The Importance of a Healthy Inventory During the Holiday Season

The holiday season is the busiest time of year for ecommerce businesses and retailers alike, all looking to maximize their sales during this special time of year. The most effective way to maximize your holiday season is through a robust inventory that is functional year round, but particularly during the holidays. It’s easy to get wrapped up in the excitement of sales, but it is critical to remember that inventory management is a core responsibility that cannot be neglected.   

What is a healthy inventory?  

A healthy inventory can be deemed fit if it possesses optimal stock levels, has the right percentage of each product given present and future demand, and has no unsellable goods in stock. In regards to the holidays, “Brands need to ensure that they have enough product to get them through the busy season and a bit more for the new year,” says Jessie Kunkel, Amify’s Inventory Manager, as she stresses the significance of having a safety stock during the merry months. A safety stock (inventory that serves as a buffer in the event of a sales increase) is indicative of a healthy inventory because it demonstrates that an organization has done its research and is anticipating the future.   

Why is it important to have a healthy inventory?  

It is essential for retailers to hold inventory at the top of their priority list. Not having inventory means that a company is not generating sales, which ultimately jeopardizes the longevity of the organization. It is much better for an inventory team to be proactive rather than reactive to avoid costly sales losses that have the potential to ignite a chaotic, internal fire.   In addition to the preceding premise, a healthy inventory is important because it makes cash available for other company expenses and operations. When an inventory is unhealthy, capital is tied up in stock that is expensive to acquire and hold. Inventory is expected to be sold, but when it doesn’t, its value and projected profit is inaccessible.   Having a healthy inventory is important because it allows an organization to compile accurate financial reports. Companies that have an inventory to manage must reference their inventory against accounting data to prevent major discrepancies, which is critical information for investors and shareholders. An unhealthy inventory and inaccurate financial reports may cause stakeholders to withdraw their assets, resulting in another house fire.  

How to achieve a healthy inventory? 

 A brand can have a healthy inventory by avoiding stockout, also known as running out of stock. Not only does running out of stock cause companies to miss out on the money generated from individual sales, but it also causes companies to lose customers permanently, which is an even greater loss. The key to prevent going out of stock is to forecast the right stock and the best sellers. Predicting which inventory elements need to be purchased ahead of time means that high-demand products will be readily accessible when the crazed customers are geared up to make their holiday purchases.   Additionally, a company can have sound inventory by avoiding overstock. When there is an overload of certain items it can be extremely difficult to get rid of the overstock due to a couple of factors. For starters, unsold inventory tends to go out of style the longer it sits on the shelves. Furthermore, products that linger around storage units have a higher chance of getting damaged or stolen. As a direct result of overstock, brands will have to write off or discount costly inventory, dramatically affecting their bottom line and revenue streams. Nonetheless, meticulous forecasting can save the day before the flame even recognizes its potential. Referencing historical sales reports from years prior can give brands the insight they need to purchase the right assortment of product based on the seasonality of their items.   The online retail industry is already well into the holiday spirit and it is particularly imperative for brands to have a healthy inventory, otherwise they will miss their window to send in product and capitalize on the societal notion of holiday consumerism. To learn how Amify can whip your inventory into shape this holiday season or the next, get in contact with one of our experts today!

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Spending Statistics Year Over Year

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On November 13th, Amazon officially announced that Crystal City, Virginia and Long Island City, New York will be the new homes for Amazon’s second headquarters. Amazon HQ2 is expected to create thousands of new jobs and billions of dollars in investment in the surrounding communities. It is safe to say that lives and cities will forever be changed and Amify plans on benefiting from Amazon’s most recent business move.   

PROXIMITY

 Did you know that Crystal City is less than two miles away from Amify’s Alexandria headquarters? Once construction is completed, Amazon and Amify will essentially be next-door neighbors, sharing business-related thoughts and bonding over the success of the online retail giant.

 PRESENCE  

Secondary to proximity, Amify will be more visible in the eyes of Amazon and its associates after their move to the D.C metro area. As a direct result of Amify physically being at the doorsteps of Amazon’s new residence, Amify will be able to forge relationships with the ecommerce legend. As meetings are held and Amazon becomes more familiar with Amify, Amify will be in the ideal position to grow its influence in the ecommerce industry and be recognized by ecommerce experts far and wide.   

INSIGHT  

Another point of leverage that Amify will benefit from is gaining insight into Amazon’s future moves and decisions. As next-door neighbors, the walls are thin and the flow of information is constant. Amify will be in a better position to gain insight on Amazon before news is released to the public, giving Amify the upper hand over many third party sellers.  

 INVESTMENT  

Like the Batman signal casted up into the sky, investors and ecommerce professionals alike will be galvanized and unable to turn down the opportunity of getting a foot in the revolving Amazon door. In due time, the DC metro area will be enriched with the finest ecommerce experts who are willing and eager to make the most out of the cards at hand. Having a new and exciting Amazon presence in Amify’s backyard sets the stage for further ecommerce investment, leaving continual growth for all parties involved as the likely outcome.   When times change, it is wise to adapt and move with the current. What is even wiser is to take advantage of that change and benefit from all the aspects that come along with it – that is what Amify plans to do, welcoming Amazon with open arms.   Be at the forefront, work with Amify today!  

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Ever find yourself unable to make changes to your product listing on Amazon? Unable to fix incorrect product information? You likely need the permissions only granted with Amazon Brand Registry. Amazon Brand Registry is a program designed to help brands protect their intellectual property and “create an accurate experience for customers on Amazon” (Amazon, 2018).   

How Does Brand Registry Work?  

The Brand Registry exists to help protect brands from an array of fraudulent activity and is for any brand on Amazon with a registered trademark. As mentioned above, this program allows registered brands to quickly make changes to their product listings. Simultaneously, it enables registered brands to override changes made to their listings by unknown, unauthorized sellers. The Brand Registry is able to do this by prioritizing information from the registered brands over all other sellers on the listing, which in turn, restores control back to the appropriate seller (Lindsey, 2017).   

What Are the Benefits of Brand Registry?  

Aside from the main features of Brand Registry, there are also many benefits and tools that come along with this program. For starters, when registered with this Amazon program, there is a great potential for increased conversions and sales. When a brand is registered, they are able to add Enhanced Brand Content (A+ Content) to their account, which can be seen below the listing and on the company’s storefront. A huge advantage to Enhanced Brand Content is the ability for a brand to sell their story and improve the customer’s experience through visually appealing text, images, and videos. As a direct outcome of improved product listings and brand presence, customers have a more enjoyable shopping experience and are more inclined to purchase.  

 Another benefit of Brand Registry is the capability to report and kick brands off of listings. With this tool, registered brands can submit a case to customer service to have their concerns addressed and rectified. Additionally, the customer service brands receive is much more accurate and prompt in comparison to the service brands receive when using Seller Central.  In conjunction with the tools and benefits mentioned above, brands also have the luxury of enjoying quicker ad approval time. This means that a brand will not experience pauses on ad campaigns when adjusting the details and information. This is a major advantage because it allows for brands and their products to be seen by the their target customer at the time when customers are searching for that product, creating yet another opportunity to increase conversions and sales.   Enrolling in Amazon Brand Registry is a wise and strategic business move for brands interested in improving their sales and overall experience on Amazon. Brand Registry is the single best way to protect your brand’s property and keep it represented appropriately. To speak further about your Amazon strategy, get in contact with one of our Amazon experts today:  Get your free assessment.

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Over the past several months, Amazon has implemented an array of new storage fees in their Amazon Fulfillment Centers. Amazon has adjusted these storage fees to more clearly represent their true purpose as fulfillment centers, not storage warehouses. Below you can find information to aid your brand’s strategy and decision making as it relates to inventory, fulfillment, and storage.  

• Monthly Inventory Storage Fees – As of April 1, 2018, monthly inventory storage fees at Amazon fulfillment centers will increase by $0.05 per cubic foot for standard-size and oversize items.
• Inventory Performance Index (IPI) – As of July 1, 2018, Amazon has begun to rate sellers on a scale of 0 to 1000 based on turns and overall inventory performance. Sellers who maintain a score greater than 350 will have unlimited storage capacity within Amazon warehouses for standard and oversize items. Sellers that score below 350 will have their inventory space restricted and may not be able to send in additional products for FBA, ultimately limiting their ability to capture sales. While it would seem logical to aim for the highest score possible, a score of 800+ likely means products are consistently out of stock and the brand is not maximizing their sales potential.

• According to Amazon, sellers should aim for a score of 400-800.

• Minimum Long-Term Storage Fees – As of August 15, 2018, Amazon will charge $0.50 per unit per month for items in fulfillment centers longer than 365 days. The greater of the applicable total long-term storage fee or minimum long-term storage fee will be charged.
• Long-Term Storage Fees – As of September 15, 2018, long-term storage fees will be lowered from $11.25 per cubic foot, to $3.45 per cubic foot, while the assessment dates will be changed from semi-annually to monthly. While this change will penalize FBA sellers that do not appropriately manage their inventory, it will not result in increased fees.

If you are a brand selling on Amazon, it is imperative that you are in the know of all things inventory to avoid being caught in a longtail of negative implications. Working with a trusted and reputable Amazon Strategy Partner like Amify puts your business at best odds and prevents your enterprise from losing money due to unforeseen fees.   To receive more information about the best way to manage your brand’s storage and fulfillment game plan, please fill out the form below.  

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The Benefits of Amazon Direct Ship

Amazon Direct Ship is the process of sending inventory directly from a supplier to an Amazon warehouse. Direct Ship eliminates the intermediaries and gets goods to Amazon faster. Once products have been received, Amazon stores, prepares, and exports products directly to excited customers. Below, you can find some of the benefits of direct shipping provided by the Amazon experts here at Amify.

Products Arrive Quicker to Amazon

One of the greatest benefits of Direct Ship is that products arrive faster to Amazon. When using this Direct Ship, the middleman is removed from the equation, decreasing the time it takes for products to be available for purchase. Imagine if you are a California-based brand shipping to a New York-based third party company who then transports your product to a nearby Amazon warehouse. Now imagine that New York has been slammed by a huge snow storm, putting a halt to all transportation. Your product is now sitting stagnant while your customer is awaiting a delivery for a special occasion. With Direct Ship, a brand’s products are safely stored and secured inside an Amazon facility so that sellers never miss a purchase opportunity. Their products can be purchased, processed, and transported with ease for all parties involved.

Cost Savings

Pure and simple, less stops, less postage: more savings. With Direct Ship, many sellers can remove an unnecessary stop between their inventory and fulfillment, dramatically reducing shipping costs.

Increase In-Stock Percentage

Another benefit of direct shipping is higher in-stock percentages. Direct Ship allows sellers to better adapt to changes in demand by decreasing the time it takes to replenish products. With quicker replenishment, sellers can better react to trends and maintain sales velocity, ultimately leading to more sales and improved ranks on Amazon.

Boost in Sales

As mentioned above, the more products that are readily available, the more sales a seller may experience. Having readily accessible inventory allows a brand to fill more customer orders at a faster, more effective rate, resulting in sales growth. The sooner a seller can replenish inventory, the sooner more sales can be made.

Ensure Product Safety & Quality

In some supply chains, goods can be handled by multiple parties as they are passed from manufacturer to supplier to seller to marketplace. With each stop a good must makes between its origin and the consumer, the greater likelihood of issues and damage occurring. With Direct Ship, there is less handling of products, resulting in less product damage and less unhappy customers receiving damaged goods. In turn, these happy customers will be more inclined to leave a positive review, which improves overall trust in a brand, online traffic, rankings on search engines, consumer purchasing decisions, and bottom line sales – all great things for a company trying to maximize their business on Amazon. While Direct Ship may require the vendor to allocate additional time to planning and administration, the benefits of shipping directly to Amazon greatly outweigh the cons. If you’d like to discuss your fulfillment strategy with one of our Amazon experts. Get your free assessment.

Top Amazon Brand Partner Awarded Inc. 5000 Ranking After Achieving 151% 3-Year Growth

Alexandria, VA –  Amify, an Amazon strategy partner working with lifestyle brands to maximize their marketplace potential, is being recognized by Inc. Magazine as one of the nation’s fastest growing private companies. With revenue growth of 151% over the past 3 years, Amify has received an Inc. 5000 award with its ranking as the 2,745th fastest growing company in the U.S. This marks the 4th consecutive Inc. Magazine award for Amify, having received top 500 rankings in 2015 and 2016, and top 5000 ranking in 2017.  Beginning in 2011 as a seller of niche sport products on Amazon, Amify has experienced seven consecutive years of growth, recently surpassing $100 million in lifetime revenue. Amify provides a variety of services to its partners focusing on Amazon account management, pricing enforcement, content enhancement, and sales acceleration. Amify ranks in the top .01% based on revenue generated on the Amazon marketplace for their 300+ brand partners.  Amify’s success and subsequent recognition comes as a result of their expertise in navigating the Amazon space. Among the growing number of Amazon services providers, Amify continues to stand out with leading-edge technologies and best practices. Recent success has led Amify to open an additional location in Las Vegas in July of 2018, improving logistical efficiency and positioning Amify for further growth

 About Amify  Amify is a four-time Inc. Magazine award-winning Amazon strategy partner focused on maximizing the potential of brands on Amazon. Amify uses industry expertise and a data-driven approach to monitor and prevent unauthorized sellers, optimize and enhance product listings, protect brands from unauthorized sellers and price violations, and drive sales through advertising. With tact, innovation, and a dedication to brand authenticity, Amify has emerged as one of largest brand partners on Amazon.  

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Much of the appeal of shopping on Amazon comes in the tremendous assortment of products offered on the marketplace. As of July 2018, Amazon US alone houses 606 million different products. While impressive, this enormous assortment creates problems with price disparity. Too many sellers selling too many products often creates competitive price adjustments. Companies can try to combat this by setting a Minimum Advertised Price (MAP) for their products, but Amazon will not enforce. Lower priced products will begin to sell more, forcing sellers to compete for the lowest price. This can negatively affect a customer’s perception of the brand and hurt relationships with brick and mortar stores who cannot compete with below MAP prices.  Amify’s primary focus is to:

•   Report on MAP violations
•   Enforce MAP and restrict sellers who violate MAP
•   Prohibit unauthorized sellers

Selling on Amazon opens a world of opportunity but involves lots of proactive management of pricing strategy. Amify works with its brand partners to develop a pricing strategy and keep sales channels controlled. For more information on how Amify’s Protection services can help you, please reach out via the form below.  

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For any Amazon seller looking to stay ahead of the curve, it is important to monitor and adapt to the ever-changing marketplace. Amazon implements new rules every quarter, which impact each Amazon seller to varying degrees. In 2018, Amazon will begin adjusting their warehouse storage fee policies, affecting all FBA sellers. These changes seek to emphasize that their fulfillment centers are just that – fulfillment centers and not warehouses. Consequently, there are several changes to keep in mind as you expand your Amazon presence:

• Beginning April 1, 2018, monthly inventory storage fees at Amazon fulfillment centers will increase by $0.05 per cubic foot for standard- size and oversized items.
• Beginning July 1, 2018, Amazon has begun to rate sellers on a scale of 0 to 1000 based on turns and overall inventory performance. Sellers who maintain a score greater than 350 will have unlimited storage capacity within Amazon warehouses for standard and oversize items. Sellers that score below 350 will have their inventory space restricted and may not be able to send in additional products for fulfillment by Amazon, ultimately limiting their ability to capture sales. While it would seem logical to aim for the highest score possible, a score of 800+ likely means products are consistently out of stock and the brand is not maximizing their sales potential. According to Amazon, sellers should aim for a score of 400-800.
• Starting August 15, 2018,  Amazon will charge $0.50 per unit per month for items in fulfillment centers longer than 365 days. The greater of the applicable total long-term storage fee or a minimum long-term storage fee will be charged.
• Starting September 15, 2018, long-term storage fees will be lowered from $11.25 per cubic foot to $3.45 per cubic foot, while the assessment dates will be changed from semi-annually to monthly. While this change will penalize FBA sellers that do not appropriately manage their inventory, it will not result in increased fees.

Those brands and Amazon partners selling via FBA who are unable to manage their inventory efficiently will be penalized both financially and with limitations to their storage capacity. If you are looking to grow your business on Amazon, it is crucial that you actively manage storage fee changes. If you need help managing these fees, or general help with your Amazon strategy, please reach out below.

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