Note From Our CEO – November 2021
Happy Fall! Many of you are eCommerce veterans, and you’ve lived through many years of Q4 stress. I think you will all agree with me that things are getting harder given the supply chain challenges and the constant policy changes.
October 28, 2021 - By Fred Killingsworth
Happy Fall! This is a wonderful time of the year. I hope that you are enjoying all the best of the season, but are spared the chore of raking leaves.
If you have already started holiday shopping, good for you! The #1 searched item on Amazon last quarter (June 1 – Sept 30, 2021) was … PopIt! Not that long ago, the bubble wrap that many eCommerce deliveries came wrapped in was the source of much fidgeting fun at my house. Now apparently, the bubbles ARE the delivery. Question: If PopIts are delivered wrapped in bubble wrap, is that double the fun, or just redundant?
Many of you are eCommerce veterans, and you’ve lived through many years of Q4 stress. I think you will all agree with me that things are getting harder given the supply chain challenges and the constant policy changes. There are two new critical changes on Amazon: FBA Delays and New ASIN Creation Policy.
Because of all this turmoil, I am especially proud of the work that my team and our strategic partners have done to help our clients expand their presence across channels, build fulfillment contingency plans, and increase their new-to-brand buyers:
1. Expanding Omnichannel Presence:
One of our clients had already been selling on Walmart.com as a 1P (wholesale) relationship. But our client’s assortment on Walmart.com was limited, and they weren’t advertising. HINGE GLOBAL has helped them manage advertising on Walmart.com, which has not only grown their sales on the dot-com, but also boosted curbside pickup sales. We have also helped expand their assortment through our TurnKey Commerce service, and uploaded new content to increase their organic sales performance. These efforts prepare our client not only for Q4, but also for the new products they are planning in 2022.
2. Fulfillment By Merchant on Amazon:
Another client – a global sports drink company – had been relying solely on Fulfillment By Amazon. However, Amazon has limited their inventory levels for the top-selling SKUs to only one week’s worth of sales. On top of this, it is taking Amazon’s Fulfillment Center over a week to process and receive in-bound shipments, resulting in high levels of out-of-stocks for our client. To mitigate this, our client has started to use TurnKey FBM, where we provide Fulfillment By Merchant services for their SKUs. This has been a game-changer as they head into Q4.
3. Increase New-To-Brand Buyers:
Cost-per-Click (CPC) is now averaging $1.20 on Amazon, a whopping 52% increase year-over-year. With the rising cost of advertising, and steeper competition, it is imperative that brands approach advertising with very realistic goals, but also embrace innovative strategies and approaches. We have helped one of our clients grow their New-To-Brand Sales (i.e., sales from new buyers) by +$184,000 since the start of the year.
Let me know what challenges you are facing – we can help! Be sure to check out the fantastic new feature of Amazon Buyer-Seller Messages from our Amazon Seller Software, Hinge Axis, as well.