How to choose which products to send to Amazon and how to calculate the overall profitability of FBA.

1. Refining Your FBA Allocation
Strategy
Are You Sending the Right Products to FBA?
D A Y 1 : A M A Z O N F U L F I L L M E N T S T R A T E G Y C O U R S E S E R I E S

2. Before We Get Started
Session Recordings Will Be Sent Next Week
Q&A Following the Presentation
Submit Questions In the Chat Box to the Right
Logistics Speakers
Rick Backus
CEO
CPC Strategy
Pat Petriello
Head of Marketplace Strategy
CPC Strategy

3. For my business, Amazon Prime Day…
Poll For The Audience
A. Had zero impact on my sales
B. Had minimal impact on my sales
C. Significantly increased my sales
D. Other

4. • Founded in 2007
• Over 300 active retail clients
• Top 50 fastest growing company in San Diego 3 years running
• Recognized as an Official Google Shopping Partner
• Custom-built retail search technology platform, CAPx
Solutions
 Retail-focused Paid Search (PPC)
 Google Shopping Management
 Shopping Channel Management
 Amazon Sales Acceleration
CPC STRATEGY HAS BEEN FEATURED ON
DELIVERING LASTING RESULTS FOR OUR CLIENTS
VISIT CPCSTRATEGY.COM

6. Pat Petriello
Head of Marketplace Strategy
 Former member of Amazon Seller Services Team
 Former professional seller on Amazon.co.uk, eBay, Buy.com
 Lead architect for CPC Strategy’s Amazon Sales Acceleration Program (ASAP)
 Engineered & directed million dollar revenue stream on Amazon

7. Course Overview
• The Role of FBA in Overall Amazon Strategy
• Misconceptions About FBA Allocation
• Following ASIN-level Performance Metrics to Allocate FBA
• Incorporating Fees in Profitability Assessments
• Long Term Storage Fees
• Takeaways
• Q&A

8. The Role of FBA in Overall Amazon Strategy
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Fulfillment by Amazon (FBA)
The single most influential lever third-party sellers can pull to improve Marketplace performance
The benefits of FBA are well-known:
• Warehouse units
• Pack and ship orders to customers
• Provide customer service for those orders
• Influence role on Buy Box ownership
• Safeguard fulfillment latency & seller rating
• Access to Amazon Prime user base
• Increase sales performance

9. Misconceptions About FBA Allocation
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Sellers find FBA to be an intimidating program
• You’ve experienced some success with FBA but don’t know where to push forward with it
• You’ve increased sales velocity but can’t quantify how profitable it is
• Some of the operational elements are painful for you and your team (labeling, inbound shipments, etc.)
Misconceptions about FBA
• FBA is Binary
• Emotional Connection to Product(s)
• FBA Assortment Allocation
• Calculating Profitability
• Non-transparent Fees
• Short-term vs. Long-term Planning

10. A New Strategy for FBA Allocation
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
A Shift in Mindset
• The growing sophistication and technicality of the Amazon Marketplace
• Sellers can no longer throw products in FBA and expect success
• The Hybrid approach
• The products you want to FBA vs. The products you should FBA
Complexity around FBA can actually create opportunity.

11. Following ASIN-level Performance Metrics to Allocate FBA
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
FBA Assortment Allocation
• Product Dimensions
• Competitive Landscape
• Profit Margin
• Average Selling Price
• Sales Performance History

12. Incorporating Fees in Profitability Assessment
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Calculating Profitability
• FBA fees are not calculated off the price of the item
• If you are over 30% in fees, be aware of margins
• Fee is unit based (will differ across catalog), so an ASIN-level approach is required

13. Long Term Storage Fees
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
• FC clean up twice every year (Feb. & Aug.)
How can you improve now?
• Discover which products are at risk for fees – How?
• How to approach long-term storage fees?
• Increase sales velocity
• Sponsored Products
• Pricing Strategy
• Request a removal order
• Sellers pay fee per cubic foot
• Storage limits

14. Short-term vs. Long-term Planning
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Constant Evaluation is Required
An FBA allocation decision today may not be qualified in the future
Factors that can change:
• Landscape
• Margin
• Catalog
• Seasonality

15. Takeaways from today
Key Takeaways
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
• Always opportunities to optimize FBA assortment allocation
• Analyzing profitability at the ASIN-level
• Comprehensive understanding of fees
• Be aware of long term fees - A choice to do nothing – is a choice to pay
• Reassess FBA in preparation for Q4

16. Evaluate Your Approach to the Amazon Marketplace
Questions for Pat or Rick?
Submit your questions in the chat box on the right
CPCStrategy.com
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com