Trump Tariffs, Q4 Price Dumping and PPC Report Discrepancies


Michael Hartman is with us on Trump Tariffs

  • Someone in the Captive team was moving Michael’s products into stranded on the last episode

Trump Tariffs

  • At 10% starting the 24th and going upto 25% at the end of the year
  • Sellers looking to decide whether to push prices up now or raise prices
  • Many waiting to see what the Chinese Sellers are going to do

Profit versus Demand

  • Profit margins will drop but hope demand in Q4 makes up for it
  • Make the same or more profit if you sell more units
  • If you have US manufacturers (like supplements) then you should be okay
  • Michael has scrapped some new products because of the tariffs

Chinese Seller Strategies

  • Billions pumped into the Chinese economy anyway
  • Grandfathered themselves in at low prices
  • Trump Tariffs are coming too
  • Will they take a hit on tariffs and low prices to obliterate the market?
  • Chinese looking ready to price dump across all industries to grab market share
  • Big name brands to private label to gain market at a loss
  • Once they have the market share they will jack prices back up
  • Seen them lose $5 per unit for 2 years to grab a market

Inventory on Q4 – Key Dates

  • Sending in on velocity
  • Managing a few thousand SKUs
  • For newer accounts we’re X4 ion velocity n trying to get in by the end of October
  • Anything left over we will move by end of the year to avoid long term storage fees
  • Monitoring and price adjustments as needed
  • Target safe date is mid-end October for 75% in and other 25% will be 25%
  • US Deadline is roughly Nov 5th for Black Friday and Cyber Monday inventory in (go end of October for safety)
  • Christmas is 5th Dec but add a margin
  • Nov 22nd Thanksgiving
  • The 23rd Nov is Black Friday (10X normal sales – consider for Inventory planning)
  • Nov 26th Cyber Monday
  • Dec 21st Christmas last Post

Reporting Discrepancies with PPC

  • Advertising and Search Term report discrepancy of 5-10% across all on spend and sales
  • Very hard to judge the data
  • Checking API for discrepancies
  • For agencies working on performance this is a big issue
  • The interface is probably the most incorrect
  • Go off the Search Term report and go off clicks there
  • The recent Amazon change has been more aggressive for giving credits for fraudulent clicks
  • This might be the reason for the skew
  • Always go back one month after you’ve pulled one report and check it again – it’s more even around 2-5%
  • Go raise a support ticket to get this ironed out

Returns Change Policy from Amazon

  • New policy for Returns
  • Customer can automatically order a replacement directly from the return tab without you getting charged anything and they have to ship back the original that is defective
  • So Michael’s email sequence now informs customers that if they’re not happy or defective item they can return it directly from that tab
  • Saves a lot of email messaging and some money across the accounts

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