This episode uncovers how Amazon’s Q2 2020 fulfillment bottlenecks and IPI score changes are impacting third-party sellers, driving many to explore alternatives like 3PLs and other marketplaces. It highlights Amazon’s massive investment in fulfillment infrastructure as a long-term bet on ecommerce growth, while also noting the significant rise of Walmart Marketplace, fueled by its Shopify partnership, as a growing alternative for sellers seeking diversified channels and improved logistics.
Key takeaways
Amazon's Inventory Performance Index (IPI) score, particularly below 500, can lead to significant restrictions; monitor and optimize inventory to avoid long-term storage fees and maintain healthy sell-through rates.
Diversifying fulfillment strategies beyond Amazon FBA by incorporating 3PLs can mitigate risks associated with Amazon's evolving policies and capacity constraints, offering better control over logistics and potentially lower fees.
Explore alternative marketplaces like Walmart, especially given its rapid growth and Shopify partnership, to reduce reliance on Amazon and tap into new customer segments.
Recognize that while Amazon's fulfillment challenges are current, their aggressive expansion of warehouse capacity signals a strong long-term commitment to ecommerce, suggesting continued growth in the sector for diversified sellers.
If you want to move some serious product, consider Walmart Marketplace. They doubled in size in 2020 and are growing extremely quickly thanks to their partnership with Shopify.
Episode 35 In this episode, we will talk about the latest and greatest news that is happening in the e-commerce world. Big names in the industry are making noise from Amazon to Walmart and even Shopify. Some of them are suffering, while others are emerging. How will the market play out when the pandemic is all over? Let’s dive into this episode and dig into three articles that Ken and I will dissect to give you a better view of what’s in store for the e-commerce industry. [00:01 - 13:43] Amaz...
What does this episode say about amazon & marketplaces?
Amazon's Inventory Performance Index (IPI) score, particularly below 500, can lead to significant restrictions; monitor and optimize inventory to avoid long-term storage fees and maintain healthy sell-through rates.
What does this episode say about supply chain & operations?
Diversifying fulfillment strategies beyond Amazon FBA by incorporating 3PLs can mitigate risks associated with Amazon's evolving policies and capacity constraints, offering better control over logistics and potentially lower fees.
What does this episode say about shopify & ecommerce platforms?
Explore alternative marketplaces like Walmart, especially given its rapid growth and Shopify partnership, to reduce reliance on Amazon and tap into new customer segments.
What does this episode say about dtc strategy?
Recognize that while Amazon's fulfillment challenges are current, their aggressive expansion of warehouse capacity signals a strong long-term commitment to ecommerce, suggesting continued growth in the sector for diversified sellers.
What does this episode say about amazon & marketplaces?
If you want to move some serious product, consider Walmart Marketplace. They doubled in size in 2020 and are growing extremely quickly thanks to their partnership with Shopify.
