Shoppable videos are the next evolution of video marketing, combining the power of visual storytelling with the immediacy of online shopping. Since 91% of consumers now expect online video content from brands, they’re essential to make your business stand out and streamline the buyer journey.

In a world where online shopping has become standard practice and a first-class customer experience is paramount, shoppable videos are an innovative strategy to capture your audience’s attention. They boost interactivity, enhance the user experience, drive customer engagement, and, ultimately, increase conversion rates.

Platforms like Instagram, Facebook, TikTok, Pinterest, and Snapchat significantly contribute to the success of shoppable videos. With their vast user base and integrated shopping capabilities, these channels offer an unparalleled opportunity to reach even more potential customers.

Keep reading to learn how to supercharge your engagement and eCommerce sales with shoppable videos.

Why are shoppable videos so effective?

Shoppable videos have become a powerful tool for increasing customer engagement and conversion rates. A significant part of that success lies in their psychological impact on viewers.

Let’s look into why shoppable videos are so psychologically captivating.

Tell better stories

Humans are inherently drawn to stories, as they allow us to connect with and make sense of the world. In marketing, storytelling is a particularly fruitful tool. It can evoke emotions, build trust, and foster a deep connection with an audience.

Shoppable videos often weave products into a narrative, subtly showing viewers how the advertised products fit into their lives or solve their problems. This approach makes the shopping experience more relatable, engaging, and persuasive, which increases the likelihood of a purchase.

Answer shopper questions

Visual information plays a crucial role in the decision-making process, as humans process images 60,000 times faster than text.

Shoppable videos leverage this trait by providing a rich, visual representation of products. They allow viewers to see items in action, thus offering a more realistic perspective than static images. This can significantly influence a customer’s buying decision and make them more likely to purchase the advertised product.

As an added bonus, your shoppable videos can double as educational material, teaching potential customers how your items are meant to be used to get the most benefit.

Increase conversions

The ease and speed of shoppable videos can also significantly impact purchase behavior.

Humans naturally desire instant gratification, and shoppable videos cater to this preference. They eliminate the need to search for the item after watching the video by allowing viewers to purchase immediately. That convenience minimizes the chances of shoppers becoming distracted or changing their minds and leads to higher conversion rates.

Upsell different items

Finally, shoppable videos can include more than one item. For example, you can create a video demonstrating how to accessorize an outfit, then link to a collections page that shows all of the different pieces involved.

By showcasing how different product lines complement each other, you have more chances off cross-selling for higher average order values.

Implementing shoppable videos into your eCommerce strategy

Shoppable videos reduce the distance between product discovery and purchase to create a seamless shopping experience. Simplifying this journey thus increases conversion rates and heightens customer engagement.

Producing a shoppable video involves three steps:

1. Pre-production: Start by choosing the products you want to showcase and craft a compelling narrative around them. Sketch a storyboard to outline the video’s flow and ensure it resonates with your target audience.
2. Production: Focus on high-quality visuals and professional staging. The goal is to make the products shine and satisfy viewers’ desire to purchase immediately.
3. Post-production: This is where the magic happens. Use shoppable video software to embed clickable product tags in your video that link directly to your eCommerce site.

In the cut-throat world of eCommerce, a powerful marketing strategy and effective operations go hand-in-hand. Leverage the power of shoppable videos and the efficiency of a 3PL like MyFBAPrep to stay ahead of the competition.

Boost shoppable video performance

Once you publish shoppable videos, you need to analyze their performance to improve customer engagement continuously.

Incorporate customer feedback to improve your shoppable video content

Customer feedback is an invaluable resource for improving your shoppable videos. It provides firsthand knowledge of your viewers’ likes and dislikes, making it a powerful asset for refining your content.

Engage with your customers through various channels such as surveys, social media comments, and direct emails to gather their opinions. Did they find the narrative engaging? Was the video length appropriate? Was the product display attractive? Did they experience a seamless transition from viewing to purchasing?

Aim to collect both qualitative and quantitative information. Qualitative feedback gives you insights into viewers’ thoughts and feelings, while quantitative can provide measurable and specific information, like ratings for video quality, ease of shopping, and overall satisfaction.

Remember, feedback isn’t simply about finding fault with your content; it also identifies what you’re doing right so you can keep up a winning strategy.

Learn how to use post-purchase surveys to enrich your eCommerce brand.

A/B test to optimize video elements

A/B testing, or split testing, is an effective way to find out what elements work best for your shoppable videos. The principle is simple: Create two variants of your video (version A and version B), each with a different variant, and compare their performance.

Consider testing elements such as:

• Product placement: Test where you position your product within the video. For example, does an item showcased at the beginning earn more conversions than one displayed in the middle or at the end?
• Narrative style: Experiment with different storytelling styles. An emotional narrative might work better for some products, while a humorous or informative tone may suit others.
• Call to action (CTA): The CTA is crucial, as it prompts viewers to purchase. Test various CTAs to see which one generates more clicks. For instance, a simple “Shop Now” might work better than “Buy Today and Save 20%.”
• Video length: The optimal length can vary depending on the product and platform. Test short-form videos (under one minute) against long-form ones (over one minute) to determine which length most effectively engages viewers.

By continually testing and optimizing, you’ll refine your shoppable video content to better resonate with your audience and increase engagement and conversions as a result.

Examples of shoppable videos in action

Let’s explore a few real-world examples to see how prominent brands have successfully incorporated shoppable videos into their marketing strategies to drive sales and enhance their brand presence.

Nike

In 2019, global sportswear brand Nike joined forces with Hypebae, a renowned women’s fashion and streetwear platform, to commemorate the debut of Nike’s new Air Max Dias. They delivered an interactive photoshoot that placed a premium on customization, giving each viewer a uniquely tailored experience.

Source: Wirewax (page no longer available)

Dynamic hotspots amplified this immersive event by putting viewers in the driver’s seat of their style journey: Participants could steer the photoshoot by choosing their path at each decision point.

The campaign’s results underscore the power of personalization, with a staggering 73% of viewers actively engaging with the experience at least once. This data reveals how engagement increases significantly when viewers are given control and the content is personalized.

The Fresh Market

Specialty food retailer The Fresh Market began to leverage shoppable videos and live streams in 2021, which resulted in boosted customer engagement and centricity. As the company integrated videos across every customer touch point, they saw key metrics significantly increase, including engagement rates, watch time, impressions, and conversion rates.

Source

The Fresh Market’s first shoppable videos resulted in a 113% rise in video engagement rates and a 115% skyrocket in session time. Viewers could interact with products and proceed to the eCommerce site to purchase with a single click.

In addition to short-form videos, the company launched shoppable live stream events centered around holidays and special occasions. These streams earned greater viewer engagement with each new event.

Top platforms for shoppable videos

The following platforms excel at facilitating shoppable videos, making it easy for brands to connect with their audiences and streamline the shopping experience:

• Instagram: Instagram is the front-runner with their Shopping and IGTV features, providing an ideal platform for your shoppable videos.
• Facebook: Facebook’s video platform and Shop section make them a strong contender for deploying shoppable videos.
• TikTok: Thanks to their partnership with Shopify, TikTok is a rising star for brands targeting a younger shopping demographic.
• Pinterest: Pinterest’s Shop the Look Pins and Shopping Ads enable brands to create shoppable video content that blends seamlessly with other pins.
• Snapchat: Snapchat’s shoppable AR filters are an innovative way to create immersive shoppable video experiences.

For more tips about selling on these platforms, check out MyFBAPrep’s The Dos and Don’ts of Social Selling for eCommerce Businesses.

Wrapping up — Harness the power of shoppable videos for richer engagement

Shoppable videos present a unique opportunity to blend entertainment and eCommerce. These powerful tools are excellent for captivating audiences, driving engagement, boosting conversions, and maximizing ROI.

You can propel your brand to unprecedented success by embracing shoppable videos throughout your channels. Harness robust analytics, customer feedback, and A/B testing to craft videos that resonate with your audience and produce exponential gains in conversions.

Personalized shopping experiences have become essential for eCommerce businesses to boost customer engagement, increase sales, and strengthen consumer retention. This practice uses data and insights to tailor a customer’s shopping journey to their specific needs, preferences, and behavior.

By leveraging first-party data and other sources of information, eCommerce businesses can gain a better understanding of their customers, anticipate their needs, and deliver targeted messaging and personalized product recommendations.

In this article, we explore the power of personalization in eCommerce and how businesses can craft customized shopping experiences for their customers. We also look at best practices, case studies of businesses that have successfully implemented personalization strategies, and how to avoid common pitfalls.

Understanding your customers

To create a personalized shopping experience, you must first understand your customers. This entails collecting information about their behavior, preferences, and needs.

The importance of first-party data

First-party data is information collected directly from your customers, either through their interactions with your website or app or through surveys and other direct communications. This type of data is incredibly valuable because it provides a direct view into your buyers’ behaviors and preferences. You can gain insight into what products and services they’re interested in, what types of marketing messages resonate with them, and the kinds of shopping experiences they prefer.

How to gather information from customers

Surveys, polls, and direct feedback are common ways to collect information from customers. However, you can also track customer behavior on your website or app, such as which pages they visit, how long they spend on each page, and what products they view or purchase. Social media platforms are also a great source of information, as customers often share their interests and opinions through these portals.

Analyze customer behavior

Analyze your collected data to identify patterns and trends. You’ll learn what products and services are most popular, what marketing messages are most effective, and what types of shopping experiences customers like. This helps you determine where to apply personalization for the best results.

Build customer personas

Customer personas are fictional representations of your ideal buyers based on the data and insights you’ve gathered. They help pinpoint the needs, preferences, and common behaviors of your target audience so you can tailor your marketing messages and shopping experiences accordingly. Update these personas regularly as shopper preferences and behaviors change.

Implementing personalization

Once you’ve become familiar with your consumers, you can employ strategies to produce unique shopping experiences for them:

• Tailor product recommendations: Product recommendations are a primary channel for personalization. Analyzing customer behaviors and preferences lets you provide relevant recommendations for products and services that’ll most likely interest them. You can review information such as past purchase history, browsing behavior, and wishlists to tailor these recommendations. Display them on your website or app, in marketing emails, or through other channels for maximum reach.
• Customize the shopping experience: In addition to product recommendations, you can also customize your overall shopping experience: Tailor the layout and design of your website or app to buyer preferences, provide individualized product search results, and offer personalized pricing or promotions. Adding these unique elements creates a more seamless and convenient experience for customers.
• Personalize marketing messages: Individualized marketing messages better engage customers. Capitalize on your consumer data to deliver targeted messaging that’s more likely to resonate with each shopper. These messages can include targeted email campaigns, social media ads, and other types of focused advertising.
• Use chatbots and virtual assistants: Chatbots and virtual assistants can also produce a more personal shopping experience. Use chatbots for personalized product recommendations and answer customer questions, while virtual assistants can offer unique shopping assistance and recommendations. Additionally, you can automate these tools to provide tailored customer service, which improves customer satisfaction and loyalty.

Best practices for personalization

Because personalization is crucial for eCommerce businesses, you must follow best practices to ensure you employ it effectively for a positive reception from your customers.

Transparency and privacy

A key consideration of personalization is transparency and privacy. Customers want to feel confident that companies use their data responsibly. Be clear about what data you collect and how you’ll employ it. Also, comply with data privacy regulations such as GDPR and CCPA.

Avoid going overboard

While personalization is effective, you shouldn’t overdo it. This can happen when businesses rely too heavily on customer data or make assumptions about their preferences that are inaccurate. Over-personalization can be off-putting to shoppers and make them feel like their privacy is being violated. Be sure to maintain respectful boundaries when customizing the buyer experience.

Test and measure your efforts

To ensure your personalization efforts pay off, test and measure their impact. Use A/B testing to compare personalized and non-personalized experiences, and track metrics such as conversion rates and customer satisfaction. This will help you identify what works and what you can improve.

Adapt to changing consumer preferences

Customer preferences and behaviors change over time, so it’s important to review and update your personalization strategies regularly. Keep track of alterations in buyer preferences and adjust your tactics to accommodate them. This may involve updating customer personas, refining product recommendations, or adapting marketing messages.

Personalization in action

To visualize personalization in action, let’s examine some real-world examples of businesses that have successfully implemented these strategies.

Stitch Fix

Stitch Fix is an online personal styling service that uses customer data to offer personalized product recommendations and customized styling advice.

They crafted customer personas based on their buyers’ purchase history and browsing behavior, then used these schemas to display individualized product recommendations and customized marketing messages. Stitch Fix also introduced a chatbot to provide personalized shopping assistance and answer customer questions. Employing these strategies earned them a significant increase in customer engagement and sales.

Sephora

Beauty brand Sephora also leverages customer data to push targeted product recommendations and marketing messages. They’ve even adopted augmented reality technology to allow customers to try on makeup virtually. These actions allowed Sephora to produce a memorable shopping experience, which resulted in greater consumer loyalty.

Wayfair

Similar to Sephora’s AI implementation, online home goods retailer Wayfair allows customers to create virtual rooms and experiment with different furniture and decor options, creating a more personalized shopping experience. They also turned to chatbots to give shoppers individualized assistance and answer their questions. All their efforts helped nurture the company’s massive base of loyal followers.

Wrapping up — Make every shopper’s spree special

Personalization is a must for any eCommerce business, as it allows them to create custom shopping experiences for their customers. By leveraging first-party data and other sources of consumer information, you’ll uncover valuable insights into your customers, anticipate their needs, and deliver targeted messaging and personalized product recommendations — all of which contribute to a higher conversion rate.

For maximum results, be transparent about your data usage, avoid going overboard, test and measure the effectiveness of your efforts, and adapt to changing customer preferences. Leveraging personalization strategically will see greater sales and improved customer satisfaction and loyalty, as well as gain you a competitive edge in the ever-growing eCommerce market.

In the fast-paced digital world, one technological advancement is subtly reshaping the eCommerce landscape: voice commerce. With consumers continuously seeking convenience and efficiency in their shopping experiences, this new approach has surged in popularity and transformed the way people browse, select, and purchase products online.

Voice commerce represents more than additional convenience, though; it’s a critical element in making eCommerce more accessible. For many individuals, particularly those with visual impairments or physical disabilities, traditional browsing and purchasing methods present significant challenges. With its hands-free navigation and transaction capabilities though, voice commerce provides a solution to these obstacles, thus broadening eCommerce’s reach and inclusivity.

This article delves into voice commerce to examine its growing role within eCommerce, its intersection with accessibility, and the implications for businesses and consumers alike. We’ll explore how embracing this innovation can create a more inclusive shopping environment, then offer practical steps to optimize your eCommerce store for voice search and enhance its accessibility and user experience.

Understanding voice commerce

Voice commerce is an increasingly popular subset of eCommerce that involves the use of voice commands via smart devices and virtual assistants (like Siri, Google Assistant, and Alexa) to browse and purchase products online. By simply speaking commands, consumers can carry out actions like searching for a product, comparing prices, adding items to their shopping cart, and completing purchases. Voice commerce primarily comprises two approaches:

• Voice shopping: Customers use voice commands to search for and purchase goods online. For example, they could tell their virtual assistant, “Buy a new iPhone charger,” and the assistant would find a compatible charger, add it to the cart, and complete the purchase on the user’s behalf.
• Voice payments: Users manage and pay bills with voice commands. For instance, they might instruct their virtual assistant to “Pay the electricity bill,” and the assistant would execute the payment using the stored payment information.

As previously stated, voice commerce plays a crucial role in expanding eCommerce accessibility. For those with physical disabilities, limited mobility, or visual impairments, traditional methods of online shopping can be difficult or even impossible. Voice commerce allows these individuals to shop independently, ensuring an easier and more inclusive eCommerce experience and thus extending business reach.

Legal and ethical implications

Before jumping on the voice commerce bandwagon, research the laws connected to it. Several regulations govern accessibility in eCommerce, and businesses have a legal obligation to ensure their online platforms comply with these laws:

• In the United States, the Americans with Disabilities Act (ADA) stipulates certain accommodations and practices to prevent discrimination against people with disabilities. While the ADA doesn’t mention voice commerce specifically, its requirement for accessible digital services can be interpreted to include this form of eCommerce.
• Section 508 of the Rehabilitation Act mandates federal agencies to make their electronic and information technology accessible to people with disabilities — a standard that private businesses often adopt as well.
• The General Data Protection Regulation (GDPR) in Europe has implications for voice commerce, particularly around the storage and use of voice data, requiring businesses to take necessary precautions to protect user data.

From an ethical perspective, companies also have a moral obligation to make their services accessible to everyone, no matter their ability level. Inclusivity should be a core principle of your business practices, and by adopting voice commerce, you can ensure you cater to your customers’ diverse needs.

The benefits of incorporating voice search into eCommerce

Besides meeting legal and ethical obligations, embracing voice commerce and improving accessibility brings a host of benefits. By optimizing your eCommerce platform to accommodate this type of commerce, your business can enjoy advantages such as:

• Improved user experience: Voice search is faster and easier than typing and allows users to shop while they multitask. It also opens up the eCommerce space to those who struggle with traditional browsing methods, such as individuals with visual impairments or physical limitations.
• Stronger SEO and extended customer reach: Voice searches often involve longer, more conversational queries so, by tailoring your content to match them, you can boost your search rankings. Moreover, with the increasing use of voice assistants, optimizing for voice search can help you reach a larger audience, including tech-savvy users and those who rely on voice commands for accessibility reasons.
• Avoidance of potential lawsuits: Optimizing your eCommerce store for voice search helps you comply with accessibility standards and regulations, which protects your business from potential legal issues.

How to optimize your eCommerce store for voice search

As businesses recognize the importance of voice commerce, the question becomes: How to adapt to it? Here are some practical steps you can take to optimize your eCommerce store for voice search:

• Incorporate text-to-speech software: This technology converts written text on your website into spoken words, allowing users to listen to product descriptions and other vital information instead of reading it. This is particularly beneficial for users with visual impairments or literacy challenges.
• Develop a voice-friendly website layout and structure: Design your website to accommodate voice search users for easy navigation. This means organizing content logically and clearly, employing heading tags effectively, and ensuring all interactive elements are voice command compatible.
• Make your eCommerce site keyboard-friendly: Keyboard accessibility is essential for many users, including those who rely on keyboard-only navigation or voice recognition software. Ensure your site fully functions using only a keyboard, with clear visual focus indicators so users can see where they are on the page.
• Provide clear and simple instructions for voice search users: Not all users will be familiar with voice search, so give clear, easy-to-follow instructions to assist these individuals and enhance their shopping experience. This could include a guide on how to use voice search on your site or verbal prompts for voice commands.

Optimizing your eCommerce store for voice search requires a thoughtful approach to website design and functionality. It involves adopting new technologies, restructuring your site, and providing all users with the support they need to use voice search effectively. The result is an inclusive, user-friendly platform that meets the needs of a diverse range of consumers, which, in turn, encourages them to continue shopping with you.

The future of voice commerce

Voice commerce is no mere passing trend — it’s a transformative force in the eCommerce industry with tremendous potential for growth. As advancements in AI and machine learning expand the capabilities of voice assistants, experts predict voice commerce will continue to grow in the coming years.

Thanks to natural language processing becoming more refined (making voice assistants even more intuitive and efficient), more consumers are likely to adopt voice-enabled devices and feel comfortable using voice commands for shopping.

This increasing popularity means it’s crucial for businesses to stay ahead of the curve. With that in mind, here are some ways you can prepare your brand for the voice commerce revolution:

• Invest in technology: Determine and purchase the technology necessary to support voice commerce. This could include integrating with voice assistants like Amazon Alexa, Google Assistant, and Apple’s Siri, or developing your own voice-enabled application.
• Train your team: Make sure your team understands the potential of voice commerce and how to optimize your eCommerce platform accordingly. This may include training in SEO for voice search, website design for voice navigation, and customer service for voice interactions.
• Monitor trends: Stay informed about the latest developments in voice technology and consumer behavior. Following trends will help you to adapt your strategy as the voice commerce landscape evolves.
• Experiment and innovate: Don’t be afraid to try new things. Voice commerce is still a relatively new field, and there’s plenty of room for innovation. Experimenting with different approaches helps you find new ways to engage your customers and stay ahead of your competitors.

Wrapping up — Invest in voice commerce to boost your business revenue and reputation

Voice commerce is the next step in the evolution of online shopping. Its convenience and inclusivity make it attractive to consumers and businesses alike. By developing long-term preparations that anticipate its future influence and incorporating its present incarnations in the form of voice search, you’ll ensure you’re ready to meet the changing needs and expectations of your customers. As voice commerce becomes an increasingly common feature of the eCommerce experience, those who embrace it will thrive in the digital marketplace.

In 2022, the U.S. saw 94% of customers return to brick-and-mortar stores for in-person shopping. 

With fewer consumers shopping exclusively online, you must adapt to keep up with the ever-changing retail market. One of the most crucial aspects to focus on is unifying your eCommerce and in-store experiences.

As in-store retail makes a comeback, it’s vital to differentiate your offering and ensure the continuity of your brand, no matter how your customers choose to interact with you.

The importance of in-store experiences

While the rise of eCommerce has drastically changed the retail landscape, in-store experiences maintain a place of prominence in the industry.

Physical stores offer a tangible, sensory experience that can’t be replicated online. They provide a space where customers can touch, feel, and try out products before purchasing. The human connection and instant gratification that comes from walking out of the store with a purchase in hand add to the allure of in-store shopping.

Differentiating in-store experiences

In the current retail landscape, differentiation is vital for a brand to thrive. Here are some key recommendations to enhance the unique aspects of your in-store experiences.

1. Personalization

Today’s customers expect personalized experiences, so leverage consumer data to offer tailored recommendations in your store.

Personalization can take the form of a sales associate suggesting products based on a customer’s online shopping behavior or sending individualized offers to a buyer’s phone when they’re at a brick-and-mortar location.

2. Innovative in-store experiences

Craft unforgettable in-store experiences with innovative technology. Consider creating themed areas in your store where customers can try out products in real-world situations. You can even incorporate virtual reality headsets for customers to experience products in a unique way.

3. Expanded convenience

Convenience is a major contributor to purchasing decisions. Offer mobile payment options, in-store kiosks to check online stock, and an easy way to order out-of-stock items for home delivery. The goal is to make the shopping experience as smooth and convenient as possible.

4. Community engagement

Physical stores can act as community hubs where customers can engage with like-minded individuals. This can manifest as hosting events, workshops, or clubs that encourage shoppers to spend time in your store.

5. Exclusive in-store offers

To give customers a reason to visit your physical store, consider offering exclusive products or discounts unavailable online.

6. Interactive product displays

In-store displays can go beyond simply showcasing products: They can be interactive, allowing customers to try out products, view demos, or learn more about an item’s features and benefits.

Integrating in-store and online shopping experiences

While distinguishing your in-store experience is crucial, it’s equally important to integrate it with your online presence. Here are a few ways to marry the two.

1. Unified customer profiles

Maintain a unified customer profile that tracks consumer behavior both online and in-store. This provides valuable insights that you can use to personalize experiences across all channels.

2. Seamless omnichannel experience

Ensure a seamless transition from online to in-store experiences. This could include enabling customers to add items to their online cart and then check out in-store or order online and pick up in-store.

3. Online access to in-store inventory

Let customers check in-store stock online and reserve items for in-person pickup. This connects the online and offline shopping experiences, making it more convenient for buyers.

4. Consistent brand experience

Consistency is key to creating a unified brand experience. As such, your brand’s identity, values, and messaging should be the same across all in-store and online channels.

Challenges of uniting digital and in-store experiences

When trying to harmonize in-store and eCommerce experiences, retailers often face hurdles such as disjointed systems, inventory management issues, and difficulty providing consistent customer experiences across all channels.

However, with a strategic approach and the right tools in place, you can overcome these obstacles.

1. Disjointed systems

Retailers often operate their eCommerce and physical stores as separate entities, with distinct inventory, sales, and customer relationship management systems. This can result in disjointed customer experiences and inefficiencies in managing stock across different channels.

Solution: Implement integrated systems that can manage online and in-store operations. Unified commerce platforms can provide a single view of customers, inventory, and sales for all channels. This enables retailers to streamline operations, improve inventory management, and provide a seamless customer experience, regardless of where or how people shop.

2. Inventory management

Maintaining accurate and efficient inventory management across multiple channels can be a daunting task. Issues such as overselling due to inaccurate stock counts or the inability to replenish popular items quickly can negatively impact customer satisfaction and your business’s reputation.

Solution: Partner with a service provider like MyFBAPrep to relieve the pressure of inventory management. MyFBAPrep can ensure accurate stock counts, efficient fulfillment, and timely B2B replenishment.

We take the burden of inventory management off your shoulders, enabling you to concentrate on improving the customer experience across all channels. Learn more about MyFBAPrep’s robust omnichannel prep and fulfillment solutions.

3. Consistent customer experience

Creating a seamless customer experience across multiple touch points can be a complex task.

Consumers expect consistency from brands, whether they’re shopping online from a mobile device, browsing your website on a desktop, or visiting a physical store.

Solution: To ensure branding, messaging, and service levels are uniform across all channels, train staff to provide the same level of service in-store as customers receive online, and ensure marketing and promotional activities are coordinated on every platform you use.

Employing customer relationship management (CRM) systems can also help track customer interactions at all touch points to promote personalized and consistent customer communication.

4. Personalization

With the vast amount of customer data available, retailers are expected to provide personalized experiences. However, many businesses struggle to turn this information into actionable insights.

Solution: Leverage data analytics to understand consumer behavior, preferences, and needs. You can then use that information to tailor offerings and enhance customer engagement. Consider implementing AI-powered tools as well, since these can provide valuable insights and automate personalized online and in-store recommendations.

Leveraging technology to synergize eCommerce and in-store experiences

Technology plays a central role in uniting online and offline shopping experiences. From augmented reality (AR) and virtual reality (VR) to CRMs and inventory management software, there are a multitude of tools that retailers can harness to create an omnichannel customer journey.

Augmented and virtual reality

AR and VR are powerful tools that enhance online and in-store shopping experiences.

For online customers, AR experiences allow them to visualize products in their own space. This is especially beneficial for furniture and home decor retailers. For instance, IKEA’s AR app lets shoppers see how pieces would look in their homes.

In stores, VR transports customers to different settings or experiences related to the products they’re interested in.

Customer relationship management

CRMs are crucial for maintaining a unified customer profile and tracking buyer interactions across touch points. This data can serve to personalize product recommendations, offers, and services, thereby improving customer experience and loyalty.

Advanced CRM systems can predict future behavior as well, fostering proactive customer engagement.

Inventory management software

A customer shopping online should have the same access to product availability information as one shopping in a physical store.

Inventory management software provides real-time stock visibility across all channels, reducing the risk of overselling and ensuring efficient stock management.

Mobile apps

Branded mobile apps can provide a direct connection between online and in-store shopping.

Apps have features such as in-store navigation, product information, customer reviews, and the ability to check in-store inventory. They can also provide personalized offers based on a customer’s location within the store or push notifications about sales and promotions.

Beacons and IoT

Beacons are small devices that use Bluetooth technology to send targeted messages to smartphones based on their proximity. Retailers can harness beacons to send tailored discounts or product recommendations when customers are near specific products.

The Internet of Things (IoT) also opens up opportunities for smart fitting rooms and shelves to improve the in-store customer experience and provide valuable data on consumer behavior.

Self-service kiosks

With self-service kiosks, customers can easily check product availability, read customer reviews, and even purchase from the store floor. They bridge the gap between online and offline, providing shoppers with a convenient, self-directed experience.

AI and machine learning

AI and machine learning are becoming increasingly essential to retail success. From chatbots handling customer service to AI-driven personalization tools, these technologies enrich both online and in-store customer experiences. They can provide personalized recommendations, automate customer interactions, and predict future trends.

Technological integration is no longer a choice but a necessity for retailers to harmonize their in-store and online experiences. The key lies in selecting the right technology that aligns with your business model, target audience, and operational capacities.

Wrapping up — Delivering a seamless and unique shopping experience by balancing digital and physical retail

Unifying your eCommerce and in-store experiences is imperative to drive success for your business.

While technology and innovation play a crucial role in this, the human element shouldn’t be overlooked. At the end of the day, retail is about people — understanding their needs, delivering value, and exceeding their expectations.

With a partner like MyFBAprep, you can feel confident the operational aspects of your business run smoothly, which frees you to focus on what truly matters: creating memorable and harmonious shopping experiences for your customers.

This is a guest post from Isaac Hadriye, President & CEO of OnSite Support.

Providing a smooth buyer’s journey is an arduous task for Amazon sellers, and returns only add to the complexity. They can result in lost revenue, especially if you can’t resell the item. This is particularly problematic for merchants who sell products with low profit margins. You also have to contend with additional costs like return shipping expenses and Amazon’s refund fees, which can quickly add up and hurt your bottom line.

Through internal research, we found it takes three new sales to make up for each order that’s returned, and with average eCommerce return rates ranging from 20% to 30%, Amazon merchants face potentially huge revenue loss. Preventing returns in the first place is your best defense, as it helps you preserve inventory and maintain a healthy store reputation. We’ll walk you through specific strategies that can turn these minuses into lucrative pluses.

How to minimize returns for your Amazon store

To limit the number of returns you receive on the marketplace, adopt a comprehensive approach consisting of the following tactics.

Include accurate product descriptions and images

One of the most common reasons for returns on Amazon is inaccurate product descriptions and misleading images.

As a buyer, there’s nothing worse than receiving something in the mail and realizing it’s completely different from what you expected. If the discrepancy between what’s on your product listing and what the customer holds in their hand is too great, they’ll likely return it.

Each product listing should be detailed and accurate, with all relevant information clearly laid out, including its uses, dimensions, color, material, technical specifications, compatibility with other products, and even limitations. Also, feature high-quality images and videos from multiple angles to set realistic expectations for customers.

If your item comes in various versions, highlight any differences between each option. If you sell clothes, include a size guide so customers can measure themselves and make the right selection — clothes that don’t fit are certain to be sent back.

Remember, with online shopping, customers are unable to see or feel the item before they buy, so you have to make it as easy as possible for them to understand what they’re buying.

Create engaging videos

People are more likely to purchase if they can see a video of the product in use. Static images are helpful, but being able to show how a product works with movement gives a better idea of what they’re buying. Cover multiple angles and use cases so the customer has all the information they need to make a decision.

Keep in mind, however, that you can only include videos if you’re a registered brand on Amazon.

Display a clear and easy-to-understand return policy

It may be counterintuitive, but having an easy, no-hassle returns policy goes a long way toward reducing returns because it establishes customers’ trust in you from the start. Customers may avoid you if they know stringent requirements limit their ability to return items. Having a “free returns” option, however, lets them know you care about making them happy.

Concretely outline your return policy on your product listings, including the time frame, the product conditions required for a return to be accepted, and the refund process.

Provide excellent customer service

Lackluster customer service virtually guarantees you’ll experience more returns. Make sure you address every complaint quickly and efficiently. People want to feel their concerns matter, so actively listen to their issues and keep consumers informed of the actions you take. That white-glove service can change their minds before they pull the trigger. Beyond preventing returns, the quality of your customer service can also turn a negative experience into a positive one and thus reinforce brand loyalty.

Provide better technical and quality support by establishing an open, well-structured communication channel with your customers. This allows you to drill down into each buyer’s specific issue and take corrective measures. Sometimes, returns are due to incomplete or inaccurate product information, while in other cases, consumers may require a replacement due to defects, or outright refuse to accept orders if the packaging is damaged. Clear communication is imperative to identify these problems and remedy them correctly.

Another key component of satisfactory customer service is having robust product support for Amazon. Onsite can build a customized landing page for your business where customers can go directly from their order page and find all kinds of resources to help them troubleshoot their purchase letting them hopefully sort their issue before having to return anything.

“Get product support” button directly on Amazon orders

Conduct quality control checks

One of the most effective ways to prevent returns is to perform quality control checks on products before they’re shipped to customers. This entails inspecting for defects, ensuring items are properly packaged, and verifying they meet the specifications outlined in the product listing.

Whether you handle your fulfillment through FBA or a third-party provider, it’s crucial to ensure you haven’t received a bad batch from suppliers and avoid shipping any defective units.

If you use FBA, you can book inspections to make sure everything meets the program’s requirements and that the quality of your fulfillment operation — including both incoming and outgoing shipments — is up to a high standard.

For the incoming shipments, you can verify that what you receive matches what you ordered in terms of product and quantity, as well as check that all inventory has the correct barcode, packaging, and labeling before they arrive at FBA facilities.

From there, you can carry out quality control checks that’ll look at the units themselves and, among other things, inspect that:

• Your products are in good working condition and not damaged or malfunctioning
• Your items are all visually consistent, without blemishes, marks, or inconsistencies
• The size and weight of the items are correct
• All documentation is correct and everything is compliant with local laws and regulations

Be sure to complete additional tests as well like internal checks, color, smell, and even drop tests.

The thoroughness of this process also requires you to maintain good communication with your supplier. Any concerns with the quality of the product or the packaging should be brought up with them as quickly as possible to prevent future stock from having similar issues.

Invest in efficient fulfillment

The less time between someone hitting the “Buy” button and them receiving their item, the better — both for them and your business. For example, if the order takes too long to arrive or is delayed, the customer could decide they’re better off simply going to a physical store and returning your product whenever it arrives.

If you don’t use FBA to fulfill your orders, make sure your third-party provider is reliable. If tardiness becomes a pattern, you could see customers leave you for more efficient sellers.

Use high-quality packaging materials

The more money an item costs, the more upset a customer will be if it arrives in poor condition. So, make sure both product and shipment packaging are sturdy and reliable to protect items from damage during transit.

Look into high-grade bubble wrap, boxes, etc., and consider eco-friendly options to reduce your carbon footprint and appeal to environmentally conscious shoppers. If you find you’re receiving too many returns of a certain item, experiment with different price points if your margin allows.

Monitor customer reviews

Analyze customer reviews to identify any issues triggering returns. You can track feedback on Amazon, social media platforms, and other online forums.

Take charge of managing your customer experience and resolve any issues that arise. Poor communication is often the root cause of both unnecessary returns and poor reviews. So, attend to grievances promptly and effectively to ensure a satisfying experience overall and promote positivity.

Although you can’t completely stop bad reviews, you can at least keep track of them. Rather than ignoring them — which will only cause them to fester and drive away potential new customers — respond to negative feedback as soon as it arises. Remember, everyone will see how you react, so be positive, helpful, and, if need be, apologetic. Clearly convey that you’ll do everything you can to fix the problem. In this way, you can turn a poor opinion of your company into an opportunity for refinement and growth.

Review the data and spot trends

No matter how proactive your efforts, you’ll inevitably receive returns. When something is sent back, one of the most important things to do is find out why. Ask for (and actively review) feedback from customers — their opinions are your best indication of how your products perform in the real world.

Also, keep track of returns data to find any trends affecting your business. Are the returns coming from a particular geographic area? Is it during a specific time of year? Are they more likely to be returned if they’re bundles?

If you can identify the patterns, you can break the return cycle.

Introducing OnSite Support for eCommerce sellers

OnSite Support works directly with Amazon to bring their Product Lifecycle Support (PLS) program to marketplace sellers. Merchants enrolled in this program can display the Get Product Support button on their Amazon customers’ order page, which solicits direct assistance for buyers on the verge of returning a product.

This attentive support significantly reduces returns and negative reviews: Since launching the program, Amazon tracked over 350,000 monthly clicks on the Get Product Support buttons from frustrated buyers. They also reported they were able to avoid returns in approximately 68% of those cases.

Currently, only brands that participate in Amazon’s Brand Registry are allowed to join the Product Lifecycle Support program. To join the Brand Registry, you have to have a trademark or a pending trademark.

Read: Amazon Brand Protection: How to Protect Your Brand on Amazon

Wrapping up — Take a detailed approach to limit returns on Amazon

Slashing unnecessary returns can be a game changer for your bottom line. Refunds eat away at your brand’s profit, and it only takes a few returns to earn a negative ROI from a product launch.

Combine the strategies outlined in this article to cultivate smoother business operations and more satisfied customers. In turn, that improved experience will bring down the number of returns you receive and garner more positive customer feedback.

Generating billions of dollars in sales, Amazon has solidified their position as a go-to platform for online shopping worldwide. Central to that success is their Prime program, a membership service offering numerous benefits, including free two-day shipping, streaming media, and more. As of Amazon’s last public report, they had over 200 million Prime members worldwide, illustrating the program’s widespread popularity and reach.

In 2015, Amazon announced a new initiative: Seller Fulfilled Prime (SFP). The program empowers third-party sellers by letting them display the Prime badge on orders fulfilled directly from their own warehouses or through a third-party logistics provider.

The program had been closed to new sellers, but will open for enrollment sometime in 2023. This signals an exciting opportunity for third-party sellers, and anyone interested should closely monitor Amazon’s updates for more information.

Source

This article will serve as your SFP primer, highlighting the program’s benefits, requirements, and considerations for prospective participants.

Understanding Seller Fulfilled Prime (SFP)

Source

SFP is an innovative program Amazon developed to expand third-party sellers’ capabilities on the platform. It bridges the gap between Amazon’s two major selling arms: the third-party Fulfilled by Merchant (FBM) selling option and the Fulfilled by Amazon (FBA) program.

At its core, SFP allows sellers to fulfill their orders directly from their own warehouses or through a third-party logistics provider, rather than sending their inventory to Amazon’s warehouses in the FBA program. Although they handle their order fulfillment, these sellers can still display the coveted Prime badge on their listings and tap into the millions of loyal Amazon Prime customers.

While FBA offers significant benefits — namely, Amazon handling storage, packaging, shipping, customer service, and returns management — sellers have to send their inventory to Amazon’s fulfillment centers to receive these advantages. This can present challenges in terms of warehousing fees, long-term storage restrictions, and the risk of stock becoming lost or damaged.

In contrast, SFP offers sellers more control over their inventory and fulfillment processes. This means they can potentially save on storage fees and better manage their stock levels. However, they’re also fully responsible for maintaining Amazon’s high standards of customer service, shipping speed, and reliability.

SFP brings its own considerable benefits for sellers, with the most noteworthy being the ability to display the Prime badge on their product listings, despite not using FBA. This can significantly increase product visibility to draw in Amazon’s massive base of Prime customers, who are known for their higher-than-average purchase frequency and loyalty. Sellers also enjoy more control over their inventory and fulfillment processes, which can lead to cost savings and more efficient operations.

Program requirements for Seller Fulfilled Prime

The SFP program has specific requirements that sellers must meet to participate. These criteria are designed to ensure Amazon’s high customer service standards are upheld, regardless of whether an order is fulfilled by Amazon or a third-party seller.

General eligibility

To join SFP, sellers must:

• Already sell on Amazon and have a professional account. This is necessary because the program is built on Amazon’s existing seller platform.
• Have an established track record of excellent performance, which is measured through Amazon’s Order Defect Rate (ODR). ODR is a key performance metric Amazon uses to assess sellers, and it should be below 1% for the trailing 60 days.
• Be able to fulfill orders from all states within the country of selling and offer premium shipping options.

Performance metrics and standards

Beyond the initial eligibility criteria, SFP sellers must also continuously maintain a high standard of performance metrics. These include:

• On-Time Shipment Rate: Greater than or equal to 99% for Prime orders
• Order Cancellation Rate: Less than 0.5% for Prime orders
• Valid Tracking Rate: Greater than or equal to 95% for Prime orders

Integration requirements for order management and tracking

Amazon requires SFP sellers to use Buy Shipping Services for at least 99% of their Prime orders. This service provides tracking information for all shipments, which is crucial for maintaining transparency and meeting Amazon’s performance metrics.

Minimum order volume and fulfillment capabilities

To participate in SFP, sellers must demonstrate they can handle a minimum order volume and have adequate fulfillment capabilities. Although Amazon hasn’t explicitly stated a minimum order volume, sellers should assess their capacity to ensure they can meet demand, particularly with the potential increase in sales due to displaying the Prime badge.

Additionally, SFP sellers are required to use Amazon’s approved carriers and meet Amazon’s Prime delivery speed requirements, including two-day delivery.

The SFP fulfillment process

SFP shifts the onus of fulfillment onto the sellers. Therefore, it’s critical for vendors to understand the entire process, from order receipt to shipping, to ensure they can provide the high level of service Amazon Prime customers demand.

Order fulfillment workflow

The order fulfillment process in SFP begins when a customer places an order for a Prime-eligible product. Amazon notifies the seller of the order, and the seller is then responsible for picking, packing, and shipping the product. (This is in contrast to the FBA model, where Amazon takes over after the order is placed.)

SFP sellers bear more responsibility compared to the FBA program. Key tasks include:

• Inventory management: Sellers must keep track of their inventory levels to ensure they can fulfill all orders. This is crucial, as stockouts can lead to canceled orders and potentially harm performance metrics.
• Order fulfillment: Sellers must have processes in place for efficient picking, packing, and shipping of products. They must be fast enough to meet Amazon’s delivery speed requirements for Prime orders.
• Shipping: Sellers are required to use Amazon-approved shipping carriers and must meet the two-day delivery promise for Prime orders.

Sellers who participate in SFP are also responsible for their own customer service. This includes responding to consumer inquiries and handling returns in accordance with Amazon’s return policies. Providing high-quality customer service is critical for maintaining a strong seller reputation and meeting Amazon’s performance metrics.

Key considerations for sellers in SFP

While the SFP program offers significant potential benefits, it also comes with certain challenges that require careful consideration. Before joining, sellers should evaluate whether SFP aligns with their business model and capabilities.

The feasibility for your business

Carefully analyze your business’s capabilities and goals against SFP’s requirements. Can you handle the increased order volume that may result from the Prime badge? Do you have the resources and processes in place to meet Amazon’s high performance standards? Consider conducting a trial run of fulfilling orders in-house to gauge whether SFP is a feasible option for you.

Costs and fees

While SFP can save you on storage fees associated with FBA, there are other costs to consider, including expenses for shipping, returns, and packing materials. Also, remember that, as an SFP seller, you’ll be responsible for customer service, which may require additional resources.

Logistical and operational challenges

SFP sellers face unique logistical and operational challenges. Managing your own inventory, fulfilling orders, ensuring fast and reliable shipping, and handling customer service and returns require time, resources, and efficient processes. Before joining SFP, you should assess whether your business has the capabilities to tackle these responsibilities efficiently.

Maintaining customer satisfaction and performance metrics

It’s no secret that Amazon has high expectations for sellers to keep customers happy. As such, maintaining superb customer satisfaction and meeting Amazon’s performance metrics is crucial for SFP sellers. Poor performance risks losing your Prime eligibility and being suspended from selling on Amazon altogether.

Tips for successful Seller Fulfilled Prime participation

Transitioning to Seller Fulfilled Prime can open up new opportunities for your business on Amazon. However, success in the program requires meticulous planning and efficient execution. Here are some tips to ensure successful participation in the SFP program:

• Optimize your fulfillment processes: Efficient fulfillment is the backbone of the SFP program. Consider employing strategies such as batch picking, where you pick multiple orders simultaneously, or zone picking, where you pick all items from a particular zone before moving on to the next. Streamlined packing stations, organized inventory, and reliable shipping carriers also contribute to efficient fulfillment.
• Leverage shipping carriers and tools: Partner with reliable shipping carriers who can meet Amazon’s two-day delivery requirement for Prime orders. You can negotiate rates with multiple carriers to find the best deal. Also, leverage tools like Amazon’s Buy Shipping Services to automate the shipping process and ensure tracking information is readily available for consumers.
• Monitor and improve performance metrics: Amazon’s performance metrics are more than requirements for the SFP program; they’re also indicators of your business’s health. Regularly monitor these metrics and take proactive steps to improve them. That might involve honing your fulfillment process, refining customer service, or managing your inventory more effectively.
• Keep up to date on program and policy changes: Amazon is known for frequent changes and updates to their seller programs and policies. Stay informed about any changes to SFP’s requirements, policies, or new features to ensure compliance and take advantage of new opportunities.

Wrapping up — SFP is the lucrative middle ground between FBM and FBA

Seller Fulfilled Prime marks a new era in Amazon’s third-party selling landscape, offering sellers the coveted Prime badge while allowing them to retain control over their inventory and fulfillment processes. However, the program comes with stringent responsibilities and requirements. To participate, sellers must demonstrate excellent performance, manage their own inventory, fulfill orders in a timely manner, and provide top-notch customer service, all while adhering to Amazon’s stringent standards.

Before joining SFP, carefully assess whether your business is equipped to handle the program’s responsibilities and costs. That entails analyzing your fulfillment capabilities, your resources for customer service, and your ability to meet Amazon’s performance metrics consistently. If your business is up to the task, SFP can be a bountiful revenue-generation channel.

Not sure where to begin? Get in touch with MyFBAPrep — we’re skilled at helping our clients navigate every facet of Amazon selling.

This is a guest post from Minhas M, an SPCTEK Amazon consultant with several years of experience in the eCommerce industry. Minhas has helped numerous businesses achieve success on the Amazon marketplace. With a passion for technology and a deep understanding of the platform’s complex algorithms, he has built a reputation as a go-to expert for businesses looking to increase their sales and visibility on Amazon.

Running a successful Amazon seller account requires dedication, expertise, and careful management. However, as your business grows, overseeing all aspects of your account can become overwhelming. At that point, it may be worth your time and money to hire a professional agency. In this article, I’ll explain why outsourcing the management of your Amazon seller account is a smart move, which tasks to pass off, and what to look for when choosing a service provider.

Why outsource your Amazon seller account?

To run an Amazon seller account effectively, you have to devote significant effort, especially as your store expands. By outsourcing the process though, you enjoy several benefits, including:

Saved time: Outsourcing tasks such as product listing, inventory management, order fulfillment, and customer service frees up time to focus on core business activities. You can concentrate on product development, sourcing, and expanding your brand while a third party handles the day-to-day operations.

Scalability: A professional service will ensure your account management scales alongside your business. These providers have the necessary infrastructure, technology, and resources to handle a large volume of products, orders, and customer inquiries, providing a seamless experience for your buyers.

Enhanced product listing optimization: Optimizing product listings for maximum visibility and conversions is critical to secure sales on Amazon. Hiring experts for this task will ensure your listings are well crafted, keyword-rich, and appealing to shoppers.

More efficient order fulfillment: Efficient order fulfillment is essential to meet customer expectations. Outsourcing the process to fulfillment centers or logistics providers can streamline operations, reduce shipping costs, and ensure timely delivery to maintain customer satisfaction and a positive business reputation.

Professional customer service: Exceptional customer service contributes greatly to a positive reputation on Amazon. When you let professionals take over, you can feel confident that all customer inquiries are addressed promptly and respectfully. These providers are trained in Amazon-specific queries, which enables them to resolve issues quickly and maintain high customer satisfaction.

Robust reporting and analytics: Professional service providers often have robust reporting and analytics tools to monitor and analyze your Amazon account’s performance. They yield valuable data on sales, consumer behavior, advertising effectiveness, and inventory management. Leveraging these analytics can help you make data-driven decisions and optimize your strategies for improved results.

Amazon account management elements to outsource

While every business has unique needs, there are some common aspects of Amazon account management that you should consider outsourcing.

Product listing optimization

If your Amazon product listings struggle to generate sales, it’s time to refine and hone them. Hiring a service to optimize your product listings ensures they’re keyword-rich, well structured, and appealing to potential customers. Expert service providers can conduct thorough keyword research, write compelling product descriptions, and strengthen titles, bullet points, and back-end search terms, resulting in improved search rankings and increased sales.

Inventory management

Efficiently managed inventory is vital to avoid stockouts and maintain a positive customer experience. Outsourcing inventory management allows you to optimize stock levels, track inventory performance, and implement effective replenishment strategies. Service providers can set up inventory management systems, forecast demand, and ensure seamless integration with your supply chain to reduce the risk of inventory-related issues.

Order fulfillment

Outsourcing order fulfillment to specialized fulfillment centers or third-party logistics providers ensures fast, accurate, and cost-effective order processing and shipping. These services have the infrastructure and expertise to handle picking, packing, shipping, and tracking so you’re assured every order reaches its destination on time and in pristine condition.

Customer service

Professional customer service companies provide prompt and efficient handling of customer inquiries, order issues, and returns. Those with expertise in Amazon-related customer support can handle a high volume of inquiries, offer multi-channel assistance, and ensure timely resolution to problems.

Advertising campaigns

Running successful advertising campaigns on Amazon requires expertise in campaign setup, optimization, and analysis. Outsourcing your advertising efforts to experienced professionals can help you maximize your return on investment (ROI). They can develop and manage targeted campaigns, optimize keyword bidding, and monitor performance to ensure your ad spend generates the desired results, ultimately boosting visibility and sales.

Review management

Building a positive review profile is crucial for establishing trust and credibility with potential customers. By handing off review management to service providers, you can monitor and respond to reviews with prompt and professional customer engagement. These third-party services can help you implement strategies to increase positive reviews, address negative feedback, and maintain a favorable reputation on the platform.

Account health and performance monitoring

Monitoring your account’s health and performance metrics is essential for uncovering areas in need of improvement and mitigating risks. Outsourced professionals will regularly review your account, identify issues, such as policy violations or performance discrepancies, and provide actionable insights to optimize performance. This proactive approach helps you maintain a healthy account and minimizes the possibility of suspension or penalties.

Competitor research and analysis

To stay competitive on Amazon, it’s crucial to understand your competitors’ strategies and market dynamics. Specialized agencies can provide valuable insights into pricing trends, product assortment, marketing tactics, and customer preferences. These insights enable you to fine-tune your strategies and differentiate your offerings to gain a competitive edge.

International expansion

Expanding your business to international Amazon marketplaces can be a complex endeavor. However, partnering with experts who are familiar with different regions’ regulations, cultural nuances, and customer preferences can streamline the process. These professionals can assist with product translation, localization, market research, and compliance.

What to look for in a service provider

When selecting a professional agency to outsource your Amazon seller account, consider the following factors:

• Experience and track record: Look for providers with a proven history of working with Amazon sellers and delivering tangible results. Assess their client portfolio, read testimonials, and check case studies to gauge their expertise and success in managing Amazon accounts. An experienced provider will have a deep understanding of the platform’s intricacies and be equipped to handle various challenges that may arise.
• Range of services: Verify that the service offerings align with your specific needs. Choose a provider that offers a comprehensive suite of services to cover all aspects of account management. This ensures seamless integration and consistent performance across your Amazon business.
• Communication and transparency: Your chosen provider must maintain clear and open lines of communication. They should provide regular updates on the progress and performance of your account, be responsive to your inquiries and concerns, and designate a point of contact for you. Transparent reporting is also essential to track key metrics, assess the effectiveness of strategies, and make informed decisions.
• Expertise in your niche or category: Different product categories have unique challenges and require specialized knowledge. Potential partners should have a demonstrated understanding of the nuances of selling within your category and be able to provide valuable insights and recommendations. Familiarity with your niche’s market dynamics, customer preferences, and competition allows them to tailor strategies and optimize performance.
• Pricing structure and ROI: Evaluate the value a service provides compared to the cost. While price is an important factor, focus on the provider’s ability to deliver a positive ROI for your business. Assess their pricing models (i.e., a flat fee, percentage of sales, a combination) and consider the level of expertise, range of services, and expected outcomes when determining their overall value proposition. Look for providers who demonstrate measurable results.

Conclusion

Hiring a professional agency to run your Amazon seller account offers numerous advantages, including access to platform expertise, time savings, scalability, and enhanced efficiency. Careful consideration of which aspects to outsource, coupled with a meticulous selection process for a service provider, will help you unlock the full potential of your Amazon seller account and drive sustainable growth for your business.

In the third quarter of 2022 alone, eCommerce retail companies received a staggering $4.6 billion dollars in funding, underscoring the vital role funding plays in the industry.

You need money to expand your inventory, launch marketing campaigns, and hire new employees, and thankfully, various funding options are available.

From stocking up inventory and expanding product ranges to investing in sophisticated technologies for seamless online experiences, a robust financial backbone can pave the way for success. Keep reading as we discuss the different types of eCommerce funding and their pros and cons to help you pick the right source for your business.

Understanding your funding needs

Before you dive into eCommerce business loans and funding, you must explicitly pinpoint your funding needs. You may require capital for one or multiple aspects of your business, such as business expansion, inventory management, or marketing campaigns.

A well-structured financial plan will guide you to make sound budgeting decisions, help you allocate resources efficiently, and, ultimately, increase your business’s profitability.

When analyzing your funding needs, consider the following factors:

• The amount of money you need: This will depend on factors such as your current inventory levels, marketing budget, and growth goals.
• What you’ll use the money for: Will you expand your inventory, launch a marketing campaign, hire new employees, etc.?
• How long you’ll need the money: This will depend on your business goals and your repayment capabilities.

Once you’ve identified where and for how long you need funds, you can start to narrow down your options.

Inventory management is an integral part of proper financial management. Check out MyFBAPrep’s guide on How to Track eCommerce Inventory Across Multiple Channels.

Traditional funding

Several traditional funding options are available to online retailers, including:

• Bank loans: When acquiring funding for an eCommerce business, bank loans are the typical go-to. They’re often beneficial due to their relatively lower interest rates and predictable repayment schedules. However, the lengthy approval process and stringent eligibility criteria can be major drawbacks.
• Angel investors: Angel investors are individuals or groups willing to fund your business in exchange for equity. This can provide a significant boost to your eCommerce venture. However, you’ll need a solid business plan to attract these backers, and it often involves giving up some control over your business.
• Venture capital: Venture capital is a form of private equity financing obtained from venture capital firms or funds given to start-ups and early-stage and emerging companies. Venture capitalists generally require a robust business model and high growth potential. They also often demand substantial equity in your business, which may not be suitable for all entrepreneurs.

eCommerce-specific funding

In addition to traditional avenues, many eCommerce-specific funding options are available. These can be a good choice for businesses looking for quick and easy access to capital.

Walmart Marketplace Capital

Walmart Marketplace Capital is a lending program for businesses that sell on Walmart.com. The program offers short-term loans with competitive interest rates.

To qualify for the Walmart Marketplace Capital program, you have to meet specific criteria: First, you must have an established presence on the Walmart Marketplace (at least six months of selling experience). Your sales volume on the marketplace is also a pivotal factor in your eligibility.

Walmart will assess your business’s risk profile in the decision-making process, as well as your adherence to their Marketplace Seller Performance Standards.

Be aware, this program is only accessible to businesses based in the U.S.

Pros

• Fast and efficient: The application and approval process is much quicker than traditional bank loans.
• Tailored to your sales: The funding amount is based on your marketplace sales, making it suitable for businesses of all sizes.

Cons

• Exclusivity: It’s only available to sellers on the Walmart Marketplace located in the U.S. If you sell on other platforms or are based outside of America, you’re ineligible.
• Limited control over repayment: Repayments are automatically deducted from your marketplace sales, which could cause cash-flow issues during slow sales periods.

Payability

Payability is a financing company that offers short-term loans and invoice financing to businesses that sell on Amazon, Walmart, and Newegg.

Payability also provides a service called Instant Access to speed up payments. To be eligible for this program, you must demonstrate at least three months of selling history and maintain a monthly sales volume of $10,000 or more.

Pros

• Quick access to cash: You can receive daily cash advances based on your sales, which helps you maintain a healthy cash flow.
• No credit checks: Payability approves funding based on your eCommerce sales history, not your credit score, making it an excellent option for those with less-than-perfect credit.

Cons

• Higher fees: Payability’s fees can be higher than traditional bank loans, so it’s important to calculate the cost before proceeding.
• Limited to certain platforms: The program only works with specific eCommerce platforms; if your store isn’t on one of these platforms, you won’t be able to use Payability.

Clearco

Clearco’s primary offering resembles a merchant cash advance but provides invoice financing options for select businesses. Regardless of the type of financing selected, Clearco will deduct a percentage of future sales to cover the borrowed amount.

Pros

• Data-driven: Clearco uses data from your eCommerce platform to make funding decisions, which can be more accurate than traditional credit checks.
• Flexible repayments: Repayments are based on your revenue, which means you pay less during slow periods.

Cons

• Fees: In addition to repaying the loan, you must pay a 6%–12% fee, which can eat into your funding.
• Partial control: You have to give up a small percentage of your revenue until the loan is repaid.

Payoneer Capital Advance

Payoneer’s Capital Advance service offers capital funding solutions that you can customize to meet your business’s specific needs. Select from various amounts and repayment periods. The longer the repayment period, the larger the loan you can obtain, providing more potential to maximize your funding.

Once you agree to a Capital Advance offer, Payoneer provides an advancement based on your forthcoming marketplace earnings.

Pros

• Quick access to funds: The funds are directly deposited into your Payoneer account so you can spend capital quickly.
• Straightforward repayment: Repayments are deducted from your Payoneer account balance, eliminating the need for a separate repayment process.

Cons

• Ecosystem limitation: The funds can only be used within the Payoneer ecosystem. If you want to spend them elsewhere, you’ll need to transfer them out, which may incur fees.
• Dependence on sales: Like most eCommerce funding options, the amount you can borrow depends on your sales. You also may have trouble repaying the loan if your sales fluctuate or decrease.

Alternative funding

If you can’t obtain traditional or eCommerce-specific funding, there are other avenues open to you.

Crowdfunding

Crowdfunding platforms like Kickstarter and Indiegogo allow you to present your idea to the public. If they believe in your vision, they can pledge funds to support it.

This popular funding method involves raising small amounts of money from a large number of people, typically via the Internet. Crowdfunding can be a highly effective way to finance your eCommerce company, but it requires a compelling business idea and an appealing pitch.

Pros

• Accessibility: Crowdfunding platforms are available to anyone with an Internet connection, allowing businesses of all sizes to reach out to potential investors globally.
• Marketing and exposure: A successful crowdfunding campaign can raise awareness of your brand and attract new customers. It can also serve as a platform to test and gather feedback on your product.
• No repayment needed (in most cases): In reward-based crowdfunding, backers receive a product or service in return for their donations. As a result, you neither take on debt nor give up equity.

Cons

• All or nothing: Some crowdfunding platforms operate on an all-or-nothing basis, meaning you only receive funding once you reach your goal. If you fail to hit your target, you get nothing.
• No guarantee of success: Crowdfunding is highly competitive. Not every campaign will be successful, and it largely depends on the appeal of your idea and your ability to market it well.
• Potential for negative feedback: If your product or service falls short of backers’ expectations, you could incur negative publicity, which will harm your brand image.

When venturing into crowdfunding, leave the logistical aspects of your brainchild to MyFBAPrep. We efficiently manage everything from storage and quality assurance to packaging and fulfillment, allowing you to focus on your campaign and product development. Learn more about MyFBAPrep’s Crowdfunding Fulfillment.

Bootstrapping

Bootstrapping entails funding your company using your personal savings or business revenue. The appeal of this method is it gives you full control. However, it limits the capital you can raise and places personal assets at risk.

Pros

• Full control: As previously stated, you retain complete control of your business without the need to repay a loan or share your equity.
• No interest: Unlike loans, using personal savings doesn’t incur interest.

Cons

• Limited funds: Your personal savings will likely be limited, which might restrict business growth.
• Risk: If your business fails to take off, you risk losing your personal savings.

Business credit cards

Like personal ones, business credit cards provide a revolving line of credit with a set limit. They can cover expenses such as inventory purchases, advertising, or website development.

Pros

• Rewards and benefits: Many business credit cards offer rewards and benefits such as cash back or travel points.
• Build business credit: Using and repaying your credit card responsibly can build your business credit score.

Cons

• High interest rates: If managed improperly, you risk high interest rates.
• Personal liability: In some cases, you might be personally liable for the debt on your business credit card.

Wrapping up — Choose the right eCommerce funding option to kick-start your business growth

Securing financial backing for your eCommerce business is a crucial step on your entrepreneurial journey. The best funding source for you will depend on various factors, including your business’s stage, the amount needed, and your repayment capabilities.

Take time to assess the options covered in this article thoroughly, considering their pros and cons in regards to your specific situation; what works for one eCommerce business might not necessarily work for another. With the right type (and amount) of funding, your brand can achieve its growth goals and push past its current limitations.

SFP, is that you?

Amazon is going to be reopening its Seller-Fulfilled Prime (SFP) enrollment later this year, which will allow for sellers to handle the fulfillment of their inventory to the customers on their own (and, importantly, maintaining the Prime badge for fast and free delivery).

SFP was first launched in 2015, but since has been deemed by many experts to be an Amazon “swing and a miss” for lacking in customer experience and seller compliance on shipping metrics.

For example, the program mandates that sellers much ship over 99% of orders on time, have nationwide delivery coverage, and have weekend pickups and delivery.

All that made SFP popular for a niche group of sellers who found it cheaper to use their own or third-party fulfillment centers.

As of late, the SFP program has been closed to new applicants to “address issues with customer expectations and provide better support for sellers.”

Some are saying that this step by Amazon is seen as a way to expand its Prime service while freeing up FC warehouse space post-Covid.

Small and Light is Dead

Last week on June 29th, Amazon announced that they are ending the Small and Light program.

Small and Light was an Amazon FBA program designed to cut fulfillment costs for products that were…you guessed it, Small and Light.

More specifically, products had to check these three boxes:

• Weighing 3 pounds or less
• Measuring 18 x 14 x 8 in dimensional inches (or less)
• And be priced at $12 or under

Amazon is replacing S&L with new “Low-Price FBA rates” which will still save sellers money compared to larger size, weight, and priced items…but not to the same extent.

What sellers loved about S&L is that offered a reduced fulfillment fee, thus incentivizing wholesale sellers to carry such inventory and Private Label sellers to consider manufacturing it.

Many sellers felt that without S&L incentives, the same products would be rendered unprofitable under standard fulfillment costs.

No one is celebrating the new FBA rates for low-price products which average $0.77 lower per item than current FBA fulfillment rates.  That’s because that rate is $0.30 more than under the previous Small and Light program.

Zooming out, this change feels all-too-reminiscent to many sellers of the theme: Amazon will always deliver the lowest price to its customers, but often times at the expense of the sellers…too bad that a company with $513.983 billion in revenue can’t seem to find room to help its third party sellers out!