Amazon Marketplaces (3P)
Our full-service approach for eCommerce brands ensures the right strategy and action management to deliver optimal results on Amazon and other marketplaces
- Grow Online Sales
- Drive Sustainable Profitability
- Gain Competitive Advantage
- Improve Customer Journeys
- Hit New Markets
Selling on Amazon can be challenging, even for the most established Brands with long standing relationships with Amazon. Luzern helps Brands navigate the complexities, from the fundamentals to the development and roll out of complex route-to-market and Hybrid Amazon sales programs. We are the Amazon experts, with proven technology to dramatically grow online revenues for big brands across the globe.
How We Help Brands Overcome Marketplace Challenges:
- Manage Price Points
- Tackle Squeezed Margins
- Manage Uncontrolled Sellers
- Margin Optimization
- Track & Beat Competition
- Avoid CRaP (Can’t Realize a Profit)
- Internationalization strategy
- Global FBA (Fulfilled by Amazon)
- Multi-Currency Checkouts
- SKU Control
- Ensure Product Availability
- Avoid List Suppression
Content That Converts
- Product Listings
- Localized Content
- SEO / PPC
- Optimize Performance
- Improve Bottom of Funnel Tactics
- ACoS (Advertising Cost of Sale)
Manage price points and sell at the price that fits your pricing strategy.
Tackle Squeezed Margins
Many Brands are finding themselves under extraordinary margin pressure when selling to Amazon directly (1P), which is generally triggered by the price war to win the buy box.
Amazon will, of course, seek to maximize their margins and push what is selling best. They then make it clear to the Brands that they need better prices or they will stop ordering some or all of the products. This can equate to millions in lost revenue if the “demands” aren’t met. If you sell direct to Amazon via the 1P program, Amazon acts as a retailer and can implement price adjustments independently.
However, With Luzern as your vendor via the 3P Hybrid model, Brands have price autonomy over their products. Luzern facilitates independent price changes to suit your strategy when it comes to pricing. The Hybrid Model delivers flexibility and gives more control back to the Brand.
Pricing that fits with your strategy
With the Luzern platform you can monitor your portfolio of products based on your RRP as follows:
- Measurement and ranking of products based on the discount distance (gap) to RRP on Buy box price available to shopper
- Pricing comparisons across Amazon geographic regions that you sell in
- Ability to drill down at a seller level to see which seller(s) are impacting pricing
- View price change frequency and magnitude over time - which sellers, Buy box % etc.
Manage Uncontrolled Sellers
Identify exactly who is dropping the market price on product lines in your category.
Luzern monitors sales data in real time giving you the data intelligence on important metrics, such as the Conversion Rate.
If you have MAP (minimum advertised pricing) violations Luzern can identify the rogue seller to provide details to reach out and prevent such violations.
Price Stability (Volatility)
- Products scored and ranked based on the observed stability (or volatility) of the Buy box price available to buyers
- Track across the different Amazon Geographic selling regions
- Drill down to detailed view per product e.g. view a single product across Amazon Geographic selling regions
- Which sellers (including Amazon itself) are driving the volatility
Monitor and continuously optimize selling prices based on Luzern’s intelligent automated price checker. Luzern’s algorithmic pricer ensures you sell at the price that fits your pricing strategy, ensuring you achieve the margin you need to drive profitability.
Benchmark performance against key competitors. Luzern helps you gain visibility into the longtail of your competition. Understand which competitors are out-performing you, and why.
Based on a portfolio or product to be monitored:
- How many products are actively on sale in all regions you sell in
- How many products and which ones are not actively being sold
- Trend over time
- Insight into gaps in portfolio being presented and active over time
Avoid getting CRaP status by Amazon (“Can’t realize a Profit”)
When Amazon deems your product non-profitable it’s referred to as “CRaP”. The most common reasons for the CraP status include pricing pressure and high shipping and storage or warehousing costs in relation to the actual value of the product.
It’s not just heavy or bulky items that are at risk. Any item can be at risk of getting dropped if there’s too much inventory in Amazon’s warehouse for that product.
Amazon has not been slow in taking action and clamping down on any items they deem to be unprofitable on its site and won’t re-order CrAP items.
Luzern helps brands manage their products and pricing and can ensure items can still be sold. Global Brands trust Luzern as their go-to 3P seller if they are at risk or have already received CRaP status.
We can help you to expand your sales into new markets. We have years of experience in the right go to market strategies to export products globally.
We advise on the selling landscape of each potential marketplace to help you create an internationalization strategy that makes sense for your business goals.
Our expert team can take the burden out of understanding local taxes and regulations and ensure you have the necessary processes set up.
Track Seller Landscape Across Amazon Geographies
Analyze the complete seller base of your products across Amazon geographic regions.
- How many products does each seller actively list
- Drill down into the detail for each product
- Number of sellers, attributes of the seller and their pricing strategies
- Track Buy box price and each individual seller’s price over time
Merchant of Record
If you sell products or services online, you need an entity called “Merchant of Record” (MoR) to accept and manage online payments via credit or debit card. The MoR is the organization whose name appears on the cardholder’s credit or debit card statement when they make a purchase.
The MoR is responsible for many of the administrative tasks required for online businesses to effectively collect payments in a fast and secure manner.
The Merchant of Record is authorized and held liable by each in-country financial institution to process the end consumer’s credit and debit card transactions.
Luzern manages the MoR Process and handles the necessary administrative tasks including:
- End to end management of the checkout process.
- Management of the payment portal where the customer securely enters their credit/debit details
- Calculation and application of the region-based tax. The correct amount is then displayed to buyers during the checkout process
- Collection and remittance of the required taxes (including VAT) to the proper authorities
- Secure transfer of customer information from the payment gateway to the payment processor
- PCI compliance - We ensure all customer information is safe and secure
Global Transactions in local currencies
If you sell into other countries, you need international merchant accounts that allow:
- Regional payment methods
- Payment contracts with each currency
- In country tax calculation
- Local VAT
Therefore, if you’re processing global payments, it’s safer to outsource.
If you want to simplify your day-to-day tasks or are selling internationally, outsource your MOR.
Instead of having to work directly with customers and financial service providers, outsourcing allows you to communicate with just one entity—your MOR.
Partnering with a trusted MOR
As a full-service ecommerce solution, we cover everything from collecting and remitting taxes to managing refunds and chargebacks while maintaining compliance with country-specific payment laws and regulations.
Results Driven Strategies for Amazon Marketplaces
Selling on Amazon can be challenging, even for the most established Brands with long standing relationships with Amazon.
Luzern helps Brands navigate the complexities, from the fundamentals to the development and roll out of complex route-to-market and Hybrid Amazon sales strategies. We are the Amazon experts, with proven technology to dramatically grow online revenues for big brands across the globe.
Brands of all sizes can face similar challenges selling on Amazon:
- Lost control over pricing which impacts pricing on all channels
- List Suppression - Amazon call pull your Amazon product
- Margin pressure - the squeeze can mean no profit on certain product lines
- New Product Launches - Amazon don’t support as deemed too risky
- Product Returns - Managing returns can be a significant overhead; and
- Amazon can push competitors’, or Amazon own products, if there is more margin in it for them
However, the bottom line is that if you are a growing brand, you need to be on Amazon. To be successful, Brands need to reimagine their Amazon strategy and look at new ways to protect their brand whilst increasing online revenues.