It’s a bird.. It’s a plane.. It’s 500M Amazon delivery drones? [MDSR #24]

It’s that time again…

Time for some fresh eCom intel and (free) million dollar advice.

Hot Off The Presses 📰

We hope those packages have been finding your customers well — if they’ve been finding them at all — as the Panama Canal drought turns shipping and delivery logistics upside down, pushing ocean freight rates to a 16-month high. For sellers on Amazon and beyond (minus Walmart, apparently) the ripple effects are real: Increased shipping costs, supply chain disruptions, inventory management snafus, and pricing pressure, to name just a few.

Brands big and small have to protect their margins now more than ever, and the reality is that a timid approach to tech and pricing just won’t do anymore. Which is probably why major players are turning to AI to improve operations by reducing preventable returns and unnecessary vendor costs. 

But for peak operational excellence and well-oiled logistics, drones are the next frontier and Amazon is leading the charge having just secured the necessary approval to expand their fledgling Prime Air service — as they dodge a class action lawsuit over missing guaranteed delivery windows in the same breath.

The Amazon Prime auto renewal lawsuit, however, seems to be sticking…

Consumer sentiment may not be the accurate predictor of consumer behavior we thought it was, but one thing’s for sure: The only thing consumers hate more than involuntary subscriptions (especially when they’re already trading down) would have to be cancellation flows that feel like a hero’s journey á la Homer’s The Iliad. 

Oh wait. They also hate having their social media data scraped for AI training purposes (as proven by the recent exodus from Instagram to the AI-free alternative, Cara) — and having their data used in surprising ways, period. 

It begs the question of what’s going to happen as the more authentic online platforms start turning into billboards… And the last businesses you’d expect start spinning up omnichannel ad networks… And third-party software startups mine Google queries behind the scenes to identify shoppers most likely to buy based on age, marital status, and income data, sending them straight to Amazon… 

Our two cents? We can see why 90% of business execs think their customers highly trust their companies when only 30% of consumers actually do. And why experts say, in the age of information overload, trust can make or break your bottom line. 

Million Dollar Advice 💸 

If you think operational efficiency only affects the day-to-day inner workings of your business, guess again. 

Operational considerations like inventory management have never been so make-or-break for success on Amazon — and the litany of new seller fees launched this year prove it. 

In a time when Amazon is rewarding the businesses with smooth operations (read: who leave headaches at the door and make Amazon’s life easier) and penalizing those who don’t, it’s on sellers to do everything in their power to better manage their stock and avoid costly mistakes — thankfully, SoStocked’s very own Chelsea Cohen is here to help.

Listen to Chelsea Cohen: Effective Techniques to Manage Stock Levels, Reduce Fees, and Optimize Supply Chains 

AOV Optimization Checklist ✅

The best Amazon sellers are the ones who constantly make micro-adjustments and pull new levers that enhance profit margins, improve business efficiency — and readiness to scale. 

On that front, boosting average order value is a critical part of the game. That’s why we put our heads together to come up with a quick and dirty optimization checklist of tactics worth trying when it comes to extracting maximum value from each customer. 

Save this list and make it your new best friend —>

☑️ Try offering bundle deals like buy two items and get the third free, or buy three items and get the fourth free.

☑️ Upsell and cross-sell complementary products with targeted recommendations.

☑️ Create a price threshold that unlocks free shipping to encourage adding more items to cart.

☑️ Test out tiered discounts that increase with cart value, like $10 off a $100 purchase and $20 off $150.

☑️ Create limited edition versions of best-selling products to create scarcity and increase perceived value.

☑️ Aim to gradually increase the retail price of each product you launch to continuously set a new bar for order value. 

☑️ Save generous promo codes for loyal customers instead of using them to attract new customers — because you’ll wind up with the most price-sensitive ones!

☑️ Offer financing options like pay over time to sweeten the deal when customers are at the finish line of their next splurge.

Think this list is helpful?

Partner Spotlight 🔦 Creative Edition

From creative marketers who make your products stand out and sell, this week MindfulGoods.co reveals why they’re the MVPs for Amazon product pages and storefronts:

1️⃣ SEO Masters: MG is hyper-focused on making your product stand out with expert knowledge of Amazon's algorithms, ensuring top visibility.

2️⃣ Conversion Genies: Leveraging data and marketing, their split tested content significantly boosts sales, with brands seeing up to 600% increases.

3️⃣ Creative Queens: Expect unforgettable, scroll-stopping visuals and storytelling that elevate your brand.

4️⃣ Amazon Experts: With extensive experience optimizing eCommerce brands, they redefine Amazon content strategies, setting you up to excel.

We’re thrilled about this partnership with MindfulGoods.co, because we’re all about turning ordinary into extraordinary and ensuring your products don’t just sell — they dominate.

Ready to dominate Amazon? Let’s go! 🔥🚀

Book a discovery call here and mention MDS  

Partner Spotlight 🔦 PPC Edition

Running Amazon ads and not seeing the results you want? 

We’d like to introduce you to Nomadz, the go-to experts in Amazon PPC who can manage your campaigns or provide you with the strategy and software to succeed in-house.

Many Amazon sellers struggle with PPC due to limited time, resources, or expertise. Maybe you've already spent money on underperforming agencies or confusing software.

Nomadz offers two solutions:

• Let their expert team manage your Amazon PPC… OR

• Learn their strategies and software to manage your PPC in-house

Whether you want to outsource, train your team, or hire PPC talent, Nomadz brings over 8 years of experience in Amazon PPC. You can trust them to help you achieve the results you're looking for.

You’ve got nothing to lose — start by requesting a free PPC audit now. 

Save The Date For MDS Day New York  🗓️

Join the biggest MDS chapter event of the year —

📅 June 20, 2024📍 New York, USA

Enjoy a lineup of inspiring guest speakers, engaging networking sessions, and interactive partner workshops. Afterward, unwind at a lively cocktail hour, where you can continue building relationships and exchanging ideas with MDS members and other e-commerce professionals.

What else to expect?

👏8 Expert speakers including Paul M Vincent, Alex McArthur, Chris Colbert, Dimitri Vorona, Colin Raja, Hymie Zebede, Vanessa Hung, and Scott Deetz

🤝 ‍7 & 8 Figure Sellers

💡Exclusive ideas and actionable steps from industry pioneers

What are you waiting for? Register now to secure your spot! 

And remember, it’s never too early to lock in your ticket for MDS Inspire 2025…

eCom Stock Watch 📊

AMAZON → Last earnings report on April 25, 2024, next earnings report is August 1, 2024

Amazon stock started 2024 at $151.94. Today Amazon traded at $187.23, up +1% this month and +23% from the start of the year. Their forecasted price for the end of 2024 is now $192 (+3% from today and +26% YoY). Prices are expected to hit $225 by summer 2025 and $250 at year end (+34% from the current price). 

SHOPIFY → Last earnings report on May 8, 2023, next earnings report still TBC

Shopify stock was $77.90 at the top of 2024. Today they traded at $63.83, up +9% this month and down -18% from the start of the year. By the end of 20245, their price is expected to hit $90.61 (+42% from the current price).

ALIBABA → Last earnings report on May 14, 2024, next earnings report currently TBC

Alibaba stock started 2024 at $77.51. Today they traded at $77.90, down -8% this month and up 1% from the start of the year. By the end of 2024, their price is expected to hit $82.82 (+6% from today and +7% YoY) — and $86.90 by the end of 2025 (+12% from the current price).

WALMART → Last earnings report on May 16, 2024, next earnings report date currently TBC

Walmart stock came into 2024 at $157.65. Today they traded at $66.73, up +1-% this month and -58% from the start of the year. By the end of 2024, their price is expected to hit $69.69 (+4% from today and -56% YoY) — and $92.58 by the end of 2025 (+39% from the current price).

Did you see that post 📲

Copycat competitors faking court orders?? New fear unlocked 🔓

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?

Million Dollar Sellers (MDS) is an exclusive community of 650+ 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.