Could you be leaving money on the table each month with your ecommerce business? Have you taken your account through a thorough audit recently? What if there are small things that are adding up and draining your profits? On this episode of The Amazing Seller, you’ll hear from special guest, Greg Mercer. In his conversation with Scott, Greg opens up about simple ways sellers like you can save on costs, how Amazon fees work, the benefit of using a tool like Fetcher, what to expect with refund rates, and much more! Don’t miss a minute of this valuable episode with Greg!
Don’t let the drip, drip, drip drown you!
When a storm hits your house, you usually don’t think too much of a little leak that drips a few drops of water, but if you ignore that drip for too long, you’ll have a problem! The same is true when it comes to your financial situation as an ecommerce seller. You don’t think too much about a few fees here and a few fees there but soon they add up! Make sure your house is in order and stop the leaks before they drown you. Take the opportunity to learn from an industry expert and save money today! Find out more from Greg Mercer on this valuable episode of The Amazing Seller!
Where to start cutting costs.
Are you ready to take a deep dive into your seller account? Now is the perfect time to give it a closer look and cut unnecessary expenses! On this episode of The Amazing Seller, you’ll hear from Greg Mercer as he provides his top three areas for sellers like you to start reducing costs.
- Storage Fees.
- Refunds and returns.
- PPC strategy.
Do you have any additions to this list? Have you addressed some of these costly expenditures? To get the full breakdown on each of these areas, make sure to listen to this episode featuring Greg’s expert advice!
Why you should check out Fetcher.
Let’s face it, many ecommerce business owners don’t have the time and energy to pour over their accounts and comb through every detail. What if there was a way to get an overview of your accounts in a user-friendly interface? Good news, there is! Fetcher is a profit analytics tool for Amazon businesses. They fetch, calculate, and display your seller data from Amazon so you can see product profitability and many other key metrics. Don’t get unnecessarily bogged down in the weeds of your business if you don’t have to! Learn more about how Fetcher can help sellers like you by listening to this episode featuring Fetcher creator, Greg Mercer!
Work smarter, not harder!
As you build your ecommerce business, one of the most important lessons that you should take to heart is the advice to work smarter, not harder. Too often business leaders get so focused on the end goal that they work themselves down to the bone! Does that sound like something you are struggling with? There are helpful tools and resources that sellers like you can use to streamline your process and save money in the process. Find out what your business needs to do eliminate wasteful expenditures by listening to this informative episode of The Amazing Seller, you don’t want to miss it!
OUTLINE OF THIS EPISODE OF THE AMAZING SELLER
- [0:03] Scott’s introduction to this episode of the podcast!
- [2:45] Scott welcomes Greg Mercer to the podcast.
- [6:30] Greg and Amazon talk about Amazon fees and how to save.
- [10:00] Breaking down Amazon seller account costs.
- [15:30] Where you can start to cut costs.
- [22:00] Why you should check out Fetcher.
- [28:15] Understanding reasonable refund rates.
- [34:00] Closing thoughts from Scott.
TRANSCRIPT TAS 569
TAS 569: SIMPLE Ways to Increase PROFITS (How to Audit Your Business)
[00:00:03] Scott: Well hey, hey what’s up everyone! Welcome back to another episode of The Amazing Seller Podcast. This is episode number 569 and today we're going to go over some simple ways to…
[read more=”Read full transcript…” less=”Read less”]
…increase profits and really how to audit your business right now. A lot of us don't realize but there's fees that you might be paying that you shouldn't be paying or that you can avoid paying if you knew your numbers.
And I've invited on a good friend of mine. You guys all probably know him, Greg Mercer is going to be back on the show. And I'm going to let you listen to this conversation that him and I really had about going over the non-sexy part of this business and that is the numbers and really understanding the numbers.
And it's crazy because his business has really looked at thousands of businesses and audited their businesses and they've really found some loop holes in a sense that a lot of business owners don't realize. And if you just tweak a few of those things you can increase profits without even having to launch any more products at this time. So I'm really excited to kind of dive into that.
So before we jump into that though, I did want to give you guys a quick reminder. Brand Accelerator Live is now open for ticket sales. So if you haven't grabbed your's yet, I would urge you to go and do so because they will be going quickly as we get closer and as of right now, there's a lot of people saying, ‘This is going to be one of the top events that they attend this coming year.”
So if you want to be part of that definitely go grab your ticket. Actually Greg will be there speaking as well. And get this, he's not going to be speaking on how to pick a product. Usually when he's asked to go to these events, he's always the how to pick a product guy or maybe even in this conversation today about how to increase your profits but what we're going to have him speak on something completely different. And it's really about the businesses that are already up and running and then how do they optimize and leverage what they currently have to grow and scale on Amazon even further.
[00:02:00] Scott: So, some people have asked me, “Scott what is Brand Accelerator actually going to be about and who's it for?” It's for people that are selling on Amazon or haven't started selling on Amazon yet or maybe have their own ecommerce store but they want to launch on Amazon or vice versa. Maybe they already started on Amazon but now they want to get a channel built outside of Amazon and really build their brand. That's why we're calling it Brand Accelerator. And no matter where your brand is right now, we want to accelerate that and we want to grow it and we want to scale it. And that's what this event is going to be about.
So definitely go grab a ticket over at brandacceleratorlive.com or theamazingseller.com/live. All right guys, I'm going to stop talking so you can go and listen to this episode that I did with my good friend Mr. Greg Mercer.
[00:02:46] Scott: Well hey Greg, what's up man? Thank you so much for coming back on the show. What's happening my man? How's things going on your end?
[00:02:53] Greg: Scott, things are fantastic on my end. It's always great chatting with you. I'm excited about what we're talking about today. It's going to be fun.
[00:02:59] Scott: Yeah, it's a really, sexy topic. It has to do with money and it has to do with looking at our account and really understanding and really knowing if there's places that we can clean up because sometimes there's things that we're not realizing when… Look, the transactions are happening or maybe there's fees being added we're not aware of and we can increase the profits. And really the revenue in the business or more less the net profit in the business. I think that's something that I wanted to cover here with you because I know you guys are doing… I say ‘you guys', your company, you guys do these audits with businesses.
And you guys are experts at the side of where you're looking at businesses, you're seeing what they're doing and then you're seeing also what your software is doing and finding by you guys setting it up to kind of really do like this analysis on the actual accounting side of things. So that's really what I want to do. I want to see and I want to hear what actually people can look out for but then also if they are in a place in their business where they want to use a tool start looking at liek Fetcher, how they can get a 30 day trial and all that stuff. So where do you want to start? Where do you find that people when they come to you they're like, wow, I didn't realize that or where do you guys start?
[00:04:21] Greg: That's a really good question. And I'm glad talking about this. Because like you said, it's kind of a little bit like unsexy topic. Everyone likes talking about more exciting things, not really like digging into like what fees are being charged or where they can optimize their business or anything kind of along those lines. So as far as like a good places to start, I think talking a little bit about some of the Amazon fees. And Amazon fees people are getting charged. We talk a little bit about like long term storage fees.
I think this is an area that people don't normally calculate it like their overall profits and how much money they're making. I think most people are aware of kind of like what they're spending on PPC and other areas. But a lot of people don't understand kind of like all these other little fees that Amazon is charging them and on some products they kind of sneak up with you so normally what we find we're kind of doing is account audit, it's usually like some products usually like making more money than people expect. And some products you could be losing money or making less money than they’re expecting.
Usually the reason for that is like the fees and the storage fees. Long term storage fees your return rates. So I think we can talk a little bit more about all these things. What do you think?
[00:05:31] Scott: Yeah. I like that and I do want to ask you about this. And I think I know the answer but I”m going to ask as the listener. Categories, there's different fees for all the different categories across the board. So let me ask you this and this will kind of lead into like where we're going but if you were using Jungle Scout, those fees are generally shown to you in the pro extension that we can actually see these fees beforehand. So we're not caught off guard. If we don't know that… And again, we can probably go into the free FBA calculator and kind of get some intel there.
But the tool actually does that for you and I use that a lot because that does make a difference. If you have one category that's going to charge you $5 and another category that's $6.50 now you got to ask yourself do I launch it in that category? And can I get away with launching it in that category without it being against the terms of services and stuff. So maybe we can start there.
[00:06:26] Greg: Yeah, totally. There's a few like sneaky categories, I like to think of them. I know the like kindle accessories. So if you make like a case for like a kindle or a stand for like an Alexa or whatever else Amazon actually charges you like 40% commissions on those, like something really high. Whereas the normal rate is 15%. So there are a few sneaky categories like that where the, when we're talking about fees here we're talking about Amazon's commission. So maybe we actually start by just breaking that down. On all Amazon sales, whether or not you're using FBA or fulfilled by merchant Amazon charges you a commision. This is like their cut like for them essentially bringing the customer to you and selling a good to them.
So that gets charged no matter what fulfillment method you use. And that's what I'm talking about, there are a few categories that are a little bit sneaky like you mentioned by using like the Jungle Scout extension or the free Amazon… I think that's called the Revenue Calculator. I usually just search for free Amazon fee calculator and that comes up. They'd be able to tell you those fees, which ones are associated with it. And then you're right. If you are in between two categories, like one is 15%, one is 20%. I think the jewelry category is a little bit higher.
So for example, if you were selling something that was kind of border line between like apparel and jewelry, like maybe this is like a hand band that has like a little piece of jewelry thing on the front of it that little babies would wear, I'd probably list that under liek baby or the apparel category as opposed to jewelry. Right?
[00:08:05] Scott: Right. Absolutely. Now, do you see and again, we can go another rabbit hole here and I don't want to do that but it's worth having this conversation because some people would be like yeah, but if I don't launch in the right category, I'm not going to do as well. Part of me says, maybe but honestly if it's getting searched and picked up for the key words, does it really matter unless we're banking on it being in a higher position in that category if someone is searching in that category. What's your thoughts on that?
[00:08:37] Greg: Yeah, it is getting a little bit tricky because like we do know that Amazon takes into account the category and sub-category when they're determining relevance for your keyword, like for your product. So that's absolutely right. I wouldn't want to go too far off whatever my product was because then Amazon based off my category, sub-category would deem that not relevant for what otherwise would be my main keywords. See where we could go down it’s like a whole different rabbit hole. I would only probably recommend that if it's like legitimately kind of in between two categories and one of them happens to be lower fees.
But in general rule of general thumb you want to just choose the category that would be most relevant. That's probably only like a handful situations where you can actually be able to grab a different category that has lower fees.
[00:09:30] Scott: Okay, cool. Now, let's get back to the numbers. That is important and I wanted to fill in that gap for some people that are thinking that they're just going to a whole another category because they're going to save money. Let's go ahead and talk about that. So if you're looking at someone's account and again we have these other fees and stuff like where are we focusing first. Is there a place you guys go to first that you start to look at and then you start to see if this one thing is like not lined up or they are not calculating the fees properly. Is there something that comes to mind that we could kind of give to the listeners.
[00:10:03] Greg: Yeah, good question. Let me go ahead and share my screen. We can look at Fetcher together here and I'll show you a few things that I look at. So this is a demo account that I'll use to show different fees and what have you. So right away, if you're not familiar with this tool, Fetcher is a profit analytics and accounting tool, specifically for Amazon sellers. So it syncs up with your Amazon sellers central account. It downloads all this data, it runs it and the I like to think about it, it essentially gives you all the reporting and information and data that like you wish seller central had. If we as Amazon sellers were to build seller central it would look something like this with like these like graphs, and like more transparency to what's going on.
So right on the dashboard if I scroll down here to the bottom right hand side there's a section that says costs. And in here, these are all of the different costs that we're incurring. And like right away you'll here that for this particular demo account, these are real pieces of data here that… I think that a lot of people who would right away assume that the majority of their cost comes from purchasing their goods like their landing cost of goods sold. Whereas in reality this particular account is probably weighted a little bit more heavily to this because I know one of the products on this account, are my Jungle Sticks that are very expensive but the fees are very high.
But my cost of goods sold are actually 8% of my total of all my costs. And again, this is a little bit of an outlier but I think this is like drives home a good point that I'm spending a lot of money on other things. It's not just the cost goods sold. My order fees right away make up over a half for this particular account. Again, that's because… It’s very large oversized product that's very inexpensive to produce. So it's a little bit overly weighted. I'd say on average I'd say this is closer to 30% or 40%. But right away I see my order fees, which are made up of the Amazon's commision which for most categories is 15%
But as we spoke about earlier there's outliers. And then the rest of it is made up of my FBA unit fulfillment fees.
[00:12:06] Greg: So this is the cost to pick, pack and ship my product for me. So I think these are the fees that most people understand and assume. They understand that okay, Amazon charged me this commission and Amazon charges me like $1 to pick my product and $2 to pack it or whatever it is. I can't remember off the top of my head. But these are where those fees are right here. If I got back to all my costs then I'm seeing a bunch of other costs here. Let's click on this one recurring fees.
I think these are the ones that most people don't realize that they're being charged. So the majority for this particular demo account are made up of storage fees and keep in mind that storages fees are both on a short term basis and a long term basis.
So even if your goods are only in Amazon’s warehouse for a few weeks or month, you still get charged a storage fee. It's just not very much. And then during Q4 and during something that they call long term storage fees that happens twice a year that's where they hit you really hard. And actually if we look at this top graph and for those people following just audio, this is just a graph of my overall sales and profit. I can see on two days that there's a huge dip showing that I went into the red badly those days. And those are days that I would incur the long term storage fees.
Like this one day I probably incurred a long terms storage fee of 3,500 bucks because my profit that particular day was negative $3,400. So I see in here my FBA Amazon storage fees, I also see here my long term storage fees and then also one of the nice things about Fetcher it takes into account that Amazon does charge you a monthly fee for using seller central. At least if you have a pro plan and now you have to be on the pro plan.
[00:14:03] Greg: This year I've paid almost 300 bucks in just my seller central fees.
[00:14:08] Scott: That's all calculated in here. So there's a lot of fees in here. I'm just going to read these out really quickly. FBA customer return per unit fee, subscription FBA customer return fee there. We've got FBA customer return weight based fee, FBA storage fee, FBA disposal fee, we've got long term storage fee. That's all in there and that's per product now.
So, like that one there you've clicked on and again if you've listened to this and you're not watching this you basically are just clicking on the product and then it starts to give you the break down on that product and all the different fees. Now, this is all great information Greg but here's my question, “What the heck do I do with it?” This is great, it looks cool, you've got some cool graphs, you guys your team did a great job making these graphs look really great, showing how much money I'm spending. But what do we do with this? And what are some things that I should be looking at that I can maybe control or maybe have a positive effect back into my business?
[00:15:15] Greg: That’s a really good question Scott. How do we use this data and this analytics and how we have to like make decisions about our business to help us like be more successful. Because there's some things like for example like that seller central was at $29 or $39 a month, you can't really control that. If you have to sell on Amazon, you have to pay it. The lowest hanging fruit for customers of Fetcher, what we found is to be thinking about inventory management better so that they can minimize the storage fees. That's the one that really tends to add up. If I were to give you like a list of the ones that are under your control that tend to have the largest impact it's one storage fees.
Two, trying to reduce the amount of returns and refunds that you get. And three it would be PPC and trying to minimize PPC. Of course we can do another webinar on that and like different tools that you can use and ways to add like negative keywords or whatever else. That's not really like Fetcher strong suit. But what we could focus on now is thinking a little bit more about storage fees as well as refunds.
[00:16:28] Scott: I like that and again I think this is a problem for people that are sending direct in to Amazon that are maybe using them as their storage facility or they thought that possibly they're going to sell through 1,000 or 2,000 units and for some reason they didn't. And now they've taken on these fees.
That's where I think your inventory management definitely comes into play or if you have a third party fulfilment center or even just a warehouse where you're sending in. You might order 3,000 or 5,000 units, they might be delivered here or whatever you are or whatever your storage is. And then from there you would disperse those into Amazon to help control by you knowing how much and kind of predicting how much you sell in any given time.
Is there any bits of advice there that I haven't really covered Greg or…?
[00:17:25] Greg: One bit of advice there is to be mindful of the long term storage fee that happens after six months. And it's incurred on twice per year, it's… I forget off top of mind what date that is but just understand though like after six months when one of these two dates per year happens, that's when all of a sudden you get like really big storage fees. So the shorter term storage fees are pretty reasonable. If you try to look at storing other warehouses or whatever else like you'll find like Amazon is pretty reasonable about this.
They give you pretty good storage rates. But when it comes to long term storage fees, that's how they discourage people from storing their goods in Amazon's warehouse for like too long.
Because they don't want like stale inventory sitting around. That's not the idea of their distribution centers. It's like to receive inventory and then like relatively quickly ship it out. So those storage fees are very high and what I would recommend is to be aware of when your goods originally landed at Amazon and they do it on like a first in first out model.
So just make sure like if there's anything like I'd say just make sure that your inventory is not sitting there for over six months because that's when those fees get very high. And oftentimes it's actually often cheaper for people to like give away 70% off coupons or maybe even just disposing off the inventory instead of incurring those particular fees.
So that’s something to be mindful of.
Another little kind of like hacky thing that you can do, Jeff Bezos might not appreciate it if he heard me say this but you can create a new shipment… Let me give you an example here. So I have like 300 units that for whatever reason have been sitting at Amazon for five and a half months now. And I'm about to incur the storage fee of like $2,000 because long term storage fees are very high.
[00:19:25] Greg: What you can actually do is if you create a shipment ahead of time, so like create a shipment into Amazon of those 500 units and then either just do a removal order or take advantage of Amazon a few times a year where they offer free removal orders.
Then you can ship it to your house and you can send it back in and then that date starts over. The important thing or the kind of hacky thing that I'm giving you this hint over right here is if you take advantage of the free removal orders you have to create the shipment in to Amazon before you place the free removal order. Otherwise they don’t let you send it right back in…
[00:20:08] Scott: That is very true. And actually this happened to John Lee Dumas actually. He had his books… I had him on and we talked about it. I think it was his either it was a Freedom Journal… It was the Freedom Journal because he sent like 3,000 units in and when he got them in there he's like, “Wait a minute. I don't want them in there.
I want to put them in my own storage facility.” For whatever reason. He hadn't talked to me yet or whatever. So he just thought it wasn't a good idea. So he pulled them but then thought again about it and he’s like, no I want to send them back in and he ends up trying to and they won't let him.
So he ended up getting them to allow like send him the 500 at a time instead of the 3,000. So it didn’t come back to bite him, it worked out. But I'm just saying, when that happens like you said if you don't create that other order beforehand then you're not going to be able to. So what you're saying is before you do anything, create an order as if you’re sending in 1,000 units or 500 units and go ahead and… Yes, I got you. And then when you get them back in your warehouse or whatever then you just box them back up, send them back in on that order that you've created…
[00:21:17] Greg: Because it was created before you did the free removal order. If you do like a normal paid removal order, that shouldn’t be an issue but if you you take advantage of free removal orders, that's when it happens.
[00:21:27] Scott: Okay, that makes sense. Okay, now if someone wants to… Here's what I'd advise. If you want like understanding like your businesses at this level of like all the different fees and stuff. It's going to be hard to kind of mine through that. I would say this will be a plug for Fetcher by the way but I would go and take advantage of the 30 day trial and I would let Fetcher pull in all your data and take a look at it. Like that's what I'd personally do and if you're interested in doing that Greg does have that 30 day trial. You can find that by going through my affiliate link which is theamazingseller.com/fetcher.
And you'll get that 30 day free trial. And then in this way here you can pull in that data. How long does it usually take to pull it in? I know it's the size of the company and how many products, SKUs and all that stuff but on average what are we talking for a basic business?
[00:22:21] Greg: If you're a small seller, let's say you have one, two, three products it will be done like half a day. If you're a pretty big seller doing over a million or a few million a year then you're probably talking about 24 hours.
[00:22:32] Scott: It's a day or two.
[00:22:36] Greg: That's all limited by how fast Amazon will let us pull data through their API. That's unfortunately why it takes a little while. That's how it's done and you can also just ask for… If you just Fetcher support email@example.com and ask them to give you any tips or if they seen any red flags on your account or anything else, our team is more than happy to help anyone out who is using Fetcher.
[00:22:57] Scott: Yeah cool. That's awesome. I would definitely recommend doing that just because like you should know where the fees are coming from and see if there's something you can control and really to know where your business is at all times. That’s the thing I love about it at all times, it's I'm able to go in there.
The other cool thing I like about it, this was always a pain to me and now I can go in there, I can go in there like right now click on today and it will tell me pretty up to the hour of how many units I've sold on all of the different SKUs versus before it was categories which show you for that day. You'd have to wait till the next day, pull the report at like 10AM and then it would give you the break down of the SKUs.
This is like pulling it in like real time so I can go in there and see that yes I've sold this many of this item, this many of this and I can see what's been selling that day. So I like that because I'm impatient and I don't like to wait for the next day for the reporting to come in. So I really like that. The only thing that I feel that you really have to… And correct me if I'm wrong Greg, but the only thing you have to put in as far as input as far as like the Amazon side of things… Because you do so much more with Fetcher too and I've learned that where you can actually put in other expenses, recurring expenses, all that stuff.
But really, to get like my Amazon stuff kind of going, I just have to plug in my cost of goods and like what it costs to ship them into Amazon. Then after that it will kind of calculate that.
[00:24:18] Greg: Yeah, that's exactly right. So if you guys watching video you can see my screen now, you can see I can click a little drop down here and it shows me… I'm sorry. I'm on the expenses page… All I have to do is input whatever cost for me to land these units at Amazon into the US. After doing that then it can accurately calculate all your expenses. If you like to go into a little bit more detail than that like Scott said you can enter other expenses so and this particular demo account I think we have a few things like other software subscriptions and photography and as an example, like a salary of an employee.
Different things like that. So you can put in those types of items in here as well but any expenses or revenue that are incurred through Amazon it automatically pulls all that in. So like if you use Amazon reshipping services to ship from like your house into Amazon, those are automatically calculated. Your PPC costs are automatically downloaded. So anything that we can automatically get we of course do. But yeah, things like how much it costs you to purchase an item from the factory unfortunately we don't know that much, we input it.
[00:25:30] Scott: The other thing you have also there like you said you have your pay-per-click that's being pulled in. You have your shipping going in… Also, the coupons. So if you have any discounts or anything like that you'll also see that in there as well. So this way it's not figured in as your profit. It's not going to be off because you ran a promotion and yet it showed it as revenue but yeah it didn't take it off.
[00:26:07] Greg: Yeah, that's one of the frustrating things about seller central. Like if you have a whole bunch of units sold with a coupon it shows you like revenue before the coupon on your little dashboard and whatever else. Whereas Fetcher automatically pulls that in and shows you actual revenue.
[00:26:22] Scott: I think that’s important because you look at the top line you’re like, wow look at what I did and then you’re like wait a minute here. I did a 50% off coupon and it’s not really calculating that so cool. Again, if you guys are listening to this, you're not seeing the screen I will drop this in the show notes. So this will be on YouTube as well. So you guys can actually see what we're doing here as far as with the Fetcher tool and the software.
The thing that I like about it is it's so clean. The dashboard is super clean, super easy to input your different numbers. You can punch out a P&L statement. Again, you can take a product and you can add the cost of goods and then you can go back to when it first launched so you can go back in time or you can do it at that time because it changed. Maybe you got a better rate so now it's going to start calculating at the new rate. There's all of these cool things you can plug in but it's super, super easy and you're not able to see this right now if you're listening but if you're watching you are.
But you can see here, it says profit $14,359.38. It tells you your profit right at the top because that’s kind of what we all want to know and it gives you that and you can select the date range that you want to see that for. The other cool thing is, and I think this is definitely worth mentioning and then we can wrap up is you can connect multiple accounts. So the cool thing is with a click of a of a button and you can just click on whether you’re going to show Uk. So if you're selling in the UK you just go ahead and title that and then it's going to show you what it is in the UK.
You can also do multiple sellers’ accounts. So this way here if I wanted to pull in, maybe I have two brands. Well, I can just go ahead a click a toggle and then boom, I'm automatically going to be into the other brand. So I can see exactly what it is and I can see everything under one application versus me having to log out, log back in and do all of that stuff which is pretty cool.
[00:28:09] Scott: And it makes it a lot easier. Anything else you want to add Greg before we wrap up?
[00:28:15] Greg: I think a question that we commonly get is about the refunds. So Amazon's Seller Central doesn't give a lot of transparency into kind of like what your refund rates are, what's expected. They at least just kind of make it difficult to do whereas Fetcher shows you and compares your products about what their return rate is of this product versus that one. People always want to know like is this good? Like am I within like an appropriate range or whatever else. And just like a general rule of thumb, if you're selling a very simple product…
So like on here we have bamboo marshmellow sticks as well as hooded baby towels then a refund rate that I would say is average is like 2% to 4%. The Jungle Sticks on here only have 1.3% but I'd say that that's pretty rare. 2% to 4% is probably average for a simple product like that. Something that's a little bit more complex is more likely to break the return rate would typically see a more like a 3% to 5% or 6%. And then once you get up to like 8% or 10% I'd say that's kind of like the dangerous territory. That's when Amazon starts to suppress your listings and that's when you really need to be thinking about doing better quality control at the factory or figuring out why people are returning those.
Often times people are just returning because you didn't make it clear in your description like what models that supported or how to put it together or often times there's little things like that that you can do to help improve your refund rates just because the customers were expecting something and they received something different. So that's just a little extra bit of information there for everyone.
[00:29:54] Scott: And that's really good advice. I've seen them as low as 4% and their listing gets suppressed. Now, I've also heard that when that happens a lot of times you just go ahead and you acknowledge it, you basically just relist it and you’re good to go. And you can do that a few times. But then eventually it can catch up to you and then that listing will have to be proven that you've either pulled the inventory or that you are, or what's your plan of action that you are going to be able to take care of it. And remember if you have this listing and it's doing $20,000 a month, that kind of hurts.
So you want to keep an eye of that stuff and this is a great way to see really at a glance if you have a high refund rate. You want to keep good eye on that for sure. Because that's one thing I've seen the listings get suppressed and then from there they also get a maybe paused for 30 days which could be devastating to a business that's relying on one or two sku's.
So guys, I'd recommend definitely doing your own little audit or download the app or sign up for the app theamazingseller.com/fetcher. Basically you're going to be asked to link up your account through the API. It's going to then start pulling in your data and give it about 24 hours and then from there you're going to be able to see all of these different fees and kind of see the help of your brand. Then from there if you have any questions like Greg said, reach out to fetcher's support and then this way here, you can get some clarifications on things that might not be making sense.
This way here you can really fine tune your numbers. I mean by doing some of the stuff you can increase your profit by 2%, 4%, even 5% or more. It's worth looking at numbers even though it's non-sexy. It's definitely something you can add to your bottom line and you want to definitely make sure that you do that. The other thing is you want to make sure that you have this stuff in line. So this way here your accountant loves you because when you split this stuff out, they’re going to know that everything is accounted for.
[00:31:55] Scott: It's done through a tool that's dedicated and devoted from this type of accounting which I think they're going to really appreciate. And the other thing is if you ever wanted to sell your business you'd have a good track record to show them and some history inside of an account that's been kind of monitoring this. So anything else you want to add Greg before we wrap up?
[00:32:14] Greg: Just kind of emphasize the last part you said. I know liek Empire Flippers or FE International they actually like almost force their clients like before they go on to sell their business to sign up for Fetcher so they can have all this data to show like a buyer. So you're totally right. It's really nice to have all this in one spot. It has a P&L statement that you can print off and give it to your accountant. So it’s just really valuable to have and to like fully really understand your Amazon business if you're a seller. So that's about it.
[00:32:41] Scott: Cool, awesome. Hey man, thank you so much again for taking some time out of your day and it's always nice and cool chatting about this stuff even though this is like a non sexy one, it's not like how to rank for the keywords. That's a fun one. But I really appreciate you taking some time out and really hopefully that people will take us up on that audit. This way here they can see the help of their business and if you’re using Fetcher right now and you're not looking at these numbers look at the numbers. Like just look at the numbers. They're there to give you the insights. So this way here you can make those adjustments. So Greg, I want to thank you again. I will be seeing you soon.
We've got a lot of cool stuff planned, you and I. So it's going to be a lot of fun here. Coming up in 2018 and 2019. I just announced Greg the Brand Accelerator Live is happening and I think Greg might be speaking at that. So it's official. So we got a lot of cool things planned. So guys, go check it out theamazingseller.com/fetcher. Sign up for that 30 day free trial. If you have any questions, you can contact Fetcher as well and they will help you out with your account. So Greg, thanks again bro. I appreciate it.
[00:33:49] Greg: Thanks for having me on Scott. Take care. Bye.
[00:33:51] Scott: All right. So there you have it. Another great episode with my good friend Greg Mercer, always dropping some value bombs and really, seriously think about those fees or some of the things you can control if you just knew that they were happening behind the scenes inside of your Amazon account. Definitely, definitely check out that 30 day free trial and actually get on the call with someone to really go over your account. Because I'm telling you right now, it could be thousands of dollars if you can catch that stuff early or at least prevent it in the future.
So check that out. Head over to theamazingseller.com/fetcher. That is my affiliate link. You will buy me a cup of coffee but I'd appreciate that and yeah you can go over there and start looking at those numbers and literally in just a day or two you'll probably have a lot of that data back. Which is a lot of times eye opening as well. So definitely go grab that, theamazingseller.com/fetcher.
All right guys. That is going to wrap up this episode. The show notes can be found at theamazingseller.com/569 and then also go over and grab your ticket for brand accelerator live which is going to be in September of 2019. Go grab your early bird ticket or if you're showing up late to the party, well go over there and see if there's any tickets still available. I'd love to have you. Brandacceleratorlive.com or theamazingseller.com/live. All right guys. That's it. That's going to wrap it up.
Remember as always, I'm here for you, I believe in you and I'm rooting for you. But you have to, you have to… Come on say it with me, say it loud, say it proud, “Take action.” Have an awesome, amazing day and I’ll see you right back here on the next episode.
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