80/20 of Ecom 5/26/23 - SellerX acquires rival Elevate Brands, How Amazon helped small businesses in 22, Amazon vs Shopify, AI & ChatGPT Hacks Webinar

Hey All!

As summer’s approaching, we have some exciting news to share, along with updates – SellerX acquires US e-commerce roll-up rival Elevate Brands in an equity buyout. Can we expect consolidations? Coming up.?

When talking about Amazon, we have a true battle in Amazon vs Shopify – which platform is more profitable for sellers. More on that later on.

Aside from that, we have some things to share with you.

First, we encourage you to take part in next week’s webinar about AI and ChatGPT Hacks – the first ever organized in such a manner that?we’re sure everyone will find useful.

And a reminder to take a look back at Yunige’s webinar and get all the answers to questions that might have bothered you about Japan as an Amazon marketplace.

This is the 80/20 of Ecom for June 2, 2023.

A true e-commerce showdown: SellerX acquires rival Elevate Brands

After consolidating smaller businesses over the years, e-commerce aggregators have now moved on to each other. The latest news shows SellerX, an industry giant based in Berlin, acquiring Elevate Brands, based in NYC and Austin.

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The value of the deal was not disclosed to the public, but what we do know is that it’s an all-share deal. It will also include a brand-new investment of $64 million in the merged entity from current SellerX investors. Those include Sofina in the lead, L Catterton, Felix Capital, Cherry Ventures, Upper90, 83North, and TRCM Fund, with BlackRock and Victory Park Capital.

The consolidated company will gain the name SellerX Group and will carry 80 Amazon-native brands and $426 million in annual sales. The deal will close at the end of June.

Besides SellerX's technology platform, supply chain infrastructure, proprietary warehouse operations, and internationalization capabilities, Elevate Brands will bring its experience in turning marketplace-native products marketplace-native products into consumer brands sold across multiple channels.

The two seem like a perfect match, further confirmed by SellerX’s current and future CEO, Philipp Triebel. His co-founder, Malte Horeyseck, will also join him at the table, while Elevate’s partners Ryan Gnesin, Jeremy Bell, and Robert Bell will act, respectively, as president, head of M&A, and head of global business development.

Amazon’s 2022 Small Business Empowerment Report - What to know

If you’re still wondering whether Amazon is the best place to start your small business, this will definitely prove it.

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More than 60% of Amazon listings come from independent sellers, mostly medium-small businesses. Amazon delivered its report, which you can view yourself, to showcase the powerful bond between small/medium businesses and Amazon.

If you need a little boost, here are the key takeaways:

  • Independent sellers generated more than 4.1 billion products in 2022, averaging 7,800 a minute.
  • Independent sellers from rural US areas experienced a 40% growth in sales.
  • Independent sellers on Amazon accounted for over 1.5 million jobs in the US.
  • In Amazon’s stores, brand owners increased sales by over 20% year-over-year.
  • The five most shopped categories on Amazon are:

  1. Health & Personal Care
  2. Home
  3. Beauty
  4. Grocery
  5. Apparel?

Amazon supports entrepreneurs through an ever-evolving set of tools and resources estimated at billions of dollars to help them grow their small businesses and build their brands. So, a report like this is not surprising at all.

Amazon vs Shopify - Which one is more profitable for sellers

Many sellers are left stunned by the latest Amazon take rate surpassing 50%, leaving them wondering about the profitability of selling on the platform.

But how does that compare to running your own store on Shopify?

Interestingly, it doesn’t really. Running an Amazon listing, even with the +50% take rate, is better for your finances than running your own D2C site.

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Chad Rubin, a business owner, compared his Amazon listing and Shopify storefront for filter replacement parts and noted that the profit from selling on the former is 23% while the latter brings a mere 3% (for the top-selling product).?

Additionally, the ACOS for Amazon is only 20% compared to Shopify’s 45%, while the ROAS is 2x on the former and 5x on the latter. That’s because Amazon has a unified shopping experience with shipping, customer service, reviews, and, of course, inherent trust.

So, what does that mean?

  • Only 50% of Amazon brands' revenues are paid, meaning 50% of traffic is completely free.
  • That way, your Amazon economic fee stack goes down, and your Amazon profits go up.
  • Yet, to rank #1 on Google, you’ll need to spend tons on SEO backlinks and content without a guarantee of converting the traffic. Same with Shopify.

AI and ChatGPT Hacks Live Webinar 6/8/2023 - 9 PM EST

The next 7 Figure Seller Summit webinar will open the doors to all kinds of ChatGPT and AI hacks, tips, and tricks that will prove beneficial to your Amazon business.

We’ve gathered speakers from all over the globe to let you in on their secrets to running a successful Amazon listing. They will gladly provide every AI and ChatGPT-related hack that helps them maintain their listing and keeps it at the top of Amazon searches.

The webinar will take place on June 8, 2023, at 9 PM EST.

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We will share the join link as soon as we get the full list of attendees.

If you’re interested in joining this webinar, you’ll be glad to hear there’s more to look forward to!

You will not only get the chance to hear some mind-blowing AI and ChatGPT hacks that will help boost your sales, but you can also vote for your favorite hack. And there will be an Instagram game targeted toward the audience that might land a $50/$100 Amazon gift card into your hands if you tag a friend and RSVP to the event.

Don’t miss out on the chance to participate in this interactive webinar and learn something useful and new in AI and ChatGPT worlds that will boost your Amazon listing.

Reserve your spot today RSVP here.

REPLAY: Yunige’s webinar – How to ship and sell into Amazon Japan

In the odd chance you missed joining Yunige’s webinar last week on shipping and selling into Amazon Japan, we have good news – you can replay it!

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Yunige’s Mr. Inoure Toshitaka talked about cracking the code and importing into Japan and answered many important questions, including:

  1. Shipping to Japan: How can we navigate the customs clearance process when shipping to Japan?
  2. Warehousing Fees: Is it true that there are no warehousing fees during the first month for all items stored in the warehouse, as long as we use IOR (Importer of Record)?
  3. Item Care: Will the company take care of our items until they are sold, as long as we use their services?
  4. Cosmetics: What procedures should be followed for checking expiration dates and lot items in cosmetics? Are there specific inspections for cosmetic products, particularly for checking bottles?

If you still want to get answers to these and many other questions, we encourage you to replay the webinar and pay attention to what a businessman with 10+ years of experience in importing and exporting in Japan had to say.

Watch the full video here.

[Chapters]

00:00 ? Introduction

02:00 ? Meet our speaker, Inoue Toshitaka from Yunige

04:45 ? Why is it so important to pay attention to shipping in Japan

especially for Amazon Sellers?

06:20 ? What’s the first step sellers in Japan should take in terms of importing in Japan?

08:25 ? What’s the most sensitive product category from the Japan customs?

09:40 ? Can Yunige help with food registration, for example manuka honey?

11:20 ? Best way to contact Yunige

12:10 ? I plan to sell elder care which are pain reliever products, what certifications are required?

15:25 ? For food related items, what certification is needed to import in Japan?

17:55 ? How much does the testing cost and who do we contact?

19:20 ? Overview of custom duties. How long does shipping normally take?

23:00 ? Are there duty free countries that you can import to Japan?

26:35 ? Can we get a list of countries that are duty free?

28:10 ? Overcharge duties - suggestions or strategies to reduce duties when entering Japan?

29:15 ? Should a seller get 100% into Amazon’s FBA warehouse in Japan or 3PL?

34:40 ? Where can we get the price listing of Yunige’s services?

35:35 ? What are Japan's import regulations on wooden products, any pitfalls to look out for?

37:40 ? Product returns in Japan

39:45 ? Advantage of using 3PL

42:50 ? Can I send cosmetic samples for giveaways in Japan without registration?

45:10 ? Do I need special registration for pet food that can be eaten by humans?

47:35 ? What are the requirements for Japan packaging?

51:50 ? Special offer from Yunige - 50% off their services

54:10 ? Are there any alternative softwares and reliable methods for pulling competitors' sales data and use for forecasting?

57:15 ? Parting words from Inoue Toshitaka and number one recommendation

59:15 Closing


?? Fill out the sign up form: https://service.yunige.info/7figure

?????? Get 50% off service fee (Excludes freight costs and import taxes)


In case you missed it:

Stay tuned until next week!


All the best,?

Gary

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