Amazon returns have gone to hell ❤️‍🔥 [MDSR #23]

Facebook ads are where two thirds of MDSR readers will be directing their attention now that Amazon has unlocked the holy grail of social attribution. 

On that front, we have plenty of fresh eCom intel and (free) million dollar advice. Let’s get into it.

Hot Off The Presses 📰

When it comes to the logistical challenge of returns, Amazon has tried everything from their 20-year A-to-Z guarantee to the occasional returnless refund. 

But the average online shopper has spoken and Amazon returns have officially gone to hell. 

What consumers are missing in a single consistent returns process for ill-fated Amazon purchases, the company seems to be making up for with a logistics expansion to speed up deliveries and reduce costs — including a 30% price cut on thousands of Amazon Fresh grocery items. 

Return debacles aside, Amazon is still dominating online commerce. Even with consumers spending about twice as much on Walmart’s web store each year as they do on Amazon. With 75% of shoppers in the US holding active memberships, you could say that Americans are obsessed with Amazon Prime — and it shows. 

Consumers might express disapproval at whatever shady story Amazon is making headlines for, but few can resist the allure of their laundry list of high-demand best sellers because, on some level, they trust the Amazon marketplace. 

On other platforms (and on the other side of the eCommerce ecosystem) it’s a very different story. Aside from Google’s AI overviews shaking up eCommerce search visibility, the DOJ antitrust trial and these 20 slides sum up why advertisers don’t trust Google anymore. 

What we’re looking at is a proverbial changing of the online guards, which signals a move away from a few huge tech companies being in control — and a move towards more advertisers using first-party data to connect with their audiences. 

They’re also spending more on retail media networks like Amazon and Walmart as TV shrinks, and even making room for Pinterest in their ad budgets. That is, when they’re not running touch-grass campaigns telling you to get off your smartphone. 

But, hey — maybe they missed the memo that social commerce is booming with 72% of consumers now willing to make purchases directly within a social media platform… And you kind of need a smartphone for that. 

Just ask Uber, who’s integrating social commerce into their marketplace to meet consumer demand for peer recommendations… 

Or LinkTree, who’s rolling out their social commerce program to more creators…

Or TikTok, who’s lowering the threshold for creators to join their TikTok Shop affiliate program… (And who’s poised for a millennial takeover that will make them even more powerful if they survive the ban...) 

The more you know!

Million Dollar Advice 💸 

They say you shouldn’t put all of your eggs in one basket. That’s especially true for success on Amazon.

At this point, diversification is everything — most sellers wouldn’t rely on just one ad channel or marketing tactic to reach their audience. And yet, tons of Amazon sellers rely on production in a single country to fuel their supply chain, despite the risks of keeping all those eggs in one basket. 

If you’re willing to invest in running a new ad format for a month — but you’ve never invested in supply chain improvements — it’s time to learn from the experts how to expand your business globally to overcome supply chain hurdles. 

Listen to Steven Blustein: Why You Need to Diversify Your Supply Chain Outside of China 

A Masterclass in Product Drops from Liquid IV 💦

Liquid IV has officially entered the top 10 TikTok Shop seller rankings with $1.39M in the last week. 

For the majority of MDSR readers focused on launching killer products this year, there’s a serious lesson to be learned — and we found a Twitter thread that unpacks all of it for a quick and dirty masterclass in product drop strategy based on Liquid IV. 

The TL;DR on how Liquid IV ascended the ranks of TikTok Shop:

👯 Instead of applying their broader influencer strategy to promote their launch on a new sales channel, they identified and seeded partnerships with TikTok-specific influencers and ultimately chose to partner with only the top TikTok Shop affiliates. 

🗣️ They provided their influencers with coordinated talking points to ensure they hit the same key messages in every single video, while still coming across as natural and authentic. 

🛍️ The only thing shoppers love more than a good deal is an exclusive one, so Liquid IV paired their TikTok launch with an exclusive offer: 20% off and free shipping, ONLY on TikTok shop. 

📈 They closely monitored video performance and acted fast to put ad dollars behind the videos that drove the most sales to help create momentum. 

♻️ And that momentum helped them sustain the positive network effect that ultimately made their product sell out — and unlocked free advertising when affiliates continued making promotional content despite having to tag a different flavor…

Think this list is helpful?

Partner Spotlight 🔦

Selling on multiple sales channels has never been more important. With Amazon continuing to raise their FBA fees, running a single channel business is becoming increasingly challenging. 

As alternative channels invest in attracting consumers, not only do multi-channel sellers grow their revenue faster, but their businesses also command higher exit valuations due to concentration risk mitigation.

What’s stopping you from expanding to new sales channels?

BaseLinker provides you with the ability to quickly cross-list your products and sync inventory across over 200+ marketplaces and storefronts globally, including Amazon, Walmart, TikTok Shop, Shein, Shopify and WooCommerce. 

Baselinker’s built-in Inventory-, Order- and Warehouse Management modules even let you save on using separate software.

Register for a free 14-day trial with Baselinker — no credit card required — and sign up for a free consultation!

MDS in the wild 🐾

A few weeks ago, our very own Million Dollar Sellers emcee Brian Williams sat down with PickFu at the Pattern Accelerate 2024 show to talk shop.

If you’re not targeting the right ICP or audience, you’re effectively stuck in an echo chamber — and paying for it with low sales that don’t quite justify the advertising costs.

If you get a lot out of these mastermind insights, you’ll be floored by what’s in store for MDS Inspire 2025…

Did you see that post 📲

There are two types of sellers in this world…

Until Next Time ✌️

As always, thanks for sticking with us until the end. 

If you’d care to share your thoughts on this newsletter, we’re all ears. Just hit reply to sound off. 

See you next time with more of the latest and greatest content you need to succeed this year 🔥

Sincerely, 

Looking for a mastermind community?

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If you are looking for a business professional community made for ecom entrepreneurs, then consider applying today. 

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