What are the operating models of Amazon operating companies?
1. One wave flow:
The one-wave model requires a certain amount of courage and a keen judgment of the product. This model is more suitable for new products with a short life cycle. Generally, there are a few popular new products with a short life cycle every year. This type of product is prone to a herd mentality. The earlier you buy in, the greater your chances of making a profit. If you buy in too late, you will likely end up in a very miserable situation.
Advantages of a one-wave flow: products can easily become super hits in a very short period of time, it is easy to make your funds turn over several times in a short period of time, it is easy to achieve quick in and out and have very good profits (early stage means huge profits + fast capital turnover)
2. Pure agency operation: basic service fee + sales commission
Pure agency operation means full hosting of an account. Usually, the basic service fees of each company are different. However, it is understood that Amazon's agency basic service fees are not low. This is closely related to the high profits and difficulty of operation of the Amazon platform. Sales commissions vary depending on the product. Generally, commissions are deducted according to a certain ratio only after sales reach a certain amount after operation. The sales volume standard here also varies depending on the product.
3. Cooperative operation: profit sharing
To put it simply, this model is a "product + operation" cooperation model, and profits are distributed according to a certain ratio. However, this agency operation model is very demanding on the agency's operational capabilities. After all, no sales means no profit.
What does Amazon operations mainly do?
1. Daily operations of Amazon
Daily operations are the most complicated and trivial work in Amazon's operations, but they are indeed very important and indispensable. What does daily operations involve?
(1) Check the account health status every day.
You need to log in to the backend every day to see if you have received any red flag notifications. If so, you need to handle them in a timely manner based on the actual situation.
(2) Reply to the buyer’s message.
Compared with other platforms, Amazon does not receive many messages from buyers, but the performance evaluation requirements for message replies are very strict. If there is a message from a buyer, the reply time should not exceed 24 hours!
(3) Handling negative reviews
If there are reviews and feedback below 4 stars, they must be processed in a timely manner. First, you need to check the reasons why the buyer left a bad review, communicate with the customer in a timely manner, contact the customer through comments or emails, help the customer solve the problem, and then try to use reasonable statements to get the customer to delete the bad review without violating Amazon's TOS.
In addition, if the review left by the customer meets the following conditions, you can directly contact customer service to delete the negative review:
a. Negative reviews caused by problems during Amazon’s delivery process
b. The review contains promotional content
c. Use obscene and insulting language
d. Comments reveal personal information
e. There is sufficient evidence to show that the review is a malicious attack by the reviewer or competitor.
If the feedback left by the customer meets the following conditions, you can directly apply for deletion in the feedback management:
a. All feedback is about the product
b. The review contains promotional content
c. Use obscene and insulting language
d. Comments reveal personal information
e. The entire feedback is about the delivery of an Amazon fulfillment order or customer service
f. The entire feedback review is only about delayed delivery or non-receipt of goods for an order that the seller shipped on time using Buy Shipping
(4) Check the product status and whether all data are normal
Operations should pay attention to the product status and whether the product data is normal every day. Once there is any data abnormality, such as a drop in sales, abnormal conversion rate, or zero traffic, we need to deal with it in a timely manner. Generally, the reasons can be found through the following points:
① Search the main keywords of the product on the front desk to see if our products can be found normally, and pay attention to whether there are changes in the keyword rankings. If any problems occur, improvements and optimizations need to be made immediately.
② Check whether there is any follow-selling. If found, deal with it in time if necessary. We will discuss in detail how to deal with follow-selling below.
③ Pay attention to product market trends and analyze changes in category traffic. If the overall market sales are declining, that is understandable. However, if only your own sales are falling, you need to observe whether your competitors are adjusting prices, adding variants, or launching new products, etc. These may become factors that directly affect your sales.
(5) Pay attention to the Inventory Performance Index (IPI)
During the epidemic, Amazon introduced a new policy that if the inventory performance index is less than 500, the goods will not be shipped directly. Therefore, when the inventory performance index does not meet the standard or is about to fall short of the standard, we need to promptly improve the inventory turnover rate through activities, off-site and other means, so as to achieve the goal of improving IPI.
This is the end of the knowledge about Amazon operations in this issue. If you want to get more information about Amazon operations, please pay attention and we will continue to answer you~
