FBA is considered one of the most influential levers third-party sellers can utilize to improve marketplace performance, but without a proper FBA analysis, many sellers will see their profitability fall short of projections.While some sellers are seeing profitable returns through FBA, many are still looking for new revenue channels to drive bottom line growth.

1. How to Execute a Profitable
Amazon Fulfillment Strategy
Day 1

2. Logistics
• Submit Questions In the Chat Box to the Right
• Session Recording Will Be Sent Next Week
• More Resources In the Handouts Section to the Right
TODAY’S SPEAKERS
Pat Petriello
Senior Marketplace Strategist
CPC Strategy
Jeff Coleman
Director, Account Management
CPC Strategy

3. OVERVIEW
• Founded in 2007
• Recognized as an Official Google Shopping Partner
• 300+ Active Retail Clients
• Top 50 fastest growing company in San Diego 3 years
CLIENTS
About CPC Strategy
SOLUTIONS
• Retail-focused Paid Search (PPC)
• Google Shopping Management
• Shopping Channel Management
• Amazon Sales Acceleration

4. Register for the Event
www.cpcstrategy.com/2016-amazon-virtual-summit

5. Facebook Group:
Amazon Sales Acceleration Mastermind
Ask to Join Group
Facebook.com/groups/AmazonSalesMastermind

7. Pat Petriello
Senior Marketplace Strategist
✓ 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
✓ Engineered & directed million dollar revenue stream on Amazon

8. Jeff Coleman
Director of Account Management
✓ 7+ years experience in retail search space
✓ Oversees the Structured Data Department at CPC Strategy
✓ Oversees the CPC Training Program
✓ Founded CPC University
(An advanced program dedicated to the education of retail search strategies)

9. Poll For The Audience…
Which describes you best?
A. Third Party Reseller
B. Third Party Brand Manufacturer
C. Vendor to Amazon (Access to Vendor Premium Services)
D. Not currently selling on Amazon

10. Overview
• FBA Fulfillment Fee Update
• FBA Monthly Inventory Storage Fee Update
• Long Term Storage Fees
• How to Decide Which Products & How Many to Send into FBA
• ASIN Level Profitability of Your FBA Strategy
• Live Q&A

11. Poll For The Audience…
Are you currently using FBA?
A. Yes
B. No

12. FBA Fulfillment Fee Update

13. FBA Fulfillment Fee Update
Fulfillment Fees: Effective February 18, 2016, [Amazon] will increase
their Pick & Pack and Weight Handling fees for most products' sizes and
weights.
Monthly Inventory Storage Fee: Effective March 1, 2016, the monthly
fee for inventory storage will increase for Standard-Size and Oversize
units. This change will first be reflected in April 2016 charges for
storage that occurs in March 2016.
Source: https://sellercentral.amazon.com/gp/help/201411300

14. FBA Fulfillment Fee Update: Standard Size
Source: https://sellercentral.amazon.com/gp/help/201411300

15. FBA Fulfillment Fee Update: Example
Source: https://sellercentral.amazon.com/gp/help/201411300

16. FBA Fulfillment Fee Update: Oversize
Source: https://sellercentral.amazon.com/gp/help/201411300

17. FBA Fulfillment Fee Update: Example
Source: https://sellercentral.amazon.com/gp/help/201411300

18. FBA Monthly Inventory Storage
Fee Update

19. FBA Monthly Inventory Storage Fee Update
6% - 7% increase in Monthly Inventory Storage Fee
Example: 5,000 Cubic Feet of Standard Size Inventory During Q4
Monthly Fee Prior to March 1, 2016: 5,000 * $0.68 = $3,400
Monthly Fee Effective March 1, 2016: 5,000 * $0.72 = $3,600
Monthly Incremental Storage Cost: $200
Q4 Incremental Storage Cost: $200 * 3 months = $600
% Increase: 6%

20. FBA Monthly Inventory Storage Fee Update
- ASIN Level fee change comparisons are available through the fee
preview report
- Profitability is not “set it and forget it”

21. Long Term Storage Fees

22. Long Term Storage Fees
FBA Long Term Storage Fees
The Long-Term Storage Fee is assessed based on the total volume in
cubic feet of units that have been stored in Amazon fulfillment
centers for six to 12 months or 12 months or more as part of
Amazon’s semi-annual Inventory Cleanup date.
Source: https://sellercentral.amazon.com/gp/help/help.html/?itemID=200725880

23. Long Term Storage Fees
You can use the Inventory Health report to identify which of your
ASINs are at risk of being charged the Long-Term Storage Fee for each
of long-term storage periods:
- 6 Month
- 12 Month

24. Long Term Storage Fees
FBA Removal Order Fees
Preventing Long-Term Storage Fees
- Identify at-risk ASINs
- Removal Orders
- Return
- Disposal
- Sponsored Products
- Review Giveaways (ex: Snagshout)
- Sales
- FBA Allocation strategy designed to prevent overstocking

25. How to Decide Which Products & How
Many to Send into FBA

26. How to Decide Which Products & How Many to Send into FBA
Factors Influencing FBA Allocation:
- FBA Fees
- Margin
- Current FBA Inventory
- Sales Velocity
- Seasonality Multiplier
- Inbound Inventory
- Lead Time
- Advertising
- Stockouts

27. How to Decide Which Products & How Many to Send into FBA
The In Stock report provides inventory metrics on your active listings
with two or more sales in the past 60 days. This report provides
information on Estimated Lost Sales, Estimated Days of Cover and
Average Unit Sales per Week.
This report can be found within Seller Central under Business
Reports -> Inventory In Stock.

28. How to Decide Which Products & How Many to Send into FBA
- A seasonality multiplier is used to account for demand
fluctuations due to seasonality.
- A 60 day sales velocity helps to determine how many units will
need to be in stock to have full coverage for that period.
- Days until stock out is used to determine how many days of
current inventory coverage are remaining.

29. How to Decide Which Products & How Many to Send into FBA
1) Start with trailing 60 day sales performance
1) Take into account inventory already in stock
1) Apply a seasonality multiplier, if applicable
1) Consider inventory en route inbound to Amazon FC’s
1) Consider stockouts using in stock report data
1) Use ASIN level profitability data to determine your FBA fee %
a) COGS
b) Sponsored Products
c) Fee % > 30% is worth investigating further
d) Margin determines what is ultimately acceptable

30. Live Q&A
Submit your questions in the chat box on the right
cpcstrategy.com/amazon-evaluation
www.CPCStrategy.com | 619.501.6138 | contact@cpcstrategy.com
Apply For A Free 60 min. Channel Evaluation
Pat Petriello
Senior Marketplace Strategist
CPC Strategy
Jeff Coleman
Director, Account Management
CPC Strategy