Looked at something that I thought was
just fascinating is that profitability,
Speaker:because Prime Day just really just kind
of crushed me this year with everything
Speaker:that went on. I actually made more
money in August than I did in July.
Speaker:Are you frustrated with growth on Amazon?
Speaker:If you're not completely confident in
your Amazon ad strategy or your brand
Speaker:growth strategy on Amazon, we should
chat. Hey, what's up? I'm Brett Curry,
Speaker:CEO of OMG Commerce. We help seven, eight,
Speaker:and nine figure brands
scale on Amazon. Now,
Speaker:success on Amazon really comes down to
three things. The first is visibility,
Speaker:and this is really made up
of SEO and merchandising.
Speaker:SEO is really about getting your
products to show up on the right digital
Speaker:shelves when people search for
keywords related to your product.
Speaker:Merchandising is really about helping
your products jump off the shelf so that
Speaker:people notice them.
Number two is velocity,
Speaker:and this is largely driven by
improving your overall organic rank and
Speaker:crafting a comprehensive
Amazon ad strategy.
Speaker:And then number three is value creation.
Speaker:This is turning impressions and clicks
and visits to your pride detail page
Speaker:into paying customers. This is all
about better copy, better images,
Speaker:better videos, better bullet
points, better a plus content,
Speaker:and overcoming any hurdle that's keeping
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Speaker:Now as an agency, we've been
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Speaker:We've been invited to the Amazon
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Speaker:I speak on stages about
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Speaker:and we've condensed eight years of Amazon
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Speaker:guide. So click here to get that guide,
Speaker:or maybe you'd like to work with the
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Speaker:for you or just see what
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Speaker:So click here to also request a free
strategy session and we can't wait to help
Speaker:you dominate on Amazon.
Speaker:Well, hello and welcome to another edition
of the E-Commerce Evolution podcast.
Speaker:I'm your host, Brett
Curry, CEO of OMG Commerce,
Speaker:and today we're going deep on Amazon.
Speaker:How is Amazon trending in 2025?
Speaker:We'll unpack a little bit of Prime
day from the context of what did we
Speaker:learn then that we can apply to Q4.
Speaker:Amazon has always been a wild
ride and this year is maybe
Speaker:wilder than most.
Speaker:And so we want to give you what you
need to be to crush holiday sales.
Speaker:And so my guest today is Brandon
Fuhrmann and he is the co-founder of
Speaker:Innovate. Used to be Amazon Innovate.
Speaker:If you've heard of that event
or seen that event in the past,
Speaker:my buddy Sean Frank from The Ridge says
it's the best Amazon show He attends.
Speaker:Brandon Young, also confirms that,
Speaker:and so high praise from two powerhouse
individuals in the D two C and Amazon
Speaker:space. And so going to talk
about the show a little bit,
Speaker:but Brandon is also,
Speaker:he's been a top seller
on Amazon for 12 years.
Speaker:So either a seven or eight figure
seller essentially the whole time in an
Speaker:extremely competitive
category, kitchenware,
Speaker:which most people have just
dropped out of that category,
Speaker:it's deeming it too hard, and
so he's got lots of wisdom.
Speaker:Excited to unpack this one with that.
Brandon, welcome to the show, man.
Speaker:And how's it going?
Speaker:It's going good. Good to be
here. You mentioned 12 years.
Speaker:It seems like it's like a hundred
years in Amazon years, but yeah.
Speaker:Yeah, totally.
Speaker:I think we can definitely count
digital marketing or or Amazon years.
Speaker:They should feel like dog years
or be calculated the same way
Speaker:because yeah, if you've been doing this
for longer than three or four years,
Speaker:you're sort of a veteran, right?
You've been doing it for 12. Dang,
Speaker:I can't even believe it myself.
Know the game. Yeah, for sure.
Speaker:And so we love the Amazon game.
Speaker:We built a full service Amazon department
inside of OMG starting back in 2016,
Speaker:and so kind of fell in love with
Amazon. Love Hate though, right?
Speaker:It's such an opportunity.
There's such madness there as well.
Speaker:And we'll get into things like fees and
how those are going to continue to go up
Speaker:in Q4 and talk about some weirdness around
Prime day and what we can expect from
Speaker:that.
Speaker:But obviously with Amazon
at 50% of all e-commerce and
Speaker:growing can't ignore it. Got to
have a good strategy there. Good T,
Speaker:just good execution plan.
And so we'll dive in,
Speaker:but I guess let's start with Prime Day
because it's always a bit of a bellwether
Speaker:of what is holiday going to look like
and of course we'll have the fall prime
Speaker:day probably. And curious, and actually,
Speaker:have you heard anything about the fall
prime day as in terms of when that's
Speaker:going to be or what that's
going to look like this.
Speaker:Year? I've heard a couple of rumors,
Speaker:but I don't really want to say because
I'll say it and then by the time this
Speaker:comes out they'll have announced
it and I'll be dead wrong.
Speaker:But.
Speaker:Something is coming there sometime.
Speaker:Yeah, I think is a great way to put it.
Speaker:But even the early prime day, the
July prime day, the OG prime day,
Speaker:it's somewhat of a bellwether for holiday.
Speaker:And so let's talk about that a little bit.
Speaker:It was a four day event for the first
time. Last year was a two day event.
Speaker:It's been a one day event in the past
because it was an extended event,
Speaker:you didn't have the same urgency
as years passed, day one, day two.
Speaker:This year globally
we're down 40% in sales.
Speaker:We saw that across a lot of
our clients. We decided, hey,
Speaker:if we're going to do a
year over year comparison,
Speaker:we need to look at the two days of
prime day plus the two days after,
Speaker:because you can't compare four
days of sales to two days of sales.
Speaker:That's an unfair comparison, but
overall, it was a decent prime day.
Speaker:A lot of our clients were up. It
didn't feel quite the same as normal.
Speaker:And I know you kind of
echoed that as well,
Speaker:that it was not the biggest
prime day you've had.
Speaker:And so unpack that a little bit.
What was Prime Day in general,
Speaker:and then where did you see the
biggest drop off or the biggest change
Speaker:related to Prime Day?
Speaker:So I've been doing Prime Day for
a long time. I sell kitchenware.
Speaker:And kitchenware is usually great on Prime
Day because I feel like there's a lot
Speaker:of people who are just like,
I want to buy something,
Speaker:but I don't really know what it is,
Speaker:but I know I want something because
deals and then kitchenware kind of slots
Speaker:into that perfectly because it's like
everyone could always use something for
Speaker:their kitchen.
Speaker:So I feel like I've always
benefited in years past from that
Speaker:mindset and from the urgency that takes
place during the two day prime day.
Speaker:I've woken up one of the
first years of Prime Day.
Speaker:I woke up at five o'clock in the morning
and this is before they had cookies or
Speaker:anything,
Speaker:and I went to amazon.com and my product
was literally sitting on the front page
Speaker:of amazon.com and I sold out of every
unit I had by 6:00 AM Eastern Time,
Speaker:not even PSD. So I've.
Speaker:Been through my part of the
country, aren't even awake yet.
Speaker:And you're.
Speaker:Done.
Speaker:So I've been through a lot with that
and I've seen that happen in years
Speaker:past, and a couple of things
definitely affect that one.
Speaker:Obviously the four day Prime day led
to a lot less urgency when you have
Speaker:that kind of, people were just
taking their time, waiting for deals,
Speaker:kind of thinking about it,
not sure what they wanted,
Speaker:and it really changed the products that
sold compared to years past when you had
Speaker:that urgency, it kind of put
a little pressure on there.
Speaker:The other thing that changed is if
you were running a prime day deal,
Speaker:like a lightning deal essentially,
Speaker:you used to be able to
adjust the quantity on that,
Speaker:so you could kind of sit there and
create a full scarcity as the deal was
Speaker:running and people would
just start running away with
it because they thought it
Speaker:was like 90%, you can't do that anymore.
Speaker:So a lot of that urgency
was also taken away.
Speaker:Does that mean, and so
since that went away,
Speaker:does Amazon just show all of your
inventory or did they just take.
Speaker:That You could either choose a finite
amount or use all your inventory.
Speaker:All your inventory basically means that
there's not going to be any bar at all.
Speaker:So there's not even a
little bit of scarcity.
Speaker:And the finite amount is you could
sell out immediately and then be done,
Speaker:or you could not do too much and then be
at 1% for the entire day and look like
Speaker:you have the worst product
that no one's interested in.
Speaker:So it's a really fine line with how you
set that and how you prepare for that.
Speaker:So I think that with that,
Speaker:a lot of that kind of changed how people
responded to Prime Day and how products
Speaker:were sold during Prime Day.
Speaker:Yeah, I totally agree with that. And
just a quick note on the urgency piece.
Speaker:I know you're into events and we'll
talk about innovate in a little bit,
Speaker:but we see small events and you think
through webinars and things like that,
Speaker:and you always want to make it where
this is super easy to say yes to,
Speaker:where if I look at it, I'm like, I
don't really have to think about it.
Speaker:I want to say yes to this,
Speaker:but also where there's not enough time
for you to be comfortable coming back
Speaker:to it.
Speaker:And I think that's potentially the
chord that was not struck with a four
Speaker:day prime day where it's like, okay,
fairly easy to say yes to this deal.
Speaker:It's a pretty good deal,
Speaker:but I've got time and what if I find
something better and what if I Right,
Speaker:exactly. There was a lot of, it was
just enough hesitation, right? Yeah.
Speaker:So I'll be really curious to see
will Amazon shift this next year?
Speaker:What will they do for fall?
Speaker:I think fall was Prime week last week
or something like that, or last year.
Speaker:And so I'd be really, really
curious to see what they do next.
Speaker:The other thing that changed too is
how they were calculating discounts and
Speaker:factoring them in,
Speaker:and they were using coupons in last 30
day prices and they made it that it was
Speaker:an extremely complicated
number to fill out.
Speaker:And also because of when Prime Day fell,
Speaker:those numbers reset on Prime Day.
Speaker:So it was kind of crazy if you
have a certain price within
Speaker:the 30 days, but it wasn't 30 days before,
Speaker:you might get flagged and your deal
might not be running on Prime Day.
Speaker:So there was a lot of
weirdness where it was like,
Speaker:I don't even understand
how they calculated it.
Speaker:I'm sure I feel like people at Amazon
don't even know how they calculated it,
Speaker:but some of the prices for my products
were so bizarrely low that I couldn't
Speaker:really do anything or so
bizarrely high that it was like,
Speaker:this isn't really a deal,
but that's what they wanted.
Speaker:So I feel like that was a really kind
of interesting wrinkle in it as well.
Speaker:And again, that's an area where you
don't have a ton of control over that,
Speaker:where Amazon says this is the base price,
Speaker:I guess you have control
over your discount,
Speaker:but do you have to set the discount before
you see what they're going to approve
Speaker:as the base price?
Speaker:Yeah,
Speaker:I mean you set the discount and then
they'll come back and just flag it and not
Speaker:let the discount run. Depending on there's
15 different discounts you could run.
Speaker:You use the prime exclusive discount
or whatever they're calling it now.
Speaker:I think they changed the name again,
Speaker:but all those different discounts and
then they don't tell you exactly what's
Speaker:running or not until it actually,
Speaker:the system automatically
flags it for whatever reason.
Speaker:But they usually do that on Mondays or so,
Speaker:and then we were already kind of
going by then, so it's like, yeah,
Speaker:it's tough to figure that out and tough
to figure out what's working and what's
Speaker:not, so.
Speaker:Yeah. Got it. I know,
and so related to that,
Speaker:you were telling me kind of offline
Lightning deals, those were impacted,
Speaker:and I know a huge, huge part of this.
Speaker:That's kind of how you sold
out so early in years past,
Speaker:but how have Lightning deals
changed and any additional
Speaker:points to add to that?
Speaker:So in addition to how
they calculate quantity,
Speaker:it seemed like the way they were being
displayed on the front end also was
Speaker:similar to how Prime exclusive
discounts were being displayed.
Speaker:It didn't seem like there was really
much additional marketing being done to
Speaker:them. They kind of got lost
in the shuffle. That seemed
kind of the same thing.
Speaker:And to me,
Speaker:it feels like I wasted a thousand
dollars a deal compared to years past.
Speaker:Because you got to pay for that deal
regardless of how much you sell.
Speaker:That's right. You got to pay to be.
Speaker:Yeah, exactly. And end of your
discounts. A year ago prior,
Speaker:I sold 5,000 units of one of my
products where it was like, heck,
Speaker:I would take that chance every day
course. So it was like a no brainer to me,
Speaker:but it just, nothing really took
off. Nothing really happened.
Speaker:So it just seemed like it just had a
different level of marketing than what
Speaker:maybe they had done in the past.
Speaker:So they paid a thousand dollars
to get the Lightning deal
Speaker:this year. You both
had the quantity issue,
Speaker:how many units you consider are eligible
for? You have the pricing issue,
Speaker:so maybe it ends up not looking as
much of a deal and then they're maybe
Speaker:not promoting it as well either.
Speaker:Do you think that just applied to
potentially your deal or your category,
Speaker:or did it seem like globally lending
just didn't get the same traction.
Speaker:It seemed globally? I heard
this in a lot of sellers,
Speaker:and I think for some, at least the four
days may have played an aspect to it.
Speaker:Again, if there was no scarcity
as well, then people just don't,
Speaker:and they literally removed every
possibility of scarcity from Prime Day.
Speaker:Which just seems really
silly to me. Amazon is smart.
Speaker:They're brilliant retailers,
Speaker:not a better retailer on the plane
except for maybe Walmart or something.
Speaker:But yeah, it seems like they maybe missed
it. So here's an important question.
Speaker:Based on that information,
Speaker:what are you going to
do differently in Q4?
Speaker:What are you potentially going
to do differently next Prime Day?
Speaker:That's a long ways away. Things could
shift. Again, they will shift, I'm sure,
Speaker:but what lessons are you taking
from this? You're applying to.
Speaker:Holiday? Yeah, well, so there's two.
First of all, we have the fall prime day,
Speaker:and that's the next thing to get ready
for. So the lessons that I'm taking,
Speaker:so first of all,
Speaker:I've looked at something that I
thought was just fascinating is that
Speaker:profitability,
Speaker:because Prime Day just really just kind
of crushed me this year with everything
Speaker:that went on. I actually made more
money in August than I did in July way,
Speaker:which shouldn't happen.
Speaker:Which should not.
Speaker:Happen. No, but it did.
Speaker:So I think with the fall prime day,
Speaker:there's a couple of factors
that definitely you need
to take into consideration.
Speaker:So first of all is the storage
fees are already in effect.
Speaker:So you have the Q4 storage fees,
Speaker:which are like four x normal storage
fees and selling in kitchenware.
Speaker:I'm selling items where I sell a lot
of items that are at a relatively low
Speaker:price. If you're selling a $400 item,
Speaker:maybe you don't care that
much about Q4 storage fees,
Speaker:but for me that's a huge deal.
Speaker:So it's very hard to bring
in extra inventory for that
Speaker:prime date. So for me.
Speaker:That's another way that's going to chip
away at your profits if you get that
Speaker:quantity wrong.
Speaker:Yeah, exactly. So to me, I think I'm
bringing in the inventory I want for Q4.
Speaker:I always overestimate,
Speaker:especially with Chinese New Year
coming in shortly thereafter,
Speaker:it's okay for me to have a
couple extra months of inventory.
Speaker:So if I have stuff and I know
that I've got a good amount in FBA
Speaker:and I know the pricing is good,
Speaker:those are the products I'm
probably going to be discounting,
Speaker:knowing I can probably get the rest of
the inventory in time for Black Friday,
Speaker:cyber Monday.
Speaker:So that's kind of where I'm going to
probably start looking at discounts is
Speaker:actually discounting products that I have
a good amount of inventory and that I
Speaker:could actually use to reduce
storage fees leading into Q4.
Speaker:So that's definitely the first
way I'm probably looking at it.
Speaker:The second is really sitting down
and drilling down and understanding
Speaker:how they're going to be marketing each
of the different deals and coupons
Speaker:and discounts because there was so many
different ones going on that it was kind
Speaker:of difficult to really understanding
and kind of get confused by.
Speaker:So I'm going to accelerate in a couple
of weeks, which is a great conference,
Speaker:but great show. Great. It's amazing on.
Speaker:Seattle. Love.
Speaker:It.
Speaker:But that's one of the things I really
want to discuss with the people there is
Speaker:try to understand how they're promoting
these and how they're viewing each of
Speaker:these different kinds
of deals. From our end,
Speaker:we kind of get lost in the shuffle.
Speaker:Yeah, totally. Totally makes sense.
Speaker:Are you still going to lean into the
same kind of lightning deals or do you
Speaker:think your deal strategy might shift.
Speaker:A little bit? It might shift. I think
it's going to be a game time decision,
Speaker:but it's definitely going to
shift as far as right now,
Speaker:it's going to shift away quite a
bit. I still might run one or two,
Speaker:but I'll probably just go with the prime
exclusive discounts and maybe a couple
Speaker:of other things and call it a day.
Speaker:People have been talking against Lightning
deals for years and how they don't
Speaker:work for them, but they'd always work
for me until now. So I believe in
Speaker:verifying with my own data instead of
trusting random people that I know or
Speaker:friends or whatever, different. Every
category is different, but yeah,
Speaker:I'm going to definitely move
away from that for the most part,
Speaker:but keep probably a couple
just in case. I also,
Speaker:I'm kind of viewing it as a bellwether
for Black Friday Cyber Monday,
Speaker:which is obviously going
to be a lot more sales,
Speaker:and it's kind of like they've
got between July and October,
Speaker:they've got three months
to get things together,
Speaker:figure out what they want to do,
Speaker:but I can kind of test some things and
see how they're going to work maybe for
Speaker:Black Friday,
Speaker:cyber Monday and use that as to figure
out how I'm going to plan for that
Speaker:instead of just not testing anything.
Speaker:So probably run a little
bit of everything.
Speaker:Totally. Yeah, I think that's a real
advantage of the October Prime days.
Speaker:Run some tests, experiments a little bit,
Speaker:then that's going to maybe inform
your Cyber five strategy even more
Speaker:than T 12 or.
Speaker:Whatever it was last year. What's that?
It was like T 12 last year, right?
Speaker:It was.
Speaker:Yeah. Yeah.
Speaker:Totally.
Speaker:So we'll see.
Speaker:I mean that kind of the trend and
we saw four day Prime day this year,
Speaker:so probably won't see
the Cyber five or the
Speaker:Turkey T five, whatever this T 15.
Speaker:I mean I don't dunno how more you can
expand it. Keep going. Exactly, exactly.
Speaker:Any callouts on the way
you guys approached ads
Speaker:during Prime or any shifts you expect
this year or what you're hearing from your
Speaker:community? I know my ads team,
Speaker:they're very active and
obviously CPCs rise 20,
Speaker:30% got to pay on the category
during these prime windows and
Speaker:usually worth it because conversion rate
goes up in step with that or conversion
Speaker:rate goes up more. But any changes
for you on your ad strategy?
Speaker:Anything not you're expecting there.
Speaker:Too far? The only thing that
we do differently is that
Speaker:we always will try to start increasing
it leading up to prime day to kind of
Speaker:really get a foothold and start
preparing and just start increasing
Speaker:it and getting maybe some little
better rankings here or there because
Speaker:sometimes, especially in July,
sales are not at their peak,
Speaker:whereas those two days can be quite a
bit of extra sales and get extra ranking
Speaker:that could last for a
month or so. So yeah,
Speaker:we'll do some extra promotion
on the ads leading up to it.
Speaker:But other than that we don't really,
Speaker:I don't think there's anything we're
planning on changing, but again,
Speaker:it's a ways away at this point for.
Speaker:Yeah, yeah. Although we'll be
here before we know it for sure.
Speaker:Let's kind of double
click a little bit on,
Speaker:you talked about storage fees and other
fees and stuff. Can you talk about what,
Speaker:and those fees, some of those
fees are going up four X for q4.
Speaker:Can you talk about all the
fees and costs that you're
Speaker:considering and what's shifting and
then what you're doing about it?
Speaker:So there's so many different fees
at this point. When I first started,
Speaker:there was a couple fees and you
just had to kind of look at them.
Speaker:Now when I look at my seller board
report, there's, I don't know, 15,
Speaker:20 different fees and you can't
even really trace back half of them
Speaker:your transaction report. You
can barely see what they're for.
Speaker:So it's really important to really
manage every fee as best possible.
Speaker:It's like death by a thousand cuts.
Speaker:And something that I always want
to impress on people is that
Speaker:if you're making, I'm just using a number,
Speaker:a hundred dollars a day
and then there's a $5 fee,
Speaker:you might be like, oh, $5 isn't that much,
Speaker:but that's 5% of your total profit.
Speaker:Your profit has gone down considerably
based on something that's relatively
Speaker:small and you get a bunch of those and
suddenly a hundred dollars turns into $73
Speaker:or $52 or whatever that number is. And
that's maybe most of your margin, right?
Speaker:Exactly. Or all of it.
Speaker:And so some of what I've been doing too
is kind of digging back and looking at
Speaker:each month and being like, okay,
what's going on? What can we change?
Speaker:Where do we lose what's happening here?
Speaker:And trying to see if there's
any bleeding that we can cut,
Speaker:anything that we can change and trying
to factor in all those ghost fees into
Speaker:your profitability of each product.
Speaker:And none of the profitability softwares
really do this perfectly because there's
Speaker:a lot of global fees and things
that they might factor in globally,
Speaker:but not to each product, but
really trying to figure out, okay,
Speaker:is this product really profitable or is
it just kind of ghost profitable because
Speaker:I'm getting charged this
much in storage fees,
Speaker:but this much at a WD for this
and we've paid this extra for
Speaker:whatever it is.
Speaker:There's so many different things that it
can be that really trying to make sure
Speaker:that I understand where the money's
actually coming from and building in extra
Speaker:margin almost in a way
to take care of that.
Speaker:I know I also am not going to be perfect
at calculating that. So if I want,
Speaker:I dunno, 15% margin, then
I should really aim for 17.
Speaker:To give yourself a little bit of buffer
because you may not have calculated the
Speaker:fees correctly, there may be some
extra fees come in, things like.
Speaker:That. Yeah.
Speaker:So a couple things to note there.
Speaker:So you mentioned none of the
softwares calculated perfectly,
Speaker:maybe a global fees and not each
individual SKUs fees or as fees.
Speaker:Any recommendations there though?
Speaker:Are there any software tools that
you do recommend or are you mostly
Speaker:doing this by hand with spreadsheets
and digging into Seller Central.
Speaker:And things like that? Yeah,
so I use seller board,
Speaker:which gets me like 90% of the way there
and they tend to report the fees as
Speaker:far as I can tell. I mean there's so many,
Speaker:I might be missing one and
I probably would never know,
Speaker:but that seems like they're reporting
all the fees in their backend. But again,
Speaker:some of them are globally,
Speaker:so I'll kind of look in and look at let's
say long-term storage fees and look at
Speaker:else everything that I might be charged
as a fee and kind of making sure that's
Speaker:being broken down properly and being
added to the bottom line for each product
Speaker:as well. Got it.
Speaker:There's always a couple that
don't really get moved in.
Speaker:Like a WD fees for example is a really
good one that doesn't really get factored
Speaker:in properly in there. So if
I'm paying for storage there,
Speaker:I'm not paying FBA storage,
Speaker:but I'm still paying a decent
amount in storage as well.
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Speaker:And so then what are the levers that
you can pull to improve profitability?
Speaker:I know you can look at
that and then raise prices,
Speaker:and that's probably the clearest,
simplest things to do, thing to do,
Speaker:but that can impact philosophy and sales
and conversion rate, things like that.
Speaker:But what are you changing
based on this data?
Speaker:And then if you've got any specific
wins that you've seen lately and you can
Speaker:speak in generalities, that'd be great.
Speaker:So there's a bunch of different ways.
Speaker:Every fee is a lever you can
pull to improve profitability.
Speaker:So you could store less inventory
and kind of not keep as much.
Speaker:That's definitely a lever, right?
That'll definitely move the needle.
Speaker:Probably the biggest is probably a. And.
Speaker:With that, are you just
looking then for hey,
Speaker:these are the ASINs or these are the
skews that we've just got too much
Speaker:inventory in and so you're looking at
velocity and stuff and running those
Speaker:calculations and maybe
your software helps with.
Speaker:That? Yeah, for sure. Trying to
just get better at that, right?
Speaker:That's certainly a way, I mean if you're
paying, I don't know, let's just say,
Speaker:I don't know, a thousand
dollars a month in storage fees,
Speaker:if you can get 10% better,
Speaker:maybe you'll be paying $900 a month and
that's a thousand dollars a year that
Speaker:you're going to save. So even
just little wins like that,
Speaker:10% better at something can really
yield big results over the long term.
Speaker:So it used to be that you could just be
pretty good at an Amazon and figuring
Speaker:out what you're doing,
Speaker:but now you've got to be really digging
in and really every little bit counts
Speaker:and you try not to make one
wrong move. So that's one thing.
Speaker:Another thing is I use a WD quite a bit.
Speaker:Some people will send their
inventory directly into FBA,
Speaker:but then you've got to pay the inbound
placement fees and you're paying those
Speaker:storage fees on that.
If you're sending it into a WD,
Speaker:they will drip in that inventory.
Speaker:So you might end up saving
significantly there on FBA fees,
Speaker:and even if you're storing it at three pl,
Speaker:you'll still have to pay those placement
fees unless you're shipping it to five
Speaker:locations, which is kind of crazy.
Speaker:So there's different ways to work with
inventory like that that'll definitely
Speaker:help yield results.
Speaker:So I've definitely done some work there
in repositioning how I do some of that.
Speaker:The biggest is probably the ad spend
though really realistically that's the
Speaker:biggest lever outside of price or
anything like that or so that's definitely
Speaker:something I've worked to
cut down a bit. Totally.
Speaker:Where are you paying too much? Exactly?
Where do you have wasted ad spend?
Speaker:What's not leading to either overall
lift or direct conversions? And yeah,
Speaker:that is a, look, I'm a huge ad fan.
Speaker:I think it drives
velocity drives rankings.
Speaker:You almost can't succeed
depending on the category.
Speaker:Almost can't succeed without
it on Amazon, but man,
Speaker:is it an area for waste as well.
Speaker:So that's definitely a spot
you got to be looking at.
Speaker:And.
Speaker:Watching closely, especially in q4.
Speaker:Exactly, exactly.
Speaker:And I've went through my tacos
and it was just like, okay,
Speaker:my total a cost how much I'm spending
per dollar. And I was just like, okay,
Speaker:I've got to cut this down a
bit. I have to, I'm sorry.
Speaker:And I cut each one a little
bit and I didn't sell as much,
Speaker:but I got more profitable and that's
okay, right? So little wins like that.
Speaker:It's not about top lines about how much
you keep, and so you've got to maximize.
Speaker:Profits for sure. So that's
definitely another thing I've done.
Speaker:And then another thing that's a couple
of things that are kind of underrated is
Speaker:one,
Speaker:obviously if you've never audited your
packaging is trying to make sure that you
Speaker:fit within Amazon's guidelines,
Speaker:that if they say that they charge $4
and 83 cents for something that's this
Speaker:size,
Speaker:don't be a 10th of an inch over it because
you're going to pay the next level.
Speaker:If you can get that down, even
if the packaging costs more,
Speaker:even if they got a packet tighter,
even if you've got to vacuum seal it,
Speaker:whatever it is, that's going to save
you significant money on each one.
Speaker:So that's definitely a big piece there.
Speaker:Another one is just really updating
your images and making them look nicer,
Speaker:just trying to improve conversion
rate. If you're converting better,
Speaker:your ads are going to cost less.
You can maybe charge more money.
Speaker:So probably every two years it seems
like I go back to the well and completely
Speaker:redo my entire lineup, like little
by little technology change,
Speaker:graphics designers change,
Speaker:and you can kind of eke out some
pretty decent success that way.
Speaker:And you'll be surprised sometimes how
much a product may take off by a new main
Speaker:image.
Speaker:Yeah, it is such an interesting point,
Speaker:and it really is looking at all
the component parts of success on
Speaker:Amazon and even looking at if I can
get 1% better in some of these areas
Speaker:exactly, or 10% better maybe in
some of these areas, those do stack.
Speaker:And it's one of those
things where if you find,
Speaker:let's call it a 10% improvement
in a handful of key areas,
Speaker:That may end up being a 30% lift,
Speaker:a 40% lift in overall performance
or overall profits. And so yeah,
Speaker:you've got to look at that and yeah,
Speaker:we can't just rely on Q4
conversion rates, lifting,
Speaker:rising all ships, and we benefit
from that. It's going to happen,
Speaker:but what can you do to create
outsize gains there? Exactly.
Speaker:And so even simple things like images, a
buddy of mine always talked about, Hey,
Speaker:I want to craft my images
on my ASIN so that if that's
Speaker:all someone saw, so remove the
copy, remove everything else,
Speaker:all they saw was the
images and the videos,
Speaker:that'd be enough for them to
convert. And if you can do that,
Speaker:then your listing is in a pretty good
spot if you can't upgrade those images and
Speaker:look for improvements there.
Speaker:That's a great point. That's
a really good idea for sure.
Speaker:Cool.
Speaker:And then I know a few other things
you mentioned when we were prepping is
Speaker:removal fees, reimbursement fees
being reduced, things like that,
Speaker:and any callouts there on some
of those feed some of those fees?
Speaker:I mean, nothing I can really
say to help with that.
Speaker:I mean obviously three reimbursement
portal you can of update your prices and
Speaker:try to get a better price and
get more money returned to you,
Speaker:but there's not really
anything you can do about that.
Speaker:The other fee is the returns is if you
can do anything to cut down on your
Speaker:return rate as well.
Speaker:So I always will take my reviews
and return reasons and put them into
Speaker:chat GT and kind of be like,
summarize this, what should I do?
Speaker:And try to figure out if there's anything
that patterns that might be missing or
Speaker:anything that I could change
might help reduce return rate.
Speaker:Super smart. So it was
funny, someone had said,
Speaker:put into chat GPT and asked them things
about myself that I don't know or what I
Speaker:should be doing with myself
or something like that.
Speaker:And it gave this whole thing
and it was like, by the way,
Speaker:you should upgrade the metal in your
product. People are complaining,
Speaker:do it already or something. And it was
like interesting. Wow. And I was like,
Speaker:wow, that's some tough love.
Speaker:But it's one of those things where the AI
Is just looking at the data and doing
Speaker:recommendation based on the data.
Speaker:It's maybe saying things that
a human might not say exactly.
Speaker:And so really valuable there. And so yeah,
Speaker:you got to look at that
feedback. And again,
Speaker:that's another piece is you've got
this amazing feedback loop if you close
Speaker:the loop, if not,
Speaker:it's just feedback that's floating
around and you do nothing with it.
Speaker:So you got to take that, apply that to
changes and improvements in the product.
Speaker:So yeah,
Speaker:I mean the return reducing the
return rate makes such a difference
Speaker:in so many ways. You got extra
fees there, you got shipping costs,
Speaker:things like that. If your
delivery rate is too high,
Speaker:that impacts ranking and a number of
other things. So yeah, get on that.
Speaker:That's definitely time well spent.
Speaker:Want to transition to a couple
other really key points.
Speaker:I know we talked about offline,
Speaker:the competitive landscape is shifting
with Chinese sellers getting better at
Speaker:quality listings and things.
Speaker:We talked a little bit about AI
and some of the changes there,
Speaker:so I want to get into that too.
Speaker:But let's talk about the competitive
landscape and particularly
Speaker:Chinese sellers, they seem
to have up their game.
Speaker:What can you tell us about that?
Speaker:Yeah, I mean they're using the
same AI tools that we're all using,
Speaker:so suddenly the listings have
much better English on them,
Speaker:have much better English
copy on the product images.
Speaker:The images are looking nicer.
Speaker:So a lot of the branding advantages
and language advantages that I think US
Speaker:sellers had or English based sellers had
have kind of gone away and it's kind of
Speaker:a much more level playing
field in that regard.
Speaker:And a lot of times they're able to price
products cheaper and get better deals
Speaker:on them. So it's become a really much
more difficult landscape in that regard.
Speaker:I think especially in my category, which
is really just a tough one for that.
Speaker:It used to be.
Speaker:Mostly a price issue where Chinese
sellers would come and just undercut
Speaker:everybody else,
Speaker:but it looked a little janky and then the
listings were not great and stuff like
Speaker:that. Now that's improving.
Speaker:Now we got a real problem here with
lower prices and comparable listing.
Speaker:So what are you doing to combat that?
Speaker:Any recommendations or any insights there?
Speaker:Like I said,
Speaker:I redo my main images and really
I say every two years or so,
Speaker:I bring everything down to the studs
basically and start over again and kind of
Speaker:redo the best I can.
Speaker:Whatever your listing was in
2023 is not necessarily going to
Speaker:convert the same way in 2025.
The competition is different,
Speaker:the pricing is different.
Speaker:And so I feel like every two years
or so I'm really restarting again and
Speaker:looking for what my competitive
advantages are and what can I can promote,
Speaker:what I can press, what I
can charge, and it changes.
Speaker:So that's really all I can do is really
try to push those levers and make that
Speaker:work.
Speaker:And that that's really the
game forever, isn't it?
Speaker:Where we're looking for the next
innovation, the next product enhancement,
Speaker:the next optimization meaning
better merchandising, better images,
Speaker:things like that, and how can we
stay ahead of the competition?
Speaker:Because certainly if you make
those changes and they work,
Speaker:your competition's going to copy you
and then you have to be looking for the
Speaker:next thing and feels exhausting, seems
exhausting, but that's just the game.
Speaker:That's the retail game, that's
the Amazon game for sure.
Speaker:And the speed is pretty quick
there, but got to be reinventing,
Speaker:got to be optimizing on the
ongoing and so makes a ton of
Speaker:sense there.
Speaker:What about AI and what
are you doing specifically
Speaker:using AI to give yourself an advantage?
Speaker:So yeah,
Speaker:I guess a couple of things I've been
doing is I've been playing with AI I just
Speaker:mentioned in terms of
analyzing large bits of data.
Speaker:That's definitely been helpful.
Speaker:I'll take it and I'll compare SQP reports
over different periods and kind of
Speaker:try to gather where maybe I've
increased, maybe I've decreased,
Speaker:maybe I'm missing something there.
Speaker:S QP reports for those that DONA.
Speaker:Search query performance reports in
brand analytics I guess within Seller
Speaker:Central and that will show you what
keywords you're ranking for and what
Speaker:keywords you're actually
making actual sales for.
Speaker:It's really the best
place to find that, right?
Speaker:But it's easy to kind of miss something
in that report if you're comparing a lot
Speaker:of different time periods or are just
different time periods in general where
Speaker:it's kind of tough to see
all that data side by side.
Speaker:So I will go in sometimes and
compare several of those and have it
Speaker:put together reports for
me where it's like, okay,
Speaker:I noticed in January you sold 32 items
on this term, but now you've sold eight.
Speaker:And then you go, okay, well that's
the problem. I got to fix that. Right?
Speaker:It's a problem.
Speaker:Totally.
Speaker:So being able to actually.
Speaker:Segment, add an issue, it's a ranking
issue, it's some kind of issue there.
Speaker:But being able to segment
exactly what's going on,
Speaker:which keywords are actually
the problem is huge.
Speaker:So I've definitely been using it for that.
Speaker:I've also been using it
to iterate on images.
Speaker:So I think I was telling you before
about this nano banana or whatever,
Speaker:I hope I'm not even saying.
Speaker:It correctly. Yeah, Gemini.
Speaker:From Google,
Speaker:but it's been really great to play
around with images and telling it to make
Speaker:boxes or text or whatever.
Speaker:And that's a really great way to me
it seems like it gets like 85% of
Speaker:the way there, 90%. And then I can send
it to a graphic designer and be like,
Speaker:just make this good, but I've
done most of the work already.
Speaker:That's all need.
Speaker:So it's a lot less work for them and
I can kind of get it to where I want.
Speaker:And way easier than you trying
to sketch it out or using
Speaker:Google Docs or something
to annotate something.
Speaker:You can create it using Gemini
and now you're much closer in
Speaker:your designer. Yeah.
Speaker:Exactly. Exactly. So that's definitely
a big thing that I've been doing.
Speaker:And then also sometimes when it comes
to writing texts with keywords in
Speaker:them,
Speaker:AI has been pretty good at making it look
nicer and not look as keyword stuffed
Speaker:as it might be. Right.
Speaker:Yeah. And curious, what are you using
there? Using chat gt, using clawed,
Speaker:using something.
Speaker:Else? Pretty much just chat GPT.
Speaker:Yeah. Yeah,
Speaker:I think all the tools have their benefits
and as an agency we're probably using
Speaker:chat GPT the most for a lot of things,
Speaker:but I do love Gemini for research
as we're pitching a new deal or I'm
Speaker:researching a new category or whatever.
Speaker:Or if I really am leaning into something
search based a lot, I'll use Gemini.
Speaker:And then for me, anything
that's copy based,
Speaker:so all the copy that I pull in from
show notes and stuff for the pod,
Speaker:I think Claude is the best, but
there's reasons to use all of them.
Speaker:So just curious what you
were leaning into there.
Speaker:Yeah.
Speaker:So what about the impact of rufuss?
Speaker:So now looking at the AI that Amazon
is using, what impact have you seen?
Speaker:What are you shifting in terms of
strategy or tactics because of rufuss,
Speaker:if anything?
Speaker:So I'm not really shifting
any strategies per se.
Speaker:I guess the only thing I would say is
Rufuss makes suggestions, questions,
Speaker:or data that it's kind of,
Speaker:do you want to know if this is
cotton for a t-shirt or something?
Speaker:So I'll just make sure that my backend
is filled with answers to those questions
Speaker:that maybe we will address
those questions. So I know
that they're asking them,
Speaker:especially if they're on competitors
listings where I can see what questions
Speaker:they're asking about them.
Speaker:Then maybe I want to make sure
they're asking them about me.
Speaker:Maybe there's some kind of disconnect
in how it's interpreting the data.
Speaker:But other than that, I haven't really
changed that much. I don't see a ton
Speaker:of what customers are doing with it.
But yeah, I mean I'm sure it's coming,
Speaker:but it's kind of tough to reconcile that
with the standard search and then how
Speaker:to do that.
Speaker:Yeah, it makes sense. How are you finding,
are you just visiting your listing,
Speaker:visiting your competitors'
listings, playing with Rufuss,
Speaker:seeing what the questions are and
what it's surfacing and then making
Speaker:adjustments there? Are there
any tools you're using?
Speaker:Any specific recommendations.
Speaker:There? Yeah, so what was the tool's
name? I completely forgot the tool.
Speaker:We talked about it last.
Speaker:Time, me later, we'll put it in the show.
Speaker:So theres a tool,
Speaker:a seller release that I thought was really
cool that would actually extract all
Speaker:the rufuss questions in one place for
you. I don't remember what it's called,
Speaker:but I'll find it and I would like to use
it. I would like to say I have used it,
Speaker:but I haven't yet. But yeah,
Speaker:it seems like a really great opportunity
to get those all really quickly and be
Speaker:able to address those as best you can.
Speaker:Yeah, cool. But I think
it also makes sense,
Speaker:something you should be doing anyway is
shopping your own listings and looking
Speaker:at your competitor listings and seeing
what's surfaced from roof is there,
Speaker:and then making adjustments
accordingly. So makes a lot of sense.
Speaker:Anything else I want to make
sure we talk about Innovate,
Speaker:which is an amazing show in New
York City coming up here quickly.
Speaker:Anything else you would note
in terms of what's shifting,
Speaker:what's changing and what
you're doing to prep for q4?
Speaker:Yeah,
Speaker:I think the only other thing that I
kind of haven't mentioned is I mentioned
Speaker:some of the inventory strategy,
but I think really looking at a WD,
Speaker:I know it did not go so well last Q4,
Speaker:but I feel like they'll probably do a lot
better this Q4 and kind of making sure
Speaker:I've got a good amount
of inventory with them.
Speaker:It's going to make it easier to get
things into Amazon when things might be
Speaker:tight, especially during the middle.
Speaker:Can you maybe just explain, I
think we're familiar with that,
Speaker:but how does that work and
how, when are you using it?
Speaker:Yeah, so it's basically like a warehouse.
Speaker:They call FBA fulfillment center.
So this is more of a warehouse,
Speaker:so you can use this to ship to
pretty much anywhere like case packs.
Speaker:You're not going to ship individual units,
Speaker:but they make it so that you can ship
into Amazon relatively affordably.
Speaker:You don't have to pay inbound
placement fees, you just have to pay,
Speaker:I think it's a dollar 70 a box plus
whatever the shipping charge is.
Speaker:So it actually ends up being relatively
economical to book those Amazon.
Speaker:And then Amazon will also
have it on auto replenishment,
Speaker:so it'll actually drip in as
it sees fit too. So for me,
Speaker:most of the year,
Speaker:it makes it really easy if I have stuff
in a WD where I don't have to think
Speaker:about inventory planning as much
because I know the inventory is kind of
Speaker:dripping in. Maybe I'll think about
it from an ordering perspective,
Speaker:but not like a what's in FBA perspective.
Speaker:But in Q4 I've manage it definitely a
lot more head on because moments can
Speaker:change thousands of units,
Speaker:but when it comes to booking
appointments and getting a
Speaker:truck,
Speaker:you might not be able to get that truck
in Q4 and a WD will just seamlessly send
Speaker:it. I'm not saying it's going to perfect.
Speaker:I'm not saying it's going
to be great necessarily,
Speaker:but it's another tool where you can
get your inventory in that might beat a
Speaker:truck potentially as well.
Speaker:Great, great. Totally makes sense. Love
that. Well, tell us about Innovate.
Speaker:Like I said, some trusted friends of mine,
Speaker:some leading influencers in the space,
Speaker:say Innovate's one of the best.
I'm speaking there this year.
Speaker:I'm really stoked about that.
Speaker:I can't wait to hang in New
York with you and your team,
Speaker:but tell us about Innovate. Why is it
so special? What's going down this year?
Speaker:Why should top sellers plan to attend?
Speaker:Yeah, so this is our seventh year, which
is, I can't even believe I'm saying it.
Speaker:What makes our show special I guess is
a couple things is one, first of all,
Speaker:the show started completely
organically. It started up as a meetup,
Speaker:but seven or eight years ago for people
just trying to learn how to sell online.
Speaker:And I was one of them.
Speaker:My partner Jared started it and
I started running it with him.
Speaker:And then at some point it
just kept growing and growing
and growing in New York
Speaker:City and we decided to put on a conference
and we had a little basement for a
Speaker:hundred people and cut to today,
Speaker:this is our seventh one and we're going
to have over 700 people this year.
Speaker:And it's just grown to be
this massive, massive event.
Speaker:Something that I think really sets
us apart is a lot of these shows or
Speaker:events are put on by either event
companies or service providers or people
Speaker:who just don't really know who they want
to get to speak at the event where for
Speaker:us, we know we have a lot of friends,
Speaker:we have a lot of connections,
Speaker:and we're able to get really
the people that we want to see,
Speaker:speak and get them to talk about the
things we want to see them talk about. So
Speaker:we're all sellers and we're just like,
Hey, we're interested in TikTok, great,
Speaker:let's get someone to talk about TikTok.
We're interested in branding, great,
Speaker:we'll get someone to talk about
branding, whatever we're interested in,
Speaker:whatever the hot topic is to us,
Speaker:we're going to get the experts
to come talk about that.
Speaker:And we're going to get mostly actual
operators and not as much service
Speaker:providers to talk. People are
actually doing it themselves.
Speaker:Running these businesses will tell you
about what they're doing specifically,
Speaker:I'll say, and we get all different kinds.
Speaker:So some people will get the
aspirational guys who are doing a
Speaker:billion dollars and we've
got a couple of those,
Speaker:but then some of the people doing five
to 10 million are really in the weeds and
Speaker:they've got great things to offer too.
Speaker:So we try to get a really good mix of
platforms and people that are really doing
Speaker:different things just exceptionally
well and getting them to talk and share
Speaker:their secrets where they
may not normally do. So.
Speaker:You can generally tell an event
that is run by just an event
Speaker:company where their primary goal
is how do we profit from this
Speaker:event? And obviously if you run an event,
you want to turn a profit, but goal,
Speaker:I.
Speaker:Wish that was my primary goal. What's
that? I wish that was my primary goal.
Speaker:But for you guys,
Speaker:it's like what do I want to learn and
what is going to give me an edge in the
Speaker:coming months and coming
year for my brand?
Speaker:And so this is put on by
sellers, run by sellers,
Speaker:curated by sellers,
Speaker:and these are just hot topics.
Speaker:And even the occasional service
provider like myself, when we come in,
Speaker:it's still like, Hey, this
is what sellers want to know.
Speaker:And I'm still in the weeds on a lot of
things, so can provide those insights.
Speaker:But yeah, it's just been,
Speaker:it's received top marks from
so many people that I trust
that I think you got to
Speaker:make it a must attend event. And
also the venue is cool, right?
Speaker:I love New York City. Of course.
Speaker:Did you guys on one of the
P Pier 67 or something.
Speaker:Like that? Yeah, it's amazing venue.
Speaker:It's right on the water and
it overlooks the Hudson River.
Speaker:And last year we opened the windows and
just get this beautiful breeze coming
Speaker:in. It was really spectacular.
The food is great.
Speaker:We've done this for seven years.
Speaker:This is the first time we were doing a
venue three years in a row because we
Speaker:just loved it so much that it was
like, we got to keep doing this here.
Speaker:So it's a great venue.
Speaker:And something else too for us
is like the timing is important.
Speaker:It's just before Q4 where there's
still time to make changes.
Speaker:You might need to get involved
to get things together.
Speaker:If it was a little bit later, it
could be problematic or earlier,
Speaker:maybe it won't be the most
updated and advanced content,
Speaker:but this is just before Q4 hits,
Speaker:so you got time to really get things
together and have a perfect q4.
Speaker:So the timing is strategic,
take advantage of it, Brandon,
Speaker:where can people find out more
and where can they register?
Speaker:So you can register at Innovate
Show, that's our website.
Speaker:And you can see all of our speakers
that we have there, including of course,
Speaker:Ezra Firestone, who's amazing, who
I'm super excited for as well as,
Speaker:and I think I made that connection.
I don't want to take too much. Yes.
Speaker:Absolutely, dude. He's legendary.
He's so good. I know you know that.
Speaker:But for those that have not heard Ezra,
Speaker:that's worth a trip to
see him live and in.
Speaker:Person. Great. Absolutely. And
we've got a bunch of others too,
Speaker:including Evan Dash, who's not
as known in the D two C space,
Speaker:but literally runs the
Dash Home Appliances,
Speaker:which is like a billion
dollar brand, just tremendous.
Speaker:They're in every retailer.
Speaker:And something that's really unique to
them is they've started within the last 10
Speaker:years or so.
Speaker:And I don't think there's
another kitchenware brand
out there that's ever done
Speaker:anything like that recently.
Speaker:So just some really amazing
people that I'm excited for.
Speaker:And like I said,
Speaker:I'm a seller and I get excited about
these people and what they're talking
Speaker:about.
Speaker:So I sit through most of the
sessions as best I can or watch them
Speaker:after. But yeah, it's just
a great event. But yeah,
Speaker:if you can visit Innovate show,
Speaker:you can get a ticket and I'll drop
you a coupon if you want to put that
Speaker:somewhere, if you want to.
Speaker:Amazing. Yep, I'll put it
in the show notes as well.
Speaker:And yeah, you can use that
coupon and register as well.
Speaker:Innovate Show, be there. Can't wait
to hang out in New York City. Brandon,
Speaker:how else can people follow you?
So are you active on socials,
Speaker:you want to connect with people on
LinkedIn or Twitter or anything.
Speaker:Like that? Yeah, you can find me on
any of the socials. I'm on LinkedIn,
Speaker:I'm on Twitter. I don't really
post very much. I'm just that guy,
Speaker:but I am there, so if you want to
connect, ask a question or whatever,
Speaker:you can definitely find
me there. Yeah. But yeah,
Speaker:I wouldn't expect too
many postings from me.
Speaker:Keep those expectations low.
Speaker:It's.
Speaker:Quality, not quantity, but
It's brand Fuhrmann.
Speaker:So it's F-U-H-R-M-A-N-N. Yes.
Speaker:Two ads as you're searching on the socials
defined, Brandon. And so with that,
Speaker:Brandon, this has been awesome and
thank you for dropping knowledge.
Speaker:Thank you for the time and look
forward to seeing you in New York City
Speaker:soon. Great. Thanks for having
me. Awesome. And as always,
Speaker:thank you for tuning in.
We'd love to from you,
Speaker:what would you like to hear more of on
the show? If you liked this episode,
Speaker:if this was helpful for you,
Speaker:please share this with someone
else who would benefit from it.
Speaker:And if you've not left us or view
on iTunes, we'd love that as well.
Speaker:And with that, until next
time, thank you for listening.
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