Amazon’s Strategy Shift: Regional Warehouses and Faster Delivery Impact on Search Results and Customer Experience

In a bid to prioritize delivery speed and enhance customer experience, Amazon has undergone significant changes to its logistics strategy. Recent reports indicate that the e-commerce giant is now focusing on regional warehouses to streamline its shipping process. We will explain this potential change, highlighting Amazon’s shift from a national to a regional model and its potential impact on search results. Let’s delve into the details.

Amazon Strategy Shifts

The Push for Faster Delivery

Amazon’s Vice President of Transportation, Udit Madan, has emphasized the company’s commitment to accelerating the delivery process. By expanding its warehouse footprint, Amazon has increased its ability to ship items within specific regions of the United States at a faster pace. The company’s efforts to revamp its delivery and inventory systems during the pandemic have played a crucial role in achieving this goal. According to Madan, Amazon’s data reveals a strong correlation between delivery speed and customer retention, underscoring the importance of efficient logistics operations.

Embracing Regional Warehouses

To optimize its delivery network, Amazon has divided the United States into eight regions, strategically locating regional warehouses across the country. The rationale behind this approach is to store commonly ordered items in each region, allowing for more localized and cost-effective shipping. By leveraging the increased warehouse space, Amazon aims to minimize the distance items travel between fulfillment centers and customers. The shift from a national to regional model reflects the company’s desire to reduce costs while capitalizing on the improved proximity to customers.

Impact on Search Results

One notable aspect of Amazon’s regional warehousing strategy is its potential influence on search results. The company may prioritize items that are geographically closer to a user when displaying search results. By doing so, Amazon aims to expedite shipping times and reduce associated costs. While this change could benefit customers by offering faster delivery, it raises questions about how it may affect sellers, particularly smaller ones. Larger sellers with products available across multiple regions may have an advantage over smaller sellers who cannot distribute their products as widely.

Increased Efficiency and Customer Satisfaction

Amazon’s efforts to establish regional warehouses and streamline its logistics network have resulted in notable improvements. The company now reports fulfilling 76% of orders from a warehouse within the same region as the customer, compared to 62% in the previous year. Additionally, the distance items travel between fulfillment centers and customers has decreased by approximately 15%. The expansion of same-day delivery centers, which store essential items for quick delivery, has also contributed to enhanced efficiency. Madan reveals that the use of same-day delivery has grown by 50% in the first quarter of 2023, with an increasing number of customers opting for this expedited option.

Conclusion

As Amazon continues to prioritize delivery speed and improve its logistics network, the shift towards regional warehouses has emerged as a significant development. By placing items closer to customers and reducing shipping distances, the company aims to offer faster and more cost-effective deliveries. While the impact on search results remains to be fully understood, the growing emphasis on regional warehousing is undoubtedly transforming Amazon’s fulfillment capabilities.

In the ever-changing landscape of Amazon and its dynamic search result placement algorithms, sellers need reliable tools. With Viral Launch’s comprehensive suite of Amazon seller tools, sellers can confidently navigate any changes thrown their way. From product research and keyword optimization to listing optimization and product launch services, Viral Launch equips sellers with powerful insights and data-driven strategies to compensate for any potential losses in search result placement. By leveraging Viral Launch’s tools, sellers can stay ahead of the competition, identify profitable opportunities, and optimize their listings to maximize visibility, ultimately driving sales and achieving long-term success.

Viral Launch is here to help you understand and adapt to the ever-evolving Amazon strategy!

The Ultimate Amazon Q4 Strategy for Third Party Sellers

It’s the most wonderful time of the year! Almost 50% of online holiday shoppers bought from Amazon in 2017, and we’re expecting to see that number increase in 2018. So, to help sellers ensure they have a lucrative Q4 this year, we’re going to walk through how to best prepare for Amazon Q4 traffic, what dates you need to remember, and how to get in front of as many buyers as possible to drive your sales through the roof.

Are you ready?

Let’s dive in.

Crucial Q4 Dates

One of the most common mistakes sellers make during Q4 is missing or forgetting important dates. Amazon events tend to happen on similar dates, so you can safely assume that the timeframe for these events will be nearly the same in 2018 as in 2017. Also, be aware that Amazon just enacted a new shipping policy in late August that will cause shipments with irregularities in quantity or delivery address to be delayed. Keep that in mind as we go over important dates during Q4.

Reduced Fulfillment Fee – Runs October through December

Last year, reduced fulfillment fees started on October 1 and continued through November and December. If FBA sellers reduce their storage space during these months, they could drastically reduce their total amount of FBA fees.

Increased Inventory Storage Fee – Runs October through December

During this timeframe, Amazon increases storage fees by 200-300% for standard and oversized items. This can really affect your profit margin, even with holiday sales, so make sure that you have room in your budget for higher fees.

Cutoff for New FBA Seller Accounts and Shipments – After Mid-October (Possibly)

Last year, new sellers weren’t allowed to sign up for FBA or send FBA shipments in after mid-October. This has been account based rather than ASIN based, so in the past sellers have sold retail arbitrage using FBA to get around the cutoff. But as long as you create a shipping order before the cutoff, you should be okay.

Cutoff for Black Friday / Cyber Monday Inventory – November 5

Last year Amazon also instituted a deadline for sending inventory for Black Friday and Cyber Monday. Black Friday (November 23) marks the official start of the holiday shopping season, and Cyber Monday (November 26) is a huge day for online retailers, especially Amazon sellers. Make sure you have enough inventory in your Amazon warehouse to cover your Black Friday and Cyber Monday orders by November 5, or mid- to late October, just to be safe.

Cutoff for Inventory to be Delivered by Christmas – December 1 (Probably)

The craziness doesn’t stop after Cyber Monday! All of your inventory that you plan to deliver by December 25 must be in the warehouse by early December.

Don’t forget these dates. FBA sellers have to be on top of their game from now until Christmas in order to capitalize off of massive Q4 revenue opportunities.

Planning A Launch

Your next challenge is to determine the best timeline for getting your inventory into the warehouse and for starting a launch so you can get onto Page 1 at just the right time.

First, look at market data from previous years to determine when sales have historically started to increase (not sure where to find data for your product? Our Market Research Chrome extension can help with that). You can expect that sales will follow the same pattern for 2018. Make sure your inventory is in stock before the sales spike.

Looking at past data for travel sets, you can clearly see when sales begin to spike during Q4. If you are selling travel sets, you can use this data to estimate when you need to get inventory in, and to determine the best time to start a launch.

Then plan to start a product launch at least a week before the sales spike. A launch typically takes 7-10 days and will help increase sales and drive ranking so you can ride the wave of Q4 sales all the way through the holidays.

Timing is crucial. If you launch too early, you’ll have to maintain your ranking all throughout the holiday season. Launch too late, you’ll have to give away too much inventory and run out before the sales wave ends – or even worse, you’ll miss the wave completely. If you are unsure about when exactly you need to start your launch, our coaches can help you research past trends to determine the best launch strategy for your product market.

Preparing Your Listing

Before you launch your product, you need to make sure that your listing copy and photography are both fully optimized and follow Amazon style guidelines. A well-written listing and high-quality photo set work together with product launches to increase organic sales and drive ranking for a successful final quarter.

Listing

Make sure that you’re using high volume and high opportunity keywords in your product listing. You have to plug in the best Amazon keywords in the best order in a way that reads well and follows Amazon style guidelines. Piece of cake, right?

Ranking is largely determined by your title, followed by your bullet points and backend search term keywords. Our Keyword Research and Listing Builder tools allow you to discover which keywords have the highest search volume in your market, which high opportunity keywords you might be missing out on, and how many potential searches your current listing could rank for.

Your listing also needs to be written well enough that buyers are convinced your product is worth buying, but without using restricted phrases or claims that could get you flagged by Amazon. If you don’t have the time or skillset to create an optimized listing, our team of copywriting professionals can do it for you.

Photography

Product photography is crucial for converting clicks into purchases. Because they can’t see the product for themselves before buying, online shoppers heavily rely on photos for information. To convince shoppers to add your product to their cart, your photos need to look professional, display important details of your product, follow Amazon guidelines (or risk being flagged), and establish an emotional connection with buyers.

If you’re a new seller or have little to no photography experience, hiring a professional photographer might be the best choice for you. Your photo set has to convince buyers that your product is better than your competitor’s product, but it’s only one of the many moving parts of a successful Q4 strategy.

Crafting Your Amazon Q4 Strategy

A successful Amazon Q4 strategy depends on planning, preparedness, and deliberate action. Now is the time to do your research and start prepping your listing and inventory for the busy holiday season. For more tips and tricks, be sure to check out our recent video on Q4 sales strategy.

At Viral Launch, we want to provide you with all the information you need to become successful on Amazon. For more Amazon selling strategies during every quarter, we encourage you to subscribe to our blog, check out our Youtube channel, and listen to our Follow the Data podcast.

And best of luck!

Seller Strategy Series | Tom Wang: Increasing Sales, Brand Development & Successful Mindsets

Seller Strategy Series | Tom Wang: Increasing Sales, Brand Development & Successful Mindsets

The goal of this series is to talk through high-level Seller Strategies from Amazon Sellers who are killing it in the CURRENT Selling Game. We’re talking through what they’re doing to scale their business: What’s currently working, what’s NOT working, where underpriced attention is, where you should be investing your time, and where Amazon is headed in general.

In today’s episode, I’m talking with Tom Wang, a Seller of his own who’s been implementing a lot of high-level strategy and is VERY in-tune with what other sellers are going through. Part of what we talk about in this episode involves developing a healthy entrepreneurial / Amazon-oriented mindset. Let’s dive in.

Check out our YouTube for more content: http://bit.ly/VLsubscribe
Subscribe & Comment on the latest video to see if you win a $50 Amazon Gift Card!
Get Connected To Tom here! EcomHub.com

 

Listen on iTunes   Listen on Stitcher

Exit mobile version