FBA Fee Changes Aftermath - How Can Brands Utilize Amazon Programs to Recover Profit Margins with Armin Alispahic - Episode 333

Ecommerce Braintrust

In this episode, Julie Spear, Head of Retail Marketplaces Services at Acadia, and guest Armin Alispahic, Retail Team Lead at Acadia. Julie and Armin dive into the tidal shifts occurring within Amazon operations and fulfillment and how these changes are impacting the 3P model. They explore the complexities of Amazon's fee changes in 2024, the challenges brands currently face, and the strategies they can adopt to effectively navigate this landscape.

Armin is a Retail Team Lead at Acadia. He's been at the company for almost 7 years. Internally he’s known as Armin.com for his encyclopedic knowledge of Amazon. Over the years, he has gained great experience in working directly with Amazon representatives to support brands in scaling up on Amazon and achieving their goals.

In this episode, Julie and Armin discuss:

• Amazon's implementation of new fees and the complexities surrounding these changes.

• The introduction of specific new fees, such as the low level inventory fee and the returns processing fee, and their implications for brands.

• The discussion on the importance of a proactive and strategic response to Amazon’s evolving fee structure.

• The potential opportunities and challenges faced when enrolling in programs like Sip (Ships in Product Packaging) and FBA New Selection.

• How Sip can offer brands cost savings and branding opportunities, with caveats regarding package safety and giftability.

• Why all brand-registered sellers should consider FBA New Selection for launching new products with fee waivers.

• Insights into Amazon's AWD program, its potential cost savings, the concerns regarding the control over inventory, and the impact on sales velocity.

• The necessity of an omnichannel strategy and diversifying sales channels in light of Amazon’s shifting ecosystem.

• The expanding opportunities for brands in retail media networks and on other retailer platforms like Walmart and Target.