CS Core Day 5 Flashcards
Common Prohibited Categories
Weapons, unsafe products, hazardous/dangerous, illegal, offensive
OFAC
Office of Foreign Assets Control - enforcement of economic and trade sanction laws (within Dept. of Treasury)
Holiday in which offensive items are most common
Halloween
Retail’s role in compliance
Always be aware of who you are buying from, country of origin,
Compliance Attributes
Specific pieces of information about an individual item needed to meet legal and/or regulatory requirements.
Why are compliance attributes required?
1) legal/regulatory obligations 2) ensure customer safety 3) Ensure proper storage, handling, labeling, transportation
Key attributes
1) Country of origin 2) Energy guide label (consumption, efficiency, operating cost) 3) Fabric care and content 4) Ingredients 5) Nutrition facts 6) Price per unit 7) Prop 65 warning label 8) Small parts warning code 9) Nutrition - Supplements/Drug Facts label 10) Warranty
WERCS
Third party regulatory company that Walmart uses to understand how to handle hazardous products, such as batteries, pesticides, etc.
Antitrust laws
Federal and state laws and regulations that encourage competition and competitive marketplace
Antitrust laws and competitors
Never discuss pricing with a competitor
Antitrust laws and suppliers
Only discuss advertised price, not resale price, don’t sign or agree to MAP unless you talk to legal first, don’t share highly sensitive information (other suppliers sales, etc.)
Antitrust and Marketplace
Don’t discuss prices with marketplace sellers
Amazon marketplace stat
.52-.54 of every dollar from marketplace seller
Walmart marketplace stat
.11-.12 of every dollar from marketplace seller
Alibaba model
No commission, charges for keywords for customers to find products
Alibaba single day GMV?
“Singles Day” generates $23.5 billion (bigger than Black Friday and Cyber Monday combined)
Amazon share of US e-commerce market
43%, 70% of all growth in 2017
Percentage of third party vendors units sold on Amazon
Close to 50%
How Amazon reinvests these profits
Price, technology, product dev, logistics, augmented services
Main benefit of Marketplace to customer
It provides large variety in assortment - the entire demand curve
Top of Mind
company, brand or product that is first thought of by customer.
Benefits of Marketplace to you
1) Creates item density which improves in-stock and price 2) can unlock higher-end brands
