Q4 Tips You Don’t Want to Miss – Maximizing Profits, Amazon Seller Podcast – Episode 39
It’s hard to believe that Q4 is almost upon us!! Ever wonder how YOU can maximize your sales during this time of year? In this episode we discuss our own Q4 Tips by focusing on some of the following questions:
What part does Q4 play when it comes to maximizing profits? How do I prepare in advance to stay in stock? What planning is needed and how do I stay competitive even after Q4 is over? Q4 always sneaks up on me, so how I can optimize my listings ahead of time? We answer these questions, and more!
Q4 is unique to all retailers because during the 4th quarter of the year, there is such an increase in sales velocity. Almost all retailers move from the red (profit loss) to the black during the Black Friday season through the New Year.
One way to maximize your profits during Q4 is through your pricing strategy.
If you are an arbitage or wholesale Amazon seller, you may not have to be faced with analyzing how to price your products. Typically you have a lot of re-pricers out there. So as the competition starts to raise its price, yours goes up along with it. So during Q4, as demand increases, prices increase. However, it can be difficult to gauge when the right time is to raise the prices on your Private Label products, when there isn’t that natural competition that comes with demand. Or perhaps you need to lower the price if you have a lot of units in stock, right?
So, one of our Q4 tips that we recommend is a tool that we use called: Splitly (or https://Splitly.com). Splitly is a software that allows you to perform a variety of split-tests. One of the programs that Splitly uses is “Profit Peak”. The way Profit Peak works is that you can give the software a range and as your sales velocity starts to increase, then the software begins to exploit the sales velocity for you. If your sales velocity starts to slow down, the tool even lowers the price. It even works with the number of units you have in stock. This is important because tracking your sales velocity manually can be extremely time consuming, right? The goal of the tool is to maximize your profit.
Q4 is the best time of the year to take advantage of your increased sales velocity. There’s an extreme amount of emotional spending during the holiday season. Even as you approach Q4 with the goal of increasing the units you want to sell, this tool will help you meet that goal by increasing the amount of money you make per unit.
Staying in stock can be a challenge during Q4. Here are a few ways that we tackle this.
- Understand and manage your supply chain correctly – We recommend starting at least 7 months out as part of your planning process. Remember that Amazon storage fees for October-December are three times the cost of the remaining months of the year. Another one of our Q4 tips that we want to emphasize is using a third-party warehouse to save you a ton of money. If you’re a newer seller, you need to understand that your sales velocity will be 3-5 times greater than the remaining months of the year. Work with your manufacturer to get ahead of the busy timeline for the season.
- Make sure that you order well ahead of when you think you need to order your products – Particularly if you are ordering much smaller quantities than larger sellers, know that the manufacturer will submit the largest orders first. Carrier containers will get backed up the closer you get to Q4. The ways to avoid any delays is by communicating earlier than when you think you should.
- Those of our members who are part of our Inner Circle Collective receive location tips for the third party warehouses that we recommend. These members are in our Private Label Course and are learning some of our best year-round strategies as well as our ongoing Q4 Tips.
You may be forced to airship your products during Q4 in order to keep up with the high demand.
If you don’t plan enough ahead, you may find yourself not ready for the demands of Q4. Be aware of the amount of time needed for your product to be prepared at a prep center. Also understand that prep centers can get backed up as well. One way to prepare is to have your supplier label everything in advance so that you can airship direct to Amazon.
Amazon can also label things for you during Q4, but be wary. There are a lot of additional seasonal employees during Q4, who may make mistakes with the high volume of products they are labeling and shipping.
Don’t miss the post-Q4 opportunity for more sales.
In particular when you raise your prices due to demand, your sales velocity will slow down some. Remember that one of the worst things that can happen during Q4 is to run out of stock as January approaches. You can avoid this in the following ways:
- Have a pricing strategy for when your inventory starts to run low.
- Calculate your units out past January.
- Remember that January can be your 2nd best-selling month.
- Chinese New Year takes place in February, and the country goes on a hiatus for approximately a month. No production takes place during this holiday time. The reason for this is because factory workers rent housing close to where they work. Two weeks before the celebration, everyone travels home to be with their families.
- You do not want to use Q4 as your projection for the remainder of the year. It is a balancing act with how to manage storage fees and inventory supply.
Begin to optimize your listing in time for Q4.
The following Q4 tips come in the form of Images, Listing Copy, and Keywords (how the front end is displayed to your customers).
Image Optimization – Our Amazing Freedom Magic Image Service (or Amazingfreedom.com/magic) capitalizes on a combination of emotional purchases and psychology. As you begin to browse around Amazon during the holiday season, you will begin to notice red ribbons on images and backgrounds of Christmas trees. Customers opening gifts of your product can be powerful for your sales. Appealing to the customer’s emotions happens with amazing images. We have a service that allows your product to look great photoshop within lifetsyle images and amazing backgrounds with accompanying text.
Listing Copy Service – We also offer a listing optimization package (or Amazingfreedom.com/optimize) that helps sellers with the right keywords, bullet points, and enhanced brand content. In terms of keywords, people are searching all year long. So during Q4, people will most likely search the term “stocking stuffers for Dad”, or “stocking stuffers for Mom.” You want to make sure your keyword capitalizes on the time of year, such as “holiday gifts”, etc. You should consider doing this also for Mother’s Day or Valentine’s Day or any other holiday that would get a buyer’s attention.
Thanks for joining us for our Q4 Tips. We know that if you put some of these ideas in place, you will crush the competition and enjoy a very profitable end of year in sales![shadowbox]Consider joining our Amazing Freedom Facebook group where you can join our ever growing community of Private Label sellers who are dominating the Amazon marketplace![/shadowbox]