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[SFTB] 💀 How To Die (With Zero)
Read time: 8.5 minutes
You and 2,408 other readers will be enjoying this newsletter or i’ll start putting up Valentines Day decorations in January.
Welcome to the +23 new readers this week!
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🌴Tropical Trivia🌴
(Scroll to the bottom to see the answer)
You can whisper to an Alexa and it will whisper back.
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✅The Instant Value Section (IVS)✅
(aren’t you glad you opened the email now?)
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The “secret formula” to create and launch new products faster and cheaper than ever before.
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A big thank you to @Henrik Johansson for supplying this week’s IVS. I was thrilled when Henrik agreed to do this – hard to meet a more knowledgable, down-to-earth guy.
He also crushed me at Skeeball in Vegas (and was a very gracious winner).
Henrik runs GEMBAH – A product development company that helps you take your idea and make it a reality.
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Every brand and e-commerce business is faced with the same challenge: how to identify, make, and launch new successful products that make them more money faster.
It’s pretty easy to find and launch a product that others are already selling, but it typically becomes a race to the bottom with your competitors trying to win on price without having any other way to differentiate your product. On the other end of the spectrum, you can develop a completely new product that you are the only one selling, but that typically takes a lot of time and capital, and often requires expensive tooling and engineering.
What if there was an approach to quickly identify, create and sell highly differentiated products that generate high profit margins, without all the upfront investment?
The following graph shows the direct relationship between investment “time and money” and the opportunity “profit and LTV” for Traditional Product Development.
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What if I told you that there is a way to “hack the graph”, i.e. a way to create highly differentiated products that generate more profit over time without making huge investments in product development?
Now there is and we call it D2M, short for “Design-To-Manufacturing”.
The following graph shows how D2M enables new product development that requires less up front investment in “time and money” but still makes it possible to generate the same type of opportunity measured in “lifetime profits” that traditional unique product development does.
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The D2M approach is architected to leverage data-driven consumer research to only do a minimal amount of design work up front, only to identify and redesign the desired functionality of a new product, rather than spending significant time and money to develop a detailed design specification for a completely new product.
With a refined design you can go directly to qualified factories that make that type of product and get their feedback on how to create this product quickly with minimal engineering and tooling costs. In short, rather than starting with a blank canvas, you start with what is feasible for the customers budget and specific product goals, and then iterate quickly to identify the optimal approach to bring that specific product to market.
Here’s an example: MUD/WTR
D2M delivers the differentiation of a unique product at the cost of a Private-label product, thus providing more market opportunity and profit potential for a lower level of investment.
D2M is not the perfect approach for every project, but in our experience, most D2C and e-commerce brands can greatly benefit from the D2M approach. For the company that is looking to expand an existing product line and create highly differentiated products, but not necessarily a unique new invention, D2M provides a superior cost/benefit value proposition to any other method available.
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Droid Depot @ Disney!
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Happy New Year everyone! We are heading back to the beach after spending a little over a month in Orlando.
We decided to go to Disney parks while we were here, since it has been about 5 years since we have been and the boys pretty much had no memory of the last time they were there.
We went the first week of December which seemed to be a good time before the parks get too busy and the lines were pretty good. Highlight was the Disney Studios Star Wars Galaxy’s Edge which is pretty over the top for any Star Wars Fan.
If you are going, make sure you book your tickets and fast passes as far out as you can since they do sell out. It was also weird seeing that many “Disney influencers” that are now out there at the parks and live streaming. I saw one couple live streaming all the merchandise that was in one of the gift stores.
Jackson did build a custom droid at the Droid Depot that was awesome and expensive at the same time LOL. When I was looking for spare parts on eBay I found a listing where you can pay a guy $100 go and buy and build one for you for those fans who can’t get to the park. I love the reseller hustle on that one!
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Today’s Newsletter: More value than a crypto coin to the “Hawk Tuah” girl 🍆💦
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Happy New Year! Here’s to a prosperous 2025 for YOU
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Amazon’s 2025 Canada FBA Fee Changes (in 30 seconds)
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Here’s the TLDR.
In typical Amazon fashion, they say they’re not raising fees, and then two of the three big announcements are about raising fees. 🙄
The good news:
The bad news:
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Marketplace Pulse’s “Year in Review” is now out. I read the entire thing (so you don’t have to).
But you can if you want. Find it here.
Juozas Kaziukėnas always seems to be able to put his finger on what is really going on with ecommerce. And in 2024, according to him, there was one big theme: China.
The Coles Notes:
Chinese Dominance: New platforms disrupt e-commerce, leveraging tax loopholes (de mimis) and forcing Amazon & Walmart to take notice.
A couple new players emerge… Shein and Temu. One focuses on fast fashion; the other leads in low-cost, “haul-based” shopping. Both expanded globally in 2024 with local warehouses.
Amazon’s Response: “Amazon Haul” mimics Temu but struggles against its convenience-focused core. Haul will never be able to catch Temu.
TikTok Shop emerged as the top U.S. social commerce platform, fueled by influencers and viral marketing – TikTok eclipsed Walmart in sales extremely quickly.
E-commerce growth slows, but giants like Amazon and TikTok Shop dominate. Direct-from-China goods face ethical and quality scrutiny.
Amazon ad spending rivals and passes traditional TV ads, shaping future e-commerce marketing. Amazon ads remains one of the most profitable sections of their business.
And finally, tools like Amazon’s Rufus promise innovation but face accuracy and adoption challenges.
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How does your Amazon P&L stack up to these benchmarks? Where are you bleeding? If one of them is higher then these averages, it’s time to optimize.
Here’s how to optimize the main areas:
1) FBA Referral Fees
(These are the category-based fees. As a whole, there’s not much we can do about these as the referral fees are locked in. But, here’s a few things to try:)
• Avoid “dead zones” by pricing just below fee thresholds (e.g., $14.99 instead of $15).
• Ensure each SKU is listed under the correct category or subcategory with lower referral fees.
• Check listings to confirm fees align with expected category rates. Audit regularly or use an alerts tool.
2) FBA Pick & Pack Fees:
(These are largely fees based on the size & weight of your product. Basically what it costs Amazon to pick & ship your product)
• Ensure Amazon has accurate measurements for your products to avoid overcharges.
• Use smaller, lighter packaging to reduce dimensional weight fees.
• Shift heavy or large items to FBM or 3PLs
• Redesign packaging to fit within lower fee thresholds, such as reducing box thickness or material.
• Redesigning your product so that it needs to be “put together” could significantly improve your Pick & Pack Fees.
• Understand Amazon’s fee structure and ensure your products stay within the lower tiers.
• Sell bundles & multipacks. Selling two items in one order is significantly cheaper than selling one item twice.
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Carbon 6 Gets Acquired for $210M (and not a moment too soon)
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You probably have heard of Carbon6. They’re an Amazon-focused software tool aggregator, similar to Threecolts. If you’ve used SoStocked, PixelMe, or Seller Investigators, you’ve used their tools.
I’m saying “not a moment too soon” because with all of the changes in the Reimbursement landscape (Amazon taking more of the pie), it may be the end of the road soon for reimbursement companies like Seller Investigators.
They were acquired by a company called SPS Commerce. I am hoping there will be no interruptions to services (as a SoStocked user). 😅
Here’s Chad Rubin’s take on the math behind the acquisition.
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Reduce The Time You Spend Replying to Buyers
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Our Buyer-Seller Messaging Templates
(DOWNLOAD LINK BELOW)
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Amazon quietly added this quality of life upgrade.
Placeholders in Buyer-Seller Messaging Templates!
Now you can add placeholders into your messaging templates to get more customized messages and offer a better customer experience. Both Amazon and your customers will love this.
I took the liberty of making a bunch of them for you to steal.
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Swap your liquid toiletries for dry
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Dry toiletries are a smarter choice for travel because they are lightweight, compact, and TSA/border security friendly. Unlike liquid options, they won’t spill or leak in your bag, or get thrown out by those super friendly people at the airport.
Products like solid shampoo bars, toothpaste tablets, and powdered cleansers take up minimal space, making packing easier. Plus, they last longer.
No brainer.
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Creating Memory Dividends with my Family (while I still can)
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Costa Rica offers a wealth of towns and villages to explore, making it hard to decide where to start. To simplify, create a list and narrow it down based on your interests and available time. You cannot see it all in one trip.
Over the holidays, I read Die With Zero by Bill Perkins. A key idea is “memory dividends,” where meaningful experiences provide emotional and psychological rewards for years. For instance, a vacation in your twenties can bring joy and satisfaction when reminiscing decades later.
Realizing our boys now remember adventures from recent years, we are leaning into creating more of those moments. At ages four and five, they likely will not recall trips, even with photos and videos. So, while 2025 is focused on building our house, we will still prioritize new adventures in Costa Rica.
I highly recommend the book. It is a great guide for planning purposeful experiences that pay dividends for a lifetime.
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Two Month Delay for Inbound to FBA
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Well, here it is. In all it’s glory.
Here’s a screenshot of my account showing a two month delay on a pallet shipment into Amazon. Ouch.
We got killed with AWD inbound restrictions and FBA inbound shipping times this Q4. All after the Amazon execs touted how great their system is at last year’s Accelerate.
Not too sure how a business is supposed to stay afloat with this.
Experiencing the same? Let me know.
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Speak Up! Community Comments & Questions:
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Want to have your question answered in the newsletter? Want to give us a piece of your mind? Send us an email at info@sellingfrom.co
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“Be tolerant with others and strict with yourself.”
– Marcus Aurelius
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How was today’s newsletter? Love it? Hate it? Just want to make 2025 the year where you move to paradise?
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Hey – Wanna hang out? Check us out on Facebook.
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If you liked this newsletter, here’s where we share more stuff like it:
1. 🤓Just getting started? Check out the Free Amazon FBA Course
2. 🎙️ Listen to the latest episodes of The SFTB Podcast
3. 💸 Increase your income today with Online Arbitrage Training
4. 👔 Need an Accountant? Accounting Services
6. 📣 Interested in sponsoring the newsletter? E-mail info@sellingfrom.co
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All the best,
Rob & Max
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