ZQ Magazine - Issue 10 / March • April 2023 by ZQUARED

Professional E-Commerce Retailers

MAGAZINE

Learn about the trends expected to take over the e-commerce space in 2023

Check out upcoming significant dates that may impact e-commerce sales

April 2023

E-COMMERCE CALENDAR

Issue 10 / March

2023 MARKET TREND PREDICTIONS

Table of

CONTENTS 3 Letter from the CEO

6 Brand Highlights

10 2023 Market Predictions

Co-Founder and CEO Zach Cornett looks back to prepare for moving forward as we close out Q1.

This Issue's Highlights feature Crossrope, Sweet PDZ, Vetoquinol, and Fisher Space Pen.

Learn about the latest trends expected to take over the e-commerce space in 2023.

12 Rise of Social Commerce

14 E-Commerce Calendar

18 ZQUARED 101

Learn how to leverage social media to drive buyers to your detail pages and benefit from external traffic.

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

Explore ZQUARED's Culture, Values, Team, History, and more in the ZQ 101 section.

24 ZQUARED Lean

26 Join Our Team

27 Get in Touch

At ZQUARED, Lean is a way of life. Explore what Lean is and the latest ZQ Lean improvements.

We need team players to help us continue to grow as the industry's leading e-commerce partner.

We provide comprehensive e-commerce solutions. Contact us to multiply your brand's success.

Letter from the

CEO

The onset of the pandemic, in many ways, seems strangely distant. Starting in 2020, we experienced a global pandemic for the second time in roughly a century. The world changed dramatically, particularly in terms of economics and marketing. Arguably the biggest difference between the Covid shutdown and the last quarantine from the Influenza epidemic of 1918 centers around worldwide interconnectedness and booming technology. Spring encourages us to look forward - we set our clocks ahead and watch for signs of new beginnings. At ZQUARED, however, the change in season is nudging us to look back in preparation for the future. Though the shutdown has all but ended, consumer habits remain changed. While e-commerce is growing at a slower pace than during pandemic times, it's still taking an increasingly larger slice of total retail sales worldwide. "By the end of 2023, one in every five retail sales will be made online," according to Shopify. ZQUARED is committed to staying ahead of the curve to help position our Brand Partners for success. From managing brands' omni-channel presence and customer service to optimizing for mobile commerce and subscriptions, ZQUARED continues to watch trends to remain a trusted resource and strategic partner. In this issue, we highlight upcoming trends and explore how social media is driving traffic to Amazon and beyond. As with the changes that accompany a new season, being aware of how emerging trends may affect your business can help you explore new opportunities and stay relevant.

Zach Cornett Co-Founder & CEO, ZQUARED

OUR

BRANDS

BRAND HIGHLIGHTS

Sweet PDZ Founded in 1983 Pet Category 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.

Crossrope Founded in 2012 Fitness Category Crossrope has been featured in TIME, The Wall Street Journal, Vogue, Forbes and many other publications.

Vetoquinol Founded in 1933 Pet Category Founded in France in 1933, Joseph Frechin developed over 250 veterinary products by 1970. Today, Vetoquinol is sold in 24 countries and employs 2,500.

Fisher Space Pen Founded in 1968 Office Category Debuting on the Apollo 7 mission in 1968, the Fisher Space Pen has been on every NASA-manned space flight since.

INFORMATIONAL

RESOURCES

s n o i t c i d e r P Market

2023

Market Predictions

At least 28% of the world population shops online, and that figure is anticipated to grow in coming years. Overall, ecommerce sales could reach 20.8% of all retail sales worldwide in 2023. Total sales are projected to surpass $7 trillion by 2025. As customers turn to online retailers for their shopping needs, businesses are continually looking for innovative ways of reaching new customers. Although exciting trends like using social media and AI voice assistants are making breakthroughs, selling on marketplaces like Amazon and Walmart remains essential as they are responsible for over 40% of total retail e-commerce sales.

As an e-commerce seller, how can you make the most of this booming industry? Making sure your company stays on top of online shopping trends and partnering with e-commerce experts, like ZQUARED, to optimize your brand presence will ensure your business has the best chance to stand out.

Social Shopping Social shopping, also known as social commerce, involves making your products available on social media platforms. Doing so can significantly expand your branding, market, and audience, especially among Millennials and Gen Zers. The average person in the U.S. spends 2.5 hours daily on social media; 81% of shoppers research products on Instagram and Facebook. By 2025, there are projected to be $1.2 trillion in social shopping generated sales, a 100% growth since 2020. Simply put: if you aren’t selling on socials, it’s time to start.

Selling through platforms like TikTok or Instagram offers your customers an interactive experience and a direct portal to purchasing the displayed merchandise, which can reduce friction and increase click to sales ratios for your business. Social shopping also allows sellers to quickly collect feedback on products. Social media offers a simple way for your consumers to connect with you. You can also easily search for conversations involving your product to capitalize on momentum and target outreach. Many booming e-commerce businesses partner with influencers to feature their products, helping products go viral and usher in waves of new sales.

Brand Loyalty Brand loyalty, typically key to successful businesses, dropped during the pandemic years. McKinsey & Company reported that 75% of consumers tried new shopping behaviors during the pandemic, and 39% of buyers tried new brands that better represented their values. This shift is likely due to an increase in online options, which means holding onto loyal customers is more important than ever. Presenting a clear set of values is key to customer retention. Ensure your audience identifies with your brand emotionally. Understand your customers - who are they? What are their goals? How do they shop? The answers will help shape your company’s brand to best reflect your customers. Prioritize customer service. Research shows that just over half of customers say they aren’t willing to do business with a merchant after just one bad experience. Stay communicative, offer personalized content and product recommendations, provide exclusive perks and discounts through an ongoing newsletter. These actions develop trust and will make your customers more likely to make repeat purchases.

Voice Commerce The rise of AI voice assistants like Apple’s Siri or Amazon’s Alexa has sparked a new wave of shopping through voice commands. This approach enables AI technology to execute transactions from any voice-enabled device.

Amazon Advertising Amazon hosts 300 million accounts globally and is responsible for over 40% of retail e-commerce sales. With new avenues to solicit online customers – like social commerce – optimizing Amazon listings and ensuring that your company’s advertisements are on par is more important than ever. Amazon advertisements have the capabilities to appear on social media channels and other websites, helping increase external traffic to your Amazon listing. These ads follow a pay-per-click scheme, which can be cost effective for many businesses as the costs depend on click-conversions.

The ZQUARED Advantage Navigating the jungle of e-commerce is daunting even for the most experienced companies. Staying on top of new trends, like social and voice shopping experiences, will help you understand your audience, build brand loyalty, and maximize your marketing strategy. Although driving external traffic through new trends is important, research indicates that 66% of customers start their search on Amazon; the majority of these customers don’t look past the first page of search results, making Amazon listing optimization paramount. By working with an e-commerce expert like ZQUARED, you can focus on product quality and marketing campaigns while knowing the Amazon and Walmart side of your business is in the hands of industry experts. ZQUARED provides SEO and A+ content optimization, custom advertisements strategies, e-commerce logistical management, and MAP enforcement support to protect your brand. To see how ZQUARED can help your brand going into the 2023 season email us at partners@zquared.com

Commands like, “Alexa, what is the best surround sound speaker?” will guide new shopping experiences. AI voice commands are essentially a new kind of search engine, which means search engine optimization (SEO) will also need to encompass how people speak to each other in real life. Analysts expect voice commerce to increase by 320% over 2023, growing from $4.6 billion to $19.4 billion in sales facilitated by voice assistants. Amazon, as is often the case, is spearheading the trend and recently released Alexa Voice Shopping which allows shoppers to browse for items, add to carts, and track orders.

Making the Most of

SOCIAL COMMERCE If you are an e-commerce business owner and looking to expand your audience, utilizing social media is a must. The fast-growing trend of “social shopping” allows consumers to shop the products they love directly via social media. The experience is designed to be engaging and community-driven - and the potential revenue for prospective sellers is huge. Social shopping hit over $45 billion in sales in 2022 and is expected to boom in coming years, with analysts predicting sales to reach nearly $80 billion by 2025. So, what can you do to make the most of this opportunity?

Benefits of Social Media Marketing for Amazon Sellers 66% of e-commerce shoppers start their buying experience on Amazon, that means 34% of econsumers still need to be accounted for. It is essential to recognize where these shoppers are coming from in order to expand audiences and maximize sales potential. This is where advertising on social media is essential, especially if your target audience includes Millennials or Gen Zers who are more likely to begin their shopping experience on social media channels. First, you need to know your audience. Fortunately, Amazon makes understanding which external channels are generating the most sales through their in-house analytics tool, Amazon Attributions. For Amazon sellers, casting as wide of a net as possible is important. Once you gather key information on your customers, you can decide which social media platforms you want to focus on using. Marketing on social media can help you understand your audience by giving you a direct, intimate, and engaging platform to interact with your customers. When your business has a social media presence, your customers can easily leave feedback or highlight what they love about your product – which not only gives you

key insights, but can also catalyze marketing campaigns by guiding your outreach to specific communities and trends that are relevant to your product. By engaging with your customers, you can help build a level of trust with them which will keep them loyal, increase the likelihood of a good review, and help spread the word to reach more consumers. The community aspect of social media can help your brand refine your image and values by understanding who your customers are and what they care about.

Social Media Strategies for Amazon Sellers When it comes to social media, you don’t need to go at it alone. In fact, identifying and collaborating with relevant social media influencers is a great strategy for companies with little social presence that want to quickly expand their outreach. Reach out to these social media influencers, give them a free sample of your product with the hopes that they will feature it on their channel. “TikTok made me buy it” is a real trend and the benefits of your product going viral cannot be overstated.

TikTok has over a billion users, and data shows that 20% of online shoppers start on TikTok. On TikTok, #amazonfinds, which highlights trending Amazon products, generated over 40 billion views in 2022 alone. These quick, bite sized pieces of content quickly showcase your product – and is the perfect avenue for engaging with a community. Other social platforms are also experiencing serious social shopping growth. 81% of shoppers research products on Instagram and Facebook, and shopping is a top priority for 48% of Pinterest users, making multi-channel outreach essential. Successful social media marketing requires both quality content and regular input, which can be overwhelming for small businesses. Thankfully, there are several tools that can help streamline the process. Using a content calendar can help keep the process from becoming overwhelming. For posting, using social media management tools like Hootsuite will ensure your posts are synchronized across channels, significantly saving you time. Utilizing Amazon’s built-in marketing toolkit “Amazon Advertisements” is another way to quickly generate simple advertising content that displays your Amazon listing on external websites, including socials like Facebook. These ads follow a pay-per-click scheme so they are cost effective for many companies.

How

Can Help

Having a comprehensive social media marketing strategy is important, but outreach only matters if you successfully convert those clicks to sales – which means optimizing your Amazon presence is essential. ZQUARED provides complete Amazon listing optimization for our Brand Partners, which maximizes the chances of converting the lead once you’ve hooked your customer's attention. We optimize listings to include cutting-edge copywriting, lean and engaging layout including A+ sections, and ensure that your minimum advertised price (MAP) is competitive and profitable. All listings are search engine optimized to boost your products' Amazon search page rankings. Despite the surge in social shopping, the majority of shoppers still begin their shopping experience using the Amazon search bar and don’t look past the first page. By working with ZQUARED, you can rest assured that the Amazon side of your e-commerce business is in trusted hands, allowing you and your team to dedicate time to external traffic, capitalizing on trends like social shopping, and maximizing your profits. To see how ZQUARED can help your brand email us at partners@zquared.com to receive a complementary channel audit.

SAVE THE DATE

E-COMMERCE CALENDAR EASTER

April 9th, 2023

MOTHER'S DAY May 14th, 2023

DATES TO WATCH OUT FOR EASTER SUNDAY

EARl 2T2Hnd,D20A2Y3 Apri

E-commerce brands can benefit from the influx of purchases made in the Easter season. There is an increased demand for Easterrelated products such as chocolates, candies, and Easter eggs. Additionally, with more people staying at home during the holiday, online shopping can become a popular activity for those looking to purchase gifts for friends and family. Businesses can take advantage of the holiday season by offering specialized promotions and discounts to attract shoppers. While Easter can be beneficial for sales, it can also disrupt e-commerce operations due to shipping delays and increased demand for delivery services. Overall, Easter Day definitely has an impact on e-commerce, but can vary depending on the specific industry and target audience of the business.

EARTH DAY Earth Day is an annual event that promotes environmental protection and sustainability. While it may not have a direct impact on ecommerce sales, it can influence consumer behavior and values. Many consumers are increasingly aware of the environmental impact of their purchases and are actively seeking out eco-friendly products. As a result, e-commerce retailers may see a boost in sales of sustainable and environmentally-conscious products around Earth Day. Additionally, brands may use Earth Day as an opportunity to promote their eco-friendly initiatives, which can improve their brand image and attract environmentally-conscious consumers.

MOTHER'S DAY Mother's Day is an occasion that is celebrated worldwide, and it affects e-commerce businesses in several ways. Amazon is known for offering a vast variety of gifting options, and Mother's Day is an excellent opportunity for brands to showcase their products. With the rise of online shopping, more people are turning to e-commerce for gifts, especially for occasions like Mother's Day. The demand for flowers, chocolates, personalized gifts, and many other items increases during this period, and e-commerce businesses are quick to cash in on this uptick. Additionally, e-commerce businesses must prepare for the surge in orders and ensure that they can meet the increased demand. Brands must be well prepared to deliver customers' orders on time and in good condition.

COMMUNITY

ZQ 101 Founded in 2010, ZQUARED is a leading e-commerce partner. Ranked as a top 100 AMAZON SELLER with over 80k reviews and a 100% positivity rate, ZQUARED's core team has more than 50 years of 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 - because 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.

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.

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.

2022 ZQUARED hires Jeff Bush as President, positioning the company for continued growth.

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.

TEAM

Bryce Fosdick

Hi, my name is Bryce Fosdick, shout out to my mom and dad! I'm 25 years old, and I've grown up in the St. Louis area my whole life. I love the NFL – my team is the Minnesota Vikings – and recently I've been focusing on my health and fitness. At ZQUARED, I work in the receiving department, assisting Justin Stragliati. My main focus is keeping our racking organized and breaking down pallets for the FBA building team, as well as helping to promote efficiency and the lean mentality within the warehouse.

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

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!

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

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.

THE 8 WASTES OF LEAN Waste of the Month

TRANSPORTATION Transportation waste is one of the 8 wastes commonly identified in lean manufacturing and process improvement. This waste refers to any unnecessary movement or transportation of materials, products, or people within a process. Examples of transportation waste could include walking to the other side of the warehouse to reach a pallet, or having the printer in an inconvenient area. By identifying these wastes, we are able to save time and fix what bugs us. Transportation waste can lead to increased costs, delays, and inefficiencies in a process, and can also contribute to environmental impacts such as increased carbon emissions. At ZQUARED, we have identified and eliminated over 50+ transportation wastes in everyday operations which not only improves our process efficiency, but also reduces costs.

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 enhancing 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 has helped us foster individual ownership throughout the ZQUARED workplace.

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 45lbs routinely throughout the workday.

INTERESTED?

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

GET IN TOUCH partners@zquared.com

https://zquared.com

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