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146 FBA Inventory Management with Jeremy Biron of Forecastly Part 3 of 3

Maintaining Ongoing FBA Inventory

There are many things that you have to take into consideration. You have to think of your lead time and everything that goes into it. Also consider receiving time at Amazon. It might take awhile for them to check it in. When planning a strategy for your FBA inventory, you should plan for the worst case scenario. There could be issues with it getting backed up at port or issues with your supplier.

Using Software to help FBA Inventory Management

A great thing about using software for forecasting, is that they can keep track of that, whether it’s Jeremy’s Forecastly or another piece of software. It tracks inbound inventory, current inventory, what you have in manufacturing, and true sales velocity.

You also need to consider spikes in sales. You may have consistent sales every day, but a couple times a month your sales spike. This is why you need to build in a safety stock. That gives you a cushion so that if you get a surge in sales, you have enough stock to cover it until your next shipment gets there.

Forecastly

Forecastly has many business that use its service. The software can then use this anonymous data to make predictions about Amazon as a whole. It takes ASIN level data over the past 30, 60, and 90 days to makes prediction about future sales numbers.

Their main focus is demand forecasting. It considers your recent sales including stock out periods. If you were out of stock, it can determine what you would have sold had the product been available. It also tracks the variability of demand which is something you can’t do in a spreadsheet.

The main thing you have to be conscious of when managing your FBA inventory is, what do you need to replenish, when do you need to replenish it, and how many units do you need to replenish. Forecastly tracks all that while monitoring your inventory and will recommend your orders.

Many sellers want to use a 60 day trend to determine their sales velocity which is a bad idea. If you selling in an upward trend, meaning your sales are growing, then your sales were much lower 60 days ago. This will make your average too low. Forecastly uses a 30 day trend to get the most up to date projections.

False Rule of Thumb

We, here at Amazing FBA, love a rule of thumb. Unfortunately, when it comes to FBA inventory, many sellers follow a rule of thumb that won’t help them, and could hurt them. It’s the idea that you need to have X amount of days worth of inventory. Whenever they place their order, they bring it back to this magic number.

For example, if you wanted to maintain 90 days of inventory and you order monthly with a 30 lead time. When it’s time to make an order, you have 60 days of inventory. Based on this, you would order 30 days of inventory.

You don’t need that much inventory. You wouldn’t need to order for another month because you have a 30 day lead time and you’re tying up cash in stock you don’t need. The rationale behind this method is security. The attempt to avoid stock outs by keeping a large amount of stock on hand.

Future of Amazon according to Jeremy Biron

Amazon will continue growing their own private label brands. So Amazon is now your competitor. International markets are growing. The European markets are booming. If you’re having success in the US, you’ll want to take those products to the UK and the rest of Europe. That isn’t as easy as it sounds. You have to come up with a separate replenishment strategy as well as deal with the tax regulations. There is an opportunity, though. Especially in Germany where 40% of the sellers are non-German, and very few are American. That means they are willing to buy from foreigners, but not many Americans are there yet.

As Amazon grows, the more warehouse space they will need. They are investing in new space, but they don’t want to overdo it. You will likely see seller-fulfilled-prime see some growth as a solution to this problem though will come with its own issues.

The inbound process is likely to change. It used to be that you would just slap on a UPS label. Then you had to also do the Amazon label. Now you have to do box contents. It’s going to get more and more complicated as Amazon continues handling more inventory.

If you want to receive a free tool for launching new products, head on over to Forecastly.

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145 Amazon Inventory Management with Jeremy Biron of Forecastly Part 2 of 3

How to Deal With Excess Amazon Inventory

This is one of the biggest issues with Amazon inventory management. It’s something everyone deals with. Sometimes a product doesn’t as well as you expected. Once again, there is no crystal ball solution.

Improve Marketing

It might seem obvious, but one thing you can do is to look at it from a marketing perspective. Take a look at what you can do to improve the conversion rate. Can you improve your images or other aspects of your listing? Pay-per-click ads. It’s an investment. It will take time to perfect it. Is there anything else you can do as a last ditch effort to recoup your investment in the stock?

Pull the Inventory

If you have already considered the marketing aspect, you could try a completely different route. You can wholesale it or sell it on a different channel. You’d be surprised how many people will buy lots of inventory on eBay other sites that will help you with that. There are sites that help you with bulk sales. You can work with a service that does flash sales, like touchofmodern.com. They will flash sales household products that are high-quality. If you want to leave it on Amazon, you could lower your price. Even if you take a loss on the sales, at least you’re putting money back into your pocket.

Avoiding Excess Inventory

Proper Amazon inventory management is very difficult. You have to think long and hard and it really comes down to a plan. In the case of excess inventory, many sellers just go on a whim. One seller is dealing with excess inventory because they bought 3000 units of a product they’ve never sold before. Their main reason was that they got a good cost on them at 300 units.

The cost isn’t as important on that first order. You’re really trying to prove the product is viable. Then on your second order, you can get the cost right once you know the product will sell. It might be difficult for a first-time seller since your money is tied up but you’re not making much profit. However, you are lowering the risk if the product doesn’t take off.

Casting a Large Net to Find the Right Product

One tactic that you might consider is ordering small amounts of several different products knowing you are likely to run out. Then you can see which one takes off. This isn’t a great strategy. If you find a good product that takes off, you will jump in the sales rank. Now you have a high ranking product with no inventory. Let’s say it sells out in a week but you have a 45 day lead time. Now you’re going to be out of stock for 45 days unless you can negotiate with your supplier and spend more money to have it expedited.

Minimum Order Quantity

One issue you might run into is a minimum order quantity (MOQ), where suppliers will require a large order otherwise they won’t accept it. You can try to negotiate with them saying that you will be ordering from them for awhile, but it’s company policy that the initial is smaller.

144 Amazon Inventory with Jeremy Biron of Forecastly Part 1 of 3

Amazon inventory is a crucial but neglected area for all Amazon sellers.  We have Jeremy Biron with us today. He’s the founder of Forecastly. He has been selling on Amazon for over 10 years so he has a really deep understanding of the marketplace and of Amazon inventory management and the issues that can involve.

He was one of the first FBA sellers in the office supply space running a multi-million dollar operation. Jeremy has a strong knowledge of Amazon and what it takes to maintain your Amazon inventory.

Tell us more about yourself and how you got started.

Coming out of college about 15 years ago, Jeremy was working in the corporate world doing marketing and sales. Quickly realized that the corporate life wasn’t for him. He got into selling  Amazon inventory  part-time while working the corporate job. He happened upon office supplies. Not the sexiest products but he found a place. He realized that he could make more money selling on Amazon than in his full-time job and he enjoyed it much more.

He started selling full-time 8 years ago. Then, about 2 years ago, the office supply space wasn’t going in the right direction. He heard from a lot of other FBA sellers about their Amazon inventory issues. Jeremy had the answer. He had custom software they used in-house. He decided to take this software, improve it so it could be mass-distributed, and began Forecastly.

What prompted you to create this custom software for Amazon inventory?

It was a combination of stock-outs and excess Amazon inventory. At first, they were just using the reports you get from seller central. It shows how much you have in stock and how much you sold in the past, like 30 days. It would be 30 days later, after he had placed all those orders, and looked at his profit and loss and think that he should have sold more. As it turns out their estimations were off. He knew from the beginning that using the inventory reports from Amazon wouldn’t cut it.

Tell us about how you used the Amazon inventory reports and what the limitations were.

A lot of the time, those aren’t accurate. Looking at your current Amazon inventory and your inbound numbers. You inventory is usually right, but your inbounds number aren’t. They didn’t know exactly what was going into Amazon. What status was it in. Even looking at your existing Amazon inventory, you can’t tell if it’s being labeled, is it moving around the country, or is it reserved because it’s already been sold. If I have 100 units, and 10% has already been sold, I really have 90.

The other piece of it is figuring out your sales velocity. That’s not as easy as many people think it is. Let’s say you sold 50 units last month. If you don’t know if you were in stock the entire time, your don’t know your true sales velocity. If you sold 50 in the last 30 days, but you were out of stock half that time, you should have sold 100. However, those reports are saying you sold 50, and if you want a 30 day supply, you should buy 50 more.

The last piece to this is taking that demand forecast and building a replenishment strategy off it. Knowing when you’re going to run out of stock.There isn’t an Excel spreadsheet that will tell you if you’re going to have a spike in sales. The only way to do that is by using a database and running some crazy statistical calculations.

Coming back to why this matters. One thing you mentioned was demand forecasting. Basically, you have to think about this before you place your very first order, if you’re new to Amazon. Or when releasing a new SKU. How do you work this out?

This is something Jeremy sees a lot of mistakes with. Even if you’re an experienced private label seller and you’re bringing out a new product. It’s tough trying to figure out how much to order. Some things you want to think about when releasing a new product

How long, from the time I tell my supplier that I want to place an order, to the day it actually arrives at the Amazon warehouse. There is a lot that has to happen in the time-frame.

Lead time

You want to consider payment processing. Your money doesn’t show up immediately. Sometimes it takes a couple days to process your payment with the bank. The suppliers won’t do anything until that payment processes.

Manufacturing time

How long will it take for the factory to actually make the product. Is it going to be reliable? Will it take the length of time they quote you.

Shipping time

Preparation of shipping. If you’re placing a large order, it’s going to take time to process that shipment. Then sea or air time. Then is has to come through customs. There can be a lot of delays here. Then is has to be sent to Amazon where it will sit on their dock until they can receive it. If you send it to your house first, or a third-party preparer, all that takes time.

People will underestimate their lead time, and throw off the whole process. That goes for existing products as well.

Just to underline how important this is, it will always take longer than you expect. If a factory quotes you 2 weeks, it will likely take longer. They will tell you what you want to hear. If you send it to a prep facility, it could sit there for 3 weeks. Don’t underestimate receiving time at Amazon if it’s around Christmas or other holidays.

Is there someone magic trick that you use to determine actual time frames when a manufacturer quotes you?

In terms of reality, it’s going to come down to you putting some pressure on them. Communication is key. Contact them saying that you’re going with them. You like the communication so far. How likely do you think we’re going to hit that three week mark? Should I account for an extra week in there? They’re people too. It will put them at ease knowing that they got the order and don’t have to tell you what they think you want to hear. There really isn’t a magic formula because each supplier is different.

You can add in a late delivery penalty. Let them know that it’s your company’s policy that there is a 10% penalty for every week past the deadline. You see this difference between new and veteran sellers. If you ship an order to Amazon and it’s late, you’re going to be hit with a charge-back. This is also dependent on your payment agreement. If you pay everything up front, you can’t go and take that back. Whereas if you make a partial payment before delivery, it’s a bit different.

The main point is to get a straight answer out of them. They are likely to be more honest if they will get less money if they try to be overly-optimistic. Most terms I recommend is 70% up front, and 30% balance.

One point Jeremy wanted to make sure to hit on is about new product and why lead time matters. It’s not lead time for your first initial order. It’s thinking ahead to your next order. Let’s say your very first order arrives today and you have a 45 day lead time. Now you have to think about your next order. If you didn’t order enough units to get through 45 days, you will run out of product. Even if you place a PO today.

You don’t want to place another order for 30 days. If you have a 45 day lead time, you have to order enough for 75 days of inventory. You don’t want to over-order inventory, but you really don’t want to run out. There are a lot of sellers that always order 100 units, or 1000 units. They’re just making up a number. Jeremy recommends looking at JungleScout. If you’re shooting for a rank of 10,000 in the office products category, you can look on JungleScout and estimate how many units you’ll sell in a day.

So simple formula is LEAD TIME + 30 day. That way you have 30 days of data in which to base your estimate?

Exactly. They have a free Excel spreadsheet that you can get at forecast.ly/amazingfba. It’s a simple sheet that tells you what your lead time is, and when you’ll want to place your next order. The last piece on top of that is safety stock. That is a complicated thing so we won’t go into too much detail. Essentially, it’s insurance against a stock-out. If you think you’ll sell 10 units a day for those 75 days, then you’ll buy 750 units as your initial order. Depending on your level of cash, you’ll bump that up. You may want 10% safety stock. So you’ll add 75 units, just in case sales are higher than expected.

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#65 Ryan Bredemeyer of Hello Profit – Part 1 of 2

How did you come to be selling on Amazon?

Ryan was a part of ASM and that what got him started. That’s what really piqued his attention. Ryan says that when he finds something he wants to do he really pushes ahead with it until he learns how to conquer it and ASM got him started on that.

He did very well on his first product despite it being a very commonly sold product on Amazon. He cites his creative thinking and hard working attitude to his success. He was able to take this generic item and really dominate the market with it. After his initial success, he was itching to expand with it.

From there he met with a good friend, Nakisha Muhammad and discussed some of the issues he was experiencing. She then became interested in Amazon selling and they went in together on a joint venture. She started seeing those same issues with seller central and limited reporting. She, being a world-class coder, approached Ryan saying she could build a solution. Together they worked on it and came up with their dream ‘seller central’. Thus, Hello Profit, was born.

What were the problems with seller central that made you feel the need to develop software to replace it?

In seller central, you see all these revenue numbers and it is extremely difficult to see what you’re actually profiting, even with Quickbooks or Xero. Once you have more than a couple skus, everything gets clumped together. If you launch a new item, it is difficult to see which one is profitable or which variation is actually profitable and which ones are draining you.

Can you describe the 3-5 commonest problems Amazon sellers have with profit and loss numbers on Amazon?

  1. Not being able to gauge how you are profiting

As mentioned before it is difficult to see where you are profiting. However, that really isn’t Amazon’s issue. It’s not the chore to make a cohesive solution. Their focus is customer service so there no benefit to them to make this. It’s up to us to understand how our business is doing.

2. The Payout Report

If you have ever downloaded this file, it is a mess. You could have 100,000 records of every little thing and way over on one side it the ascent it’s associated with. It is not humanly possible to go through all that manually, and figure out what’s happening.

3. Tracking Promotion Giveaways

It was difficult to tell how many promotions were given away on each day, and how that affects the bottom line. They give you that widget of like the top 5 promotional items, but if you have 10 or 50, that’s pretty much useless, plus it 24 hours behind or more.

How do you deal with Amazon ads costs?

A new feature that is going to be added to Hello Profit is a wizard that is going to help optimize ads. The purpose of HP is to help you see your real profit. Now. Amazon doesn’t make it easy to see this. So, HP pulls in reports through the API, and the main one is available the morning following today’s numbers. So you can’t see what today is doing, because the day isn’t finished, but you can see any day in the past, which is sufficient to tighten up your ad spending.

So, HP pulls that number in, on the merchant dashboard it deducts that range of ad spend from that range of sales. You can view the numbers from the very top, all the way down to every variation of every product and it pulls the information from every campaign and aggregates it for every product variation.

Do you deal with the keyword side of things, or strictly with the profit?

HP will have a campaign reports so you can see how your campaigns are doing. You choose any product you wish as well as any date range, unlike Amazon which only has a few predefined ranges. You can set thresholds for you ad spend, like amber level, you might be getting out of your comfort zone or red which is like you’re bleeding out. So you can see which keywords are being profitable and which ones you might want to cut.

The biggest takeaway from any of this is that there is fat to trim. You have to look at your daily numbers and find where you’re losing profit. You might not think you have a profit issue but you almost certainly do. It is not in Amazon’s interest to be transparent in how much you’re spending in ads. Whatever tool you use, it is vital to review your numbers.

What if you can tighten things up and save 10%? That’s like launching a whole new product. It is much more efficient to find that profit in your numbers rather than going through a product launch.

What are the problems with using a spreadsheet to handle your numbers?

That’s where Ryan and Nikisha started in the beginning. It is possible to get around 80% of Hello Profit’s functionality with a spreadsheet, IF, you are a master at spreadsheets and are willing to hire a team to handle the spreadsheets, but some of it is too advanced to handle with Excel. And you will end up spending your profits on the team.

There is so much data coming from Amazon, and the reports are so bloated, that it will take a team of spreadsheet experts to go through it all. It is much better to have a tool that can automatically handle the data. If you try to do it manually, you’re probably going to miss something and be off the mark at the end of the day anyway.

You might have $10,000 in inventory and it’s irresponsible to go about it blindly. That’s why it’s important to have a tool that handles this nightmare that way you can get back to being a business owner. Launching products, and expanding your business. And it’s important to outsource tasks that take away from that. So unless you’re an expert programmer and expert in accounting, you’ll need to outsource this. You can’t do everything.

What are the biggest mistakes sellers make with Inventory stats?

Ryan brings up a related issue that HP isn’t the solution for yet, though they hope to be, is the issue of inventory. This is one area you need to be proficient in or find a tool to help you with, because running out of inventory is so damaging to promotions, sales velocity, and making the algorithm happy.

If you’re out of inventory for a week or two weeks, how much does that cost? Can you calculate the cost of running out of inventory for two weeks? Also, on the opposite end, having too much inventory and being charged by Amazon for long-term inventory fees.

You have to consider seasonality, lead times of your suppliers, how long it will take by sea or by air and the costs associated, fudge factors if Amazon decides not to put your time out nine days for whatever reason.

You also have to consider the cost of getting ranked again if you run out of inventory, or even considering how things have changed in the time you’ve been out.

Let’s say you run the same promotional strategy that you did 6 months ago, the fields changed, the algorithm has changed. There’s no guarantee that you’re going to get back to where you were. So it could be a long-term loss because you didn’t act accordingly.

You also need to consider when and how much Amazon pays you out, so you can consider how much inventory you can afford. Hello Profit does this to an extent. It will predict how much you have made so far, and using that determine what your likely payout will be. So if you’re halfway though the payout cycle, just double what your prediction is.

What do you personally do in term of projecting cash flow?

The simplest thing Ryan has found is to go for products that have a high ROI. He likes to do 150% or more. This way he will have made enough to pay it off, cover associated costs, and have enough left over to buy another 1.5x inventory. This puts in some room so that he doesn’t have to be as perfect in his math and leaves enough profit to cover unexpected costs like increase ad spend if there is an increase in competition and has to reduce his retail.

One piece of advice to anyone is to make sure your ROI is solid. If all things stay the same and your demand goes up, as we all want, you’ll be able to buy more inventory than you have ever sold, and not have to pay in again. So each product, not only covers itself, but has groth built in. So if you order 1000 unit, next time you can order 1200.

Can you touch on the differences between profit and ROI?

If you Google the FBA revenue calculator, you plug in your competitor’s products, and it calculates the FBA fees you should have as well, and there is a field to plug in you landed costs. Once you hit calculate, it will hopefully show you a green number on the bottom, which is the anticipated payout to you for one sale. You can take that number then and divide it by your costs to get you ROI.

Let’s say your anticipated payout is $10 and your total cost is $5.

(105)100%= 200% ROI

This would be a great product. Because there is a lot of room for growth, you can decrease you retail if you need to, you can do a lot of giveaways, you can do promotions and ads, and you will still be profitable and you can still grow as demand grows.

How do you find products that have a high ROI?

Ryan recommends Jungle Scout, though Hello Profit comes with many of the same features.  Ryan will go into HP and use Product Genie and search for all kinds of things and over time it aggregates all kinds of data, even things he wasn’t searching for because it happened to show up in the results as well.

It all goes into a database associated with his account, and he can search against things he didn’t know he had. He usually looks for a certain BSR. He doesn’t mess with sub-100 anymore, but if you can find one that 200-300 or the 1000 range, those are great products. If he can find one that is not too big or heavy, that he has an idea how much shipping will cost. He will take a look on Alibaba and get a rough cost estimate, then use the calculator to find his ROI. He can find out if this product is worth his time in a couple minutes.

Look at your competitor that you think has a similar business model and look in their storefront and find other product ideas for yourself. Leverage other people’s research. There are a lot of great products out there that might not have major numbers but a good ROI. Even it they only do 10-13 sales a day, launch 10 of them and you’ll make a good profit with that kind of ROI.

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#54 Incoterms for Amazon Sellers, Amazon Inventory Forecasting and China Inspection – Q & A Tuesday No. 6

#54 Q & A Tuesday No. 6 Show Notes

Q1 : Gareth [INCOTERMS]

We are in the process of sourcing our first product and we are struggling with what we need to ask for in terms of delivery. Does the term FOB only refer to shipping (boat)? What is it we need to ask for to get air freight delivered to the door to FBAI (or equivalent) in the US? As we seem to be getting different responses from different suppliers?


Incoterms (“International commercial terms” in full) refer to the Freight deal you have with a supplier [aka Vendor=Seller].

There are 9 3-Letter codes denoting the 9 possible agreement types:

http://www.skywaysms.com/inco-terms-2016/


More precisely, it shows how much of the supply chain your supplier [the Seller] takes responsibility for, and at what precise point you as the Buyer take on responsibility for your consignment and any costs of transporting it/dealing with import/export etc.

The early in the Chain the Vendor passes responsibility on to the Buyer, the cheaper it is but the more work you as Buyer need to sort out yourself. Or of course hire someone to sort out.

FOB =Free On Board– strictly only for sea  shipping but Chinese suppliers use this for everything!

This is okay to use to compare quotes if most suppliers give you the price in that way.

However, that is all.

I prefer to get quotes EXW=Ex Works i.e. literally just manufacture with no Freight. However I would never place an order EXW unless using a Freight Forwarder. 

If your supplier will give you DDP=Delivered Duty Paid, this is the most expensive but simplest option. I would always start with this as a new seller unless you have expertise or experience or contacts in the freight/import area.

If you not you could go for the next best thing, Sometimes known as “DDU=Delivered Duty Unpaid”, [which really should be known as DAP=Delivered At Place in proper incoterms, but is known as DDU among some suppliers]

Note the difference between Air Freight and Air Courier. The latter is basically a well known courier like DHL, UPS, Fedex. They have their own channels for clearing customs in USA and are simplest for beginners or if you dislike freight issues!

You can always get a customs broker if shipping into USA – I’ve used Western Corporation Overseas for extra security around USA customs clearance. It will add to your costs but can provide peace of mind on first shipment.

Bear in mind that Chinese suppliers will know more than you (probably) when you’re first starting out but they are not experts in freight. Particularly bear in mind: They are speaking a foreign language! The nuances between “Freight” and “courier”, for example, may not be clear to your supplier – but they are nevertheless real when it comes to Freight. But they will be very used to using Air Express services like DHL.

If in doubt: 1. use your supplier’s courier account; stick to Air Courier; get DDP if possible or the closest you can.

OR use a Freight Forwarder if you want to do Sea Freight (a bit more involved for a first batch of first product in some ways but may be necessary for heavy items) or even Air Freight.

Q2. Chat [Inventory] Forecasting methods/techniques.

How do people project and plan for how much inventory they will need? What is important to consider when planning ahead for growth?

“Feels like you kind of have to guess a lot more in the beginning! Started off at 500 units and down to around 460. Most of those are giveaways though. only 3-4 are organic.”

3-4 units is almost no sales history so don’t try to make any predictions yet.

Get your reviews, start PPC and then after say 100 sales or two weeks or so you’ll have enough data to predict. Get some consistency if possible. If you’re buried on page 5, 10 etc, your sales will be low and also therefore will fluctuate a lot in relative terms.

The basic maths is simple:

weeks of inventory cover=Total units left of product÷weekly sales

e.g. in this case, if in say 4  weeks’ time you have 350 units left and are selling a steady 5 a day average=35 a week, that gives you:
weeks of inventory cover=350 units left÷35 units a week sales=10 weeks’ cover.

If your Lead time between placing an order and actually getting product live on Amazon is say 6 weeks, you will need to reorder at 6 weeks out the latest.  Better to add a couple of weeks for delays.

Bear in mind delays at Chinese ports, delays getting into American ports especially before Xmas, processing at FBA Inspection etc, esp. in 4th Quarter ,  time to ship to Amazon etc. 

  If you have a duff product, e.g., no sales, no profit, you may not even choose to restock it. But if you do have sales and it looks profitable or that it will be next order, then this all becomes relevant.

Q 3: Ben Leonard: Inspection.

OK, so I know inspection is important. However, is it always necessary [?] Here is my situation:

My supplier is experienced, appears professional, stocks a lot of FBA sellers, and is very helpful. They have agreed to send me photographs throughout the process of manufacture, pre-labelling, and during packing of the order ready for shipping. I plan to put in place a purchase order contract which covers all of these.

I have no reason to believe why they’d send me a poor standard of product (samples were excellent), and we have already both expressed desire for a long relationship.

In this situation, would anyone here risk not having inspection?

Perhaps inspect once, and then not again, or not for another 3-4 orders?

Michael: My answer is simple: yes inspection is necessary. Definitely on the first order. No question. The fact that your supplier is responsive and experienced is an excellent reason to work with them in the first place. But that is just good due diligence on your supplier. Inspection is a separate matter.

Listen to the 2nd half of the interview with Manuel Becvar and read notes -it has your name on it! www.amazingfba.com/53.

If it’s a simple product, a man-day (sorry ladies, that’s the standard term, sexist I know) will cost you just 100 USD with Trigo.

Either way there is no reason to skip it and every reason to do it.

If I were you, I would just get that set up and move on. 100 USD is peanuts to have peace of mind and avoid negative reviews.

As Sellers we sometimes don’t consider the sheer expense of one negative review.

If it’s early days and you have say 9 reviews with 5 stars from review giveaways and you get one 1 star review, that means average review drops from 5.0 to 4.6. That could easily halve your conversions. Assuming your Pay per click costs stay the same, that  could easily mean you go from profit to breakeven or even to loss.

You could lose your 100 USD within a week or less and then continue to lose money until you’ve either got rid of your one star review or buried it under new giveaways.

If this happens, just deal with it of course , it’s not the end of the world – but why not just take simple steps to avoid or minimise it in the first place?

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A podcast is a free downloadable audio show that enables you to learn while you’re on the go.  To subscribe to my podcast for free, you’ll need an app to listen to the show from.

For iPhone/iPad/iPod listeners – Grab your phone or device and go to the iTunes store and search “Amazing FBA”.

This will help you to download the free Podcasts App (produced by Apple) and then subscribe to the show from within that app.  Every time I produce a new episode, you’ll get it downloaded right away.

For podcast enthusiasts – If you already listen to podcasts and have a podcatcher that you prefer, the feed you’ll need to add is: http:// amazingfba.com/feed/podcast.

For those who don’t have a mobile device – You can always listen to the show by clicking the audio file at the top of this page.

If you have any queries, just go to www.amazingfba.com/ask