In episode, it tackles how sellers encounter a lot of returns in The Iconic. It is tough but it is something you can deal with. There is no way you can get The Iconic to handle returns, how they sell or market your products so just embrace it. IDA Connect will be discussing how we can help you track sales rather revenues to help to avoid large disappointments.
Hello and welcome to Marketplace Millions, a podcast dedicated to helping you sell more on many marketplaces, like Amazon. Sit back and enjoy today’s episode.
Howdy, Brad Younger here again, and welcome to episode nine, where I’m going to be talking about the secret sauce to dealing with a lot of returns from The Iconic.
We know you get a lot of returns, we see it. We have just about every seller selling on The Iconic, that just generates a lot of returns. We understand how frustrating it and we know sometimes it’s actually heartbreaking when you see more returns coming than what you do sales.
It’s tough, but it is something you can deal with. And we’ve got a few notes here today on how I’ve helped a few sellers in the past try and get around this problem with getting a lot of returns on The Iconic.
So the first thing is, let’s just agree right here, right now, that there’s just absolutely no way that you can get The Iconic to handle returns. All those sales they put on or anything or how they actually sell, or how they market out to the business.
There’s no way that you’re going to be able to effect that in any way, so just accept that. Just accept the fact that although you’re getting a large amount of returns, you’re not going to be able to impact the way that Iconic handles returns.
So just embrace it, I think, is the best way to say that. And by embracing it, you can then reset your mindset around how you think about the returns, so you can do things like focus on your top line revenue, instead of focusing on the number of sales or the sales volume, or the sales dollar figure.
Like I said before, you really need to embrace returns. This is a major shift we’re seeing right across the online retail sales sector. Just returns are increasing. Returns is the nature of the beast.
How do you embrace it? Well, you can start by making sure that you’re accounting for your returns in your sales. So when you’re looking at your sales figures, make sure that you are automatically applying that return to the figure, so you’re not actually looking at the total number of sales that are coming in, but more of a gross number of sales coming in or more likely, a net number of sales coming in.
And it’s just like cash flow, you may have cash coming into your business, so you may end with a lot of money sitting in your bank, most of the time, a lot of the time that’s not yours. You’ve got to pay things, like tax and everything else on top of that before you get a hold of it.
So just think of it in those terms, I think is the best way. The sales figure, yes, it’s a nice number to look at but you’d be setting yourself up for failure if your just focusing on that.
One other thing a lot of sellers don’t account for is the shipping costs. Obviously, if an item is returned, if you’ve already paid the shipping costs and you paid that because you pay the shipping costs and not The Iconic. You need to make sure you’re accounting for that in your sales figures as well.
So, if you’re focused purely on your sales and not on your actual revenue, you’re actually setting yourself up for a large disappointment. I say this across the board and you may end up doing something silly, like stop selling on The Iconic, even though you are making money with them.
So today, I’m going to suggest to you that you just start manually tracking your revenue per channel. And you can do this for everywhere that you sell. So, if you’re on Catch of the Day or Hard To Find or any other, you could look at this for your retail sales as well.
Take a simple spreadsheet and then what we’re going to do is create a box for each of the channels that you put it in. And then in each box we’re going to add a row for each of the monthly figures, for number of orders, total dollars for sales, the returns, the dollar amount for returns and the shipping costs.
Then we’re going to calculate the top line revenue for that particular month, so it’ll be and for that channel. So it’ll be the sales minus the returns. And if you do pay for shipping, just take your normal shipping cost and times it by the number of orders for that month and that’s your shipping cost.
And if you calculate all that together, you end up with your top line revenue. And then what you can do is actually just take the sum of each of your top line revenues for each of the channels and now you’ve got your total top line revenue for the month.
It’s a nice, simple way of tracking these numbers and it’s a better way of thinking about how much money you’re making from these particular channels, instead of just looking at the top line sales and then getting frustrated when your GSR comes through and it doesn’t match.
So I’ve created an example for you. So just have a look in the show notes just below this episode and you’ll be able to see what it looks like. I’ve also made that available for you to download and you can just start using that spreadsheet if you like.
So get your mind focused on the right things, on revenue and not sales, and you’ll be fine. So, thank you for listening to today’s episode and I look forward to the next one.
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