FBA Strategy for Professional Sellers

1. Alasdair McLean-Foreman, CEO of Teikametrics
amclean@teikametrics.com

2. Twitter Hashtag: #FBAWebinar
Demo URL: http://go.teikametrics.com/webinar-offer

3. About Alasdair
• Started in e-commerce in 2001 with a dorm room e-commerce business
• Studied economics at Harvard
• One of the first Amazon 3P partners in 2003
• Experience developing software solutions for enterprise including a platform
for the New York City Marathon and Newscorp / Times of London
• Passion for technology and using big data tools to help solve problems

4. About Teikametrics
• Founded in 2012
• Core team of data analysts, software developers, data scientists, and
consultants
• 25 employees based in Boston and growing rapidly
• 150% increase in revenue with a large improvement in Gross Margin

5. FBA Optimization
Our solutions
Data Driven Software
Solution for FBA Retailers
FBA Insite Software
Jumpstart
$990
Brand Accelerator Program
Data Driven Marketing for
Direct to Consumer Brands
Professional
$2,499
Consulting and Expert Optimization
from $4K per month
Repricing Only
$499

6. Elite FBA Summit on July 30, 2015
Andaz 5th Avenue, NYC
bit.ly/fbasummit

7. SECRET #1:
THINK LIKE A TRADER

8. Old Retail
Model
New
Retail Model
v.
Loyal to retailers
Focused on the lowest price
and quickest delivery timeCustomers
Prices
Relatively stable through
seasons
Changing constantly based on
supply & demand
Products
SKU selection from
manufacturers
Commodities valued based on
the market
Inventory
Inventory investments
few annual ‘turns’
Constantly changing
diversified portfolio
SECRET I: Think like a trader

9. Outsource Heavy Lifting to Amazon FBA
HEAVY
LIFTING
SKILLED
TRADING
FULFILLMENT LOGISITICS
DATA DRIVEN TRADING
HIGH
VALUE
LOW
VALUE
SECRET I: Think like a trader

10. Tools to Trade the Amazon Stock Market
FBA Insite Dashboard
SECRET I: Think like a trader

11. SECRET #2:
THE GROSS MARGIN
SUCCESS BLUEPRINT

12. Secret #2:
Gross Margin Blueprint
• Single most important metric
for success
• On Amazon it’s easy to grow
revenue but a lot harder to
generate high Gross Margins at
scale
• Every trading decision needs to
be based on an accurate Gross
Margin analysis
• Discipline across all investment
decisions and strategy
$100
Selling
Price
-­‐$50
-­‐$15
-­‐$5
-­‐$2
-­‐$0.5
GM
Typical
GM%
for
FBA
retailers
after
baked
in
costs
is
~15-­‐20%
-­‐
COGS
-­‐
Amazon
Commission
-­‐
FBA
Fees
-­‐
Freight
-­‐
Exp.
Returns
SECRET II: Gross Margin Blueprint

13. SECRET #3:
OWN YOUR NUMBERS

14. FBA Insite Dashboard
Secret #3:
Own Your Numbers
• Check performance daily
• Set objective goals for every
metric
• Spot the warning signs – e.g.
Inventory to Sales Ratio
• You can always be better!
SECRET III: Own your numbers

15. Amaze Analytics Visual Data Discovery
Data Driven Decision Making
SECRET III: Own your numbers

16. SECRET #4:
HOW TO BEAT AMAZON AT ITS
OWN GAME

17. Secret #4:
Beating Amazon
• Amazon has a strategy that has
weaknesses – “size doesn’t
matter”
• Myth: Amazon has perfect
supply and if Amazon sells a
product line there is no chance
• Use data tools to understand
and outflank Amazon coverage
• Amazon coverage changes and
you may find volume where
others have given up
SECRET IV: Beating Amazon

18. SECRET #5:
LEVERAGE YOUR COMPETITIVE
ADVANTAGE

19. Secret #5:
Leverage your advantage
• What can you do better than
your competition?
• Example: Special relationship
with a supplier
• Example: Non-Amazon leverage
• Example: Economies of scale
• Example: Marketing advantage
SECRET V: Leverage your advantage

20. SECRET #6:
MANAGE INVESTMENTS BY
ZOOMING OUT-AND-IN

21. Secret #6:
Zoom Out-and-In
• Zoom Out: Understand your
complete portfolio performance
• 80:20 Rule: Identify the winning
groups
• Zoom In: Compare at the
Supplier / Group level
• SKU Level: Granular economics
Complete
Portfolio
Supplier/
Product
Group
SKU
Zoom
Out
Zoom
In
SECRET VI: Zoom Out-and-In

22. SECRET #7:
BUILD A COMPETITIVE TEAM

23. SECRET VII: Build a competitive team
Build a competitive
team
• Petronas Twin Towers in
Kuala Lumpur, Malaysia
• 2 Competing
Contractors for each
tower
• Build a winning culture

24. Questions?

25. Schedule a demo of
Teikametrics
http://go.teikametrics.com/webinar-offer