PDF THE 2015 GUIDE TO FULFILLMENT BY AMAZON - CPC Strategy

Featuring the New FBA Fee Structure

for 2015

THE 2015 GUIDE TO FULFILLMENT BY AMAZON

How Professional Sellers Can Strategically Implement FBA

Table of Contents

Introduction

3

Fulfillment By Amazon: The Basics

5

How FBA Affects Product Discoverability & Buyability

9

FBA Fees

20

The Pros & Cons Of FBA

28

Conducting A Catalog Analysis For FBA Inventory Selection

35

Final Thoughts

39

Appendix

43

Copyright ? 2015 CPC Strategy & FeedVisor

The Fulfillment By Amazon Guide: How Professional Sellers Can Strategically Implement FBA

3

Introduction

"Amazon Optimization" is not a term seen very often, but it's a very real concept that professional and sophisticated Amazon sellers are reaping the benefits of. Just as an ecommerce store would invest time and resources into optimizing campaigns for Google Shopping, PPC text ads, affiliate marketing, social advertising, or retargeting, Amazon is a sales channel that should receive a well-thought-out, comprehensive strategy focused on growth--and deservedly so.

For a brand or reseller, Amazon--along with Google--is the top online destination where highintent retail queries are occurring, so it's vital that a seller's offers are front-and-center when a shopper indicates a high likelihood of converting.

This white paper dives into arguably the single most influential "lever" third-party sellers can pull to optimize their Amazon strategy: the Fulfillment by Amazon program, or FBA for short.

Knowing which segments of inventory to deploy for FBA is a huge advantage in both driving sessions to listings and owning a higher share of detail page conversions.

Copyright ? 2015 CPC Strategy & FeedVisor

The Fulfillment By Amazon Guide: How Professional Sellers Can Strategically Implement FBA

4

The Amazon Plateau

A discussion of Fulfillment by Amazon should begin with a discussion of a concept that many Marketplace sellers encounter before ever even considering FBA. This concept is called The Amazon Plateau.

The Amazon Plateau is a late-stage phase that most Amazon sellers languish in. The narrative has been retold many times before:

A seller has either a great, unique product or a wide assortment of wholesale inventory, and so they decide to sell on the Amazon Marketplace ? the largest online marketplace in the world. The products are simply "thrown up there" and the seller sees what sticks, checking in on performance every now and then. Sales start to come in consistently. That's it.

Without further optimization, the seller will hit the proverbial wall. The Amazon Plateau is a long-term period of stagnant sales growth due to the seller spending the majority of their time "in the weeds," focusing primarily on operations and not on strategic insights.

The result? Customer service overburdens the seller's already limited resources. The competition consistently dominates Buy Box share. Top selling products aren't receiving enough visibility on the Amazon SERP (Search Engine Results Page). Sales become flat-lined.

This is why a powerful, controllable lever like FBA is such a significant piece in a seller's overall Amazon Marketplace strategy.

Confused Uncertain Frustrated Inefficient Stagnant

Sales

Copyright ? 2015 CPC Strategy & FeedVisor

Fullfilment by Amazon:

The Basics

Copyright ? 2015 CPC Strategy & FeedVisor

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