Inventory

Why Amazon “deal sites” put 3P accounts at risk

November 6, 2020 Leave a Comment

Sellers should avoid flipping heavily discounted items

By: Lesley Hensell

Internet deal sites let users buy heavily discounted products on Amazon. That’s why new third-party sellers embrace these sites. It’s cheap inventory to get started. What could go wrong?

Unfortunately, this is a very high-risk strategy it’s best to avoid.

Why these deal sites exist

Deal sites and rebate sites are not for the convenience or happiness of the Amazon customer. These sites exist to help private-label sellers launch their products on Amazon. They are also used to increase Best Seller Rank (BSR) or gain product reviews.

There is an unspoken agreement between these sellers and the deal site customers. Most of the customers on deal sites understand that a product review is expected in return for the steep discount. When sales are made and reviews posted, a product’s Best Seller Rank rises. This, in turn, helps the product pop up higher in organic search results.

In most cases, the sellers using these deal sites are offering significant discounts – so much that they are violating Amazon policies against Platform Manipulation. As a result of these discounts, the sellers are losing money on sales made via the discount sites. In return, they hope to drive more buyers to their products.

What makes deal-buying dangerous

Third-party sellers purchase these deals and then flip them on their own Amazon accounts. But this is a risky strategy:

Amazon does not always accept invoices from Amazon-to-Amazon flips that involve third-party sellers.
Private-label sellers can easily file intellectual property complaints against other sellers who pop up on their listings – especially if their distribution is Amazon-only.

The private-label sellers are not going to remove their intellectual property complaints, once filed against you. This makes it particularly difficult to get the ASIN or account reinstated – whichever is the case.

What to do instead

There are lots of places to source products. Yes, they are more challenging than deal sites, retail arbitrage and online arbitrage. But they can help you develop a sustainable business:

Manufacturers
Distributors
Wholesalers

If you need assistance working through product lists, contact us at 877-289-1017 or visit Riverbend Consulting. Our team can help you uncover potentially lucrative sourcing relationships!

Lesley is co-founder and co-owner of Riverbend Consulting, where she oversees the firm’s client services team. She has personally helped hundreds of third-party sellers get their accounts and ASINs back up and running. Lesley leverages two decades as a small business consultant to advise clients on profitability and operational performance. She has been an Amazon seller for almost a decade, thanks to her boys (18 and 12) who do most of the heavy lifting.

Selling toys and games: play by the rules

October 30, 2020 Leave a Comment

Selling toys and games on Amazon? Be ready.

By: Caitlyn Way

Every year in prep for Q4 and the holiday season, Amazon emails sellers updating them on this year’s requirements. These updated requirements usually sent to those who sell toys and games on their platform throughout the holiday season.

These requirements can vary slightly year by year. They also differ from the normal Q1-3 requirements for Toys and Games.

For MFN Sellers in 2020, the requirements are as follows:

Performance Criteria based on Seller-Fulfilled Orders (not fulfilled by Amazon)

Your first sale on Amazon must be prior to September 1, 2020 and does not need to be specific to Toys & Games.
You must have processed and shipped at least 25 seller-fulfilled orders from August 15, 2020 through October 14, 2020.
Pre-fulfillment cancel rates must be no greater than 1.75% from September 15, 2020 through October 14, 2020.
Late shipment rates must be no greater than 4% from September 15, 2020 through October 14, 2020.
Order defect rate must be no greater than 1% as of October 14, 2020.

If your Amazon account doesn’t meet these requirements:

Amazon encourages you to take corrective action now to be able to sell through seller fulfillment in Toys & Games during the holiday season.

We have included the following suggestions to remain eligible or improve your performance.

Monitor your customer metrics and take corrective action when necessary.
Check your orders frequently in the Manage Orders section of your account.
Minimize order cancellations; only show inventory for sale that you have available to ship.
Update your account status when you are not available to fulfill orders (for example, on vacation).
Ship orders and confirm shipment in a timely manner.
Ensure your seller policies are up-to-date.

You can also review the below Seller Central Help Pages for more information:

Holiday Selling Requirements in Toys & Games

Monitor your account health

If you have any questions on these standards for the holiday season be sure to contact Riverbend Consulting. 877-289-1017

Cait provides support to our clients and our operations team. She creates meaningful monthly reports that help us identify trends in client accounts. In addition, she helps manage workflow and ensure everything runs smoothly. Cait spent two years in Amazon Seller Support, where she specialized in feeds, variations, escalations, product compliance and gating. In her off time enjoys baking and exploring with her two daughters.

This simple hack can save your business

October 20, 2020 Leave a Comment

Prepping inventory for FBA means thinking the process through

By: Lesley Hensell

The Amazon seller was baffled. His account had been shut down for inauthentic goods. But he sourced all inventory direct from the manufacturer. How could this be?

He sold thousands of pairs of shoes every month. We discussed his business processes at length. How was he prepping inventory for FBA?

“Tell me about your boxes. Are they the original branded shoeboxes?” I asked.

“Yes, of course,” he said.

“And how are you keeping the boxes closed?” I asked.

Silence.

Turns out, the seller was not securing the shoeboxes.

How did I know? Complaint after complaint said that pairs of shoes did not match. They were two different sizes, brands or colors. It’s a perfect example of not thinking through how the FBA fulfillment center handles sellers’ inventory. Unsecured boxes may be spilled out of cartons or open in the warehouse. It’s unreasonable to expect that Amazon employees will carefully re-pair shoes that have become mixed up.

The solution? For this seller, I suggested plastic bands that could be used to secure the boxes without damaging the cardboard. Rubber bands will work for fast-moving items, but they should not be used if inventory will remain in the FC for long. Cold or heat could cause them to become brittle and break.

Selling items as sets

Many sellers send ASINs to the fulfillment center bundled together as a set. Unfortunately, workers at the Amazon warehouse can make tremendous mistakes by separating items that are meant to be sold together.

For example:

One client sold a two-pack of a medicine that was shrink-wrapped together. Amazon workers broke the two-packs into singles, causing many complaints when buyers did not receive two items.
Another client sold a bundle with multiple components in a polybag. Amazon workers broke the bundles up, which caused havoc.

How can sellers prevent these problems? Add a prominent sticker that says: “Sold as a set. Do not separate.” This should stop the fulfillment center from making such egregious mistakes.

When in doubt, box, polybag or shrink-wrap

Amazon fulfillment centers are not sterile environments. Products are moved around multiple times. They become dusty and dirty. They are dropped on the floor. The best solution for most products? Keep them clean, safe and in brand-new condition by placing them into protective packaging. This could mean placing them in a box, a polybag, or shrink wrap. This is an extra step that takes time and costs a few pennies. But it will more than pay off with fewer buyer complaints.

Questions about how to keep your account safe? Ask us at Riverbend Consulting.

Is dropshipping hurting your Amazon business?

October 15, 2020 Leave a Comment

Dropshipping is not your friend

By: Sam Newlands

As the fantastic Amazon seller that you are who has found the best suppliers, it’s time to figure out how you’re going to handle your inventory. Will products be sent to you for inspection before sending them to fulfillment centers or shipping to customers (Hint: yes, always)? Have you decided if you will fulfill orders on your own, or send your inventory over to Amazon Fulfillment Centers and let them handle it for you? How are you going to get your merchandise from Point A (the supplier) to Point B (you) to Point C (the customer)?

If your answer is dropshipping, try again.

What is dropshipping?

Glad you asked! Dropshipping is allowing a third-party to fulfill orders to customers on your behalf. But is dropshipping hurting your Amazon business? Let me explain. You, the seller, never see the product. You have no idea what it looks like, if it’s in good condition, if it’s used, or broken. Overall, you have no idea what you just sent to your customer, and Amazon is not a fan of this method. They even have a policy on it, which you can read here. You will see within the Amazon policy that dropshipping is acceptable in specific circumstances.

The easiest way to explain how dropshipping is acceptable: Think of a large warehouse store that might have an Amazon account; a customer orders something from that store through Amazon, and the order is fulfilled through a warehouse location that might be geographically closer to the customer. They are the seller of record, and there wouldn’t be 3rd party information attached to the package.

How dropshipping is not acceptable

You, the seller, do not have inventory, but you have items listed within your inventory, making both Amazon and your potential customers believe you actually have product. When a customer orders something, you log into the website where you saw this item, order it for the customer, and add their address as the delivery address. The purchase is not sent to you, which causes a break in good faith your customers have with you to send them quality items. Amazon is 100% all about the buyer experience. They expect sellers to be responsible and accountable for all merchandise from the moment it is added to inventory, ordered by the customer, all the way to the customer receiving it (and often beyond the receipt date).

It is essential to keep in mind that adding inventory to your seller account when you don’t have it can lead to an onslaught of other risks that you may not have thought about: Does that item have intellectual property protections? Is it branded or trademarked? Do you have permission from the rights owner to sell it? Always do your research into the products you want to list. Ensure you have the proper authorization to sell those items (just because you can list it on Amazon doesn’t mean you have the permission to sell it!). Amazon also regularly performs authenticity checks on ASINs within your inventory, which means they’ll request invoices, even if you haven’t sold anything. If you don’t have an invoice, how can you prove the item is authentic?

Let’s review

Is dropshipping hurting your Amazon business? Yes. Dropshipping is 99% of the time frowned upon and can give you many more headaches than ease of mind. It is always better to have your items sent to you to inspect your products’ quality and condition. This also gives you extra assurances that your supplier is legit, and if you want to continue working with them.

Do you have any questions or concerns about dropshipping or anything Amazon related? Give Riverbend a call at 877-289-1017.

Sam applies her impressive tenacity to get Amazon seller accounts and ASINs reinstated. She enjoys research and looking beyond the surface layer to help sellers solve their issues. While working at Amazon, Sam was involved with the AWS and SES teams looking for fraudulent account activity and unauthorized account take over.

The Top Five Trademark Registration Options for Amazon

May 21, 2020 Leave a Comment

What is the best way to get a trademark registration for Amazon in a timely manner?

By: Preston P. Frischknecht

If you sell online, getting a federal trademark registration to protect your brand can be an important tool. For example, eligibility for the Amazon Brand Registry generally requires a federal trademark registration. Many eager sellers are surprised to learn that it may take months or longer to obtain the trademark registration.

So, what are the best trademark registration options for Amazon and how do you get it in a timely manner? Here are some options compared:

1. Do it Yourself (DIY)

Like many things, it’s possible to get a trademark registration by doing it yourself—you will save some money if you pull it off. But, one Stanford study shows that pro se applicants are less than 50% likely to succeed. Delays, failure, wasted filing fees, and costly rebranding can be painful. Unsurprisingly, the USPTO “strongly encourage[s]” use of a U.S.-licensed attorney who specializes in trademark law. So, trying to get a trademark registration by yourself is probably not the best option.

2. Online Trademark Filing Service

There are many online trademark filing services (think Legalzoom.com) that are DIY+, offering to file trademark applications for between ~$100 and ~$500 (not including government fees). Unfortunately, many of these sites skimp on upfront due diligence and work. They also aren’t great at gleaning and analyzing the information necessary for preparing a well drafted trademark application. Problems during trademark examination like added costs and delays are still common in this approach. While online trademark filing services are slightly better than DIY, they are usually not as good as a traditional law firm.

3. Law Firm

Using a traditional law firm is the tried and true way to do trademark registration. Again, if a firm has good trademark attorneys, your chances of success go up dramatically (as mentioned above). The problem is that this is a very costly route: according to the American Intellectual Property Law Association (AIPLA) 2019 Report of the Economic Survey (“2019 AIPLA Survey”), the median cost for trademark attorney work (like a trademark clearance search and opinion, trademark application, and trademark prosecution) is $3,230, not including government filing fees. For many folks, this is just too expensive.

4. Amazon’s IP Accelerator Referral Service

In a variation of the law firm option, Amazon advertises a list of trademark attorneys to obtain trademarks for the Amazon Brand Registry at pre-negotiated rates. However, these rates are still relatively expensive. For example, an Amazon IP Accelerator attorney charges $2,400 for a comprehensive trademark search and trademark application (not including government fees). According to the AIPLA Survey, this is higher than the median cost of around $2,000 for the same services by other trademark attorneys. So, Amazon’s IP Accelerator referrals are better than DIY and online filing services, but close to traditional law firm expense.

5. Solo Trademark Attorney or Small Firm

Solo trademark attorneys and small firms are usually less expensive than larger law firms and they can perform as good or better than them. This is the case because bigger firms have larger overhead to cover. In fact, according to the 2019 AIPLA Survey, solo attorneys are typically 32% less expensive than their peers at larger firms. So, using an experienced solo or small firm trademark attorney is a great option. You will do much better than you would on your own or with an online trademark filer, and with less expense than a regular law firm or Amazon’s IP Accelerator Referral Service.

Contributor Preston P. Frischknecht is the principal trademark attorney at Brand Registry Trademark. Brand Registry Trademark is a small intellectual property law firm specializing in legal services for online sellers throughout the United States and abroad.

Sellers should avoid flipping heavily discounted items

By: Lesley Hensell

Why these deal sites exist

What to do instead

Selling toys and games on Amazon? Be ready.

By: Caitlyn Way

For MFN Sellers in 2020, the requirements are as follows:

If your Amazon account doesn’t meet these requirements:

Prepping inventory for FBA means thinking the process through

By: Lesley Hensell

Selling items as sets

When in doubt, box, polybag or shrink-wrap

Dropshipping is not your friend

By: Sam Newlands

What is dropshipping?

How dropshipping is not acceptable

Let’s review

What is the best way to get a trademark registration for Amazon in a timely manner?

By: Preston P. Frischknecht

1. Do it Yourself (DIY)

2. Online Trademark Filing Service

3. Law Firm

4. Amazon’s IP Accelerator Referral Service

5. Solo Trademark Attorney or Small Firm

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