Insurance Xpress

Amazon’s retail market share is nearing the top spot as recent reports have been suggesting. While interesting developments keep occurring with Amazon being the epicentre, a lot of online merchants may wonder, what do these events and landmarks have to do with running a product list on Amazon and earning revenue? What retailers need to understand is that a lot of Amazon’s retail success is significantly contributed to by sellers whose products are making a difference and attracting visitors. Making the optimal use of the Amazon retail platform is a win-win situation for both Amazon and merchants using it.

The real focus for an Amazon seller should be to rise up to the elite. It without any doubt is a challenging task, but humanity having surpassed far more herculean challenges, making an Amazon store pay you more is not impossible. There is all the assistance a store owner would need in form of VAs, product listing management and other expert services. Here are some fundamentals that assure you improved performance on Amazon.

An optimized listing

Effective communication requires a solid understanding of all the parties involved and proper use of the medium. This example holds good for selling on Amazon, as a seller you are constantly in an effort to communicate with visitors to buy your products. You will need to use all of your media properly to convince your audience to be its product descriptions, images, bullet points and everything else you use to educate the user about your sales items.
If your listing follows a productive targeting approach that involves the use of persuasive copywriting, easily searchable titles, proper keyword placement, and concise bullet points, you are well on course to attract more customers.

Getting the pricing right

If you are a new seller, having the right idea of the prices in your particular market is a must know in order to sell better on Amazon. For every regional Amazon market, the credibility of pricing makes a huge difference when it comes to generating traffic. Also, feasible prices can make your products rank higher than other ones in search results. The one particular thing that really defines any pricing strategy is moderation especially if you are new to the retail business, your pricing doesn’t have to way too expensive and neither too less to the extent of diminishing your profits. To stay afloat your prices in addition to profit must cover your Amazon fees as well, without being labelled as “overpriced” or “unreasonable”. Even if your profit margins are initially lesser, gradually without being abrupt you can increase it little by little.

Using PPC when required

If your store is receiving traffic from visitors with high buyer intent, you can give yourself a good chance to convert them into purchasers with the help of Amazon PPC. Amazon’s advertising makes it an easy task to target customers over different channels with a variety of ad group schemes to help you with multiple options to run your product campaigns.

Like food, books, and toiletries, skincare products are everyday essentials which many people, especially women, prefer to buy online than in-store.

Nowadays it’s rare to find a girl who can survive a day without a lipstick, moisturizer, and whatnot. Now now, this is not to suggest that women are increasingly becoming insecure or aren’t happy in their own skin.

That’s simply an observation of the skincare market which is expected to hit US$180 globally in six years.

Having said that, there’s no better time than now for online sellers of beauty products to put their goods in the forefront of a platform which will gain them more traction.

If you’re that seller, then I’m pretty sure that you showcase your skincare products in your own online beauty shop or on marketplaces or both.

However, the question is: how are your sales?

There may be a strong demand for what your business offers, but if it’s not out there for the beauty market to consume, your chances of making a sale are slimmer than slim.

Take advantage of a platform the world knows; choose the go-to place for reputable brands.

Yes, Amazon and eBay may be giant retailers, but they offer a wide range of categories, making your product a bit difficult, if not impossible, to be seen.

Consider something like Zalando as their proposition is aligned with yours.

Beauty is the core of business

After four long years, Zalando rolled out a beauty category that pushed their revenues for the first quarter of 2018 by as much as 22% to €1.2 billion, or £1.05 billion in pound sterling.

Despite the challenging market environment, they’ve managed to achieve that thanks to the growing demand for beauty products.

More than 4,000 products from 130 skincare and makeup brands are available on the new category to complement high fashion wear.

Aside from big brands, Zalando are working towards getting niche brands that haven’t established their online presence in Europe yet.

If that sounds like you, then you’ve found yourself the perfect channel to grow your customer base. Why, the fashion retailer’s active customers have increased to 23.9 million from 3.5 million last year.

Zalando Co-CEO Rubin Ritter said their beauty category will position them as a one-stop destination for fashion and lifestyle, adding:

“We see Beauty as a really big opportunity long-term in different dimensions. First of all, as a revenue opportunity, there is an €80 billion total Beauty market in Europe.

“Secondly, we see this as a really smart cross-sell opportunity. And then thirdly, we see it as an opportunity to engage our customers even more, so to create more and more reasons for customers to come out to our site more frequently and also to shop more frequently, as you know that has been a strategic priority for us over the last years as well.”

Majority of Zalando’s customers shop with their mobile devices, as reflected in their mobile visit share which jumped 76.6%.

Get started now

Unlike other marketplaces that sell multitudes of products under various categories and subcategories, this one we’re talking about is exclusive to fashion items.

If you have great products that fall under clothing, shoes, sportswear, or accessories, Zalando is the perfect place to sell them.

However, you must offer free delivery and returns, a 100-day returns policy, and shipping with Hermes.

Most important of all, you must have your own online store, which I presume you already have, otherwise you won’t be eligible to sell your products.

What you offer defines the style and character of every woman, so it shouldn’t be placed everywhere but on a supplemental platform that guarantees you a generous slice of the beauty market.

This startling figure comes from a recent review of the financial advice offered from the big four banks by the Australian Securities and Investment Commission (ASIC).

Even more startling: 10% of advice was found to leave investors in an even worse financial position.

Through a “vertically integrated business model”, Commonwealth Bank, National Australia Bank, Westpac, ANZ and AMP offer ‘in house’ financial advice, and collectively, control more than half of Australia’s financial planners.

It’s no surprise ASIC’s review found advisers at these banks favoured financial products that connected to their parent company, with 68% of client’s funds invested in ‘in house’ products as oppose to external products that may have been on the firms list.

Why the banks integrated financial advice model is flawed

It’s hard to believe the banks can keep a straight face and say they can abide by the duty for advisers to act absolutely in the best interests of a client.

Under the integrated financial advice model, there are layers of different fees including adviser fees, platform fees and investment management fees adding up to 2.5-3.5%

The typical breakdown of fees is usually as follows: an adviser charge of 0.8% to 1.1%, a platform fee of between 0.4% and 0.8%, and a managed fund fee of between 0.7% and 2.1%. These fees are not only opaque, but are sufficiently high to limit the ability of the client to quickly earn real rates of return.

Layers of fees placed into the business model used by the banks means there is not necessarily an incentive for the financial advice arm to make a profit, because the profits can be made in the upstream parts of the supply chain through the banks promoting their own products.

This business model, however, is flawed, and cannot survive in a world where people are demanding greater accountability for their investments, increased transparency in relation to fees and increased control over their investments.

It is noteworthy that the truly independent financial advisory firms in Australia that offer separately managed accounts have done everything in their power to avoid using managed funds and keep fee’s competitive.

The banks have refused to admit their integrated approach to advice is fatally flawed. When the Australian Financial Review approached the Financial Services Council (FSC), a peak body that represents the ‘for-profit’ wealth managers, for a defence if the layered fee arrangements, a spokesman said no generalisations could be made.

There are fundamental flaws in the advice model, and it will be interesting to see what the upcoming royal commission into banking will do to change some of the contentious issues surround integrated financial advice.

Many financial commentators are calling for a separation of financial advice attached to banks, with obvious bias and failure to meet the best interests of clients becoming more apparent.

Chris Brycki, CEO of Stockspot, says “investors should receive fair and unbiased financial advice from experts who will act in the best interests of their client. What Australians currently get is product pushing from salespeople who are paid by the banks.”

Brycki is calling for structural reform to fix the problems caused by the dominant market power of the banks to ensure that consumers are protected, advisers are better educated and incentives are aligned.

Throughout, history, we have experienced, a variety of economic conditions, and circumstances, including, recession, inflation, and somewhere, in – between! For a few years, we experienced, very – low inflation, largely, caused by a variety of conditions, world – wide, and largely, disrupted – by, the ramifications, and impacts, created and caused, by this horrific pandemic! Currently, we seem to be experiencing, a serious amount of inflation, created, by many factors, including, but, not, limited – to: post – pandemic ramifications; Supply and Demand issues, caused, to a large – degree, by, supply – chain, issues; maintaining, unrealistically – low, prolonged period of near – record – low, interest rates, etc. With, that in mind, this article will attempt to, briefly, examine, consider, review, and discuss, 6 potential dangers, from prolonged periods of inflation, and why, it is important to know, and understand, options and alternatives, to attempt to choose, the best – path – forward!

1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!

2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?

3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!

4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!

5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!

6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!

Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!