With three days left in February, it’s time to start looking back at the ecommerce highlights of the month.
- Valentine’s Day 2024 sales statistics 📥
- Steps to improve product safety 💪
- FBA inventory management tricks 📦
Shall we start?
ECOMMERCE NEWS
Two weeks after Valentine's Day, Retail Times reported an interesting story about the retail landscape during the event. While retailers saw a surge in revenue leading up to the day of hearts, the path to sales success is almost a heartbreaking story. 💔
📂 Here's an unpacked version of the sales and Average Order Value (AOV) findings:
- Fashion sector: Revenue soared by 33%, but basket size decreased by 15%.
- Gifts, gadgets, and gaming: Experienced a 76% surge in sales but fell by 14% in basket size.
- Health, beauty, and cosmetics: Saw a 20% sales uptick, but basket size was down by 2%.
- Lingerie & underwear: Sales saw a modest 10% rise but slipped by 24% in terms of basket size.
- Jewelry: The sector remained static but dipped by a marginal 0.5% in sales and 11% in basket size.
What do these numbers mean?
In summary, revenue charts rose, but average basket sizes across various sectors shrunk. This indicates that customers are spending less and go for smaller, cheaper purchases.
Indeed, brand loyalty wanes and consumers gravitate toward small indulgences during tough financial times. But you can still thrive and survive by offering more personalized marketing efforts, smooth checkout experiences, and swift delivery options. 💡
BITES OF THE WEEK
- First for Hawaii: Amazon and Shopify will headline the first-ever DBEDT ecommerce conference in Hawaii!
- Profitable Days: Here’s a list of the days when most consumers will buy from you.
- U.S. Best: Amazon leads the top 10 U.S. ecommerce sites in monthly visitors.
AMAZON NEWS
3 Amazon-recommended steps to improve product safety
Consumer safety should always be a priority.
❤️🔥 This is something Amazon is passionate about. The retail giant recently published a guide on how public and private sectors can commit to this.
1. Provide product and usage information
Global laws state that products must be tested and certified before they’re sold. But who has the time to read the long list of standards and manuals, right?
To digitize this information, Amazon started incorporating messages into the shopping experience. For instance, the retailer sends pre-purchase messages containing safety articles and product tips.
As for sellers like you, you can enroll your brands in Amazon Transparency. This way, customers can access the safety content you provide post-purchase through transparency codes.
2. Share the latest product safety data
As a signatory of the European Commission’s Product Safety Pledge+, Amazon has the means to improve industry-wide information exchange. This means you’ll get updated information about product safety risks, which you should then disclose to your buyers.
3. Modernize the recall process
Retailers should be active in recalling unsafe goods. Don’t just post a public notice that many won’t see immediately. Instead, contact your customers via SMS, email, and order information to show you’re committed to their safety and well-being.
🛡️ Sellers for safety
By selling on Amazon, you’re already one step closer to prioritizing consumer safety. All you need to do is to share safety information as quickly and accurately as possible.
ACTIONABLE ADVICE
How to step up your FBA inventory management
Stockouts hurt not just your sales but also your organic ranking and ad strategy. Plus, poor inventory management can limit your storage capacity on Amazon's FBA program, according to Search Engine Journal.
To address overcrowding in FBA warehouses, Amazon introduced storage capacity limits. But here’s a catch: you must have a good Inventory Performance Index (IPI) to score more storage space!
Wait, what’s the IPI?
The IPI measures how well you handle inventory over 12 weeks based on your excess inventory, sell-through rate, stranded inventory, and in-stock inventory. This metric only affects sellers using Seller Central and FBA.
💡To improve your IPI:
- Dump slow-moving items. Excess inventory can drag down your IPI score. So, start pulling back items you don't think will sell soon. Or, you can offer discounts, run ads, or optimize your listings to sell them faster.
- Send fast-moving items. Prioritize quick-moving products to boost your sell-through rate. Also, always test small batches to ensure items sell as fast as you expect.
- Utilize third-party sellers. Some brands focus on selling their top items to boost their IPI scores and then use third-party sellers for slower-moving products. This strategy leads to a faster increase in storage capacity by keeping sales steady.
Bonus tip: Boost your merchant-fulfilled offerings
For heavy, slow but profitable products, consider using FBM to avoid storage fees and control delivery. Then, opt for FBA for fast-selling, lightweight items for smooth shipping while giving you more time for other tasks. Splitting units between FBA and merchant fulfillment can give you the best of both worlds! 🌍
