Ultimately, a business’s existence is predicated on its ability to generate revenues with net profits worthy of the risks taken and hard work. Naturally, the goal of every online marketplace seller is to have a store selling thousands of daily orders and generating tens of millions in annual revenues while operating in a way that allows sustained growth with controlled expenses; a store with flawless order processing and impeccable ratings; happy customers, negligible cancellations or mismatches, and no late shipping or delivery.
With nearly $60b in revenues shared among the online marketplace sellers in 2015, it is a safe bet that most all sellers share at the minimum such goals and many aim even higher. For every year of the next decade, e-commerce growth is projected to hit double digits, making these objective seem tantalizingly obtainable.
Suspension and Termination
Aspirations aside, the road to becoming a wildly-successful seller on any online marketplace, like any other path to great rewards, is rife with obstacles that can slow, reverse, or even completely destroy your efforts to reach greatness. Too many once-promising sellers are littered on the side of this treacherous trail, having fallen victim to store suspension, shutdown or buy-box ineligibility due to honest mistakes that caused low customer metrics or other policy violations.
E-commerce’s fast growth coupled with consumers’ growing expectations creates a marketplace reality that is in complete contrast to most sellers’ abilities to meet their goals. As nice as it would be, no drop-shipping provider is perfect, just as no marketplace listing provider is perfect. You will inevitably experience issues where products are incorrectly-listed or mislabeled, vendors ship an item late or ship the incorrect item, or customer expectations are not in line with the reality of the product being sold or their online purchasing experience. The marketplaces, via strict compliance and regulations, demand that sellers perform on a level approaching perfection, even though living with these hiccups is part of marketplace life. How you handle them can make or break your push to become one of the top sellers.
In order to pass unscathed through these difficult trials, the prepared seller must be able to maintain a high order volume while properly-managing their customers’ experience and their product fulfillment pipeline. Stock outages, invalid SKU matches, return policies, late shipments or deliveries, and unchallenged negative customer reviews or chargebacks all conspire to impede forward progress and as one study shows, over 82% of sellers experience buy-box eligibility removals. A further 61% get their store suspended at some point, and 24% get shut down on the Amazon marketplace.
Fortunately, there is a way to boost order volume while also improving and maintaining customer and order metrics. To do this, a paradigm shift from the traditional model of e-commerce transaction execution is needed. Simply put, marketplace transactions can’t be treated in the same traditional manner as e-commerce or brick & mortar ones. Correlation of events throughout the lifecycle of each transaction (order) in the context of the marketplace’s performance requirements and customer satisfaction rate is a must in order to accurately assess downstream impacts and mitigate or proactively address them. Store activity and execution paths are dynamically adjusted in order to avoid further negative impacts when issues inevitably arise from selling dropshipped items on an online marketplace. The multitude of factors that need to be considered when fulfilling every single order range from current and projected order volume through to number of current customer feedback reviews.
Business Activity Management [BAM] is the only available technology platform to dynamically and proactively address these issues and mitigate their risks in real-time. MPLogix through its BAM platform OmniBridge, is the only provider of BAM driven marketplace solutions. Utilizing BAM, MPLogix examines hundreds of events associated with a marketplace transaction and dozens of individual and constantly-changing factors in order to both reduce future defective orders and to determine the best way to handle those defective orders that do occur.
Prior item sales, current store order volume, all customer metrics, vendor order history, related defective order cases both past and present, and individual customer order history are just a few of the factors used to power this smart system designed to both protect and react as needed.
Software satisfaction rate
Sellers Biggest Concerns Selling On Amazon
Amazon’s strict seller policies and its enforcement of the same are a major concern for nearly all Amazon sellers small and large alike. The uncertainty about store viability and the potentially devastating results of fiscal damages caused by both suspensions and buy-box eligibility removals prohibits many sellers from assuming the risks of scaling their Amazon store.
“The Amazon metrics are on the verge of becoming ridiculous, there is no room for error or a simple mistake. Amazon isn’t transparent with sellers about details of suspensions and reactivation is a very painful process. Amazon non-stop policy changes made with little notice and many times lead to returns abuse by buyers.” – Web Retailer [April 2016]
At the same time, over 38.8% of sellers that are using software to proactively manage their marketplace stores are unsatisfied with their store management software!