Episode #16 - Paul Sonneveld E-commerce Down Under
Nov 30, 2023
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Join us as we chat with Paul Sonneveld, an Aussie with a twist, about e-commerce and analytics. Discover how Merchant Spring went from agency to analytics platform, serving businesses worldwide. Discussions range from agency management of vendor clients to optimizing sales on Amazon Vendor Central and calculating profitability for vendors on Amazon.
Analyzing metrics like glance views and conversion rates can help vendors identify products with high views but low conversion rates, presenting opportunities for targeted improvements to increase sales.
Understanding Amazon's sourcing decisions, such as sourcing share and manufacturing view, can help vendors streamline their supply chain, negotiate better trading terms, and potentially increase their share of Amazon's purchase orders.
Deep dives
Optimizing Catalog Listings for Better Conversion Rates
One important tip discussed in the podcast is the need for vendors to optimize their catalog listings on Amazon. By analyzing metrics such as glance views and conversion rates, vendors can identify specific products that have a high number of views but a below-average conversion rate. These products present opportunities to improve on-page conversion, whether through better imagery, bullet points, or other content. By focusing efforts on a select few products, vendors can make targeted improvements to increase sales.
Analyzing Sourcing Share and Manufacturing View
Another key insight mentioned in the podcast is the importance of understanding Amazon's sourcing decisions. This involves analyzing the sourcing share and manufacturing view to identify cases where Amazon is sourcing products from another distributor or even from the vendor's own account in a different country. By examining these differences, vendors can uncover opportunities to streamline their supply chain, negotiate better trading terms, and potentially increase their share of Amazon's purchase orders.
Analyzing Confirmation and Receipt Rates of Purchase Orders
The podcast emphasizes the need for vendors to analyze their confirmation and receipt rates of purchase orders. By aiming for a 100% confirmation rate, vendors can help ensure that Amazon continues to send them purchase orders. Additionally, monitoring receipt rates can reveal any discrepancies between the sent and received quantities. Addressing these discrepancies can help vendors avoid chargebacks and reduce costs, leading to a more profitable business.
Understanding Profitability and the Complexity of Calculations
Calculating profitability on Amazon can be complex, and the podcast acknowledges the challenges vendors face in this area. While vendor-specific profitability calculations are not fully explored in the podcast, it mentions the importance of considering various factors such as shipping costs, invoice discrepancies, and chargebacks. By carefully analyzing costs and revenue data, vendors can gain a clearer understanding of their profitability and take steps to improve it, allowing for a more sustainable and successful business on the platform.
"Welcome to the Online Selling Partner Podcast! Join us as we chat with Paul, an Aussie with a twist, about e-commerce and analytics. Discover how Merchant Spring went from agency to analytics platform, serving businesses worldwide. 🚀 #Ecommerce #Analytics #MerchantSpring"