ZQ Magazine - Issue 14 / November • December 2023

Professional E-Commerce Retailers

MAGAZINE 4 TIPS FOR A WINNING AD STRATEGY

Get the key takeaways for important ways you can optimize your ad dollars on Amazon

IS WALMART WORTH IT?

Learn about the main benefits your brand could capture by selling on Walmart.com

Issue 14 | November / December 2023

Table of

CONTENTS 3 Letter from the CEO

6 Brand Highlights

10 4 Tips for Ad Strategy

Co-Founder & CEO Zach Cornett reflects on 2023 at ZQUARED and sets the trajectory for 2024

This issue features Sovereign Copper, DrTim’s Aquatics, ThorneVet and Sweet PDZ

Get the key takeaways for important ways you can optimize your ad dollars on Amazon

12 Is Walmart Worth It?

14 E-Commerce Calendar

18 ZQUARED 101

Learn about the main benefits your brand could capture by selling on Walmart.com

Check out upcoming significant dates that are likely to impact e-commerce sales

Explore ZQUARED's culture, values, team, history, and more in the pages of ZQ 101

24 ZQUARED Lean

26 Join Our Team

27 Get in Touch

At ZQUARED, Lean is a way of life; explore the Lean philosophy and the latest ZQ Lean improvements

Help ZQUARED continue to grow as the industry's leading e-commerce investment partner

We provide comprehensive e-commerce solutions; contact us to multiply your brand's success

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Letter from the

CEO

Can you believe it? We’re quickly approaching the end of 2023!

While we’re always immensely grateful for our Brand Partners and the amazing team at ZQUARED, this year feels special.

First, since Q3, we’ve been preparing our entire team for what we think will be the biggest Q4 in company history. Our logistics team is on track to have nearly 3 million units shipped out by year end.

Our purchasing team has doubled down on forecasting to ensure that our brands are properly stocked for the holiday season. A BIG thanks to these two departments for a job well done!

Secondly, we will host our annual team summit in just a few short weeks. Our entire team will come together for the second year in a row, and we expect to have 10+ faces representing new ZQ hires evidence that ZQUARED is growing!

Finally, I’d like to offer an enormous thanks to each member of our team for the push that everyone has made to make sure 2023 has been our best year yet. We are truly blessed to work each day with phenomenal people and phenomenal brands.

Zach Cornett Co-Founder & CEO, ZQUARED

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OUR

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BRANDS

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BRAND HIGHLIGHTS

Sovereign Copper Supplements

Founded in 1999, Sovereign Copper remains family-owned and leads the industry in the research and development of hydrosol products.

ThorneVet Pet

ThorneVet has a line of more than 40 integrative and holistic animal health products.

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DrTim’s Aquatics Pet Founder Dr. Tim Hunt continues to practices at the same companion animal veterinary hospital he opened more than 20 years ago.

Sweet PDZ Pet Sweet PDZ is known as the leading stall freshener on the market in the equine category, and has been in business for nearly 40 years.

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INFORMATIONAL

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RESOURCES

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4 TIPS

FOR A WINNING AD STRATEGY

If you’re involved in marketing within an e-commerce business, you probably contemplate dozens of marketing strategy questions daily. Core to these questions is likely the big one: How can I drive traffic to my Amazon listings?

Its no secret that the best e-commerce businesses sell, and sell well, on Amazon. Why? The answer is simple: Amazon accounts for nearly 40% of e-commerce shoppers in the US, a $1 trillion industry. We have four tips for launching an effective advertisement campaign that gives you the edge on the world’s biggest ecommerce marketplace.

1. Make the most of Amazon Sponsored Brand Ads Think about it: When you shop on Amazon, how often do you scroll past the first page of a product search? If the answer is never, then you join 70% of Amazon customers. In fact, 64% of shoppers will only click on the first three products listed on a search page. The good news? With Amazon Sponsored Brand Ads, you make sure that your product hits that first page (as part of the “sponsored” section) even if you are new and seeking to break into a highly competitive market.

Utilizing Amazon Sponsored Brand Ads to secure placement on the first page of a relevant Amazon product search can help your sales conversion rate jump to 18%. Amazon Sponsored Brand Ads work in a pay-perclick model, which means Amazon gets a small commission for each click of a customer (rates averaging $0.81), regardless of whether they make a purchase. So, you will want to make sure you strategically choose which of your products has the highest conversion rate and profit margin to make the most of these ads.

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2. Use the right keywords Your brand exposure on Amazon largely depends on how you integrate search keywords into your advertisements and listing copy. To gain maximum exposure, you may be tempted to use the highest search volume keywords in your product category. Unfortunately, this plan often backfires.

It may seem obvious, but you want to make sure your keywords are most relevant to your product and your target customers search queries. This often means being selective and targeting lower search volume terms that are more specific to your product niche, rather than stretching to broader search terms that are less relevant but have more search volume.

Using negative keywords and phrases to rule out irrelevant products can help you avoid your product appearing on mismatched searches, causing confusion for shoppers rather than leading to sales. For example, if you sell digital cameras, you may be tempted to integrate broad keywords related to smart phones into your text with the hopes of catching new audience members. This tactic will likely backfire and drown your product in an irrelevant market. Instead, stay focused to make sure you find your ideal customer.

3. What about Sponsored Display Ads? Although the bulk of product searches usually start on Amazon, 34% of shoppers still find their way to Amazon through external traffic - meaning off-Amazon advertisements. This percentage is too large to forget.

Thankfully, Amazon offers a different advertisement mechanism, Amazon Sponsored Display Ads, which allows you to easily market your Amazon products on external websites, like social media.

Amazon Sponsored Display Ads allows brands to auto-generate product-focused ads that target customers based on their shopping habits, rather than using keywords. This program evaluates what kinds of products shoppers prefer, then appear as simple window ads in the margins of blogs, videos, social media websites, and more.

Like Amazon Sponsored Brand Ads, Display Ads work on pay-per-click scale. Getting customers in the door is often the hardest part, but combining Brand Ads and Display Ads with strategic pricing will bring your brand exposure to grow significantly, and will ultimately lead to more sales.

4. Partnership, partnership, partnership When you’re ready to cut through the hothouse of competition that is Amazon by crafting a winning advertisement strategy, working with e-commerce industry experts like ZQUARED can give you a distinct advantage.

We understand the e-commerce landscape intimately: How to leverage the most out of Amazon ads, how to utilize both high-volume and niche-specific keywords to maximize your brand exposure to the right audience, and how to ensure your prices are competitively set to ensure maximum conversion, and profit margin.

At the end of the day, partnering with ZQUARED allows you to focus on the aspects you love most about your business while knowing that your product’s Amazon exposure is handled by trusted experts.

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is Walmart worth it?

If you sell online, you are always looking for new ways to reach customers and improve your competitive edge. While Amazon undoubtedly offers the most global exposure, you might also hear rumblings of an old face with a new look shaking up the e-commerce landscape: Walmart.

Although Walmart made a name for itself as the budget shopping center for families, since 2016 it’s made major strides in e-commerce under the leadership of entrepreneur Marc Lore. During the peak of the pandemic, Walmart outperformed both Amazon and eBay, doubling in size in back-to-back years. Walmart now hosts more than 150,000 third-party sellers and adds an additional 5,000 sellers each month.

So, why are more and more businesses turning to Walmart? Turns out there are numerous perks that make the platform an enticing option.

While Walmart is rapidly growing, the number of sellers on their platform is still tiny compared to the 6.3 million sellers on Amazon. But for many business owners looking to break through, this is good news. Less competition means a greater chance for your products to stand out in their niche. And though there are far fewer sellers, Walmart e-commerce sales still raked in ~$72 billion in 2022, a figure which is expected to rise to $80 billion by the end of 2023. Sales are expected to keep growing as Walmart expands into foreign markets such as Chile and China.

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To sweeten the deal, unlike Amazon, there is no monthly subscription fee to sell on Walmart. Sellers need only to list their products and pay a 15-20% referral fee on each sale (according to category). For many cash-strapped small businesses and start-ups this can be a breath of fresh air.

And while Amazon has created a benchmark for fast and efficient order fulfillments, Walmart is not far behind and offers its own 2-day shipping program. If you qualify for the program, your products automatically rise Walmart’s search rankings giving you that extra competitive edge.

The icing on the cake? Top selling products on Walmart may also qualify to be sold in-store, providing further brand exposure.

So, should you start selling on Walmart? The simple answer is yes. Thankfully, the same concepts for standing out on Amazon apply for Walmart Marketplace, so you don’t need to reinvent the wheel.

How ZQUARED Can Help Are you looking for help managing your brand on Walmart? ZQUARED is an industry expert ready to act as a resource for leveling up your success.

Our model includes comprehensive benefits provided on our dime, because we are committed to your success. We handle key e-commerce functions like SEO, content creation, logistics management, and advertising, working to provide you with the greatest advantage in your space.

To learn more about how ZQUARED can help your brand, email us at partners@zquared.com.

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SAVE THE DATE

E-COMMERCE CALENDAR THANKSGIVING Novem ber 23rd

November 24th

BLACK FRIDAY

th 7 2 r e b m Nove

CYBER MONDAY

S A M T S I R CH 5th December 2

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DATES TO WATCH OUT FOR THANKSGIVING Thanksgiving is crucial for online brands as it kicks off the holiday shopping season, driving sales with Black Friday and Cyber Monday deals. It's a prime opportunity to express gratitude to customers, build loyalty, and boost revenue.

BLACK FRIDAY Black Friday offers a prime opportunity to boost sales and revenue. With massive discounts and high shopper engagement, capturing attention and driving conversions are key opportunities. Leveraging Black Friday can lead to shortterm profit gains and long-term customer growth.

CYBER MONDAY Cyber Monday is vital for online brands, serving as a peak moment in the post-Thanksgiving shopping spree. It offers a unique opportunity to entice a broad audience with online promotions, driving substantial sales and boosting revenue.

CHRISTMAS Christmas marks the height of holiday shopping, presenting a valuable opportunity to boost sales and revenue. It's also a time for brands to engage with their audience creatively, strengthening brand loyalty and building lasting customer relationships.

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ZQ

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COMMUNITY

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ZQ 101 Founded in 2010, ZQUARED is a leading e-commerce partner.

Ranked as a top 100 AMAZON SELLER with over 85k reviews and a 100% positivity rate, ZQUARED's core team has more than 50 of years collective experience.

OUR PURPOSE

YOU GROW, WE GROW

ZQUARED invests in brands who sell on online marketplaces and are poised and ready for growth.

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- beacause we go all-in, growing together and winning. when you win.

WE-COMMERCE Putting the "we" in e-commerce.

At ZQUARED, we understand the opportunities, risks, and challenges of selling online. With over 50 years of combined e-commerce sales experience, 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.

OUR MISSION Our mission is to invest in brands who sell on online marketplaces 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., Our team is built on trust as well as excellent communication and 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 in the most competitive e-marketplaces: ultimately, people matter more than products, and investing in people first leads to growth and profitable brands.

2010 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 ever changing e-commerce landscape.

2011 Charlie Meyer was ZQUARED's first official hire, and he's been with us ever since. Our people are our foundation.

2014 ZQUARED has moved three times since leaving the original spot in Chad's basement, doubling it's footprint with each move and growing to a staff of 40+.

2019 Inc. recognizes ZQUARED as one of the fastest growing privately-held companies in the United States, while the St. Louis Business Journal names ZQUARED on it's "Fast 50" list.

2021 ZQUARED hires Jeff Bush as President, positioning the company for continued growth.

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MEET THE OUR COMPANY 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.

GET TO KNOW US

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 our people are our greatest investment.

OUR CORE Meet the people at ZQUARED and share the vision and values of our community. We're propelled by the idea that results are driven by relationships, diligence and enthusiasm.

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TEAM light t o p S e e y o l p m E

DAN FRIEN

CONTACT US

As ZQUARED’s Brand Management Associate, Dan plays a pivotal role in supporting our brand relationships.

He handles various aspects of internal and external brand reporting, while also maintaining open lines of communication with our partners and team to execute actionable items. When he’s not working, he enjoys cooking, traveling, playing golf, soccer, and sand volleyball and watching sports with friends.

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LEAN At ZQUARED, Lean has become a way of life. We don't simply strive to be Lean at work anymore. As a team, we have adopted the mindset of getting "two percent better" every day in all aspects of our lives - which, over time, has added up to profound changes.

LEAN

WHAT IS LEAN?

ZQUARED LEAN 1

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you and potentially slow you down. For example, at home, where do yoou 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!

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 to step 2, which flows into step 3, and so on.

Fix What Bugs You A critical component of the Lean mentality is addressing the little things that irritate

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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 efficiency?

Look for ways to "cut the fat" and eliminate the tasks and items that are wasting your resources.

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THE 8 WASTES OF LEAN Waste of the Month

EXCESS INVENTORY Excess inventory waste refers to the accumulation of inventory beyond what is necessary for efficient operations. It leads to various negative impacts such as tying up valuable capital and increasing storage costs. Examples of excess inventory waste include hoarding excessive amounts of raw materials, carrying an excessive amount of work-in-progress inventory, and employing inefficient inventory management systems. By addressing excess inventory waste, organizations can improve their cash flow, optimize storage space, and establish a more agile and responsive supply chain.

DR. DEMING'S 14 POINTS Along with Lean, Dr. W. Edwards Deming's 14 points have become an everyday guideline for us at ZQUARED to follow.

The 14 points are a set of principles for effective management that have been widely adopted in many organizations around the world. These points provide ZQUARED with a framework for improving the quality of our products and services, increasing customer satisfaction, and enhances the performance of employees.

By implementing Dr. Deming's 14 points,

ZQUARED has created a culture of continuous improvement that focuses on reducing waste, improving efficiency, and increasing productivity. This focus results in cost savings, increased revenue, and improved competitiveness in the market for ZQUARED and our Brand Partners. The implementation of these points promotes employee engagement, fosters individual ownership, and encourages collaboration and teamwork.

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JOIN OUR

TEAM

We're looking for enthusiastic team players to help us continue building the industry's leading investment-minded e-commerce 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.

INTERESTED?

Reach out to Tim Myers for more information: tim.myers@zquared.com

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FOLLOW US

GET IN TOUCH

ZQUARED [sk-waird]

partners@zquared.com

https://zquared.com

Providing Complete Solutions for E-Commerce Management Multiply Your Brand's Success

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ZQUARED.COM