COVID-19 Implications for our E-Commerce Businesses
Firing The Man · with Ken Wilson · April 28, 2020 · 31 min
Summary
In this timely episode, Ken and David dissect the immediate impact of COVID-19 on their e-commerce businesses, offering concrete strategies for navigating supply chain disruptions and adapting fulfillment models. E-commerce operators will learn how to leverage FBM, adjust pricing strategies in response to market shifts, and proactively manage inventory to maintain profitability amidst uncertainty.
Key takeaways
Implement a hybrid FBA/FBM fulfillment strategy, leveraging FBM for faster shipping times and potentially higher margins when FBA is constrained. Amazon is prioritizing FBM listings with quicker ship times through the buy box.
Proactively build up 2-3 months of inventory for key products, especially if your supply chain faces potential disruption, to capture market share as competitors go out of stock.
Adjust product pricing by 5-10% in response to decreased supply and increased demand, carefully monitoring conversion rates and avoiding aggressive price hikes that could trigger Amazon penalties.
Investigate and apply for government relief programs like PPP loans if your business is negatively impacted, and use this as an opportunity to build relationships with multiple banking institutions.
Be agile and adaptable, viewing market disruptions as opportunities to re-evaluate business models and explore new strategies like diversifying fulfillment channels and optimizing inventory.
Episode 018 On today’s episode Ken and David do deep dive into their own businesses and brands to examine the impact of the COVID-19 outbreak. Ken goes into detail about the switch from FBA to FBM, PPP loans, and sourcing products. David discusses making connections with bankers, remaining positive, and focusing on things that are in your control. This is a great episode you will not want to miss. ---------------------------------------------------------------...
What does this episode say about amazon & marketplaces?
Implement a hybrid FBA/FBM fulfillment strategy, leveraging FBM for faster shipping times and potentially higher margins when FBA is constrained. Amazon is prioritizing FBM listings with quicker ship times through the buy box.
What does this episode say about supply chain & operations?
Proactively build up 2-3 months of inventory for key products, especially if your supply chain faces potential disruption, to capture market share as competitors go out of stock.
What does this episode say about finance & fundraising?
Adjust product pricing by 5-10% in response to decreased supply and increased demand, carefully monitoring conversion rates and avoiding aggressive price hikes that could trigger Amazon penalties.
What does this episode say about founder & leadership?
Investigate and apply for government relief programs like PPP loans if your business is negatively impacted, and use this as an opportunity to build relationships with multiple banking institutions.
What does this episode say about amazon & marketplaces?
Be agile and adaptable, viewing market disruptions as opportunities to re-evaluate business models and explore new strategies like diversifying fulfillment channels and optimizing inventory.
