🍻 Booze, Borders, and Business

What you’ll find in this week’s newsletter:

• 🍻 Booze, Borders, and Business [True Story]

• 🔍 Top Amazon News and Updates

• 😱 The Viral Cyber Hack of a $78M Seller [Deep Dive]

• 🚨 Big Consequences for Low Volume Shipments

• ⏰ Remove Negative Reviews Before it’s Too Late!

 🤫 BOOZE, BORDERS, AND BUSINESS: THE BIG COST OF A SMALL OVERSIGHT [TRUE STORY] 

Back in the 80s, I worked with my dad during holidays and whenever I had some free time.

It was a great way to learn the ropes and spend time with him, but it also came with its share of lessons—some harder than others.

One day, one of the truck drivers, Tom, who was also a family friend, approached me.

He told me he made regular trips across the U.S. border, delivering products from Canada.

Booze, he said, was much cheaper in the U.S. than in Canada.

Instead of paying $50 or $60 for a bottle of rye, I could get it for $15 or $20.

He asked if I wanted him to grab me a bottle on his next trip.

I thought, "Why not?" and said, "Sure, Tom. That’s awesome. Thanks so much."

A day later, I was greeted by a screaming father.

My dad wasn’t thrilled—to put it mildly.

It turns out, Tom hadn’t just asked me if I wanted a bottle of rye.

He’d asked around the entire factory.

By the time he crossed the border, he had orders for about 20 bottles of booze in his truck.

Unfortunately for Tom (and for me), he got caught at the border.

The truck was confiscated, and there was a hefty fine.

My dad explained, "Your $15 to $20 bottle of rye just cost us $2000!"

But that wasn’t even the worst part.

From that day on, every time one of our trucks crossed the border, it was red-flagged and searched.

This wasn’t a one-time inconvenience.

For the next year or so, our trucks were routinely delayed at the border, causing us giant headaches and operational disruptions.

Looking back, it’s a story I can laugh about now, but it was a harsh lesson at the time.

Business Lesson: Always Know the Full Scope of an Action What seemed like a simple favor turned into a $1,500 mistake and months of red flags.

Amazon Seller Lesson: Pay Attention to Compliance For Amazon sellers, this story underscores the importance of compliance—whether it’s staying within the rules for product listings, adhering to FBA guidelines, or navigating international shipping regulations.

A small oversight can lead to significant costs or account suspensions. Stay vigilant and always play by the rules.

Enjoy the rest of the newsletter.

— Norm

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🗞️ AMAZON NEWS & UPDATES 🗞️

🔍 THE VIRAL CYBER HACK OF A $78 MILLION DOLLAR SELLER

On January 16, Ivan Yong, co-founder of the baby and maternity brand KeaBabies, received a suspicious email from Amazon stating they were contacting him about a device located in Washington.

He did not click on any links.

Shortly after, a mobile OTP (One-Time Password) request was sent to his phone, which he ignored.

The next morning, he realized his Amazon Seller Central email had been changed to an unfamiliar address.

He immediately notified his account manager in Singapore and opened an investigation. Amazon initially assured him the issue would be resolved in 24 hours.

However, over the next several days, the situation escalated.

The hacker repeatedly changed the admin email linked to the account multiple times, even after Amazon temporarily restored access to Ivan.

The hacker also removed all team members' access to the account.

Despite Amazon's assurances that the account was suspended and secure, the hacker managed to change the bank account details and initiate a $50,000 disbursement in AUD, bypassing Amazon's mandatory three-day hold policy for bank changes.

Listings disappeared from the storefront, leading to a loss of $230,000 in daily sales.

Ivan implemented several measures, including resetting his admin email, changing passwords, and enabling two-factor authentication (2FA).

Still, the hacker repeatedly regained control of the account by changing the admin email and mobile OTP number.

Amazon attempted to assist by hard-locking the account, but even then, the hacker managed to open cases and try to terminate the account.

The breach left the business in a precarious position, with its team of 80 employees in limbo and the threat of bankruptcy looming.

KeaBabies was entirely reliant on Amazon’s Multi-Channel Fulfillment for order processing, which ceased when the account was locked.

Ivan called on Amazon to address the issue urgently, emphasizing the risks to other sellers.

🚨UPDATE🚨 This story broke out on social media via an article from medium however since posting it’s been removed, most likely since the issue has been resolved

Thoughts from the community:

What do Cybersecurity Experts Say?

Here are the most important tips from an article from Chase Norlin, a cyber security pro, who’s been on the podcast multiple times.

If you’d like to read the in-depth article, you can check it out here.

The 5 Things You Need To Do To Protect Yourself

1. Utilize EDR/XDR to protect your computer endpoints: The majority of financial liability lives in these endpoints. Enterprise-class Endpoint Detection and Response (EDR) or Extended Detection and Response (XDR) systems represent the state-of-the-art technology in endpoint protection.

2. Have a backup cyber insurance policy in place: Ransomware attacks can result in financial liabilities that extend beyond the immediate costs of data recovery. Cyber insurance can provide a safety net, ensuring that businesses and individuals are not financially crippled by an attack.

3. Regularly change your passwords and use MFA: Changing passwords regularly and utilizing multi-factor authentication (MFA) are simple yet effective ways to reduce vulnerabilities and secure your accounts from unauthorized access.

What Should a Victim of a Ransomware Attack do First?

The first course of action is to contact your local FBI field office and file a report with the FBI’s Internet Crime Complaint Center.

If you are being ransomed, you should also consult an attorney experienced in negotiating cyber ransom demands.

Most companies and people only do something about it after they’ve been attacked, and it’s too late, not a great strategy.

They should always make sure their data is backed up online/offline just in case and, of course, utilize the latest generation technology to block these attacks.

What Should I Use?

If you’re looking for an all in one solution, I recommend esure. This is not an affiliate link but if you’d like to mention I sent you, you can.

I personally use it along with my whole family and employees.

Cyber attacks are real. I’ve had to deal with my own breaches.

Be proactive.

WHERE IN THE WORLD IS THE BEARD GUY?

Can you find Norm in the picture below? Scroll to the bottom of this newsletter to see the answer!

🚨 BIG CONSEQUENCES FOR LOW VALUME SHIPMENTS…

The U.S. Customs and Border Protection (CBP) announced a Notice of Proposed Rulemaking aimed at tightening the de minimis duty exemption for certain low-value shipments entering the U.S.

The proposed changes would make certain products ineligible for the exemption, which currently allows goods valued at $800 or less to enter the country without paying duties or certain taxes, a practice unfair to American businesses.

“Both the volume and combined worth of low-value, or de minimis, shipments to the United States have risen significantly over the past ten years,” said Secretary of Homeland Security Alejandro N. Mayorkas.

This would basically make Temu orders no longer duty-free.

The CBP is asking for public comment on this proposal.

Members of the public will have 60 days to comment on the proposed rulemaking.

Access the Federal e-Rulemaking Portal at www.regulations.gov and follow the instructions for submitting comments.

🚨 WHAT YOU MISSED LAST WEEK!

⏰ Remove Damaging Amazon Reviews Before It's Too Late!

Here’s Takeaways From This Episode:

1. Be Proactive with Negative Reviews:

   • Don't wait for negative reviews to accumulate before taking action. Actively monitor your reviews and file cases with Amazon when guidelines are violated (e.g., profanity, competitor mentions, pricing discussions).

2. Understand the Impact of Star Ratings:

   • A drop from 4.3 to 4.2 stars can lead to a 15-35% drop in sales, depending on the category. Staying above 4.3 should be a top priority to maintain conversion rates and eligibility for ads.

3. Know What Can Be Removed:

   • Reviews violating Amazon guidelines (e.g., fake buyer accounts, reviews with inappropriate language, or irrelevant comments) can be reported and potentially removed. Focus on these to clean up your product ratings.

4. File Thoughtful, Data-Driven Cases:

   • When submitting a case to Amazon, avoid emotional language. Provide clear evidence, such as statistical anomalies (e.g., a buyer purchasing the same item multiple times and leaving only one-star reviews).

5. Stay Ahead of Competitor Attacks:

   • Be vigilant about competitors using fake accounts to leave negative reviews on your products while praising their own. Analyze patterns (e.g., same buyers reviewing both your product and a competitor's with contrasting ratings) and report them.

6. Don’t Aim for Perfection:

   • A mix of positive and a few negative reviews adds authenticity to your product. A perfect five-star rating might seem suspicious to potential buyers. Balance is key.

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🚨 Watch the full episode here.

🚨 Watch this week’s LIVE episode here at 12 pm ET on Wednesday

🚀 CATCH UP WITH THE MARKETING MISFITS!

Here are 5 TIPS from this episode!

1. Ask Sponsors About Their Goals: When negotiating, always ask, “What would a win look like for you?” This helps you tailor your pitch to their objectives, whether it's awareness, content creation, or conversions, ensuring your proposal aligns with their expectations.

2. Avoid Publishing Flat Pricing: Don’t list static rates on your website or in media kits. Instead, engage in a discovery call to understand the sponsor’s budget and needs. Offering tiered packages allows for flexibility and avoids underselling yourself.

3. Focus on Long-Term Partnerships: Build lasting relationships by delivering exceptional value. Repeat business is often more profitable than acquiring new sponsors, so prioritize retaining sponsors by exceeding their expectations and maintaining regular communication.

4. Create Tailored Packages: Tie sponsorship packages to specific goals, such as awareness (e.g., branding on your podcast artwork), repurposing (e.g., creating reusable content for their campaigns), or conversions (e.g., using trackable links or discount codes).

5. Pitch Trend Monitoring as a Service: Offer to act as a “trend consultant” for brands. For example, create a Slack channel where you share real-time trending ideas and suggest ways the brand can capitalize on them. Bundle this with content creation to make it an irresistible offer.

   🚨 Watch the full episode here

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And that’s it, Beardos!

P.S. Make sure you don’t miss any updates by joining our community here.

See you next Monday!

- Norm

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