eComCatalyst - Selling on Amazon FBA and e-Commerce

Fred McKinnon

The eComCatalyst Podcast is provided by eComCatalyst, a leading, full service Amazon and e-Commerce agency. Led by brand owners and founders, we discuss news, tips, and strategies to build and operate your ecommerce business, whether it’s Amazon, FBA, Walmart, Shopify, TikTok Shop, or other channels.

  1. 08/28/2025

    Is Amazon Vine Worth It for Getting Reviews in 2025? New Rules, Seller Tips, and Reviewer Truths

    Reading Time: 7 minutes Every Amazon seller knows that product reviews can make or break a launch. Over the past year, Amazon Vine has become one of the hottest tools for quickly gathering that all-important social proof. Last year, a video about Amazon Vine on the eComCatalyst channel took off—and not just among sellers. Actual Vine reviewers jumped into the discussion, offering fresh insights from the other side of the process. Why was that such a big deal? The Amazon Vine program has always been a little mysterious, especially for those who aren’t in it. In 2024, Vine underwent important changes that set the stage for an even bigger shift in 2025. Both sellers and reviewers have seen the rules rewritten, from how reviews are collected to who can participate and how the process is taxed. This post covers everything you need to know about Amazon Vine in 2025—from new features for sellers, to how reviewers get chosen, to practical tips and big warnings. Whether you sell on Amazon or want to become a Vine reviewer, there’s a lot you need to know this year. Here’s what you’ll learn: Amazon Vine 2025 updates for sellers: New “pre-launch” reviews, pricing details, and eligibility rules The Vine reviewer experience, including how to get invited and the truth about product “taxes” Best strategies for getting the most from Vine, fixing your listing early, and protecting your launch Watch the full update here: Amazon Vine’s Popularity and the Big 2025 Updates Last year’s Amazon Vine video surprised everyone. It was meant for sellers, but it took on a life of its own as Vine reviewers from the Voice of the Vine program joined in. The back-and-forth revealed not only how sellers use Vine, but what reviewers really think about the process. Why does this matter now? In 2025, Amazon rolled out a wave of changes for Vine. Sellers have powerful new ways to get reviews, while reviewers face new tax consequences and selection rules. Amazon Vine 2025 brings: Pre-launch reviews (get reviews before your product goes live) Expanded eligibility (more sellers can now enroll) Updated pricing (clearer, tiered costs) Transparent tax reporting for reviewers These updates give sellers faster feedback and stronger launches, but also come with extra steps to get it right. Let’s dive into what this means for your Amazon business—and what reviewers should know. What’s New for Amazon Sellers in Vine for 2025 The New Era: Pre-Launch Reviews for Stronger Product Launches In the past, sellers hit a wall during launch week. You’d send inventory to FBA, turn your listing live, and hope for early reviews. But for weeks, you’d be stuck with no reviews—no social proof at all. Amazon Vine 2025 changes everything: Now, you can invite Vine reviewers to claim and review your product before your product listing ever goes live. Build your listing, send inventory to FBA, enroll in Vine, but don’t activate the listing yet. Vine reviewers can now claim your products and start writing reviews. When your listing goes live, up to 30 reviews can be published on day one. Think of it as launching your product with a crowd already cheering for you. No more naked listings—that awkward phase where no one wants to buy something with zero reviews. Key benefits of pre-launch Vine reviews: Immediate social proof the moment your product launches The chance to spot listing errors or product flaws before the public sees them Improved early conversion rates and ad performance Here’s a quick comparison of the old vs new Vine process: StepOld Vine (Pre-2025)New Vine (2025)When reviews startAfter your listing is liveBefore your listing goes liveTime to first reviews2-8 weeksReviews ready on launch dayLaunch with reviews?Usually 0 reviews day oneUp to 30 reviews on day oneSocial proof early?NoYesEarly issue detection?No, too late to fixYes, can fix before launch No more cold starts, no more wasted ad dollars on review-less listings. Summary of seller benefits: Up to 30 reviews live at launch Higher conversion rates from day one Fewer product launch failures Better ad efficiency Early warnings so you can pause, fix, or pull a risky launch before spending big The Data: Reviews Boost Conversion and PPC Performance Numbers don’t lie. Listings with reviews convert up to 270% better than those without. The cold start problem—burning through PPC dollars trying to get those first few sales with no reviews—has killed too many launches. Best practices for seller launches with Vine: Sync your Vine enrollment so that reviews start flowing just as you launch PPC ads. Double-check your listing: great images, clear bullet points, and correct details matter. Use Vine for your most important products—especially those in high-trust categories. Avoid enrolling products if you haven’t resolved known product problems. Act fast on negative pre-launch feedback; fix or scrap before exposing your product to the wider public. Expanded Eligibility: Who Can Use Vine in 2025? Previously, only Brand Registered owners could enroll products in Vine. That meant you needed a trademarked brand, registered in Amazon’s Brand Registry. Now, authorized resellers can participate. Brand owners can grant select third-party sellers the right to enroll their products in Vine. This helps brands that don’t sell directly on Amazon let authorized partners do Vine reviews for their products. There’s also limited testing behind the scenes for other sellers, though this isn’t widely available yet. Key rules (still unchanged for 2025): FBA only: You must send inventory to Amazon’s fulfillment centers Less than 30 reviews: Listings with more than 30 reviews can’t be enrolled 30 review maximum per product Vine Pricing: How Much Does It Cost Sellers in 2025? Getting reviews isn’t free, but it’s more affordable than you might think. Amazon updated the Vine pricing to be more clear and predictable. Units Given to VineEnrollment FeeNotes1–2FreeToo few reviews to matter much3–10~$75Good for niche or test launches11–30~$200Best value, most sellers choose this tier Don’t underestimate the value of that $200 tier. Launching with a wall of reviews on day one can save thousands in wasted ad spend and give your listing a major ranking boost. The Voice of the Vine: Inside Perspective for Reviewers How to Become a Vine Reviewer—The Invite-Only Club Many people dream of getting free products as a Vine reviewer, but you can’t just sign up or apply. Amazon invites reviewers based on their ongoing activity. How does Amazon choose? Frequent Amazon purchases help, but it’s not just about buying. Leaving thorough, honest, and helpful reviews is the real secret. Reviews that collect a lot of “helpful” votes from other shoppers get you noticed. Uploading clear photos and videos with your reviews is a big plus. Tips to improve your odds of a Vine invite: Leave complete, unbiased reviews for every Amazon purchase. Add photos and, better still, short videos showing the product in use. Focus on writing genuine feedback, covering both positive and negative details. Aim for reviews that others can upvote as helpful. Make your reviews stand out from one-liners; details help Amazon see your value. How the Vine Review Process Works for Reviewers Once you’re in, you get a dashboard showing Vine-eligible products. Here’s how the process works: Log into your Vine reviewer dashboard to see available products. Pick the products you want from the list. Amazon ships the products to you via FBA (the seller never sees your name or address). Try out the product. Write your review within the required 4-8 week window. Remember: You can’t resell the product for at least 6 months. It’s a structured process, and Amazon expects reviewers to stick to the timelines. Tax Implications for Vine Reviewers: What You Need to Know There’s a big myth that Vine reviewers get “free stuff.” In reality, every item you claim for review is considered taxable income by the IRS. It’s not a “gift”—it’s non-employee compensation. How taxes work for Vine reviews: The retail price of each product received is added to your income total. If you receive over $600 worth in a year, Amazon sends you a 1099 NEC form. Below $600, you still need to report the value, even if you don’t get a form. This surprises many, so be ready for it—plan ahead when tax season comes. Vine Reviewer Tax Alert: Products you get through Amazon Vine are counted as income. If you receive products worth over $600 in a calendar year, expect a 1099 NEC tax form and be prepared to report it on your return. Even under $600, you’re supposed to report it—don’t skip this step. Strategic Takeaways for Amazon Sellers Using Vine in 2025 Vine Isn’t Just a Review Source—It’s Your Launch Accelerator The new pre-launch process lets you build trust and social proof before shoppers ever see your listing. That’s a huge difference from “flying naked” and scrambling for the first reviews. Use Vine to launch with momentum and credibility High-quality early reviews boost click-through and conversion rates Better reviews mean better PPC efficiency, saving you cash and time Use Early Feedback to Correct Listing or Product Issues Negative reviews aren’t always bad. If Vine reviewers flag problems before launch, you can pause, correct, and relaunch a better product. Sometimes, it’s as simple as making sure dimensions are clear in images or bullet points. Don’t fear a critical review—use it to improve. Vine Reviews: Honest, Tough, but Fair Sellers, you can

    19 min
  2. 08/14/2025

    Why Q4 2025 Is the Best Time to Scale Your E-Commerce Brand (and Why Hesitation Will Cost You)

    Reading Time: 6 minutes If you feel like the e-commerce world just hit fast-forward, you’re not alone. A few months ago, everyone seemed frozen, stuck in a cycle of wait-and-see. Now, with Q4 right around the corner, it’s like someone flipped a switch! The message is loud and clear: it’s go time. Supply chains are moving, brands are jumping in, and opportunity is knocking (loud enough to drown out any lingering doubts). E-Commerce’s 2025 Momentum Shift: From Hesitation to Go Time For much of this year, uncertainty made decision making feel like walking on marbles—lots of precarious steps, not much traction. Hesitation reigned as tariffs, inflation, and oddball supply chain issues put everyone in wait mode. But that fog is clearing. Suddenly, brands are waking up to the ticking Q4 clock, and momentum is building. If you’re feeling the urge to move, you’re now in very good company. What Slowed Us All Down? Tariffs, Logistics, and Anxiety Let’s call it what it was: market weirdness. Tariffs threw product costs up in the air. Shipping took on a life of its own (sometimes even your containers seemed to take the scenic route). Everyone watched and waited, myself included. As a brand owner, I dragged my feet on reorders, worried about unpredictability. There was this shared sense of “Maybe now isn’t the time.” But that waiting game cost precious time. The Market Finds Its Footing: Momentum Is Back If you’re feeling FOMO when you see brands moving fast, it’s justified. Our calendar at eComCatalyst went from tumbleweeds to packed with strategy calls and account launches. In just a week, we brought on more new e-commerce management clients than we did all last month. The energy is back. Brands that waited last year learned their lesson—this time, no one wants to be left behind. Running an Agency When Things Get Tough: A Reality Check Let’s get real: I’ve felt the market’s pain too. There were weeks when it seemed everyone was glued to the news instead of planning for Q4. We felt every bit of that pause at Ecom Catalyst. But sharing the tough parts helps build trust. If you feel behind, you’re in good company—I’ve been there, and it’s normal for even seasoned pros to get caught out. Move Now…Or Miss Q4: Why Timing Is Everything Q4 comes at you fast. Here’s what happens if you wait too long: Order inventory in August: Likely receives it late September, maybe October October arrivals? Risky. It leaves little breathing room for missed shipments or stockouts. Peak sales? November through December. If you’re late, you’re watching from the sidelines. Acting now is your ticket into the Q4 show. Delay, and it’s like showing up after the lights come on and everyone’s counting their receipts. Say Goodbye to Paralysis by Analysis Let’s give “paralysis by analysis” the boot. It’s just fear in disguise, backed up by a calendar. The world is full of reasons to wait—tariffs, logistics, “will my product even arrive before Black Friday?” Forget perfect timing! Instead, keep these in mind: You miss 100% of the shots you don’t take. The best time to act was months ago. The second best time is now. Let those quotes marinate. Then, get moving. If You’re Still Waiting: The Clock Is Ticking Still figuring out your move? Every day you wait, that Q4 window gets a little smaller. Here’s the truth: momentum favors the bold right now. The brands that show up ready win. The ones that hesitate don’t just miss out—they get left behind. Your Secret Q4 Weapon: Ecom Catalyst as a Growth Partner If the idea of handling Q4 alone makes your eye twitch, you’re not alone! At Ecom Catalyst, our team helps brand owners and manufacturers with: Full account management for Amazon, Walmart, Shopify, and more Strategy calls to refine your plan and squash doubts Data-driven actions to boost profits and growth Book early—our calendar fills fast when everyone hits panic mode in August! What Full Account Management Means for Your Brand Our agency’s full account management is like getting an all-star team for your business. Here’s what we handle: Product listings that convert (no more sketchy bullets or missing A+) Inventory management that keeps you in stock Strategic marketplace planning—pricing, promo, placement Paid ads and sponsored product strategy to drive traffic Scale-up systems that grow with you Hand us the keys, and we’ll help you focus on running your brand, not scrambling on the backend. Fast Track Your Q4 with One-on-One Consulting Need a strategy tune-up in a hurry? We offer quick-hit 30- or 60-minute consulting calls. This is perfect when you need: A sanity check on inventory planning Help refining your ad budget for holiday sales Real talk about tariffs and what moves actually matter A strategy session now can save you weeks (and a lot of headaches) later. Ecom Catalyst on YouTube: No Fluff, Just Real-World E-Commerce Insights Every week (life-permitting!), our YouTube channel serves up honest e-commerce tips—no filter, no filler. Get: Amazon FBA updates Direct-to-consumer hacks Quick strategies for Walmart and Shopify Ready for more? Subscribe for up-to-date e-commerce advice. It’s like keeping a coach in your corner. Thanks for Joining the Community This channel wouldn’t exist without a push from peers like Steven Pope (shoutout, Steven!). And with every subscriber and comment, our e-commerce tribe grows stronger. Here, we lift each other up. If you’re new, welcome! If you’re a longtime follower, couldn’t do it without you. Behind the Scenes: Real Life Happens I get it—life sometimes gets in the way. Summer travel, errand marathons, getting the kids ready for college… It’s all part of the package. If you ever feel like juggling business with life is a circus act, trust me, same! But as your partner, I’ll keep showing up, sharing insights, and making sure we stay in the game together. Q4 Inventory and Key Timing: The Short List Mark your calendar! Timing is everything: Order product by early August: Ensures stock arrives by late September Missed that window? You risk out-of-stock or late launches Q4 sales peak: November and December—be ready early Late product = lost profit. Every day counts If you’re scrambling now, it’s time to hit “go.” Still Nervous About Tariffs and Logistics? Worrying about clarity before moving? In e-commerce, “perfect” doesn’t exist. Change is always coming! As an agency (and as a fellow brand owner), we’ve felt that sting and learned to adapt. Staying stuck is more costly than imperfection—so shift your mindset to action. The Price of Last Year’s Delays (Don’t Repeat This) Many brands last year waited until Q4 was underway to order or launch. They paid the price: empty shelves, slow updates, and missed profits. Those who prepped early? They rode the wave. Q4 2025 is shaping up even better if you move now. Ecom Catalyst: Your Q4 Partner Through Thick and Thin Because we’ve faced tough markets, we know how to help you adapt. Every year, we’re in the trenches with our clients—pivoting fast when tariffs, platform changes, or fee bumps hit. A reliable partner is your best defense against the chaos. Learn more about who’s behind our agency and meet the eComCatalyst Team. Why Multi-Channel Selling Wins Q4 Selling on just one platform is like running a marathon in flip-flops—it’s possible, but painful. In Q4 we help brands expand to: Amazon Walmart Direct-to-consumer (think Shopify) Other third-party marketplaces Diversity is your defense against single-channel surprises. What Happens When You Book a Discovery Call? Booking with us is simple. Go to ecomcatalyst.com and schedule your call. Here’s what you get: A strategy deep-dive New growth opportunities spotted on your radar A Q4 action plan Slots go fast, so don’t wait until you see “sorry, we’re booked!” Top E-Commerce Tools to Fuel Your Q4 A strong toolkit means better results. Consider adding these to your stack: Helium10: For product research SellerBoard: Track Amazon profits, losses, and all the metrics Proven Amazon Course: Step-by-step training for sellers at every level JungleScout: Uncover winning products before your competitors PickFu: Quick split tests for listings and thumbnails Find more Ecommerce Tips and Strategies to keep your store on track. Keep Learning with Ecom Catalyst on Social Get bite-sized tips, live updates, and more through our channels: LinkedIn (Fred McKinnon) LinkedIn eComCatalyst) Instagram Twitter Facebook Follow for the latest and keep your Q4 strategy sharp. Why an Agency Helps Brands Win: The Power of Partnership Moving fast feels easier with a partner who knows the landscape. At Ecom Catalyst, you get an expert on your team—someone ready to respond to curveballs and keep you focused on your end goals. You call us when there’s a storm, and we’ll help you navigate…err, “drive through the puddles!” Motivation for Sellers: Take the Shot To everyone feeling hesitant, remember: You miss 100% of the shots you don’t take. Don’t let fear block your profits. This Q4 is your arena—show up and play to win. Book Your Q4 Strategy Call (Before It’s Too Late) Ready to act? Visit ecomcatalyst.com and lock in your discovery call. The sooner you plan, the better your odds this Q4. Don’t forget to hit subscribe on the YouTube channel so you never miss a tip. Why Time and Teamwork Matter in Q4 In e-commerce, moving early and aligning with a solid partner can make or break your quarter. Every day you wait, t

    7 min
  3. 08/11/2025

    How We Boosted Amazon Sales by $24K With Virtual Bundles

    Reading Time: 5 minutes Growing your sales on Amazon sometimes seems complicated, but every so often, a simple tool can make a huge difference. Virtual bundles let you increase your average order value and boost revenue without adding new products or overhauling your catalog. In this post, we’ll walk through how Fred McKinnon and the team at eComCatalyst used Amazon’s Virtual Bundle feature to add $24,000 in client revenue in just a few months—and how you can use this approach to grow your own Amazon business. Understanding Amazon Virtual Bundles Amazon sellers are always looking for ways to increase their cart size without making customers jump through hoops. Virtual bundles do exactly that, letting you group two or more products together as a single offer, which shoppers can add to their cart with one click. Let’s break down what this means, who can use it, and why it’s such a smart strategy today. What Are Virtual Bundles on Amazon? A virtual bundle is a grouping of two to five items listed for sale together, but—unlike traditional product bundles—there’s no special packaging or new SKU to prep. The shopper sees an option to buy these items as a bundle right on the product detail page. When purchased, Amazon simply pulls the items from existing warehouse inventory and ships them together. This eliminates the need for manual kitting or creating a new UPC. On the customer end, it’s seamless—they see a great deal and can add everything to their cart at once. Eligibility Requirements for Virtual Bundles To create virtual bundles on Amazon, you need to meet a few requirements: Brand Registry: Your brand must be registered with Amazon’s Brand Registry program. That means your brand needs a trademark or a pending trademark application. FBA Fulfillment: All products you wish to bundle must be fulfilled by Amazon (FBA) and physically stocked in their warehouses. Seller Central Access: Bundles are managed within Seller Central, requiring login and access to your brand’s products. For full instructions straight from Amazon, check out their Virtual Product Bundles support page. How Virtual Bundles Differ from Traditional Bundling Physical bundles require you to assemble products together before shipping them to Amazon. You’d create a new SKU, pick a UPC, prepare custom packaging, and send this pre-packed bundle to the warehouse. With virtual bundles, there’s no physical assembly required. Amazon picks and ships the components as they’re ordered. This means you can test bundles quickly, pivot offerings based on real data, and avoid the extra expense and hassle of kitting. It’s more flexible and much less risky than packing products together ahead of time. Case Study: Achieving $24,000 in Added Revenue with Virtual Bundles Harnessing virtual bundles isn’t just theory—it’s delivered proven results. Fred McKinnon and the team at eComCatalyst helped a client add more than $24,000 in revenue over several months, using virtual bundles in a smart, targeted way. From Strategy to Execution: The Process Overview The strategy starts with clear goals: increase the average order value and overall sales, with minimal operational friction. Here’s how it played out: Analyze Sales Data: Review which products customers frequently buy together using Amazon’s brand analytics and basket analysis tools. Select Products to Bundle: Choose items that make sense to buy as a group (think complementary products, or variations on a theme). Create Virtual Bundles in Seller Central: Build out listings with compelling titles, bullet points, images, and branding. Launch and Monitor: Go live and keep an eye on weekly virtual bundle sales reports emailed by Amazon to track performance. Refine and Expand: After initial success, expand bundle offerings and tweak based on real sales data. The result? Orders almost doubled in average value, with the majority of virtual bundle purchases combining $25 items into $50+ orders—every one a win both for the seller and the shopper. Analyzing Results: AOV Increase and Sales Impact The immediate benefit came in average order value (AOV): with virtual bundles on the product page, customers chose the bundle over a single product more often, nearly doubling AOV in some cases. This led to a surge in total sales. In one report, over $23,000 in sales were directly attributable to virtual bundles, helping the brand keep growing without launching a single new item. While Amazon provides a weekly sales bundle summary via email (not yet in real-time reports), this still allowed eComCatalyst to see the clear impact and optimize bundle offerings for even greater returns. How to Create and Optimize Virtual Bundles in Seller Central Launching your own virtual bundles can take minutes if you’re prepared. Here’s a step-by-step approach: Step-by-Step Setup of a Virtual Bundle Login to Seller Central: Access your Amazon Virtual Bundles dashboard under the “Brands” tab. Select ASINs for the Bundle: Pick at least two (and up to five) FBA products from your brand catalog. Name Your Bundle: Create an enticing product title. Add Bullet Points and Descriptions: Highlight the benefits of buying together and what’s included. Upload Dedicated Images: Show the bundled products together for visual clarity. Set the Bundle Price: Offer a compelling reason to buy both (or all) together. Publish and Review: Save, launch, and watch for your bundle to appear near the top of your product detail pages. Tips for Effective Bundle Selection and Listing Design Bundle Products That Make Sense: Pair products people naturally use together to increase the appeal. High-Quality Images: Use images that visually display all items included. Clear, Action-Oriented Titles: Name the bundle in a way that tells the shopper exactly what they’re getting. Highlight Value: Whether it’s convenience, savings, or exclusive combinations, make sure your bundle stands out. Advantages and Limitations of Amazon Virtual Bundles Is using virtual bundles the perfect solution for every seller? Not always—but the upsides can far outweigh the downsides when used right. Key Benefits of Implementing Virtual Bundles Boost Average Order Value: Bundles encourage customers to purchase more in a single transaction. Expand Catalog Exposure: Each bundle gets its own detail page and can show up alongside single-product listings. Flexibility and Ease: No physical bundling needed, so you can experiment at low risk. Advertising Ready: Run Sponsored Product ads directly to your bundles, just like with any other ASIN. Increased Brand Visibility: More listings mean more chances to own real estate in your category. Potential Drawbacks and Reporting Challenges Separate Fulfillment Fees: Amazon charges fulfillment fees for each item, just as if the shopper added them to their cart separately. Limited Order Attribution: You can’t see bundle sales in real-time order reports; data arrives weekly by email. Not Ideal for Every Product: Bundling only succeeds when items make logical sense together. Best Practices for Maximizing Virtual Bundle Success You don’t need to guess what works. Use Amazon’s own analytics and smart marketing techniques to get the most out of your bundles. Product Pairing Strategies Based on Analytics Look into your brand analytics, especially cart analysis and purchase behavior. See what your customers consistently buy together. By creating bundles based on real data, you match your offerings with actual demand—making the bundle a no-brainer at checkout. Advertising and Promoting Virtual Bundles Because bundles get their own detail pages and ASINs, you can run ads to them just like you would any other product. Consider integrating bundle offers into your Sponsored Products and Sponsored Brands campaigns. Highlight bundle value or exclusive combinations in your advertising copy. Conclusion Amazon virtual bundles offer a proven, low-effort way to boost your sales and average order value. As shown by eComCatalyst’s $24,000 revenue increase for a client, the impact can be substantial—even without launching new products or changing your supply chain. By selecting the right products to bundle, optimizing your listings, and promoting your bundles, you’ll create more buying opportunities and drive meaningful growth for your brand. Ready to take your Amazon sales to the next level? Spend an afternoon setting up virtual bundles and monitor your results. For those who need expert support or want to stay up-to-date on e-commerce trends, joining the eComCatalyst newsletter can keep you informed and deliver more practical tips right to your inbox. Let us know in the comments how virtual bundles are working for you or what strategies you’d like to hear about next! The post How We Boosted Amazon Sales by $24K With Virtual Bundles first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    11 min
  4. 09/18/2024

    5 Reasons Why Walmart WFS Is Better Than Amazon FBA

    Reading Time: 4 minutes If you’re in the e-commerce business, you already know the importance of finding the right fulfillment service. Today, Walmart Fulfillment Services (WFS) is showing up as a serious competitor to Amazon FBA (Fulfillment by Amazon). With over 20 years of experience selling on both platforms, I can confidently say Walmart WFS is not just an alternative — in many ways, it’s better than FBA. In this post, I’ll break down five solid reasons why Walmart WFS is better than Amazon FBA. Whether you’re new to selling or a veteran looking to cut costs and streamline operations, you’ll want to pay attention. Understanding the Basics: Walmart WFS vs. Amazon FBA Before jumping straight into the reasons, here’s a quick comparison of how both services work. In both Amazon FBA and Walmart WFS, sellers send their inventory to the respective fulfillment center. From there, the platforms handle storage, packing, and shipping. For Amazon FBA, products have the appeal of being Prime-eligible, which can boost conversions. Similarly, Walmart WFS makes products eligible for Walmart’s 2-day shipping. This high-speed service is perfect for the millions of Walmart customers who are used to fast delivery. Now, let’s dive into why Walmart WFS has an edge over Amazon FBA. 1. Lower Fulfillment Fees (Most of the Time) The first clear advantage of Walmart WFS is lower overall fulfillment fees. Amazon may be competitive on tiny, lightweight items like phone cases, but once you get into products that weigh more than a few ounces, Walmart takes the win. Here’s a quick comparison: For a product that weighs 12-16 oz, Amazon charges $4.75 per order, whereas Walmart only charges $3.45. For a 1-1.5 lb product, Amazon’s rate is $5.69, yet Walmart stays at $4.95. That may not seem like much, but over hundreds or even thousands of orders, those savings stack up fast. When every penny counts, Walmart’s cheaper rates simply make sense. 2. Storage Fees: Consistently Cheaper, Especially During Peak Season Amazon and Walmart charge similar base storage fees throughout the year, with Amazon at around 78 cents and Walmart slightly lower at 75 cents per cubic foot. But here’s where Walmart makes a huge difference — peak season pricing. Amazon’s storage fees explode during the October-December holiday season, jumping from 78 cents to a whopping $2.40 per cubic foot. Walmart, on the other hand, doesn’t jack up its prices. If you get your inventory into Walmart’s warehouses by September 30th, you’ll still pay just 75 cents per cubic foot, even during the holiday rush. No holiday storage price hikes. For sellers focused on maximizing profit, this is a game-changer. 3. No Inbound Placement Fees Amazon makes it complicated and costly to send inventory into their warehouses. You either have to pay for expensive inbound placement fees, or strategically ship products to multiple warehouse locations. This adds money, headache, and time. Walmart WFS couldn’t be any simpler. Just send your inventory to one location, and they take care of the rest. No inbound placement fees. Nothing complicated about where and how to ship products. At Ecom Catalyst, we’ve sent products from our Georgia office to Walmart’s fulfillment center in Florida using FedEx ground, and the whole process was smooth and fast. This factor alone makes Walmart WFS much easier and cheaper for sellers who don’t want the hassle that Amazon routinely creates. 4. Multi-Channel Fulfillment Options Now Available Amazon’s Multi-Channel Fulfillment (MCF) has been a huge selling point for years. You could sell on other platforms like Shopify and still have Amazon fulfill orders for you. Walmart was missing this feature—until now. Walmart WFS now offers multi-channel fulfillment, meaning you can have your Walmart inventory fulfill orders for sales not just from Walmart, but also Shopify, Etsy, eBay, and more. This recent update from Walmart completely erases Amazon’s advantage in this area. The ability to streamline fulfillment across multiple sales platforms makes Walmart WFS the better choice for sellers looking to simplify logistics. Plus, using Walmart instead of Amazon aligns you with a major U.S. retailer growing in marketplace share. 5. Higher Conversion Rates Shoppers trust fulfillment from their favorite marketplace. It’s the difference between a listing that says “ships by Amazon” or “ships by Walmart” versus one that says “ships by XYZ Seller.” Studies show that when your product is fulfilled by Amazon or Walmart, customers are far more likely to complete the purchase. People trust the fast delivery, reliability, and customer service these platforms have built their names on. According to internal reports, Walmart WFS can boost your conversion rate by over 30%. That increased trust translates directly into more sales. Especially with Walmart WFS picking up speed in the market, now’s the best time to take advantage of their growing fulfillment service. Conclusion Walmart WFS is emerging as the better fulfillment option for many sellers. With lower fulfillment fees, especially for larger items, stable storage costs, and far less hassle with inbound shipments, it’s more seller-friendly than Amazon FBA. The introduction of multi-channel fulfillment is a huge win, giving Walmart WFS sellers even more flexibility across platforms like Shopify and eBay. Whether you’re expanding from Amazon or just starting in e-commerce, Walmart WFS offers a clear path of efficiency, cost savings, and growth. At Ecom Catalyst, we manage everything for you, from connecting listings to fulfillment centers. We’ve been selling for over 20 years, and we don’t just talk the talk — we do this every single day for ourselves and our clients. It’s not about regurgitating information that’s floating out there online. We’ve walked the walk and know how to help you scale your business with real, practical solutions. Need help optimizing your sales channels with Walmart WFS? Book your free consultation with us today and let’s grow your business together: Visit us at EcomCatalyst.com and get on the fast track. Let’s get you selling smart. The post 5 Reasons Why Walmart WFS Is Better Than Amazon FBA first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    13 min
  5. 09/17/2024

    Amazon’s New Five Identical Box Rule & How to Avoid Costly FBA Inbound Placement Service Fees

    Reading Time: 4 minutes The New 5 Box Rule and What I Means for Amazon FBA Sellers Amazon just made it harder for FBA sellers—again. Earlier this year, they introduced inbound placement service fees that hit third-party sellers hard. And now, as of September 2024, Amazon has added yet another hurdle with its new “five identical box rule.” This is a game-changer for anyone using Amazon’s FBA (Fulfilled by Amazon) service, and it means paying close attention to how you prepare your shipments. Today, I’m breaking down what this new rule means for FBA sellers, how it changes your shipping game, and most importantly, how you can successfully avoid those frustrating inbound placement service fees (IPFs). Stay tuned because you don’t want to miss the details. What Are Inbound Placement Service Fees? If you’re an FBA seller, you’re familiar with the pain of inbound placement service fees (also called IPFs). These extra costs come into play when Amazon splits your shipment across multiple warehouses. They started requiring fees for not following their placement suggestions earlier this year—which was already a headache. Here’s the deal: Amazon wants to spread your inventory across its vast fulfillment network. In theory, it helps them get products to customers faster. For you, it means shipments going to multiple locations. If you don’t follow Amazon’s split shipment plan, they hit you with these inbound placement service fees as a penalty. Most sellers just raise their prices to cover the costs, but there had been workarounds—until now. How the New Five Identical Box Rule Has Changed Everything So, here’s what Amazon dropped on us in September 2024: the new five identical box rule. Before this, you could avoid inbound placement service fees if you agreed to Amazon’s optimized shipment plan, which divided your products across five different warehouses. That sounded fine in theory, but the reality was tricky. You had to make an important decision: Would it be more affordable to send shipments to five locations, or just pay the placement fees and keep it simple? Now, though, it’s even tougher. According to the new rule, if you want to avoid those fees, each shipment has to contain at least five identical boxes—or identical pallets. That means the same items, in the same quantity, in each box. If you’re sending mixed SKUs, it’s almost impossible to meet these requirements without padding your shipment in a weird way or paying those inbound placement service fees. Example of How It Works Let’s say you’re sending 500 units total. Previously, you could send 100 units to each of the five warehouses and dodge the inbound placement fees. Now, under the new rule, you would need to split those 500 units equally across five cases, which would make things complicated—especially if you have mixed SKUs. For instance, if you have different products with varying quantities, Amazon won’t allow you to use an optimized shipping plan unless the number of boxes or pallets with the exact same contents can be divided by five. Yep. It sounds exactly as confusing as it is. The Problem With Cost and Optimized Shipments A big challenge with these inbound placement service fees is cost analysis. Shipping freight to five different locations can be expensive, especially given how Amazon’s warehouses are spread out across the country. You might save money in placement fees, only to lose it on shipping. Take my example: I’m based in Georgia, and often, I have to send shipments all the way to California or Nevada for an “optimized” shipment. The freight cost alone sometimes outweighs what I would have spent just paying the inbound placement service fees to send them to a closer location. You have to weigh the costs of shipping vs. the cost of paying the IPFs. It’s different for every shipment, and it’s just another headache we all have to deal with. My Experience: Testing the New Rule After running into this rule, I decided to put it to the test. I sent a shipment with cartons that had different numbers of items inside. I was unsure whether this would pass Amazon’s new “five identical box rule,” but surprisingly, it did. Here’s why: As long as each SKU in your shipment is present in all five shipment splits and there’s at least one carton with the same quantity as the others, Amazon will approve the shipment as “optimized.” It doesn’t always have to be perfectly divisible by five, but you need to make sure there’s some consistency. When You Should Consider Paying the Inbound Placement Service Fees The fees can feel like a slap in the face, I get it. But sometimes, paying them is actually the smarter move. If you’re shipping lightweight products that don’t cost much to send, paying the placement fees and sending it to fewer locations might save you money in the long run. Remember, the more destinations your shipment has, the more you’ll pay in shipping. Analyze your costs carefully before deciding. The Best Way to Avoid Inbound Placement Service Fees Altogether Here’s the good news, though: There’s a way to sidestep these fees entirely. Amazon has a sneaky little solution called AWD (Amazon Warehousing and Distribution). Instead of sending your products directly to FBA, send them to AWD first. Once your products are in Amazon’s distribution network, they take on the job of distributing them to the appropriate FBA locations automatically. And the best part? You don’t pay inbound placement service fees. Why use AWD instead? Lower storage fees: AWD offers lower rates compared to FBA, and they don’t hike up fees during peak seasons. Auto-replenishment: Amazon moves your products from AWD to FBA as needed, saving you time and money from dealing with it yourself. Manual replenishment option: You can still manually send inventory to FBA if you don’t want to rely on Amazon’s auto-replenishment system. This solution is not only cost-effective, but it also removes the stress of dealing with shipment splits and fees. I’ve been using it, and it works. So, if you’re tired of the headaches, AWD could be the move for you. Wrap Up It’s no secret that Amazon’s FBA system, while powerful, has always been full of annoyances for sellers. The inbound placement service fees and now the new “five identical box rule” have just added another layer to figure out. But by weighing your costs for optimized shipments and switching to AWD whenever possible, you can still come out ahead. Got questions? Drop a comment below—I’m here to help! If you found this post useful, hit subscribe on my YouTube channel to stay updated with more tips, tricks, and updates in the eCommerce space. Dive deeper into your Amazon business strategy with full-service management from Ecom Catalyst. We handle everything, from logistics to PPC—so you can focus on growing your brand. You can book a free consultation with us any time! For more detailed strategies and tips, watch my full video:https://www.youtube.com/watch?v=UMOzC-yGWw0 The post Amazon’s New Five Identical Box Rule & How to Avoid Costly FBA Inbound Placement Service Fees first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    16 min
  6. 08/28/2024

    Is Amazon Vine Worth It To Get Amazon Product Reviews?

    Reading Time: 3 minutes Photo by Lennie Schmutz on Unsplash In the competitive world of e-commerce, getting product reviews can be a significant challenge. Many sellers struggle to establish credibility and social proof for their products. One solution that has gained traction is the Amazon Vine program. This blog will explore what Amazon Vine is, how to get involved, and whether it is worth the investment for e-commerce sellers. What is Amazon Vine? Amazon Vine is an exclusive, invitation-only program aimed at providing sellers with access to some of the best product reviewers on the platform. These reviewers, known as Vine Voices, are selected by Amazon based on their reviewing history and helpfulness within the community. The program allows sellers to send free products to Vine Voices in exchange for honest and unbiased reviews. How Do You Get Invited to Amazon Vine? While the specifics of how Amazon selects Vine Voices remain a mystery, there are steps potential reviewers can take to increase their chances of being invited. Regularly reviewing products purchased on Amazon and leaving detailed, helpful reviews can put you on Amazon’s radar. The more helpful votes your reviews receive, the more likely you are to be considered for an invitation to join the program. Review every product you purchase. Leave detailed reviews with images and videos. Gain helpful votes on your reviews. Using Amazon Vine as an FBA Seller For sellers, utilizing Amazon Vine can be an effective strategy when launching a new product or revitalizing an existing one. Product reviews are crucial for building social proof and credibility. A product with no reviews can deter potential buyers, whereas a product with multiple positive reviews can significantly increase sales. When launching a product, sellers can enroll in the Vine program to get their first reviews. This is important because, without reviews, it can be challenging to generate interest in a product. Amazon Vine allows sellers to provide free products to Vine Voices, who are then expected to leave a review. Cost of Amazon Vine Amazon Vine offers different enrollment options based on the number of units you want to allocate for reviews: Free option: Get 1-2 reviews without any enrollment fee. $75 enrollment fee: Designate 3-10 units for review. $200 enrollment fee: Allocate 11-30 units for review. It’s important to note that while there is no cost for the product itself, sellers must cover the fulfillment costs associated with sending the product to the Vine reviewer. This means that participating in the Vine program can involve a significant investment, especially if you are opting for the higher tier of reviews. Warnings About Amazon Vine Voice Reviews While Amazon Vine can be a powerful tool, there are some considerations to keep in mind. Not all Vine reviewers will leave positive reviews. In fact, they can sometimes be more critical, as they may feel a responsibility to provide honest feedback. Sellers should ensure their products are ready for review and that any potential issues have been addressed before enrolling in the program. It is also essential to maintain a competitive price while waiting for Vine reviewers to claim their products. Vine reviewers often comment on the perceived value of a product, even if they received it for free. Setting a lower price can help mitigate any negative feedback regarding the product’s value. Is Amazon Vine Worth It for FBA Sellers? Ultimately, whether Amazon Vine is worth the investment depends on your specific goals as a seller. The program can provide a significant boost in obtaining product reviews, which are crucial for establishing credibility and driving sales. For a $200 enrollment fee and the cost of giving away 30 units, sellers can potentially receive 20 reviews within a matter of weeks. This is a much faster alternative compared to the organic rate of 1-2% of customers leaving reviews after purchase. Conclusion In conclusion, Amazon Vine is a valuable tool for sellers looking to enhance their product reviews and establish credibility in the marketplace. While it does involve some investment, the potential return in the form of reviews and increased sales can far outweigh the costs. If you’re considering launching a product or looking to improve existing listings, Amazon Vine is definitely worth exploring. For more insights and resources on e-commerce, visit eComCatalyst or subscribe to the YouTube channel. Made with VideoToBlog The post Is Amazon Vine Worth It To Get Amazon Product Reviews? first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    16 min
  7. 08/14/2024

    Why Amazon Warehousing & Distribution (AWD) is CRITICAL in Q4 for FBA Sellers

    Reading Time: 3 minutes As the holiday season approaches, many FBA sellers face critical decisions regarding their inventory management. One of the most pressing questions is whether to utilize Amazon’s Warehousing & Distribution (AWD) services. This blog will explore the benefits of AWD, especially during the peak season, and how it can help sellers save on storage fees while ensuring a smooth sales process. Understanding the Importance of Timing Timing is everything in e-commerce, especially for sellers using Amazon’s FBA. If you’re expecting a shipment to arrive at Amazon FBA in October, the decision to use AWD becomes paramount. The key factor to consider is the anticipated sales velocity of your product. Products that are expected to sell quickly can be sent directly to FBA. If you believe your inventory will be depleted within 30 to 60 days, FBA might be the right choice. However, if your inventory will take longer to sell, AWD is undoubtedly the better option. The Impact of Peak Season Storage Fees During the peak season, which spans from Q4 to early January, Amazon significantly increases its storage fees. These fees can be astronomical compared to the regular storage rates. Understanding this can save you a lot of money and headaches. For instance, traditional FBA storage fees are manageable until peak season hits. Once that happens, they can spike dramatically. Sellers must remain vigilant about these fees, as they can impact profitability. Real-Life Consequences of Ignoring Peak Fees Many sellers have faced severe consequences due to neglecting peak season fees. One seller recounted losing over $10,000 because they didn’t account for the storage costs associated with a large shipment sent to FBA during peak season. This experience serves as a cautionary tale for all sellers. It’s essential to plan your inventory shipments strategically to avoid similar pitfalls. Advantages of Using AWD Choosing AWD offers several advantages, particularly during the peak season. Here are some key benefits: Reduced Storage Costs: AWD storage rates are significantly lower than FBA’s peak season rates, often around 70% less. Stability in Fees: AWD does not adjust its storage rates based on peak season, providing a consistent and predictable cost structure. Exemption from Additional Fees: Using AWD protects sellers from inventory placement fees and low inventory fees that Amazon imposes. When to Consider FBA Instead While AWD offers numerous benefits, there are situations where FBA might be more advantageous. If you have a product that is expected to sell out quickly, sending it straight to FBA can expedite the sales process. However, this approach comes with the risk of incurring high storage fees if the product does not sell as quickly as anticipated. Managing Auto Replenishment with AWD When utilizing AWD, it’s crucial to manage inventory effectively, especially during Q4. Many sellers opt for auto-replenishment to streamline their inventory management. However, sellers must remain vigilant, as the automated systems may not always keep up with demand. It’s advisable to monitor stock levels closely and be prepared to make manual adjustments. This proactive approach ensures that you maintain a steady flow of inventory without incurring excess storage fees. Potential Drawbacks of AWD Despite its benefits, AWD is not without its challenges. Sellers must be aware of potential drawbacks, such as: Manual Adjustments Required: The auto-replenish feature may not always function as intended, leading to potential stockouts. Longer Shipping Times: Depending on the location of your AWD warehouse, shipping times to customers may be longer compared to FBA. Conclusion: Making the Right Choice In conclusion, the decision to use Amazon’s AWD or FBA during Q4 hinges on your inventory’s expected sales velocity. If you anticipate a quick turnaround, FBA may be suitable. However, for products with slower sales, AWD is the clear choice, allowing you to save on storage costs and avoid the pitfalls of peak season fees. As Q4 approaches, sellers must remain vigilant and proactive in managing their inventory. By understanding the advantages and potential challenges of both AWD and FBA, you can make informed decisions that will lead to a successful holiday season. Call to Action If you have questions or need further insights on managing your e-commerce business, leave a comment. We love engaging with our community and are here to help you navigate the complexities of selling on Amazon. Don’t forget to subscribe to our channel for more valuable insights and tips on e-commerce and selling online! The post Why Amazon Warehousing & Distribution (AWD) is CRITICAL in Q4 for FBA Sellers first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    5 min
  8. 08/12/2024

    Private Label vs Wholesale Reselling: Which Amazon FBA Business Model is BEST?

    Reading Time: 5 minutes When it comes to selling on Amazon, aspiring entrepreneurs often face a crucial question: Should I resell other people’s products or create my own brand through private labeling? This debate is one that continues to ignite discussions among sellers, and understanding the nuances of each approach is vital for making an informed decision. In this article, we will explore the advantages and disadvantages of both models, providing insights that can help you choose the best path for your Amazon FBA business. Understanding the Basics: Private Label vs Wholesale Reselling Before diving into the specifics, let’s clarify what private labeling and wholesale reselling entail. Private labeling involves creating your own brand and products, typically through a manufacturer. This model allows for greater control over branding, pricing, and product quality. On the other hand, wholesale reselling consists of purchasing products from manufacturers or distributors and selling them under their existing brand names. Each model comes with its own set of challenges and opportunities. The Investment Factor: Capital Requirements One of the most significant factors influencing the decision between private labeling and wholesale reselling is the capital investment required. Starting a private label brand often demands substantial upfront costs. This includes product development, design, manufacturing, and inventory management. As such, aspiring private label sellers need to have a considerable amount of capital at their disposal. In contrast, wholesale reselling typically requires a lower initial investment. Sellers can purchase products in smaller quantities, allowing for more flexibility. This is particularly advantageous for those who may not have significant funds to commit to an entire brand launch. Therefore, if capital is a concern, wholesale reselling may be the more accessible option. Access to Products: Speed and Convenience Another advantage of wholesale reselling is the ease of access to products. When creating a private label brand, sellers must go through a lengthy process of sourcing products, obtaining samples, and managing manufacturing logistics. This can be time-consuming and may involve dealing with international shipping complexities. In contrast, wholesale resellers can often acquire products quickly. For instance, by utilizing retail arbitrage techniques, sellers can purchase discounted products from local stores and immediately list them on Amazon. This means that resellers can start generating revenue much faster than those who are launching a private label brand. Advertising and Marketing Costs In the highly competitive Amazon marketplace, advertising plays a crucial role in product visibility. For private label sellers, building brand awareness often requires a significant investment in pay-per-click (PPC) advertising and other marketing strategies. Many private label brands find themselves allocating 10-20% of their gross sales to advertising, especially in the early stages. On the other hand, wholesale resellers can benefit from the established brand recognition of the products they sell. Since customers are already familiar with these brands, there is often less need for extensive advertising. This can lead to reduced marketing costs and a more straightforward path to profitability. The Creative Factor: Skills and Ideation Creating a successful private label brand requires a certain level of creativity and strategic thinking. Sellers must be able to identify market gaps, develop unique products, and create a compelling brand story. This process can be challenging for those who may not possess strong ideation skills. In contrast, wholesale reselling allows sellers to focus on execution rather than product development. For those who excel in operations and logistics but struggle with product ideation, reselling can be a more suitable model. It eliminates the need for extensive creativity while still allowing for successful business operations. Long-Term Goals: Building an Asset One of the most compelling arguments for private labeling is the potential to build a valuable brand asset. Successful private label brands can be sold for significant multiples, providing a lucrative exit strategy for entrepreneurs. This potential for long-term growth and brand equity is often a key motivator for those choosing the private label route. While wholesale reselling can be profitable, it may not offer the same long-term asset-building potential. Resellers are often seen as intermediaries without the same level of brand recognition or customer loyalty. This distinction is essential for sellers considering their long-term goals and exit strategies. Finding Your Path: Which Model is Right for You? Ultimately, the choice between private labeling and wholesale reselling comes down to individual circumstances, goals, and preferences. For those with limited capital and a desire for quick returns, wholesale reselling may be the ideal starting point. It offers a lower barrier to entry and the ability to generate income relatively quickly. Conversely, if you have the capital, creativity, and a long-term vision, private labeling presents opportunities for brand building and significant financial rewards. It requires more effort and investment upfront but can lead to a more sustainable and profitable business in the long run. Conclusion: Making the Best Decision for Your Business In conclusion, both private labeling and wholesale reselling have their unique advantages and challenges. Understanding these factors can help you make an informed decision that aligns with your business goals. Whether you choose to create a private label brand or pursue wholesale reselling, the key is to remain adaptable and continuously learn from your experiences in the ever-evolving e-commerce landscape. For further insights and resources on excelling in e-commerce, consider subscribing to newsletters and following industry experts. Engaging with communities and learning from others can provide valuable guidance as you navigate your entrepreneurial journey. Remember, the path you choose should reflect your strengths, resources, and aspirations. Both models can lead to success if approached with the right mindset and strategies. For more information on optimizing your e-commerce business, check out eCom Catalyst and explore the resources available to support your journey. The post Private Label vs Wholesale Reselling: Which Amazon FBA Business Model is BEST? first appeared on eComCatalyst - Amazon, e-Commerce Growth Agency.

    15 min
5
out of 5
9 Ratings

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The eComCatalyst Podcast is provided by eComCatalyst, a leading, full service Amazon and e-Commerce agency. Led by brand owners and founders, we discuss news, tips, and strategies to build and operate your ecommerce business, whether it’s Amazon, FBA, Walmart, Shopify, TikTok Shop, or other channels.