How 3 HUGE mistakes led to a disastrous Q4. Avoid this if you're a new seller like me.
THREAD ๐๐งต๐
THREAD ๐๐งต๐
1. Understand if you're truly ready for a prep center
My prep center had a monthly min unit amount of 500 for a rate of $1.05/unit.
After losing two of my highest volume ASINs due to price tanking I wasnt able to meet the 500 unit minimum, increasing my prep costs to $3/unit.
My prep center had a monthly min unit amount of 500 for a rate of $1.05/unit.
After losing two of my highest volume ASINs due to price tanking I wasnt able to meet the 500 unit minimum, increasing my prep costs to $3/unit.
2. Lost inventory
Almost all shipments out of this prep center went to CLT2. In Oct leading up to Q4 I ran into a lost inventory rate of 31% for ALL units shipped to this fulfilment center.
This completely screwed new ASIN testing for Black Friday repurchase and held up cash.
Almost all shipments out of this prep center went to CLT2. In Oct leading up to Q4 I ran into a lost inventory rate of 31% for ALL units shipped to this fulfilment center.
This completely screwed new ASIN testing for Black Friday repurchase and held up cash.
3. Higher prep costs, lost inventory and little payouts led to AMEX frozen
With the combination of everything above my Amex Plum card was lock until completely payed off. This happened in the beginning of November before the best buying period of the year.
With the combination of everything above my Amex Plum card was lock until completely payed off. This happened in the beginning of November before the best buying period of the year.
Almost 3 months later, we're finally back and starting to move forward. This was a big lesson learned as someone very new to FBA and I hope it can help other new sellers.
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