Discover this podcast and so much more

Podcasts are free to enjoy without a subscription. We also offer ebooks, audiobooks, and so much more for just $11.99/month.

5 Biggest Mistakes Sellers Make When Using Fulfillment by Amazon (FBA) with Ephraim Ausch

5 Biggest Mistakes Sellers Make When Using Fulfillment by Amazon (FBA) with Ephraim Ausch

FromThe Logistics of Logistics


5 Biggest Mistakes Sellers Make When Using Fulfillment by Amazon (FBA) with Ephraim Ausch

FromThe Logistics of Logistics

ratings:
Length:
37 minutes
Released:
Jul 27, 2019
Format:
Podcast episode

Description

[00:52] Please introduce yourself. I am VP of Sales at Tactical Logistic Solutions. Tactical has locations in New Jersey and California, and I’m based in New Jersey. Tactical is an end-to-end provider of supply chain logistics. We go from our client’s overseas manufacturing location via air, sea, and land to their warehouse, our warehouse, or to Amazon's warehouse. [01:36] Tell us a little bit about your background. I grew up in a Monsey, New York, a small town in Rockland County. I attended high school in Monsey and Israel. I'm a husband to a wonderful wife and father to two beautiful children. [02:10] What was your first job? My first job was working as a customer service representative for a bulk candy company that had an online store and 4 retail locations in New York. The candy company had previously sold candy on Amazon, but they were unhappy with the results I was given to opportunity to relaunch candy sales on Amazon and after a few struggles, we reached $1,000,000 per year in sales. After my success with selling candy on Amazon, I launched a gift basket company which has done very well. [04:21] When did you join tactical? Since my gift basket business was seasonal, I outsourced the fulfillment, which gave me a lot of free time. I realized that I had the opportunity to help more people, so I joined Tactical in 2017. I had two goals: 1.) share my Amazon knowledge and experience with Amazon sellers and 2.) open a new service offering, Fulfillment by Amazon within Tactical. [06:41] Explain what Fulfillment by Amazon is. When you buy something with Prime on Amazon, 99% of the time that’s a product that has been shipped right from an Amazon warehouse instead of from the seller. About two thirds of products on Amazon are FBA. Using FBA allows you to offer quicker shipping to the whole country without destroying profitability. It was a piece of cake to sell on Amazon in the early days, but now it’s getting harder and harder. [10:51] What is the first mistake you see from sellers who use Fulfillment by Amazon? A lot of sellers don’t realize that every single space in the warehouse is allocated. I always tell FBA sellers to get their suppliers to do the labelling for them instead of doing it themselves in the US. You can even get your freight forwarder to do it, because some sellers are afraid of their supplier becoming a competitor. [14:53] What is the second mistake you see from sellers who use Fulfillment by Amazon? When you use Amazon-partnered carriers, it’s very appealing because they’re crazy cheap. When you do that, it takes two or three days for Amazon to pick it up from your warehouse. They then schedule a drop off time that is chosen by Amazon. The problem with that is Amazon will only accept deliveries during the daytime. I recommend getting a 3PL or local trucker to deliver your shipment to Amazon. [21:16] What is the third mistake you see from sellers who use Fulfillment by Amazon? There’s a lot of sellers that import product from China that have it palletized. They think that if they don’t have it palletized, it will get damaged. In my experience, very few cartons get damaged because they make sure to fill the container to capacity. You lose roughly 30% of space if you put your product on pallets. It’s a little bit more expensive to deliver, but it’s still way cheaper than using pallets. [24:21] What is the fourth mistake you see from sellers who use Fulfillment by Amazon? In the last two years, Amazon has really decided they’re not in the storage business. They’re in the selling business. If you don’t sell, they make you get out by charging additional storage costs after certain periods of time. Keep your stock in your own warehouse until it needs to go to Amazon. Replenishing monthly is a good approach. [28:00] What is the fourth mistake you see from sellers who use Fulfillment by Amazon? Amazon has a performance index that goes from 0 to 1000. Under 350 is in the red. If you go below 350, yo
Released:
Jul 27, 2019
Format:
Podcast episode

Titles in the series (100)

The Logistics of Logistics is a podcast hosted by industry expert Joe Lynch. Joe interviews founders, executives, and innovators who are shaping the future of logistics and supply chain. Topics include transportation, logistics, warehousing, technology, supply chain, and ecommerce. The Logistics of Logistics audience expects an inside perspective of what’s next in logistics and supply chain delivered via podcasts, videos, and articles. Topics include: Transportation Topics Small package, Small parcel, Air Cargo, Ocean Shipping, Ocean freight, Bulk carriers, Cargo ships, Container ships, Tankers (ocean tankers), Refrigerated ships (reefers), Roll-on/roll-off ships, Multi-purpose ship, General cargo ship, Break bulk cargo, General cargo, Less Than Truckload, LTL, Tractor, Trailers, Tractor-trailers, 48-foot trailer, 53-foot trailer, Truck lift-gate, Truck terminals, Truckload (TL), Full Truckload (FTL), Freight, Palleted freight, Pallets, Fleet acquisition, Equipment, Drivers, Truck Drivers, Driver leasing, Driver training, Driver safety, Hours of Service (HOS), Electronic Logging Device (ELD), Driver outsourcing, Dedicated Contract Carriage (DCC) Carrier contract, Spot rates, Contract rates, Pickup and delivery, Carrier Instructions, Freight characteristics, Dock management, Intermodal, Containerization, Containers, Final mile, Last mile, Rail transportation Warehousing Topics Warehouse storage, manufacturers, importers, exporters, wholesalers, transport businesses, customs, Pick and Pack, Sub-assembly, Site Location, Distribution Center Management, Inbound shipping, Outbound shipping, Receiving, Putaway, Put-away, Order processing, Replenishment, Pulling, Restocking, Picking, Validation, Sorting, Distribution Center Management System (DCMS), Vendor Managed Inventory (VMI), Supply, Demand, Inventory, Inventory Management, Cross-docking, Cross-dock, Ecommerce fulfillment, Fulfillment, Packaging Logistics Topics 3rd party logistics, 3PL, 4th party logistics, 4PL, Just-in-Time (JIT), Payment auditing, Freight auditing, Payment Processing, Freight brokerage, Freight broker, Digital freight brokerage, Digital freight broker, Transparency, Visibility Special Topics Direct to Home, Direct to Store, Sustainability, Green Logistics, Reverse Logistics, Product Lifecycle Management, Supply Chain Security Analysis, Contingency planning, Crisis Planning, Global Expansion, Foreign Trade Zone (FTZ), Logistics Consulting, Transportation Consulting, Import / Export, Customs, Labor Management, Marketing Services, Customer Service Technology Topics Supply chain technology, Freighttech, Freight tech, Freight technology, EDI, Enterprise Resource Planning (ERP), Predictive Analytics, Technology Services, Web Services, Global Trade Management (GTM), Transportation Management System (TMS), Warehouse Management System (WMS), Supplier Management, Customer Management, Cloud Based Solutions, Wireless