In 2021, how to break through the siege and seize the initiative?
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First, some recent news: (1) On December 22, 2020, Amazon issued a new inventory restriction notice. There will be no inventory capacity restrictions for IPI scores above 450, but product restrictions still exist. (2) Last week’s Amazon summit also made it clear that inventory management and IPI score assessment will become a normal practice in 2021. (3) The current global epidemic has not yet been effectively contained and is becoming increasingly severe. A vaccine will not be available until the second half of 2021. These dynamics are reminding us that we will still face the biggest challenge in the first and second quarters of 2021: inventory restrictions on goods, especially new products. So how should we respond? (1) How to adjust the operating rhythm? How to ensure the continuity of sales under limited inventory capacity? (2) How to adjust product development? How to ensure turnover rate with limited inventory capacity? (3) How to adjust logistics? How to ensure the availability of goods with limited inventory capacity? (4) How to adjust the team? How to ensure the stability and growth of the team with limited inventory capacity? (5) How should the company adjust? How to ensure cash flow and turnover speed with limited inventory capacity? (6) How to adjust the supply chain? How to ensure stable payment terms and production efficiency with limited inventory capacity? ...... However, such a difficult 2021 also means that the opportunities are greater than ever. (1) After a year of elimination in 2020, a large number of competitors who lacked accumulation and advantages in product, logistics, supply chain, and capital were eliminated. (2) Global online shopping awareness has gradually formed, and the trend of online retail is unstoppable (3) The industry’s service resources have become more professional in the face of the difficulties in 2020. (4) After the online Canton Fair and the dramatic changes in the trade environment, a large number of offline physical manufacturing factories have greatly increased their interest in online retail, generating a large number of product opportunities and investment opportunities. ....... So how do we respond? In 2020, our experience is: (1) On the operational side, to speed up the sales rhythm, we usually send out two batches of inventory. One batch of 200 is shipped normally from the backend, and the other batch of 200 is shipped to overseas warehouses (shipped 7 days later). Taking advantage of the weekly inventory update rules, the first batch will be sold out through off-site promotions within a week after arriving at the warehouse. The second batch will be delivered to the overseas warehouse for 7-10 days and then sold out within a week through promotions. In this way, the inventory will generally be 1,000-2,000 units. However, this operation cycle is long, and seasonal products must be planned with a good time rhythm. (2) On the product side, speed up turnover, increase the development ratio of air transport products, and shorten the logistics cycle (3) On the logistics side, for products shipped by sea, multiple batches can be shipped intermittently, and the time at sea can be used to prepare stocks properly, without incurring storage costs (the most important thing is to plan the time of sea transportation, otherwise it is easy to incur storage costs) (4) Create blank backup links in advance to promote new products. We created 20 blank links in advance in May, and created 2,000 shipments for each SKU. After the restrictions in July, these links can be directly updated with new product information to ship directly, avoiding new product inventory restrictions. (Amazon’s current 90-day cancellation of undelivered shipments is probably also caused by too many blank shipments) (5) Build more relevant resources for Amazon. Top ASINs can apply for inventory exemptions, promotional products can apply for inventory exemptions, and festive products can apply for inventory exemptions. In December, AGL Logistics also opened some inventory exemptions. Pay more attention to official news and accumulate more official resources. (6) Use overseas warehouses reasonably. It is common for top sellers to monopolize resources, so use them in moderation and examine the stability of cooperation channels. (7) Multiple variants in one link, maximize inventory, divide a batch of inventory into multiple variants and put them on the same link. As for how to ensure the difference between variants, there are actually many ways. We add small accessories or use different size information. (8) Multiple accounts following sales is a common operation this year and requires high account resources. ........... |
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