Episode #13 - Matt Krueger: From Sneakerhead to E-Commerce Dynamo: Unveiling the Secrets of Success
Oct 31, 2023
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Matt Krueger, a seasoned expert with 15+ years in the industry, discusses his e-commerce journey and how he tackled challenges in a shifting market. Topics include oversized product challenges and price competition, e-commerce excellence, and building a successful global marketplace organization.
Direct import of large, heavy items offers cost savings and better sourcing management, especially during challenging periods like the pandemic.
Analyzing data at the ASIN level and optimizing products for e-commerce are crucial for maximizing profitability and staying competitive.
Deep dives
Key Points on Direct Import and Pricing Competitively
Matt discusses the challenges and strategies of pricing large, heavy items competitively in the market, particularly in relation to direct import. He highlights the advantages of direct import in terms of cost savings and managing sourcing during challenging periods like the pandemic. Additionally, he explains the impact of Amazon's focus on profitability and the changing landscape of big and bulky items. He also mentions the need to evaluate bottom-line profitability, taking into account factors like advertising costs and the rise of Amazon's ad revenue.
Understanding Direct Import and Inco Terms
Matt delves into the concept of direct import and explains how it involves shipping directly from factories or ports overseas to retailers' warehouses or store locations. He also introduces the term 'inco terms' which determines responsibility for duties and taxes in the import/export process. Furthermore, he discusses Amazon's unique inco term called MDDP (Modified Duty) and how it affects their direct import model. He highlights the differences and challenges of operating under Amazon's algorithms compared to other retailers.
Analyzing Profitability and Optimizing Products for E-commerce
Matt emphasizes the importance of analyzing data at the ASIN level and ensuring its accuracy. He advises understanding the details of each component impacting the bottom line, such as chargebacks, pick-pack fees, and advertising expenses. Matt suggests that maximizing profitability begins with a thorough understanding of data and running it through profit and loss (P&L) calculations. He also underscores the significance of optimizing products specifically for the e-commerce channel to stay competitive.
Dive into the e-commerce journey of Matt, a seasoned expert with 15+ years in the game. From sneakerhead roots to thriving in retail and brand marketing, he now leads the digital division at East Point Sports.
Learn how Matt tackled oversized product challenges and price competition in a shifting market. Gain insights into e-commerce excellence from a true industry insider. Tune in now!