This episode tackles the massive growth of Amazon, with its fulfillment centers expanding 50% in a year and already at capacity, leading to inventory restrictions for sellers. It provides crucial insights for Amazon sellers on how to adapt to this explosive growth, manage inventory effectively, and navigate the evolving Buy Box algorithm, which increasingly favors larger enterprises. Operators will learn how to prepare their businesses for continued e-commerce growth fueled by the pandemic and the challenges of maintaining marketplace equality.
Key takeaways
Monitor your Amazon inventory frequently to identify and capitalize on sales opportunities, especially given current fulfillment center constraints.
Understand that Amazon’s rapid growth (50% fulfillment center expansion in one year) signifies ongoing e-commerce acceleration, so adapt your supply chain strategies accordingly.
Be aware of the evolving Buy Box algorithm, which is increasingly favoring larger sellers with higher feedback scores, and strategize how to compete or differentiate.
Educate yourself on Amazon's growing market power and the implications of congressional scrutiny on marketplace equality.
Anticipate continued e-commerce growth due to the pandemic and position your business to leverage this trend while mitigating fulfillment challenges.
Today I start off by discussing how important it is to educate yourself and that the purpose of this podcast is to help you learn and be prepared for your own business. I discuss what’s going on right now in our economy. Amazon fulfillment centers are overflowing and products are getting restrictions on what we can send in to Amazon. I talk about how much the centers have grown this year versus how much they have grown in the past. I talk over what you should be doing right now to react to this explosion of growth. I give advice on some things you should be doing, such as checking on your inventory frequently so that you don’t forget what you have and miss opportunities to sell. I discuss the pandemic and that it isn’t going to go away soon, but we at least have a few more months, meaning Amazon likely will continue to grow and E-commerce will continue to do really well. I talk about the buy box and how things have been changing in favor of larger companies. I bring up the issue of how much power Amazon has gained and equality in the marketplace. Recap of how we got where we are with restrictions 2:12What you should be doing to react to the explosive growth of Amazon 5:12Larger sellers with larger feedback scores get more of the buy box 10:15Equal marketplace and the congressional hearing 12:10“Understand that Amazon this last year has opened up 50% more fulfillment center space in just a year, and it’s already filled it up. I don’t know if that rings a bell to you, because it should. We’re talking about the best logistics network in the world grew by 50% percent in a single year.” 3:58Socialhttps://www.instagram.com/smartestseller/https://www.buyboxer.com/Send Scott an Email: scottneedham@buyboxer.com
What does this episode say about amazon & marketplaces?
Monitor your Amazon inventory frequently to identify and capitalize on sales opportunities, especially given current fulfillment center constraints.
What does this episode say about supply chain & operations?
Understand that Amazon’s rapid growth (50% fulfillment center expansion in one year) signifies ongoing e-commerce acceleration, so adapt your supply chain strategies accordingly.
What does this episode say about founder & leadership?
Be aware of the evolving Buy Box algorithm, which is increasingly favoring larger sellers with higher feedback scores, and strategize how to compete or differentiate.
What does this episode say about amazon & marketplaces?
Educate yourself on Amazon's growing market power and the implications of congressional scrutiny on marketplace equality.
What does this episode say about amazon & marketplaces?
Anticipate continued e-commerce growth due to the pandemic and position your business to leverage this trend while mitigating fulfillment challenges.
