small and large standard tiers; changes in FBA fees.

• Introduction of inbound placement fees.

• Introduction of low-level inventory fees and adjustments in storage fees.

• Introduction of return processing fees.

Impact on Sellers

• Apparel sellers benefited from reduced referral fees.

• Adjusting to new FBA fee structures based on updated size tiers.

• Operational and inventory management shifts due to inbound placement and low-level inventory fees.

Overblown Concerns

• Impact on operationally efficient vs. inefficient sellers.

• Adjustments to prep, removal, and disposal fee changes with minimal disruptions for optimized operations.

Incentivization Through Fees

• Fees designed to encourage better operational decisions rather than just increasing costs.

• Emphasis on supply chain efficiency and optimal inventory management.

Advice for Brands

• Importance of inventory management and planning.

• Utilizing Amazon's tools and data for product improvement and efficiency.

• Regular auditing of supply chain processes, internal logistics, and operational strategies.

• Proactive adaptation to ongoing and future changes in Amazon's fee structures.

Welcome to another episode of The Ecommerce Braintrust podcast hosted by Acadia’s Head of Retail Marketplaces Services Julie Spear.

In this episode, we’re joined by Claire McBride, the VP of Research and Education at Stratably, to discuss the Amazon Vendor Negotiation (AVN) Benchmark Report.

Authored by Claire alongside Martin Heubel of Consulterce, this report dives deep into the AVN process, offering valuable insights and benchmarking data for brands looking to navigate their negotiations with Amazon more effectively.

Tune in to discover key takeaways, strategies, and trends that can help you prepare for next year's AVNs.

KEY TAKEAWAYS

In this episode, Julie and Claire discuss:

• The stress and lack of transparency that many brands experience during AVNs.

• The purpose of the benchmark report.

• Data gathered from 252 brands, split between North American and European vendors.

• Surprising Findings: Brands are becoming firmer in resisting trade term increases.

• 9% of brands achieved a year-over-year decrease in their trade terms and 61% of brands avoided a decrease in overall margins.

• The main challenge continues to be securing favorable trade terms.

• Disparities in AVN experiences between various types of businesses, with food and CPG brands facing tougher negotiations.

• European vendors had a more challenging AVN experience compared to North American vendors, potentially due to Amazon's margin improvement efforts.

• Preparation and data gathering are crucial for a successful AVN.

• Brands that are growing faster or are highly profitable had better AVN experiences.

• Build a healthy Amazon business year-round to ease the AVN process.

• Do extensive homework and preparation before entering negotiations.

• Embrace Amazon's unique, data-driven negotiation approach for better outcomes.

• Potential trends in AVN processes becoming less formal due to understaffing at Amazon.

• Importance of leaning into the challenging aspects of AVNs and Amazon as a whole to gain an edge in the marketplace.

Welcome to another episode of The Ecommerce Braintrust podcast hosted by Acadia’s Head of Retail Marketplaces Services Julie Spear.

This week we’re sharing a high-level conversation about bid management in Amazon's advertising ecosystem with retail media experts Jordi Beltran and Carlos Sastre.

Join us to discover the nuances of bid management, its impact on budget allocation, and how campaign architecture plays a vital role in optimizing brand performance.

Make sure you tune in to find out more!

KEY TAKEAWAYS

In this episode, Julie, Jordi, and Carlos discuss:

• Budget Distribution: The need for a clear structure in budget distribution and campaign architecture to control investments and achieve campaign objectives.

• Campaign Objectives: Importance of having focused approaches for each campaign to maximize efficiency and return on investments.

• CPC Analysis: The significance of monitoring Cost Per Click (CPC) and budget management to maintain campaign efficiency.

• Signs of Poor Structure: Identifying accounts with hundreds of products or keywords in a single campaign as a red flag for inefficiency.

• High Competition Categories: The importance of strategic bidding in competitive categories where clicks can be expensive.

• Conversion Rates: The need to understand the conversion rates of products to avoid overspending and optimize bids for better returns.

• Bid Placement Modificator: Adjusting bids for top search placements can drastically improve campaign performance.

• Campaign Bidding Strategies: Carlos advises using a "down only" bidding strategy for better control and efficiency.

• Automation Trends: How Amazon is evolving towards more automation and goal-based bidding, similar to trends seen in other advertising platforms like Google.

• Algorithm Improvements: Jordi highlights the improvements in Amazon's algorithm and the potential benefits and drawbacks of automatic campaigns.