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
A marketplace seller wants to use Amazon's A+ Content. What is the primary business benefit?
Answer: Enhanced brand storytelling and imagery that typically improves conversion rates by 3–10%
A+ Content replaces the standard product description with rich media modules that improve conversion by communicating brand story and product benefits more effectively.
When evaluating a new product opportunity on Amazon, which combination of metrics best signals a viable niche?
Answer: Moderate-to-high search volume, reasonable competition, and top sellers with fewer than 500 reviews
Viable niches typically show meaningful demand (search volume) with a competitive set that isn't too entrenched—few reviews indicates the market is still penetrable.
What is a 'hijacked listing' on Amazon and what is the standard first response?
Answer: An unauthorized seller adds themselves to your ASIN, often selling counterfeits; first response is a cease-and-desist or Brand Registry infringement report
Listing hijacking involves unauthorized sellers undercutting you on your own ASIN; the first step is filing an infringement report through Brand Registry or sending a legal cease-and-desist.
Which pricing strategy is typically prohibited by major marketplaces like Amazon and Walmart?
Answer: Predatory pricing where a seller prices below cost to eliminate competition and then raises prices
Predatory pricing—deliberately pricing below cost to drive out competition before raising prices—violates antitrust principles and marketplace policies.
A seller receives a sudden spike in negative feedback claiming their product is counterfeit, though it is authentic. What is the most likely cause and best response?
Answer: A competitor or bad actor is orchestrating a review attack; document authenticity with invoices and report to Amazon's Brand Registry
Coordinated negative review attacks are a known black-hat tactic; the response is to gather proof of authenticity and report the suspected abuse to Amazon's teams.
In the context of cross-border marketplace selling, what is 'import VAT' and why does it matter for US sellers expanding to EU marketplaces?
Answer: A tax collected when goods cross into an EU country, which the seller may be responsible for collecting and remitting under IOSS rules
Under EU VAT rules and IOSS (Import One-Stop Shop), sellers shipping goods under €150 into the EU must collect and remit VAT at the point of sale.
What does 'inventory velocity' mean for marketplace sellers, and why does it matter for Amazon FBA specifically?
Answer: The rate at which inventory sells through, which Amazon uses to forecast replenishment and assign storage limits
Amazon measures inventory velocity (sales rate) to set each seller's IPI-based storage limits and replenishment recommendations, making slow sellers subject to storage restrictions.