Table of
Contents Our Brands Brand Spotlight: Vetoquinol
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Brand Highlights
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Informational Resources Amazon Announces FBA Price Increases
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The Amazon ASIN
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Amazon Brand Registry
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ZQ Community
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ZQ 101
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Charlie’s Corner
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Join Our Team
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Get in Touch
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ISSUE 01
A letter from the CEO As I reflect on the past year at ZQUARED, I am astonished by all our team accomplished. We added a record number of new talent across the company, including President Jeff Bush, and celebrated as our Brand Partners’ sales soared to new heights. In true New Year’s fashion, we have big plans for 2022! Our immediate priority for Q1 is expansion, in all ways. Focusing on strategic growth for our Brand Partners as well as delivering results measured beyond the numbers is a priority. The Business Development team is actively pursuing, onboarding and investing in new brands seeking a true value-add partnership rather than another run-of-the-mill reseller. We will continue to add personnel throughout the company to support and enhance our partnerships and have plans to expand our physical footprint with new offices, conference room space, and collaborative work areas to accommodate the changes. Though our aspirations are set high for 2022, our focus remains personal. As always, we strive to maintain an unparalleled culture at ZQUARED by keeping our relationships front and center, from employees to partners to community.
Zach Cornett
Co-Founder & CEO, ZQUARED
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Our
Brands 5
Brand
Spotlight CHALLENGE Prior to working with ZQUARED, Vetoquinol sought a partner to help with Amazon’s lack of an IMAP (Internet minimum advertised price) agreement. Vetoquinol saw an opportunity to have a fulfillment partner that could work hand in hand with all of Vetoquinol USA’s business unit teams. They began a relationship with ZQUARED, and together focused on: More timely and robust reporting of Amazon sales Management of Amazon’s Vendor Central Portal Improved product listings and an updated, beautifully-designed storefront
PLAN
EXECUTION
ZQUARED worked with Vetoquinol to develop a plan to efficiently update the Amazon platform and take it to the next level. In addition to laying a strong foundation by streamlining the catalog and optimizing listings quickly, ZQUARED developed a comprehensive branding guide to ensure Amazon messaging was consistent across all marketing channels.
Working closely with ZQUARED, Vetoquinol now reaps full benefits from the Amazon sales channel rather than sharing profits with multiple resellers who made no investment back into the brand.
“ZQUARED also provided the end user with a streamlined brand experience that is truly representative of our company.”
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Vetoquinol also monitors their Amazon analytics via Snapshot, ZQUARED’s proprietary cloud-based program that aggregates all relevant information into an easy-to-use dashboard. With 24/7 access to real-time Amazon data, Vetoquinol analyzes the numbers and trends to develop informed strategies. Vetoquinol has been able to realize financial gains in the e-commerce space as a result of the market awareness they’ve worked so hard to generate rather than funneling sales to third parties.
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ZQUARED partners with Vetoquinol to collaboratively create strategies to support efforts both on and off Amazon. A strong client relationship has allowed Vetoquinol to take full advantage of the Amazon sales channel and beyond.
RESULTS Since partnering with ZQUARED in 2018, Vetoquinol has experienced tremendous growth year over year, approximately 50%. MAP compliance has also increased by upwards of 20% due to ZQUARED’s diligence in monitoring MAP and notifying Vetoquinol of violators who negatively impact the brand.
dedication + communication = mutually beneficial partnership
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GROWTH INCREASE
“Their service is best described as turnkey. We hand them what we have, and they turn it into what Amazon needs—and then some.” – Vetoquinol
SUMMARY “ZQUARED’s attention to all details is evident, their approach is creative, and their perspective is everevolving. With no service fees and no strict margin requirement, ZQ met our budget and limitations, allowing us to form a true partnership through compromise that meets both of our needs and objectives.”
“ZQ matches our company’s values: both are familyowned and operate at a crossfunctional level with a strong work ethic.”
– Vetoquinol 7
Brand Highlights For the month of January, we’re highlighting four of our partnerships: Rehband, Kinesio, Erickson, and Timbren. We are honored to be a part of the journey alongside these incredible brands.
Year Founded: 1955 Category: Sports & Outdoors
FUN FACT Rehband has products available in over 30 countries worldwide
TIE-IT. TOW-IT. LOAD-IT. Year Founded: 1977 Category: Automotive
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FUN FACT Brent and Connie, the original founders, still own and operate the business alongside their three daughters and two grandsons
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Year Founded: 1979 Category: Health & Personal Care
Year Founded: 1968 Category: Automotive
FUN FACT Dr. Kenzo Kase, Kinesio’s founder, is a well-known practitioner licensed in chiropractic and acupuncture in the US and Japan
FUN FACT Timbren sells over 400 different types of suspension upgrade kits for trucks and trailers
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Informational
Resources 11
AMAZON News
Amazon Announces FBA Price Increases As the post-holiday and New Year jubilations come to a close, Amazon has announced an increase in Fulfillment by Amazon (FBA) fees in multiple areas:
January 18, 2022 Core FBA, apparel, and dangerous goods (fulfillment, removal, and disposal)
READ MORE!
February 1, 2022 FBA off-peak monthly storage fees (JanuarySeptember)
READ MORE!
May 15, 2022 Aged Inventory Surcharge
READ MORE!
Why Are FBA Prices Increasing? The answer is likely multifaceted, but FBA price increases are most likely due to supply chain constraints as a result of COVID-19. The pandemic has caused supply chain bottlenecks, labor shortages, wage
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increases, logistical nightmares, and sky-high inflation. Additionally, Amazon has reported a massive increase in Amazon sellers, which has pushed their storage and fulfillment capabilities to new limits.
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How to Navigate the New FBA Price Increases
Incorporate Price Hikes Into Margins Now Sellers have no choice but to pass along the costs of FBA fulfillment to customers to maintain profitability, so these increases should immediately be built into product pricing. Proactively planning and timely execution will help to ensure a smoother transition once the price increases take effect. To avoid the possibility of listing suppression due to pricing discrepancies, price increases must take effect across all e-commerce channels. Analyze Profitable vs Unprofitable Products Price increases can turn profitable products into unprofitable products. Staying aware of the sales and revenue rates pre– and post-price hikes will allow sellers to audit their product offering and make fundamental decisions to maintain and increase profitability. Audit Inventory Supply and Demand Finding the sweet spot between product supply and demand can help smart FBA sellers figure out the minimal inventory required for storage with Amazon to meet customers’ demands. Keeping inventory at optimal levels—without risking running out of inventory or delaying shipping/delivery times—may help increase margins, as storage and fulfillment fees will be decreased. Consider Using a Third-Party Logistics (3PL) Provider A viable option in addition to Amazon FBA is contracting with a third-party logistics (3PL) provider. Though this option comes at an additional expense, many 3PLs offer competitive pricing that may be less than Amazon FBA storage. When FBA inventory is needed, they are able to seamlessly coordinate the logistics to maintain optimal inventory levels, which decreases Amazon storage fees, and avoid out of stock issues that often result from inhouse fulfillment.
THE ZQUARED ADVANTAGE ZQUARED helps brand partners establish or take back control of their brand’s presence with a team of experts who know how to handle Brand Registry, catalog management, listing structure, content optimization and reviews. Our team also works to enhance marketing, develop comprehensive short-and longterm advertising strategies, monitor ASINs, support MAP control, protect against rogue sellers, and much more.
ABOUT
Sellers can take a few steps to minimize the impact of these price increases, while maintaining profitable margins:
ZQUARED invests in brands who sell on Amazon and are poised and ready for growth. Born from a service mindset, our passion is helping you navigate the online retail space in a way never imagined. With more than a decade of industry-leading experience selling on Amazon, we form partnerships rooted in collaboration to maximize value and achieve results. Managing all aspects of the Amazon platform for your brand is a top priority. We offer full-suite services, including design, fulfillment, product listings, enhanced brand content, headline and sponsored ads and MAP violation support. Understanding all aspects of this sales channel can be overwhelming. We break down every aspect of your brand and what you will need to increase sales on Amazon.
To learn more about how ZQUARED can help you stay ahead of Amazon’s ever-changing rules, email us at: partners@zquared.com.
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The Amazon ASIN
What Does It Mean for Your Business?
Amazon is the world’s largest online marketplace with millions of products available to consumers. To manage an ever-growing product catalog, Amazon utilizes its proprietary ASIN system to organize listings, and understanding the importance of them is critical to selling successfully on the platform. What Is an Amazon ASIN? Amazon Standard Identification Number (ASIN) is a 10-character, alphanumeric code that identifies Amazon products. Each product listed for sale on Amazon receives this unique identifier. No two products will have the same ASIN, and ASIN identifiers are specific to Amazon’s marketplace. Note: Books are classified using ISBN, which operates in the same manner as ASIN. Where Is the Amazon ASIN Used? Finding a product’s ASIN is as simple as scrolling down the product page to the “Product Details” section where the ASIN and other productspecific information can be found. Additionally, the ASIN is included after the website and product listing title in the url search bar.
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When To Use an Existing ASIN To ensure the continuity of Amazon’s product catalog, they have created an ASIN Creation Policy to help ensure products are properly indexed so search results display the products that customers are looking to find. When listing a product, the seller will use Amazon’s “Add a Product” tool within their Seller Central account to search for existing ASINs. This first step is crucial because Amazon has a strict policy against creating duplicate ASINs, which could result in the seller’s account being temporarily suspended or removed if violated. To search for an existing ASIN, enter the product’s name, model number, ASIN, UPC, or EAN. If the product is already listed on Amazon, the existing listings will populate, and the seller will choose the product that is an exact match to theirs. If there is more than one ASIN for a product, be sure to review the features of each product and select the one that most closely aligns with the product being listed. When To Create a New ASIN When listing a completely new product on Amazon, the seller will have the honor of adding a brand new ASIN to Amazon’s product catalog. Since a new product is being listed for the first time ever on Amazon, the seller has the opportunity to “win the Buy Box”, which may lead to increased sales. Typically, private label brands, manufacturers, brand owners, and sellers with exclusive distribution rights will create new ASINs. Once the seller has created the product listing, Amazon will assign the product’s unique ASIN, and they can then begin selling their product. When To Create a New ASIN: Product Variations (Parent-Child Listings) As defined by Amazon’s Seller Central: “Variations (also known as parent-child relationships) are sets of products that are related to one another in terms of Size, Color,
Flavor, etc. Good variation relationship listings allow buyers to compare and choose products based on different attributes such as size, color, or other characteristics from the available options on a single product detail page.” A seller can view existing child ASINs for parent ASINs in the Amazon catalog on the “Add a Product” page in Seller Central. If the product is not in the Amazon catalog, the seller will need to create a new ASIN. Why Is Amazon ASIN Important for Your Business? ASINs allow Amazon to ensure their marketplace stays organized, streamlined, and returns the exact product results that customers are searching to find. This setup is mutually beneficial for sellers and Amazon alike, as streamlined product search results helps both parties sell more products and reap the benefits of those sales. Selecting the correct ASIN when listing a product is of utmost importance because selecting the wrong ASIN could hinder a product from displaying in search results, be a violation of Amazon’s Terms of Service, and/or lead to pricing issues. Amazon ASIN Requirements and Policies Amazon has a strict duplicate ASIN policy, as well as restrictions on newer sellers. When listing an existing product on Amazon, sellers are prohibited from creating a new ASIN and are required to match their product to an existing ASIN. Newer sellers may be subject to the limitation of creating new listings depending on multiple factors, such as sales history, listing details, and reviews.
To learn more about how ZQUARED can help you stay ahead of Amazon’s ever-changing rules, email us at partners@zquared.com 15
Amazon Brand Registry What It Is, How It Works, and Why It’s Important Competition on Amazon’s marketplace is fierce, and sellers are constantly working to stand out amongst the crowd. Many sellers face challenges that hinder their ability to properly market their products – especially when reselling products – since they may not have control over the product listing details, such as description and other pertinent information. Fortunately, Brand Registry allows manufacturers to take more control of their brand and products.
What Is Amazon Brand Registry? Amazon Brand Registry is a program designed to provide manufacturers and brand owners with additional control over their brand and products by enabling access to enhanced marketing capabilities and helping to protect the brand as a whole. This program helps brand owners protect their intellectual property and content on the Amazon marketplace, providing an enhanced, cohesive brand experience for customers both on and off the platform.
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According to Amazon, “Brand Registry provides access to powerful tools including proprietary text and image search, predictive automation based on your reports of suspected intellectual property rights violations, and increased authority over product listings with your brand name.”
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How to Enroll in Amazon Brand Registry First and foremost, to qualify for enrollment in Amazon Brand Registry, a seller must have an active, registered trademark in each country where they wish to enroll or have a pending trademark application filed through Amazon IP Accelerator. Per Amazon, “The trademark for your brand must be in the form of a text-based mark (word mark) or an image-based mark with words, letters, or numbers (design mark).” Next, a seller will create an Amazon Brand Registry account where they can officially enroll as the brand owner for their products. To enroll, the seller will need to provide important information in four areas:
What Are the Benefits of Amazon Brand Registry? Once verified through Amazon’s Brand Registry, the brand owner has access to a powerful suite of tools that can enhance the brand. • A+ Content: Helps businesses showcase their brand story and product features using rich text and images on the Amazon detail page to help drive conversion and potentially increase traffic and sales. • Sponsored Brands: Grow brand awareness with ads that feature the brand’s logo, a custom headline, and up to three of their products.
BRAND ELIGIBILITY: o Brand name o Brand logo o Number of brand names being registered
• Amazon Stores: Promote the brand and products with the brand owner’s own multipage Store on Amazon for free.
INTELLECTUAL PROPERTY: o Trademark type o Trademark name o Registration number o Trademark registering office
• Amazon Brand Analytics: Make informed and strategic decisions with powerful data. Learn more about customers, including search terms and more customer behavior data reports, which can help brand owners make smarter, faster business decisions.
IDENTIFICATION: o Product images o Brand logo o Packaging images o Online presence information (website, social media, etc.) CHARACTERISTICS: o Seller account information o Vendor account details o State if the products have GTINs, EANs, UPCs, or EANs o Manufacturing details o License details o Manufacturing country o Countries where the products are distributed
The Importance of Registering a Brand Brand Registry helps to protect a brand by providing the brand owner with additional control of their product listings. This designation is key because it allows for better management of the brand’s product listings, so customers see accurate information, which is determined by the brand owner instead of a third-party. The program also provides proactive brand protection by using information about the brand to remove suspected infringement or inaccurate information, as well as the ability for the brand owner to use search tools to find and report suspected violations. These comprehensive benefits help to protect brand image and improve customers’ experience.
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ZQ
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Founded in 2010, ZQUARED is ranked as a top 125 AMAZON SELLER with over 73k reviews, more than 99% of which are positive. OUR PURPOSE ZQUARED invests in brands who sell on Amazon and are poised and ready for growth. WE-COMMERCE Putting the “we” in e-commerce. ZQUARED, we are a team of professionals At who understand the opportunities, risks and challenges on Amazon. With nearly 40 years combined experience as Amazon sellers, our primary goal is helping you multiply your success by serving as an extension of your team to maximize results. From distribution to advertising strategies, we have solutions proven to grow your brand.
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YOU GROW, WE GROW—TOGETHER Built on the belief that all boats rise with the tide, our services are based on this principle. ZQUARED invests time, money, effort and energy into brands poised for success with the expectation of a worthwhile result— because we go all-in, growing together and winning when you win.
OUR MISSION
Our mission is to invest in brands who sell on Amazon and are poised and ready for growth by forming partnerships built on trust and rooted in relationship to maximize value and achieve results.
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OUR VALUES UNPARALLELED CULTURE ZQUARED’s motto is “we—not me”, and we strive to build an unparalleled culture by incorporating this attitude into every aspect of our workplace, empowering a team built on communication and trust with a service-based mindset to get the job done. FIRST-RATE EXECUTION We strive to provide unmatched quality when servicing each of our Brand Partners. By intentionally being proactive, prepared, and in constant pursuit of improvement, our promise hinges on delivering top-quality results in all aspects of our work. ENTHUSIASM Our partnerships are more than transactions—we invest in people and brands who share our drive and enthusiasm, deepening partner relations while collaborating to execute expert-level growth strategies.
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OUR HISTORY With more than a decade of experience, we’ve learned what it takes to win on Amazon: ultimately, people matter more than products, and investing in people first leads to growth and profitable Amazon brands.
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Originally named Advantage Nutrition, ZQUARED brothers and Co-Founders Chad and Zach Cornett set out to establish a brick-and-mortar retail company with an emphasis on health and wellness. They pivoted when they realized e-tail, particularly Amazon, was taking off, recognizing brands needed help navigating the everchanging e-commerce landscape.
Charlie Meyer was ZQUARED’s first official hire, and he’s been with us ever since. Our people are our foundation.
ZQUARED three time its origina basement footprint w and growi 50+.
WORKING OUT OF CHAD’S BASEMENT
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HIRING OUR FIRST EMPLOYEE
PLANT IN ST.
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4
2019
D has moved es since leaving al spot in Chad’s t, doubling its with each move ing to a staff of
Inc. recognizes ZQUARED as one of the fastest-growing privatelyheld companies in the United States, while the St. Louis Business Journal names ZQUARED on its “Fast 50” list.
TING ROOTS LOUIS
HARD WORK PAYS OFF
2021
AND BEYOND
ZQUARED hires Jeff Bush as President, positioning the company for continued growth
READ MORE!
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OUR PEOPLE
JAN
Jeff Bush
Since transitioning to the role of president in August of 2021, Jeff has provided ZQUARED with new vision, goals, and structure. His positivity, strong leadership skills, and down-to-earth attitude prove he’s the right man for the job. We’re grateful to begin 2022 with Jeff at the helm and excited for the next chapter.
Monthly Employee Spotlight 24
A united team is always behind something big. We work hard, laugh a lot, push the brainstorming boundaries, and have the best holiday parties in town.
OUR CULTURE Founded by brothers, ZQUARED’s roots as a family-oriented company run deep. Our “we—not me” team works together to achieve common goals while supporting one another individually, both professionally and personally. We intentionally invest in what matters most, and people are our greatest investment.
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MEET THE TEAM Meet the people at ZQUARED and share the vision and values of our community. We’re driven by the idea that results are driven by relationships, diligence and enthusiasm.
Know Us! 25
Charlie’s Corner
ABOUT CHARLIE General Manager Charlie Meyer joined ZQUARED as the founders’ first full-time hire in 2010. For more than a decade, he has filled various roles to meet the company’s growing needs. Regardless of his formal job title, Charlie shines brightest when making investments in ZQUARED’s most valuable asset—its people. He dedicates a large chunk of time and energy, both on and off the clock, to pouring into individuals and nurturing our culture. Charlie’s Corner offers a glimpse into his world, sharing favorite insights and personal development tips while offering a peek behind ZQUARED’s curtains.
LEAN
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ISSUE 01
ZQUARED LEAN In 2016, Joe Byers joined our team from General Motors Automotive facility. He and I took a tour of GM to learn from their finetuned efficiencies and productivity workflows. Around the same time, a workplace neighbor shared “2 Second Lean” with me – a book about one piece flow, fixing what bugs you, and eliminating waste. These two events propelled our team into a new mindset, as we began to implement daily “Lean Improvements”. Making daily two-second improvements continuously add up, and over time can have exponential results.
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ONE PIECE FLOW Setting up your daily processes so that each step connects to the previous one can save time and energy. Begin making efforts to avoid any form of backtracking, and focus on a continual workflow without interruptions. Step 1 should seamlessly lead into step 2, which flows into step 3, and so on.
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FIX WHAT BUGS YOU A critical component of the Lean mentality is addressing the little things that irritate you and potentially slow you down. For example, at home, where do you keep your favorite coffee mug? Is it conveniently stowed in the cabinet by the coffee pot, or do you have to walk to the other side of the kitchen to find your cup? Fix what bugs you!
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ELIMINATE WASTE Are you spending your time, energy, or money on things that boil down to a waste of time in the long run? Are there things you can outsource, reconfigure, or eliminate altogether to improve your efficiency? Look for ways to “cut the fat” and eliminate the tasks and items that are wasting your resources.
At ZQUARED, Lean has become a way of life. It’s not something we simply do at work anymore. As a team, we have adopted the mindset of getting “two percent better” every day – which over time, has added up to profound changes!
Our Favorite Team Lean Hacks for January I challenge you to consider making Lean improvements in your company and in your personal life. Small changes lead to big results and might surprise you! – Charlie 27
JOIN OUR TEAM
We’re looking for enthusiastic team players to help us continue building the industry’s leading investment-minded Amazon partner.
Open Positions WAREHOUSE ASSOCIATE If you’re interested in joining our fun, unique and energetic warehouse team, we are actively seeking hardworking Warehouse Associates. Job responsibilities include preparing customer orders, receiving and counting incoming products, and inventory reallocation. Must be able to lift up to 45 lbs routinely throughout the workday.
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Reach out to Charlie Meyer for more information: charlie@zquared.com
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Follow Us! We provide solutions for managing all aspects of the Amazon platform • Multiply Your Brand’s Success
Get in Touch! partners@zquared.com
https://zquared.com/contact
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W W W. Z Q U A R ED . C O M