Mid course internship report amazon account managing activities and suggestions at inno house ltd

General information about Inno House 2.1 General Information & Develop Progress General information: Inno House Ltd is an innovative start-up in the retail sector, operating mainly on th

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

MID-COURSE INTERNSHIP REPORT

AMAZON ACCOUNT MANAGING ACTIVITIES AND SUGGESTIONS AT INNO HOUSE LTD

59 (2020-2024) MBA Hoang Thi Thuy Duong

Ha Noi, 2023

ACKNOWLEDGEMENT First of all, I would like to profoundly say thanks to my instructor — Mrs Hoang Thi Thuy Duong, Lecturer of Foreign Trade University for her considerate guidance during my whole mid-course internship period Her instructions were extremely useful for me to successfully complete the internship report

Furthermore, I am also grateful to Mrs Le Bao Cam — Manager of Inno House Ltd, who gave me an opportunity to intern and gain real practice in such a professional environment

Finally, I would like to say that I would really appreciate the internship time at Inno House, which has helped to direct my future career

TABLE OF CONTENT

2.1 General Information & IDDevelop ProgT€s§ c2 che 8 2.2 Company Structure 0 cccccccccccccsecescecssseesscesseeceseensseceseessseceseesnsseenseessaeenseees 10

CHAPTER 2: OPERATIONAL ACTIVITIES OF MANAGING AMAZON

1.1 Wholesale producfS SOUTCHE - c1 L1 1121121121111 1 111111 81 81 1n ng re 14 1.2 co r0 (0000000002 2 ẽậỪỘỒủỪỪDVŨVỤODHA 16 1.3 Product sourcing critera (as required by Inno House) +c-c2- s5: 24

2.1 The product is already listed on Amazone .0 0cccccccccccecc ccc cesecneesseseesseeses 25 2.2 The product has not been sold on Amaz0n: 22c 22c 22x ccrsesrsrxcs 26

Eulđllment by Amazơn (EBA) 2 22c 121212111111 212 2251118111111 tr ra 27 Steps of delivery goods on stock to Amazon”s warehouse: 29

TABLE OF FIGURES Figure 1: Retail e-commerce sales as share of retail trade in selected European

Figure 2: Top online stores in the United Kingdom in 2022, by e-commerce net sales (in million U.S dỌÏ4T) - 2 c3 321251151151 151 151191191191 111 1111111111111 11 01111101111 11 HH HH 7 Figure 3: Amazon Fulfillment Centers (left) and Sortation Centers, Delivery Stations and Prime Now Hubs (right) m the Umted Kingdom - 22c S222 csx r2 28 Figure 4: Percentage change in annual internet retail sales value in the United Kingdom (UK) from 2008 to 2022 occ cccccecceeeeseseneeseseeeseseseneescseseneessseseecseetseeeetsneceeteneneeees 34 Figure 5: Number of wholesale trade enterprises in the United Kingdom (UK) from

2008 to 2020

on selling books and DVDs

After asserting its position in the book and DVD market, Amazon quickly expanded its product portfolio to include a variety of goods and services such as electronics, clothing, furniture, household, and more Amazon has invested heavily in building its delivery and storage infrastructure in the UK They develop a network of storage centers and delivery stations to meet the increasing demands of consumers Amazon continues to expand its portfolio of products and services, including the Amazon Prime Video online streaming platform, the Alexa virtual assistant, and many more initiatives and projects to maintain its leading position in the field of e- commerce In a nutshell, Amazon has come a long way in the UK since opening its online store in the early 2000s

1.2 Impact of Covid — 19 on E-commerce and Amazon in UK

The Covid-19 pandemic had a significant impact on the ecommerce industry in the UK Here are some of the changes that occurred:

Before the pandemic:

The ecommerce industry had been steadily growing year on year, with the UK ranking as the third-largest ecommerce market in the world Traditional brick-and-

mortar stores were still popular, but online shopping was becoming increasingly popular, and many retailers had already adopted an omnichannel approach Amazon and other online platforms were dominating the market, but smaller retailers were still able to compete by offering unique products and services

United Kingdom Netherlands Germany France Spain Italy

@ 2014 @ 2015 2016*%* @ 2017 @ 2018 @ 2019 2020*** 2021 @ 2022

Figure 1: Retail e-commerce sales as share of retail trade in selected European countries from 2014 to 2022 (%) Source: 2023, Online Trends & Statistics for UK, Europe & N America 2022-2023, Centre for Retail Research, retailresearch.org

After the pandemic:

The pandemic accelerated the shift towards online shopping, as lockdowns and social distancing measures led to the closure of physical stores Ecommerce sales surged, with consumers flocking to online retailers to purchase everything from groceries to home-office equipment Amazon and other major online retailers saw significant growth, with Amazon reporting a 51% increase in sales in the first quarter

of 2020 Many small and medium-sized businesses struggled to adapt to the sudden shift, as they lacked the resources and infrastructure to quickly pivot to ecommerce

mmerce revenue in million U_S dollar

Sources Additional Information

ecommerceDB.com; Stati tatista; 2022

Figure 2: Top online stores in the United Kingdom in 2022, by e-commerce net sales (in million U.S dollar) Source: Centre for Retail Research (2022) Online Retail : UK, Europe & N America : The Centre For Retail ResearchOnline Retail : UK, Europe & N America : The Centre For Retail Research, [online] Retailresearch.org Available at:

https://www.retailresearch org/online-retail html

= Overall, the pandemic has fundamentally altered the ecommerce industry in the

UK, accelerating trends that were already underway and forcing many retailers

to adapt or risk becoming obsolete

1.3 Business starting reason for Inno House Ltd

According to the e-commerce report by Statista published in 2021, the United Kingdom had over 344,845 active e-commerce websites as of the first quarter of 2021 The report further noted that a majority of these websites were run by small and medium-sized businesses There are several popular platforms among them, including Amazon, eBay, Shopify, and Woocommerce

With the popularity of Amazon, starting a business with this platform is the right choice of Inno House Ltd In addition to the impact of the Covid-19 epidemic,

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consumers’ online shopping has become more familiar even though the epidemic has passed Consumers feel familiar and love the convenience that online shopping brings,

so there is no reason for Inno House to turn down this opportunity

2 General information about Inno House

2.1 General Information & Develop Progress

General information:

Inno House Ltd is an innovative start-up in the retail sector, operating mainly on the large e-commerce platform Amazon Founded in 2022, Inno House has quickly established a notable name in the online retail market With the goal of bringing unique shopping experiences and quality products, Inno House has constantly innovated and created to meet the diversity and changing needs of customers

Inno House's mission is not merely to provide diverse and top-quality products, but also to create an enjoyable, convenient and reliable online shopping environment With a focus on building strong relationships with customers, Inno House is committed

to always listening to feedback and striving to continuously improve their shopping experience

Inno House Ltd constantly brings diverse and quality products in the fields of FMCG (Fast Moving Consumer Goods), including:

1 Cosmetics and skin care: Inno House aims to provide customers with high quality beauty products, from makeup cosmetics to intensive skin care products With a focus on brands with unique formulas and natural ingredients, Inno House offers a wide range of options for customers to care for and enhance their natural beauty

2 Consumables: Inno House offers a wide range of everyday consumer goods, from packaged food to household goods With careful search and selection, the selected products ensure to meet quality and safety standards, giving customers a variety of choices to meet the needs of daily life

3 Stationery: Inno House understands that the working environment needs reliable stationery products With a diverse portfolio including pens, paper, files and

more, Inno House ensures convenience and quality to support customers in work and study

All Inno House products are carefully selected and quality tested to ensure customers receive the best products With a commitment to diversity, quality and excellent customer service, Inno House is gradually becoming a reliable address for all shopping needs in the FMCG field

Develop Process:

Inno House started its business by opening a store on Amazon named Inno House Ltd with small profitable products Since then, Inno House has gradually expanded its product lines, along with a dizzying increase in profits

In early 2023, Inno House registered a tax code with the government of the UK Some basic information of Inno House Ltd:

Company name: [nno House Limited Company

Address: 209 Station Road, Ratby, Leicester, United Kingdom

Company logo: HOUSE

From mid-2023, Inno House expands its market through other platforms such as Onbuy and eBay These two e-commerce platforms have lower popularity than Amazon, so Inno House's main source of income still comes from Amazon

Sourcing Managment Accounting

Department Department Department

Sourcing Virtual Account Warehouse

Specialist Assistant managers Employee/ Packer Accountant

The organizational structure of Inno House Ltd includes the following important positions:

1 Director: The Director is the main leader of Inno House Ltd, responsible for formulating and implementing the company's overall strategy They lead the way, make strategic decisions and oversee the entire company's operations to ensure sustainable growth and success

2 Sourcing Department: The Sourcing Department is responsible for managing and developing relationships with suppliers Sourcing department in general, Sourcing Specialists in particular ensure that the company has enough quality supplies and meets the production and supply needs of its customers The Sourcing Department

is also often in charge of negotiating prices and contract conditions

3 Accounting Department: The primary mission for Accounting deparment 1s

to ensure accurate and precise calculation of VAT on all sales transactions, factoring in the appropriate VAT rates and exemptions based on the type of products and customer location Accountants in this department maintain meticulous records of all

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transactions, invoices, and VAT-related documents to substantiate VAT calculations during audits or inquiries Accounting department also inputs VAT (VAT paid on purchases and expenses) with output VAT (VAT collected on sales) to ensure proper VAT recovery and accurate financial reporting

4 Account Management Department: Collaborating with the Sourcing teams

to create compelling and accurate product listings on Amazon, utilizing relevant keywords, images, and descriptions to maximize visibility and sales Account managers manage the company's Amazon seller account, ensuring compliance with Amazon's terms of service, policies, and guidelines

5 Virtual Assistant: A virtual assistant is a remote worker, supporting a variety

of tasks such as schedule management, replying to emails, handling administrative tasks and many other tasks to help reduce the work burden of other members of the organization Virtual assistants belongs to Sourcing Department but sometimes they also share the work with Account Management team

6 Warehouse Employees/ Packers: They are responsible for preparing and packing products in such a way that they are safe and of good quality Their job is to ensure that the product is well protected during transit and reaches the customer perfectly

Each position in the organizational structure plays an important role in ensuring the smooth operation and growth of Inno House Ltd The coordination between members and their roles plays an important part in achieving the company's mission and goals

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price and then reselling them on another platform, typically at a higher price, to capitalize on the price difference and generate a profit

The process of online arbitrage which is applied in Inno House involves several key steps:

1 Product Research: Arbitrageurs research various online marketplaces to identify products with significant price variations They seek items that are priced lower on one platform compared to their potential selling price on another

Sourcing and Purchasing: Once a suitable product is identified, the arbitrageur purchases it from the source platform at the lower price This may involve taking advantage of discounts, promotions, or clearance sales

Listing and Selling: The purchased products are then listed for sale on a different online marketplace, often a larger platform with a broader customer base The arbitrageur aims to set a price that ensures profitability while remaining competitive in the market

Order Fulfillment: When a customer places an order, the arbitrageur coordinates the shipping and delivery of the product to the customer Depending

on the strategy, they may use various fulfillment methods, including dropshipping, third-party logistics (3PL) providers, or self-fulfillment Customer Service: Providing excellent customer service, managing returns, and addressing inquiries are essential components of successful online arbitrage

A positive customer experience can lead to repeat business and positive reviews Monitoring and Adjustments: Continuous monitoring of product prices, market trends, and competitors is crucial Arbitrageurs may need to adjust their pricing, sourcing strategies, or product selection to maintain profitability and stay ahead of changes in the market

Online arbitrage can be an attractive business model for individuals looking to enter the e-commerce space without manufacturing their own products It offers the potential

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to generate income with relatively low upfront costs and without the need to hold inventory However, successful online arbitrage requires careful research, analysis, and

a thorough understanding of market dynamics

It's important to note that while online arbitrage can be a profitable venture, there may be challenges and risks involved, such as pricing fluctuations, sourcing reliability, and competition Additionally, some online marketplaces have specific rules and policies regarding arbitrage, so it's essential to understand and adhere to these guidelines

In conclusion, online arbitrage is a strategy that leverages price disparities between different online platforms to generate profits through buying and selling products It requires a blend of research, strategic decision-making, and effective execution to capitalize on market inefficiencies and create a successful e-commerce venture

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1 Product Research / Sourcing

An essential step in running an online arbitrage store is the process of sourcing products It only makes sense to run an e-commerce platform using dropshipping when you can find a source of high-quality products at reasonable pricing

The two primary sources of merchandise for Inno House are called wholesale products sourcing and retail products sourcing Seeking for UK wholesalers with fair prices,

getting in touch with them, and placing an order from them should be the initial steps

in wholesale products sourcing Inno House aims to make money from supermarket price differences with Amazon floors or other incentives when it comes to retail products sourcing

1.1, Wholesale products sourcing

In terms of wholesale sourcing, the first step is to locate reputable wholesalers Inno House seeks out wholesalers with offerings that complement the sectors that the business is targeting Fast-moving consumer goods (FMCG), spices, dry food, and other products with small weights and sizes that are easy to carry will be the main

focus

When selecting wholesalers, certain criteria are taken into consideration It is preferred that wholesalers are located within the UK mainland Furthermore, a notable factor is their reputation and the quality of their products, often evaluated through Trustpilot reviews or feedback from other buyers While optional, the provision of free delivery is considered favorable An additional advantage lies in wholesalers who permit the consolidation of multiple products within a single package, streamlining the logistical process

Wholesalers seeking methods:

1 Using Google Map:

a Find wholesalers near the company's address (Leicester)

Tey Wholessier Leicester, StatEorary,

Trưy cào trang web; ‹ bangstseolxralet co ok

2 Using Forum for Wholesalers:

=: UK Wholesale » Suppliers » Search Results for

a Search for products line keywords like FMCG or beauty & health care products,

b Choose Wholesale based on reviews of pre-orderers

C UKFMCG | Signin | Join Now | Help

€soU Suppliers “Home Products TradeLeads Resources My eSources

Health & Beauty (4) Food & Beverages (3) Carbonated Soft Drinks (3) Skincare (2)

Toiletries (2) Perfumes & Fragrances (2) Home Supplies (2) Beer (2)

Fruit & Vegetable Juices (1) Health & Beauty Stocks (1) Gaming Accessories (1) Baby Supplies (1)

Dropshippers & Dropshipping (1) Surplus & Stocklots (1) Sweets & Chocolate (1) Dropship Health & Beauty (1) Drugs & Medications (1) ‘Wine (1) Plastic Materials (1) Cosmetics & Make-up (1)

> International Wholesale Suppliers (9) || » Market Research New |

Show All or only [A] Agents [6] Distnbutors [5] Dropshiopers [1] Importers [M] Manufacturers [F] Trading Companies [Wi] Wholesalers [6] Other

Pixeldrom Interactive Ltd | rotnernam | meer”

Products: Dietary Supplements, Cosmetics, Fragrances & Fmcg

‘RORYTRA-DEAL.CON! Profile: We are UK based distributor of genuine cosmetics & fragrances Brands featured: Benefit, Biotherm,

ES Clinique, Dior, Estee Lauder, Givenchy, Guerlain, Hugo Boss, Sephora, Smashbox, Too Faced, Urban Any Business Type v Decay, Yves Saint Laurent and many others Travel sizes and miniatures available as welll Our goal More wholesale information on pixeldrom interactive Itd

Wholesaler Profile | Products | Website | Contact Supplier

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3 Find Wholesale list on Google

After having found the information and the Wholesalers have a suitable category, the next thing to do is:

a Check some information about delivery and delivery requirement such as: whether the business is required to register for VAT or not

b Find contact methods to wholesale or register as a wholesale member

c Contact to wholesale to confirm accurate information

d Making orders

1.2 Retail products sourcing

Besides purchasing products from wholesaler, Inno House also imports products from agents and supermarkets in the country Thanks to the price difference between the supermarket and Amazon website to make a profit Or maybe thanks to the sale off

of supermarkets and then import goods in batches

The supermarkets that Inno House chooses to import are usually large supermarket chains in the UK such as Morrisons, Waitrose, Sainbury's, Tesco, Wilko, Asda, Ocado, etc., or from cosmetic dealers or specialized product lines such as Nespresso, e.l.f., Lookfantastic

To be able to determine any ideal products, Inno House uses a number of webtools to help determine the sales volume, calculate the approximate price for the product

Steps to source retail products:

1 Research high-ranking products in the FMCG category / Find a list of products from sellers selling similar products

2 Use Selleramp(*) to evaluate product quality

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3 After getting products with high sales volume and selling price difference, it is necessary to do survey about the price of those products in supermarket chains and stores (using Trolley) (*)

4 Ideal products are added to the list of retail products sourcing

SellerAmp webtool:

SellerAmp is a platform that helps sellers to enhance their marketing and sales performance in various online marketplaces SellerAmp includes features like real-time analytics, advertising tools, automation, and machine learning to gather insights and make data-driven decisions to increase customer engagement and overall revenue SellerAmp could also offer additional features such as inventory management, order processing, shipping, and customer service support

yw SellerAmp Features Pricing Resources _Login

SellerAmp SAS Sourcing Analysis Simplified

Can I sell it? Does it sell? Is it profitable?

SellerAmp Homepage

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ro SA pow - Set se “nơ

SellerAmp main functions list

1 Providing basic information about products:

BOCOODOGOODOOES jin epic ˆ A a acme 4

laser Woes

SE ¬ 2 ane on oe sO hewe

— — wl Vaseyse: (ag) A om 8E 44 B04 TRỢ PS mo onl og ers oom «on

en Cr Maco fo wr) H H ng

— | mm com ae cer cam Ly sl 4 \reow $ Exfute

£ am |e T72 | tem 61 | range rae 1108 eft ae

Each part in the analysis provide different information For Quick Info, SellerAmp use background color to highlight issues:

sa => Yellow — Warning, worth checking

4 Quick Info =

Ea a => Red — Danger, worth checking a lot

=e =— more (or does not meet our criteria)

Cost Price Sale Price

3 Alerts: Some problems may happen If selling this product

a To this product, it has Small&Light and Variations warnings, which mean the size of product belong to a special method of pricing and this product has many other variations in one listing

b More detail information can be found in the Alerts table:

Eligibility You can sell this product

Dangerous Goods No

Amazon Share Buy Box Never on Listing

Private Label Unlikely

IP Analysis No known IP issues

Smail and Light @ S&L fees selected

Variations @ This listing has 3 variations

4 BSR (Best Seller Rank): Including product count in category and rank percentile

a There are about 4000 products in the same category with this product and those product in the first 1% in ranking section

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b More detail information can be found in the Rank&Price table:

# Ranks & Prices

Keepa BSR Drops 70 last 30 days

Net BB Price Changes † 6 last 30 days

Estimated Sales 423/ mo

Est Time to Sale Unknown

Last Checked 48 mins ago Refresh

5 Est Sales: Estimated sales for | month

a 423 products sold per month for average

b Keepa is a directly linked graph that shows information about ranking and sales

of product overtime:

Marketplaces: [a] £0 mm DEA == 6

Vaseline Lip Therapy Stick | Original Petroleum Jelly Vaseline

#15000

@ Keepa

6 Max Cost: Estimate maximum cost you should pay on this product

7 Cost price: The cost at that you can purchase this product (This part is edittable)

8 Sale price: Often the price of product in Buy-Box (Buy-Box helps shoppers click buy/add to cart right on Amazon's product listing page If this button is not available, the customer has to wait/order/cannot buy now Sellers with Buy-Box usually have fairly high ratings, called Buy-Box winners, and Buy-box winners’ product prices are often the most attractive)

9 Profit: Number auto-calculated after excluding delivery, storage, fee as set-up

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a Profit calculator table:

Prom Calculator Cost Price £ 3.96 Sale Price £ 7.72

Fulfiment Type FBA

10 ROT: Return on Investment

11 Offers table provide some information about other sellers also on this listing and

their type of seller:

Seller Stock Price Profit RO!

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b FBM: Fulfillment by Merchant (7he form of sellers on Amazon themselves manage, track the sales page, close orders, pack and ship goods to customers)

Overall, SellerAmp aims to streamline the selling process and simplify the seller's experience on different e-commerce platforms

Trolley price research website:

Trolley UK is an online grocery shopping website that allows customers to compare the price and order groceries and have them delivered to their doorstep The website offers a wide variety of products including fresh produce, meat, dairy, bread, bakery items, household items, and snacks The website is user-friendly and allows customers to easily navigate through different categories of products and select what they need

Trolley homepage

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Simple Where To Buy

Overall, Trolley UK is a convenient way for customers to do research about products without paying a lot of effort

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1.3 Product sourcing critera (as required by Inno House)

PRODUCT SOURCING CRITERIA FOR VIRTUAL ASSISTANT RETAIL ARBITRAGE

Product sourcing requirements

At least 2 FBA sellers in the listing

Maximum 30 FBA seller

No Hazmat or IP issue

No Amazon seller in the listing

The Brand is not on the listing

Exclude categories: supplement, clothing, medicine or toy Exclude no ranking products

Sale (100) & ROI(>20%) for low profit (<0.6)

Amazon can be in the listing

At least 1 FBA sellers in the listing

The Brand is not on the listing

Maximum 30 FBA seller

No Hazmat or IP issue

Exclude categories: supplement, clothing, medicine or toy

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