Blog & Podcast - How to Sell on Amazon UK - Amazing FBA - How to sell on Amazon UK
How to private label on Amazon

*NEW* Free Guide on how to Build a Private Label Business

"Build" Guide - how to Build your Private Label Business


  • The overview of our proven process

  • Easy to absorb points for skim reading

  • Lots of detail if you want the nitty-gritty!

#327 Amazon’s Deliveroo Investment & USA Monthly Storage fee discount (Amazon News)

Amazon’s Deliveroo Investment Puts Amazon in Competition With Uber and Just Eat UK

Amazon’s Deliveroo investment, representing its latest  push into the UK food delivery market,  was facing mounting opposition this week as critics of a $575m deal with Deliveroo voiced concerns about the control it will exercise over the UK business.

The food delivery company Deliveroo announced its deal with Amazon on Friday. Saying that Jeff Bezos’ e-commerce empire was the lead investor in a giant $575m (£450m) funding round, taking the total amount of cash raised by the business to $1.53 billion.

The announcement of the Amazon Deliveroo investment sent shares in rival online food delivery companies such as Just Eat and Takeaway.com falling fast.

Deliveroo to use Amazon’s investment for Technology

The UK delivery company said it would use the cash injection to “invest heavily” in its technology. Deliveroo company founder Will Shu claimed he looks forward to working with Amazon,  which he described as a “customer-obsessed organisation”.

Amazon’s own Food delivery failures

Amazon’s investment in Deliveroo comes on the back of Amazon pulling back on its own restaurant delivery business in the UK. It closed the London arm of the service in December last year.

Amazon shut the doors to its own food delivery business Amazon Restaurants in the UK in 2018 – after just two years. Amazon Restaurants had struggled in a highly competitive market dominated by the likes of Just Eat, Deliveroo and Uber Eats, all of which deliver food to consumers who make orders through smartphone apps.

Deliveroo’s Synergy with Amazon fulfilment

The Deliveroo investment may have been driven by the appeal of a network of couriers to Amazon for logistical and staff loyalty reasons.

Delivery staff are usually paid for each completed delivery.   If Amazon can ensure that the people making their deliveries have little or no downtime, then delivery staff can make more money and are therefore less likely to go and work for a rival.

If they are able to transport both goods from Amazon Prime Now, which promises deliveries within two hours, and Deliveroo meals, then the likelihood of downtime is reduced.

Deliveroo to help Amazon logistics with “Dark kitchens”  

Deliveroo’s push into so-called “dark kitchens” might also help with Amazon’s logistics.

These are facilities which aren’t attached to a physical restaurant, often housed in shipping containers on affordable sites dotted around London.

While the model remains unproven, the idea is to reach more customers without the pricey overheads that come with an actual restaurant. Those locations could also act as last-mile fulfilment centres for Amazon.  Deliveroo plans to use many of the proceeds from the latest fundraising to open new sites.

Political Controversy over Amazon Deliveroo Deal

Amazon’s Deliveroo investment provoked immediate controversy from politician Tom Watson MP, deputy leader of the Labour Party the main Opposition party in the UK. Watson demanded an investigation by the UK’s competition watchdog into Amazon’s ploy to get its “mighty claws” on more consumer data.

“Amazon is obsessed with tracking tools, micro-targeted ads, extracting billions through monetising our personal data,” Watson said. “They want Deliveroo’s tech and data… They want to know how best to extract your cash throughout your waking and sleeping hours.”

Market Sceptical over Amazon deal with Deliveroo 

Market analysts are sceptical of the idea that Amazon’s Deliveroo deal can succeed in overthrowing Just Eat,  which retains a dominant position in the UK food delivery market.

“Just Eat has something like three to four times more of the market share than Deliveroo and Uber Eats combined in the UK,” said Ian Whittaker, research analyst at investment bank Liberum. “60pc of their customers are in small towns,  where the economics of Uber Eats and Deliveroo just don’t work.”

Mr Whittaker added that the Amazon investment appears to be more about the company keeping “in touch with the market.” This feeling was echoed by other market analysts. Broadly, they just  don’t believe Amazon will push hard to dominate the food delivery market.

“We don’t know how much of the $575m of funding Amazon contributed, but considering it’s got $23bn of cash on its balance sheet, this won’t break the Bezos piggybank,” said Hargreaves Lansdown analyst Laith Khalaf.

UK daily active users of food delivery apps, 2018

Just Eat 499,603

Uber eats 50,647

Deliveroo 44,890

SOURCE: FINANCIAL TIMES

Faster Prime Shipping Service in the USA Monthly Storage fee discount

Amazon recently announced that in the US they are in the process of evolving their Prime shipping offer. Prime has  historically been a two-day program. However,  Amazon is aiming to move it to guaranteed one-day shipping in all the Lower 48 states.

The e-commerce giant simply wants customers to get their orders quickly. Amazon said, “We have found they order more products when there is a one-day delivery promise.”

Official Amazon Advice to 3rd party sellers

“You can make the most of this …by provid[ing] enough inventory of your most popular products so that we can place it close to customers.”

To help sellers get started, Amazon announced a  monthly storage fee discount so that sellers could supply more of their most popular products. The promotion begins June 1, 2019, and will run through January 31, 2020.

To qualify for reduced fees of up to 75%, suppliers must supply inventory within a target inventory range in a given month. See details below.

How to get the monthly storage fee discount

1. Determine your eligible FBA products

Products become eligible in either of the following ways:

  • Standard-size products with 60 or more units sold in the month are eligible. OR
  • Before the start of each month, we will flag products in the Restock Report that are automatically eligible.

2. Maintain the target inventory range

  • Keep your inventory level between 4 to 8 weeks of cover on eligible products for at least 21 days in a given month to qualify for the discount each month. OR
  • For products flagged as automatically eligible in the Restock Report, keep your inventory level in the range published in the Restock Report for at least 21 days in a month to qualify for the discount.

“Weeks of cover”

Weeks of Cover Trailing 30 Days

weeks-of-cover-t30

If you sold 400 units in the last 30 days (4 weeks) for a given item and had 100 sellable units in Amazon fulfillment centers, your Weeks of Cover t30 would be 1.

3. Get the discount

Eligible products that meet the inventory level criteria in a given month will get discounted storage fees in that month. See the table below for discounts. Earn 50% to 75% off monthly storage fees!

Monthly storage fee changes on eligible products when qualifying inventory levels are met

Month

Standard-size (without target inventory)

Standard-size (with target inventory)

January – September

$0.69 per cubic foot

$0.17 per cubic foot

October – December

$2.40 per cubic foot

$1.20 per cubic foot

3rd-party sellers can earn Discounts starting with June’s storage fees (charged in July). Amazon has advised sellers to  start planning their shipments from late May.

For more guidance on earning the monthly storage fee discount, visit Target inventory monthly storage fee promotion.

326 Habit 3: First Things First – time management for ecommerce entrepreneurs (part 2)

Time Management for e-commerce is an absolutely critical skill area. Time management can be the single biggest block to even starting an e-commerce business. And for an established, busy e-commerce business owner,  managing time is just as critical.

In this episode, we focus on the learnings from the wonderful book (and also audiobook) –

“7 Habits of Highly Effective People” by Steven Covey

Continue reading

325 New Trade Tariffs imposed by USA on Chinese Imports

New Trade Tariffs from USA imposed on China [Trade War News]

US Tariffs of 25% imposed on $234B worth of Chinese Imports

New Trade Tariffs have been imposed by the US government on imports from China.

President Donald Trump escalated the trade war with China on Friday, imposing new trade tariffs on $200 billion worth of Chinese goods, now at 25%, up from the previous 10% rate.

Continue reading

#324 Time Management for e-commerce (Habit 3 from “7 Habits” series)

Time Management for e-commerce – wisdom from Steven Covey 

Habit 3:  First Things First

Time Management for e-commerce is an absolutely critical skill area. Time management can be the single biggest block to even starting an e-commerce business. And for an established, busy e-commerce business owner,  managing time is just as critical.

In this episode, we focus on the learnings from  the wonderful book (and also audio book) –

“7 Habits of Highly Effective People” by Steven Covey

Continue reading

323 Amazon News: Trump Tweets New Threat in US-China Trade War

Trump Tweets New threat in China-USA Trade war

There has been a new twist in the ongoing US-China Trade War. Trump said in a Sunday afternoon Twitter post (5 May 2019)  that the current 10% tariffs on $200 billion worth of Chinese goods will increase to 25% on Friday.

He also threatened to impose 25% levies on an additional $325 billion of Chinese goods “shortly.”

Chinese Trade Delegation uncertain

Chinese Vice Premier Liu He had planned to bring a large delegation to Washington on Wednesday to hash out a trade deal.

There had been talk in recent days that something resembling a deal could result.

Instead, two sources briefed on the talks said the Chinese side may consider backing out of this week’s negotiations.

 Trump’s new threats, they said, threaten the six-month truce. In return, Trump may have made them after Beijing threatened to renege on some previously discussed commitments.

One source had said the Chinese vice premier would likely cancel the trip he’d planned for himself and a 100-person delegation. This was for the final round of talks that U.S. officials had previously said could yield a deal by Friday.

In September 2018 Chinese officials canceled a trip  in similar circumstances.

New Trade Reality or Trade War Negotiation tactic?

A second source said Trump’s decision to more than double the tariff rate on $200 billion of goods was meant to send a message to Liu to not come to the U.S. with more “empty offers.”

The Chinese spokesman would not elaborate on the number of people on the Chinese team, the length of the trip, or the date of departure.

He also emphasized that such back-and-forth in the trade negotiations have happened before. He underlined that the latest round of talks saw “positive” progress.

US-China Trade Sticking points

Major sticking points between the U.S. and China have been intellectual property theft and forced technology transfers. The two superpower also disagreed as to whether tariffs should be removed or remain in place as an enforcement mechanism.

Reaction to Trump Tweet

“The very fact that it’s a nuclear threat brings people to the table,” said Warren Buffett on CNBC. “But you don’t want to have too many nuclear threats out there because someday somebody may feel apt to fulfil one.”

World markets, including the S & P 500, the Shanghai and the Hong Kong stock exchanges dropped sharply  on the news. However,  later they all rebounded substantially on the basis that this was probably a negotiating tactic rather than a realistic future plan.

The response of US businesses over the last months to the trade war  has been strong:

A number of US businesses have been relocating factories to Vietnam from China. More recently, many businesses have been importing and stockpiling goods as a pre-emptive measure in case the threatened tariffs materialise.

Amazon rebrands “Souq” as amazon.ae (UAE)

  • On Tuesday, Amazon announced the launch of a new marketplace targeting the Middle Eastern market.
  • With the launch, Amazon said that it is rebranding Souq, the e-commerce company it bought for $580 million in 2017, to Amazon.ae.
  • The Souq.com URL takes you to Amazon.ae, but Souq is still available in Saudi Arabia and Egypt.

It should be possible for UK/EU or US based 3rd party sellers to start selling on the platform immediately.

Amazon opening new Fulfilment Centre in the Midlands of the UK

Amazon has plans to open a new  new fulfilment centre in Kegworth, East Midlands, UK.

They are about to start recruiting for over  500 new permanent jobs.

Amazon’s new FC will help meet  demand, expand selection and enable third-party sellers  to scale up their businesses.

Stefano Perego, Amazon’s Vice President of UK Customer Fulfilment, said:

“We are thrilled to begin recruitment for 500 new permanent roles in Kegworth, with competitive wages and comprehensive benefits starting on day one. We are delighted to expand our operations in the East Midlands. With capacity to expand our workforce to over 1,000 permanent positions in the future, this new team will play a crucial role in delivering a first rate level of service for our customers.”

Kegworth will be the fifth Amazon fulfilment centre in the Midlands, the other ones being  in Coalville, Daventry, Rugeley, and Rugby.

The first dedicated UK “receive centre” opened in Coventry in 2018.

This functions as a central hub that receives and sorts millions of products each year that are sold on Amazon.co.uk.

322 Starting a Private Label Business: 5 Mindset Blocks & 5 Solutions

The topic in this episode was inspired by a conversation I had with a mentoring client who reached out to me for help with motivation. Mindset is one of those areas that is a key part of success. So today I’m going to talk about five mindset blocks for those who are just starting out with a private label business, and their solutions.

Continue reading

321 Prime Day 2019 for Sellers; (Amazing FBA Newsday Series)

Amazon Prime Day 2019 (Europe)

Lightning Deals

Prime Day is a potential major sales boost for any Amazon seller.

The submission window for Lightning Deals is open in Seller Central but will close on May 17th 2019 at midnight. So now is a great time to revise whether Prime Day should be part of your Amazon sales strategy.

What  is Amazon Prime Day and why does it exist?

Prime Day is Amazon’s annual retail holiday.

It was introduced in 2015 as a one-day only sales event that boasted more deals than Black Friday and also celebrated Amazon’s 20th anniversary as a company.

Though the first one disappointed some expectations, subsequent Prime Days have improved in both the quality and quantity of deals.

Continue reading

320 Brand Analytics for Amazon Sellers with Danny McMillan

Brand Analytics for Amazon sellers

What is Brand Analytics?

Amazon Brand Analytics is a data tool provided by Amazon. It gives inside analytics on keywords in an understandable format.

Brand Analytics started in Amazon USA and has now been rolled out to the UK and European Amazon Seller Accounts.

Continue reading

319 10 Brexit Mistakes We Can Avoid as Entrepreneurs

Today I want to talk about Brexit. It’s not a very positive topic, but I believe there are intelligent business lessons we can take away from it, specifically in regards to e-commerce. In this episode, we will be focusing on mistakes we can learn from Brexit for online business owners.

Continue reading

1 2 3 33