This Issue's TLDR...

• I still have a rock in my shoe. And more to say about FBA reimbursement providers.
• A long-time deals hack just went away
• Amazon is back on its bullsh*t this week

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**Programming Note: Best@Amazon will be off next week, as I'll be at Amazon Accelerate. Look for me live-tweeting updates and snark from @guyfosel. See you all in two weeks!

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So, I ruffled some feathers last week.

And also revealed some things about the FBA reimbursements industry that people were genuinely unaware of, and upset about.

That was the point.

I generally don't like to call out companies by name, but I have no problem calling out industry practices that are seller unfriendly and/or stuck in the past.

Truth is:

1. The 20-25% "industry standard" commission rate for FBA reimbursements is too damn high.
2. "Front-running" is a practice that needs to stop.
3. Amazon clawbacks should be credited back to sellers by their FBA reimbursement providers.

I wrote about all these things -- and maybe threw a little indirect shade at one company -- simply because...this industry can do better, and I want it to be better.

Selling on Amazon consists of a lot of delicate ecosystems that require...symbiosis.

To save you some Googling, in biological terms, symbiosis is a close relationship between two species in which at least one species benefits.

In Amazon terms...

Amazon (Species A) is continually fine-tuning the exact amount of fees it can extract from sellers (Species B) to maximize the value of its marketplace while also keeping the sellers' business viable. In most cases, it's a form of Mutualism -- that is, a symbiotic relationship in which both species benefit.

Arguably, Amazon's relationship with sellers sometimes tips towards Parasitism -- that is, a symbiotic relationship in which one species (the parasite) benefits while the other species (the host) is harmed -- but that's a debate for another day.

Similarly, there's a symbiotic relationship that exists between solution providers and sellers. It mostly takes the form of Mutualism, but some solution providers truly are parasites.

There are, unfortunately, a lot of parasitic solution providers out there in the Amazon space. Ones that have somehow become ubiquitous and oft recommended, but find a way to kill their hosts.

I see their names come up in private chat groups and/or discussion forums, but I usually keep my mouth shut.

I'll open up about some of the parasitic solution providers in future newsletters...

Today, though, I want to focus on one of the good guys...

You see, I sort of have this idea about putting together a "Dream Team" of solution providers.

Not necessarily the ones that everyone knows.

Not necessarily the ones that win awards.

But rather...

The ones that actually empower your business to grow.

The ones that act as owners of your business (even though they aren't).

The ones that you would trust your first-born child with.

And, since we've been talking about FBA reimbursement providers, I'm going to start there.

I've mentioned TrueOps in this newsletter in the past.

What I haven't mentioned is that, after kissing many frogs in the FBA reimbursements space, I finally found the right partner for my brands and agency in TrueOps.

Put simply, I landed on them because:

1. I love their 10% commission rate. Like I said above, the "industry standard" is too damn high.
2. They're high integrity. I wrote last week about the "front-running" and not crediting Amazon reversals that many providers do. Well, TrueOps doesn't front-run, and they immediately credit back any Amazon reversals.
3. They're not tainted. I didn't write about this last week, but a number of FBA reimbursement providers have had their hands slapped by Amazon on numerous occasions for Seller Support abuse (basically, continuing to file and reopen cases when Amazon explicitly tells them not to). These other providers file massive volumes of cases in lieu of actually getting on the phone and talking with Amazon because...they can't (most providers have overseas teams doing the manual casework for FBA reimbursements and these teams don't have call-back phone numbers). TrueOps uses North American case workers who will get on the phone and talk to Amazon. And, more important -- TrueOps doesn't abuse Seller Support.

I'm not the only one who has kissed a lot of FBA reimbursement frogs though.

My good friend Bill D'Alessandro, CEO of Natural Dog Company (a soon-to-be $100mm pet brand), has done the same evaluation of FBA reimbursement providers and reached the same conclusion: TrueOps is the real deal.

Bill D'Alessandro @BillDA Today I am $353,000 richer and Jeff Bezos is $353,000 poorer 🤑 I did it by finding money Amazon owed us that our existing reimbursement tool had missed. Here's how to do it, exact steps spelled out in the below thread 🧵 (yes threads are back baby) 🧵 ⬇️ 10:48 AM • Apr 22, 2024 1 Retweets 37 Likes Read 5 replies

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BEST from LinkedIn

Amazon OGs know:

When you're running a Lightning Deal, you *always* adjust your available quantities while the deal is running, so as to maximize the Scarcity Effects that drive shoppers to buy.

You're more likely to win an on-the-fence deal shopper if the deal is 98% sold and there are only a few units left, vs if a deal is only 12% sold.

That was the "hack" to run successful Lightning Deals ten years ago, ten months ago, ten days ago.

How do I know this worked?

Well, I'll tell you a little secret...

Back when I was running the 3P marketplace for Consumer Electronics, I used to modify deal quantities for my sellers, in bulk, to drive higher GMV on marquee days. (Relax...all the sellers gave me pre-approval to do this)

Anyway, none of that matters going forward because, as Hymie observed, Amazon has deprecated this in-flight deal update functionality.

Bummer.

BEST from X

Amazon is back on its bullsh*t this week.

First, it sent out the notice below to a large swath of 1P vendors.

Note the timing...only 2 months(!) from now.

Real businesses, with real peoples' livelihoods behind them, just got terminal cancer diagnoses with 2 months to live.

I frequently say that Amazon is simultaneously the best and worst partner that you'll ever have.

This is why.

Shame on you, Amazon.
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PS: My buddy James Wakefield offered some good perspective on this announcement, over on LinkedIn.

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PPS: If you're impacted by this, reply to this message.

Jon Elder | Amazon Growth | Private Label @BlackLabelAdvsr 🚨Breaking🚨 Amazon just mass-terminated 1P vendor accounts. The timing is brutal! The only way forward for these vendors will be opening a Seller Central account. This is further proof that Vendor Central is becoming exclusive to enterprise brands. RIP small guys. 6:47 AM • Sep 10, 2024 1 Retweets 14 Likes Read 8 replies

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Next, it was this nonsense about an RFID seal requirement for LTL loads into Amazon.

Amazon sent out this notice on September 11th, and the requirement goes into effect on <checks notes> September 12th!

This impacts me, and I'm livid.

Some are saying that this is just another "stick" that Amazon is wielding to push every selling partner into AWD and/or AGL, and I agree.

Shame on you, Amazon.

Michael Patrón @michaelpatron0 So Amazon half ass rolled out this new requirement where they want sellers that send full trucks into FBA to use RFID seals, lol. This starts tomorrow and I never got an email so thanks for that! On top of that, Amazon hilariously links to product page on Amazon for us to... 1:31 PM • Sep 11, 2024 0 Retweets 10 Likes Read 4 replies

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I fully agree with, and endorse, everything that Sean says in this tweet.

If you're just dipping your toes into ETA waters, I almost always suggest starting small.

You can learn in a low(er) stakes environment, without the psychological overhang of a failure being financially catastrophic.

Also, with a smaller business, make no mistake -- YOU ARE BUYING A JOB.

But, because of that, you learn A LOT. And you prepare yourself well for the next, presumably larger deal.

My first ETA deal was $252,000 (which I split with a partner) and I'm constantly drawing on learnings from that deal.

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Sean Smith @SeanSmithBC There is an irrational hate for sub $500k EBITDA businesses in the SMB space. Sure, for many, this size of business isn't going to be worth the hassle, but here are my thoughts on why I think these business can be awesome for first time buyers: 1. It's a great Training Ground.… https://twitter.com/i/web/status/1687999254407897089 8:29 PM • Aug 5, 2023 14 Retweets 181 Likes Read 55 replies

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