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Marketplace Strategy & Management Flashcards

7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Marketplace Strategy & Management flashcards as text

  1. A seller using Amazon FBA wants to reduce storage fees on slow-moving inventory. Which action is most effective?

    Answer: Create a removal order or run a lightning deal to accelerate sell-through

    Removal orders return slow inventory to the seller, while promotions like lightning deals accelerate sell-through—both reduce long-term storage fee exposure.

  2. In marketplace keyword strategy, what is the primary purpose of backend search terms on Amazon?

    Answer: To index for keywords that don't fit naturally in visible listing copy

    Backend search terms allow sellers to include synonyms, misspellings, and alternate phrases for indexing without cluttering the customer-facing listing.

  3. Which fulfillment model on Amazon typically provides the biggest advantage for winning the Buy Box on price-competitive products?

    Answer: Fulfillment by Amazon (FBA)

    FBA items receive preferential Buy Box treatment because Amazon can guarantee Prime-eligible delivery, which is heavily weighted in the Buy Box algorithm.

  4. A brand sells on both its DTC website and Amazon. Customers often discover the product on Amazon but purchase on the brand's site to save on fees. What strategy best leverages both channels?

    Answer: Use Amazon for awareness and top-of-funnel discovery while optimizing DTC for LTV and repeat purchase

    A multichannel strategy uses Amazon's massive traffic for discovery while driving loyal customers to the DTC channel where margins and data ownership are higher.

  5. What is the primary risk of relying on a single marketplace for 100% of ecommerce revenue?

    Answer: Platform dependency risk—policy changes, fee increases, or account suspension can eliminate revenue overnight

    Single-marketplace reliance creates existential platform dependency, where one policy change or account action can destroy the entire revenue stream.

  6. On Etsy, which factor most directly influences a shop's placement in search results?

    Answer: Listing quality score based on clicks, conversions, and customer reviews

    Etsy's search algorithm uses a listing quality score that reflects how often shoppers click and purchase after seeing the listing, along with review quality.

  7. What does 'channel conflict' mean in the context of marketplace strategy for established brands?

    Answer: Tension between selling direct (DTC) and through retail/marketplace partners who compete on price

    Channel conflict occurs when a brand's DTC and marketplace/retail channels undercut or cannibalize each other, damaging partner relationships or margins.