WHAT WILL RETAIL LOOK LIKE IN 5 YEARS?
Read the thoughts of top industry experts and their perspectives on how retail may look by the year 2029
TOP 3 AMAZON CHALLENGES IN 2024
Learn about 3 of the most common issues sellers are facing in 2024 and their potential solutions
Issue 16 | March / April 2024 M A G A Z I N E Professional E-Commerce Retailers
CONTENTS Table of
LetterfromthePresident
President Jeff Bush shares vision for ZQUARED and sets the trajectory as we enter into spring
12
Top3AmazonChallenges
Learn about some of the most common issues sellers face in 2024 and their potential solutions
BrandHighlights
This issue features Canada RNA, Kinesio, Nutrasal, and Pet King Brands
2029RetailLandscape
Top industry experts share perspectives on how retail may change over the next 5 years
16
ZQUARED101
Explore ZQUARED's culture, values, team, history, and more in the pages of ZQ 101
22
ZQUAREDLean
At ZQUARED, Lean is a way of life; explore the Lean philosophy and the latest ZQ Lean improvements
24
JoinOurTeam
Help ZQUARED continue to grow as the industry's leading e-commerce investment partner
25
GetinTouch
We provide comprehensive e-commerce solutions; contact us to multiply your brand's success
2
6 10
3
Letterfromthe PRESIDENT
As we welcome the arrival of a new season, spring, it is with great anticipation that we embrace the inherent themes of growth, renewal, and revitalized energy that accompany this transition. Spring symbolizes a profound shift from the cold of winter to the warmth of new beginnings, presenting an opportune moment for reflection and progress.
As we close out the first quarter of 2024, it is evident that we find ourselves in a phase of considerable growth. This growth trajectory has been catalyzed by the collective efforts of our dedicated business development team, whose relentless pursuit of opportunities has resulted in the successful onboarding of several new brands. Furthermore, our commitment to enhancing our internal capabilities has led to significant expansion within our brand management and marketing departments, with the addition of senior talent poised to drive our strategic initiatives forward.
Looking ahead, we remain steadfast in our anticipation of continued growth within the realm of e-commerce. The evolving landscape of digital commerce presents us with a wealth of opportunities, and we are fully prepared to capitalize on these prospects as we navigate the remainder of the year.
Jeff Bush President,ZQUARED
3
OUR OUR
4
BRANDS BRANDS
5
BRAND HIGHLIGHTS
Canada RNA Supplements
CRNAisfocusedonapplyingmodernscientific technologiestothepoweroftraditional medicinestounleashtheirfullestpotentialin healthandwellness.
Kinesio Health&Household
TheKinesioTapingMethodhasbeentaught, demonstratedandpracticedsincethe1980s and facilitatesthebody'snaturalhealing powertohelpalleviatediscomfortandtreata varietyofmedicalconditions.
6
Nutrasal Supplements
Nutrasalisagloballeaderinthepurified phosphatidylcholine(PPC)marketandranked top5intheworldbyMarketResearchInsider.
Pet King Brands Pet
PetKingBrandsisanindustryleaderandits brandshaveexperiencedconsistentgrowthfor 25yearssinceitsfoundingin1998.
7
IINFORMATIONAL NFORMATIONAL
8
RESOURCES RESOURCES
9
retail retail llandscape andscape
A GLIMPSE INTO THE of2029 of2029
The retail industry, continuously in flux, is poised for significant transformations in the next five years Industry leaders predict a landscape shaped by seamless tech integration, evolving consumer preferences, and a redefinition of what constitutes the "store" experience
Given the boom in ecommerce, especially since the COVID-19 pandemic, it is not surprising that more and more consumers are going online for their shopping needs The surge has coincided with breakthroughs in technology, like artificial intelligence, which is expected to revolutionize how people shop and find products
Optimizing for search engines, a practice known as SEO, in recent years has been critical for brands making sure they stand out on ecommerce marketplaces like Amazon Yet, according to industry leaders, that is expected to change
“The search engine is going to be archaic. It’s going to be the cassette tape in 20 years. Younger generations are going to laugh at the idea of using a search engine, because search engines aren’t that intelligent,” former CEO of Walmart, Marc Lore, told NBC. Instead, he expects A I -based voice command search tools to become the mainstream method consumers use to find products – a trend already being demonstrated by young consumers shopping through their mobile devices
10
Millennial and Generation Z shoppers also hold different values and expectations regarding their brand choice Today, these consumers prioritize experiences over simple transactions and want to identify emotionally with brands. Experts like Trina Spear, CEO of Figs, believe this provides companies the opportunity to expand the definition of the shopping experience to better connect with potential audiences.
“Stores just acting kind of as a transactional thing in the world is going to become less and less relevant,” she said, “ … what’s going to become more relevant is having an experiential destination for our community to come together, to meet and be connecting with not only the brand, but also each other.”
Michelle Gass, CEO of Levi Strauss, echoed that sentiment: “I think consumers are going to raise the bar, and they’re just going to expect that because when you can just shop and do a transaction a click away, there has to be a higher purpose for a store.”
Innovative stores might offer workshops, entertainment options, or community spaces alongside traditional shopping areas, all of which offers opportunity for stores to build a brand image beyond simply what the product offers, all while offering virtual services to stay connected with their target audience remotely
The future of retail is brimming with exciting possibilities and challenges in equal measure. By staying informed about industry trends, embracing technological advancements, and prioritizing customer experience, retailers can position themselves for success in the ever-evolving landscape of 2029 and beyond
11
3 3 TOP TOP
The landscape of Amazon continues to evolve, presenting both exciting opportunities and significant challenges for sellers In 2024, three key areas stand out as potential roadblocks to success: compromised cash flow, fierce competition, and stringent inventory expectations However, with the right strategies and support, these hurdles can be transformed into stepping stones for growth
Challenge #1: Maintaining Healthy Cash Flow
Cash flow is the lifeblood of any business Ever-changing fees, complicated fulfillment processes, and unpredictable fluctuations in sales can quickly lead to choke points in your supply chain and potential reputational damages with logistics partners or consumers
To avoid these pain points, embrace data-driven decision making. The Amazon Seller portal offers insights into sales trends, profit margins, and advertising performance, which can give sellers detailed information for cashflow forecasting. Understanding when there will be surge can also help sellers when they negotiate with suppliers, purchase in bulk, and when to adjust warehouse needs – all of which cuts costs and keeps the rainy-day fund untouched
12
A M A Z O N C H A L L E N G E S I N 2 0 2 4
Challenge #2: Standing Out in a Crowded Marketplace
Standing out on Amazon is essential for ecommerce entrepreneurs to gain and retain consumer attention This challenge is especially difficult in a globalized economy, where new sellers are constantly entering the fray often offering similar products at lower prices.
Brands must have a unique voice that resonates with their target audience A simple first step can be using high-quality product photography and compelling descriptions. However, unless listings are optimized with relevant search keywords, the products may never be found by ideal customer Search engine optimizing (SEO) product listing and utilizing advertising tools like Amazon PPC (Pay-Per-Click) are important maintenance methods that can help to increase organic traffic
Challenge #3: Navigating Strict Inventory Expectations
Amazon's stringent inventory management policies aim to ensure product availability and customer satisfaction. However, these requirements can be complex and costly to navigate, especially for smaller brands
Amazon sellers can use forecasting tools and historical sales data to predict demand and avoid excessive inventory costs If sellers are using Fulfillment by Amazon (FBA) but are siphoning money by holding low-velocity products in fulfillment centers, consider Fulfillment by Merchant (FBM) for these scenarios While this requires managing your own fulfillment, it can offer greater control over storage costs and flexibility in meeting customer expectations.
Forecasting inventory demands can also help sellers negotiate with supply chain partners to manage expectations, build strong partnerships, and ensure customer fulfillment is seamless, even during surge times like the holidays
How ZQUARED Can Help
While these challenges may appear daunting, they don’t have to be tackled alone. A partnership with ZQUARED offers top-tier support to help you reach the exposure and traction required to thrive on the world’s biggest marketplaces. ZQUARED goes beyond consulting, offering a comprehensive suite of services to clients, including marketing, advertising, and logistics solutions, all of which can empower Amazon sellers with the tools and support they need to thrive in today's competitive market.
13
ZZQ Q 14
COMMUNITY COMMUNITY
15
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 than50ofyearscollectiveexperience.
OURPURPOSE
ZQUARED invests in brands who sell on online marketplaces and are poised and ready for growth.
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
YOU GROW, WE GROW
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.
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.
16
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.
17
18
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.
19
MEET THE 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.
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.
GET TO KNOW US
20
TTEAM EAM
CONTACT US
KURT KEHOE
Kurt has worked with ZQUARED on the FBA team for almost 3 years His role includes building and processing orders and ensuring all items are prepared accurately and efficiently for shipment. Outside of work, he enjoys working on cars and making music Recently, he’s begun detailing cars as a side hustle He’s also working on completing his first album! We’re so grateful to have Kurt on our team
21
EmployeeSpotlight EmployeeSpotlight EmployeeSpotlight
E A N
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.
WHAT IS LEAN?
LEAN
ZQUARED LEAN
1 OnePieceFlow
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.
A critical component of the Lean mentality is addressing the little things that irritate 2 FixWhatBugsYou
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!
3 EliminateWaste
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
L
22
THE 8 WASTES OF LEAN
WasteoftheMonth
WASTED MOTION
Unnecessary or excessive physical movements performed by workers or equipment that do not add value to the production process result in wasted motion, a significant aspect of lean methodology. This waste involves actions that consume time, energy, and resources without directly contributing to the final product or service Examples include inefficient workstation layout or equipment arrangement that necessitates excessive movement or readjustment, excessive reaching or unnecessary walking to access tools or materials, redundant handling of parts or components, and prolonged machine setup or adjustment time Minimizing wasted motion waste enhances worker efficiency, reduces fatigue and injury risks, optimizes process flow, and ultimately boosts overall productivity.
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.
23
JOIN OUR TEAM We'relookingfor enthusiasticteamplayersto helpuscontinuebuildingthe industry'sleading investment-minded e-commercepartner. 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. OPEN POSITIONS INTERESTED? ReachouttoTimMyersformoreinformation: tim.myers@zquared.com 24
FOLLOWUS partners@zquared.com https://zquared.com GET IN TOUCH 25 UPCOMING EVENTS April 20-22 | Rosemont, IL AMERICAN’S BEAUTY SHOW Take a look at the upcoming trade shows on our calendar If you plan on attending, let us know! we’d love to see you there!
ZQUARED.COM