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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
