Amazon’s FBA fee hikes incentivize more fulfillment locations [MDSR #4]

Welcome back to the fourth installment of the Million Dollar Sellers “Roundup” or MDSR for short — the biweekly newsletter here to accelerate your sales and growth without you having to reinvent the wheel. 

From essential industry news and events to priceless resources and tips, we offer quick, potent insights that can be your shortcut to success.

Without further adieu…

Hot Off The Presses 📰

Did you have Taco Bell kits quite literally flying off the shelves at Amazon on your 2023 bingo card? We didn’t either. 

We did expect to see Amazon post some comprehensive holiday sales numbers by now, though. So far we know that customers ordered more than 500 million items from independent Amazon sellers, most of which were small and medium businesses. 

Amazon aside, expected consumer spend is up sharply compared to last year at this time. And TikTok becoming the first non-game mobile app to surpass $10 billion in consumer spending (on virtual gifts for creators, not eCommerce purchases) kinda proves that.  

But the warm and fuzzies begin and end there. Amazon announced unprecedented FBA fee hikes — including a new low inventory fee — coming around the corner in 2024 in hopes of getting sellers to stock their products at multiple Amazon fulfillment hubs. 

They also dropped Venmo as a payment option for customers, which could spell bad news for PayPal. Anecdotally speaking, customers love PayPal — so that could spell bad news for the rest of us. 

Seems like someone’s coming for everyone right now. TikTok may or may not be trying to make livestreaming eCommerce into an Amazon-killer. Walmart is going after Amazon, and using one of Target’s strategies to do it. 

And Amazon is working feverishly to overtake Microsoft and Google’s foothold in the AI war for market dominance. Though not yet confirmed, word on the street is that their latest AI chatbot is suffering from “severe hallucinations” and actively leaking confidential data. 

We didn’t know chatbots could hallucinate, but we do know the competition is as fierce as ever. And all eyes are on Amazon.

Million Dollar Advice 💸 

Does this sound familiar?

The more authorized resellers for my products, the merrier. A purchase order is a purchase order, and those are worth more than protecting my brand…

Well, we hate to be the bearer of bad news but not every PO is created equal. And trying to make a volume play with tons of authorized resellers can actually dilute your brand with unauthorized resellers and counterfeits. 

Products come and go, but brands are what make a lasting impression on consumers. If you’re looking for answers on how to protect your brand and cultivate successful brand-reseller relationships as you expand your presence, Megan Harmon of ThornCrest has got you covered.

Listen to Guardians of Brands: Insights into Protecting, Scaling, and Expanding on E-Commerce Platforms

eCommerce Tool Of The Week 🔦

Most traditional insurance isn’t designed for eCommerce. Premiums are based on annual forecasts, charged upfront or through high-interest premium financing — leaving sellers vulnerable to under-insurance if they sell more than expected, and leaving money on the table if they over-insure.  

That’s why we’d like to introduce you to Assureful, the perfect provider for accurate online seller insurance based on actual sales, in compliance with Amazon, Walmart, and other major platforms. They connect directly to your seller accounts to offer you ‘A’ rated insurance covering private-label products made from here to China, at rates 75% more cost effective with premiums as low as $26 / month. 

What are you waiting for? Get a quote today.

How to end the year on a high note 📈

Get your mindset right →

Embrace the constant cycle of learning, growing and adapting. It’s easier when you look to others being open and gracious about their own lessons learned — and try to find some humor along the way.

Test your strategies →

It’s the only way to do more of what’s working and less of what’s not.

Proudly rely on others →

When you think you can do things better and faster your way, it can be hard to hand over the reins and tap in other teammates to help. 

With the right “who’s” in your life to help you tackle the “how’s” there’s no shortage of reasons why you should start delegating more. 

For five of the biggest reasons, read our full post below. 

Outsource what you can →

Once upon a time, getting traction on Amazon was a breeze. We can all agree that, these days, it can be a puzzle that’s only solved with time, money, and expertise. 

Don’t be afraid to play to your strengths and outsource the rest. For many brands, that means hiring an agency to handle PPC. 

If you want the full download on different types of Amazon PPC agencies and some pointers on which makes most sense for your business, read our full post below.

ChatGPT Prompts 🤖

‘Tis the season to start thinking about next year’s strategy… 

These ChatGPT prompts are here to help:

• Compare the features and pricing of the best-selling [PRODUCT] on Amazon 

• What differentiates the top 3 [PRODUCT] on Amazon from other competitors?

• Summarize the common complaints and negative reviews about the top 5 competitors for [PRODUCT]

• Generate a list of the top 10 influencers in the [NICHE] space

• Propose 5 unique ways to collaborate with [NICHE] influencers to promote a [PRODUCT] 

Featured Partnership 💼

We truly hate to see sellers losing money to hidden fees. Believe it or not, 99% of sellers are 💀

With the most efficient and transparent reimbursement process on the market, our partner, Seller Investigators will audit your whole account, file claims for you, and get back the money you’re owed for things like inbound shipments, lost or damaged items, and customer returns. 

Use our link to get a free audit today and start getting those precious dollars back. 

YouTube Playlist ▶️

These are some must-watch videos that provide tactical steps to improve your business…

Think these are helpful?

Share this newsletter to help other sellers get actionable tips like these.

eCom Stock Watch 👀

AMAZON → Next earnings report on February 1, 2024

Amazon stock started 2023 at $84. Today Amazon traded at $147.48, up +5% this month and +76% from the start of the year. Their forecasted price for the end of 2023 is now $152 (+3% from today and +81% YoY). Prices are expected to hit $153 by summer 2024 and $162 at year end (+10% from the current price). 

SHOPIFY → Last earnings report on November 2nd and next earnings report still TBC

Shopify stock was $50.50 at the top of 2023. Today they traded at $72.50, up +11% this month and +44% from the start of the year. By the end of 2023, their price is expected to hit $78.13 (+8% from today, +55% YoY) — and $91.51 by the end of 2024 (+26% from the current price).

ALIBABA → Last earnings report on November 16th and next earnings report currently TBC

Alibaba stock started 2023 at $88.09. Today they traded at $71.39, down -12% this month and -19% from the start of the year. By the end of 2023, their price is expected to hit $74.87 (+5% from today and down -15% YoY) — and $90.97 by the end of 2024 (+27% from the current price).

WALMART → Last earnings report on November 16th and next earnings report currently TBC 

Walmart stock came into 2023 at $127.34. Today they traded at $151.36, down -16% this month but up +19% from the start of the year. By the end of 2023, their price is expected to hit $154 (+2% from today and +21% YoY) — and $161 by the end of 2024 (+6% from the current price).

Did you see that post 📲

Need a (free) million dollar idea? 

Here, take 12 —

Upcoming eCom Events 🗓️

Attention all Anaheim eCom entrepreneurs! You’re invited to our next bi-monthly meetup for local brand owners and industry leaders. 

Not an MDS member? Not a problem — spread the word, because the more the merrier. 

📅 Date: December 21st, 2023

🕒 Time: 12:00 PM - 2:00 PM

📍 Location: Golden Road Brewing Anaheim

Other than that, the new year is almost upon us. If you haven’t already, this is the time to mark your calendar for the top events of 2024, like MDS Inspire, in Las Vegas, Nevada, March 4-5, 2024 — the only MDS main event where non-members can attend. This once-a-year event features the multi-million dollar sellers in the industry that you haven't heard speak anywhere else. 

And you won’t want to miss these, either…

Looking for a mastermind community?

Million Dollar Sellers (MDS) is an exclusive community of 600+ like-minded Amazon and DTC sellers from all over the world. Collectively, our members generate more than 8 billion in annual sales and dominate some of the biggest categories on Amazon. MDS offers world-class events, chapters, industry discounts, resource libraries full of SOPs, templates, and video recordings of private trainings, workshops, events and so much more.

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

*To qualify, you must be a full-time seller or brand owner and do at least 1 million in verified annual revenue.

Until Next Time ✌️

As always, thanks for sticking with us if you’ve read this far. 

Quick question before we let you go. What are the three words you’d use to describe your eCommerce experience in 2023?

Just reply and let us know. You can also tell us what you’d like to see covered in the next newsletter. 

See you next time, with the latest and greatest content you need to succeed 🔥

Sincerely,