Amazon’s low inventory metric isn’t fixing sellers’ problem [MDSR #5]

Welcome back to the fifth installment of MDSR. 

Let’s get into what you need to know to come out of the gate ready to sell even more in 2024.

Hot Off The Presses 📰

There’s no time for reflection quite like EOY. So, what conclusions can we draw from some of the final newsbreaks of 2023?

This year saw some of the biggest D2C brands trading in higher margins for better brand awareness with brick and mortar expansion, but that’s hardly a sign that consumers are logging off. If anything, they’re about 15% more logged on than they were last year — at least when it comes to video content, which now takes up 56.5% of social media screen time for the average joe. 

But not all video content is created equal if you’re an advertiser. An analysis of 2023 video performance just revealed that Instagram Reels yields better results for brands than video content on Facebook or Tiktok. That said, looks like results might vary if you’re advertising to children per the FTC’s recent proposal. 

Speaking of advertiser interests, internal communications at TikTok came to light last week suggesting that moderation staff were asked to avoid taking any negative action against 60 Amazon-related accounts last fall. One scroll on TikTok is all it takes to figure out that Amazon’s the highest paying advertiser on the platform — and also the subject of viral videos when consumers get heated over new return policies. 

Consumers aren’t alone in their Amazon frustrations. Sellers were vocally up in arms about the unprecedented low inventory level fee announcement just a few weeks ago, and challenges with the new inventory level metric — which is meant to help sellers avoid the fee — seems to be making things worse. At least for now. 

Oh, and the Amazon aggregator frenzy of the last few years will likely die down with the decline of Thrasio coming out of left field. 

Stick with us in 2024 for answers.

Million Dollar Advice 💸 

Since you subscribe to this newsletter, chances are you’ll relate to this sentiment:

I’ll work 80 hours for myself as long as I don’t have to work 40 hours for someone else. It’s more about commitment to being an entrepreneur than commitment to a particular business idea — even if that means 20 hour work days once in a while.

As someone who did exactly that for 15 years, Nater Youngchild will be the first to tell you that freedom is the real payoff of the entrepreneurial grind. And time spent doing whatever fills your proverbial cup — whether it’s skiing, sitting on a beach, or anything in between — can be just as valuable to your business as time spent at your laptop. 

Want to learn more about how finding your true north can lead to better business decisions?

Listen to Nater Youngchild: From Delivering Groceries to E-Commerce Heights

Trend predictions 🧠

You know we keep our finger on the pulse of the eCommerce world. Based on what we’ve seen in 2023, here are the 3 major trends we’d put our money on in 2024. 

1. No more single-channel brands

Brands using 3 or more channels (think: their own website, a few social media accounts, and an Amazon storefront) already see 251% more engagement than those using just one. We expect to see more brands building a seamless omnichannel brand presence in the new year.

2. AI everywhere

It’s not a buzzword. It’s not a phase. And it’s already something you can implement today with accessible tools like ChatGPT (and our biweekly prompts designed to save you time). This will be the year every successful brand makes AI part of their workflow for things like personalized shopping experiences and product recommendations, optimized supply chain logistics, and even conceptualizing an entire marketing strategy. 

3. Mobile-first shopping

Remember when optimizing desktop sites for mobile was cutting edge? With 91% of people routinely buying stuff on their phone — and the term “m-commerce” officially coined — we’re expecting brands to prioritize mobile shopping experiences above all else with UX as just the tip of the iceberg. We’re talking about things like dedicated shopping apps and face ID (or at very least Apple and Google Pay) to streamline checkout.

eCommerce Tool Of The Week 🔦

Maybe you’re spending more time on logistics headaches than on your products or customers.

Maybe you’re losing out on sales due to stocking issues because you’re juggling multiple vendors — or simply new to Amazon. 

Whatever the case may be, we thought you should know about Tactical Logistical Solutions. They give you end-to-end logistics, done the right way with freight forwarding, 3PL warehousing, and trucking — all with one point of contact. 

Ready to put all your focus on your products and let experts handle everything outside that shipping box? Contact them today.

ChatGPT Prompts 🤖

There’s no excuse for entering 2024 without a clear brand identity with these prompts at your fingertips… 

• Come up with a unique value proposition and compelling brand values for a [BUSINESS CATEGORY] that creates a clearly differentiated brand from competitors like [X], [Y] and [Z]

• Draft a list of 10 tagline options for a [BUSINESS CATEGORY], that capture [UNIQUE VALUE PROPOSITION], [BRAND VALUES], and resonate with [TARGET AUDIENCE]

• Create a comprehensive and actionable branding strategy for a [BUSINESS CATEGORY] in line with [UNIQUE VALUE PROPOSITION], [BRAND VALUES], and [TARGET AUDIENCE]

TikToks Worth Watching ⏰

We scrolled so you didn’t have to.

@damn__good__marketing

Discover how solving the problem of Warm Alcohol led to a $100M business with Brumate. Learn how their presale strategy helped them scale ... See more

@viralvideo.club

A viral hook isn’t what you think it is. Share this with a content creator friend! #viralhooks #howtogoviral #howtogrowontiktok

@joinbrands

Be YOU. #deinfluencing #howtodeinfluence #subliminalmessage #subliminalhooks #ugccommunity #ugctips #tiktoktips #businesshacks #sahm #sahm... See more

@beowulftiktok

this was so fun #tech #techtok #tiktokshop buying the best tech weirdest tech fun tech on tiktok shop transformer earbuds rc car drone fro... See more

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eCom Stock Watch 👀

AMAZON → Next earnings report on February 1, 2024

Amazon stock started 2023 at $84. Today Amazon traded at $153.42, up +6% this month and +83% from the start of the year. Their forecasted price for the end of 2023 is now $154 (+0% from today and +83% YoY). Prices are expected to hit $155 by summer 2024 and $164 at year end (+7% 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 $76.83, up +4% this month and +52% from the start of the year. By the end of 2023, their price is expected to hit $76.98 (+0% from today, +52% YoY) — and $90.17 by the end of 2024 (+17% 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 $75.28, down -2% this month and -15% from the start of the year. By the end of 2023, their price is expected to hit $76.75 (+2% from today and down -13% YoY) — and $93.25 by the end of 2024 (+24% 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 $156.65, down -.2% this month but up +23% from the start of the year. By the end of 2023, their price is expected to hit $158 (+1% from today and +21% YoY) — and $165 by the end of 2024 (+5% from the current price).

Did you see that post 📲

You heard it here first… Send it. 

Upcoming eCom Events 🗓️

January is almost here and before you know it, it’ll be March. 

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. 

You may want to bookmark these ones, too.

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 reading to the bottom. More of the latest and greatest content you need to succeed is coming your way in 2024 🔥

Before we let you go — we’d still love to hear your answer. Please reply and let us know:

What are the three words you’d use to describe your eCommerce experience in 2023?

Sincerely,