Amazon News: Updates on Checkout Issues, Prime Big Deal Days, and More!
Hello Fellow Amazon Sellers! I'm back with another exciting edition of our weekly newsletter. From Amazon’s checkout troubles to insights into the upcoming October Prime Day, I’ve got the latest updates you need to stay informed and ahead of the game. Here’s what’s happening this week:
News
Amazon Checkout Issues During Labor Day Sale
During a significant Labor Day sale, Amazon encountered technical difficulties with its checkout process, preventing customers from completing their purchases. Despite the glitch, Amazon’s cloud services unit, AWS, reported no problems, indicating the issue was isolated to the checkout feature alone. The outage occurred as Amazon was promoting holiday discounts, frustrating many shoppers who took to social media to express their concerns. This incident could potentially impact sales and the company’s reputation if not resolved promptly.
Amazon Announces Prime Big Deal Days for October 2024
Amazon’s “Prime Big Deal Days,” an exclusive shopping event for Prime members, is set to return this October, marking another major sales opportunity following a similar event earlier in the year. Although exact dates are not yet released, the event will offer significant discounts across a wide range of categories including tech, home essentials, and beauty, targeting holiday shoppers.
This sale resembles the traditional Prime Day in July, featuring 48-hour deals, Lightning Deals, and early access offers, but with a focus on the upcoming holiday gifting season. Amazon sellers should prepare for heightened sales activity and consider adjusting their inventory and marketing strategies to capitalize on the increased traffic and buyer interest during this period.
US Regulators Call for Investigation into Temu and Shein Over Hazardous Baby Products
US safety regulators are urging an investigation into Temu and Shein following reports that these e-commerce giants are selling hazardous baby and toddler products. The US Consumer Product Safety Commissioners highlighted concerns about the companies’ safety protocols, relationships with sellers, and import practices, especially their reliance on low-value direct-to-consumer shipments which complicate enforcement.
Some of the dangerous items found on these platforms include banned padded crib bumpers and children’s hoodies with drawstrings, which pose significant safety risks. This probe reflects ongoing concerns about product safety standards on platforms offering goods directly from foreign manufacturers to US consumers.
USPS to Slow Mail Delivery Again
The USPS plans to modify mail delivery times again in 2025, extending some First-Class Mail delivery times to five days, especially affecting rural areas. Despite these changes, USPS assures that about 75% of First-Class Mail and all USPS Ground Advantage mail will still be delivered within five days.
The changes aim to streamline operations, adhere to the Postal Service Reform Act mandates, and reduce costs by approximately $3 billion annually, ensuring the organization’s financial sustainability. For Amazon sellers, particularly those in rural areas, these adjustments may result in longer delivery times for outgoing orders, potentially impacting customer satisfaction and sales.
Important Black Friday/Cyber Monday 2024 Inventory Guidelines for Amazon Sellers
Amazon sellers should plan to send their inventory to Amazon Warehousing & Distribution (AWD) by October 19th to ensure products are Prime badge-ready for Black Friday and Cyber Monday. This deadline aligns with the requirements for both AWD and FBA inventory, guaranteeing availability during these critical sales days.
Missing this deadline may result in your products not being processed in time, potentially missing out on sales. It’s crucial to adhere to this timeline to maximize sales opportunities and meet customer demand during the holiday shopping rush.
Enhanced Feedback Process for Amazon Sellers on Support Cases
Amazon has updated its feedback process for seller support interactions based on seller suggestions. Sellers can now provide feedback after each email communication with support associates, regardless of whether the case is resolved. This new method allows sellers to rate their satisfaction and detail their experience, aiming to enhance support resources like training and communication. To submit feedback, sellers simply need to click on a survey link provided in the email from Amazon support.
Improved Delivery Times for Amazon Multi-Channel Fulfillment
Amazon has announced faster delivery times for its US Multi-Channel Fulfillment (MCF) orders without additional charges. Standard delivery is now reduced to three business days from five, and expedited delivery is improved to two business days from three. However, priority delivery has been discontinued, with any orders previously classified under this option now processed as expedited deliveries at no extra cost. These enhancements aim to help sellers grow their business by providing quicker delivery to customers.
Temu Owner PDD’s Sales Warnings Lead to Record Stock Drop
PDD Holdings Inc., the parent company of e-commerce platform Temu, experienced its largest stock decline since its IPO due to warnings of decelerating sales growth. The company, challenged by stiff competition from rivals like ByteDance and Alibaba, is struggling to maintain profitability amid increasing costs to support merchants and aggressive promotional campaigns.
Despite recording substantial revenue, PDD failed to meet market expectations, leading to a sharp 29% drop in share value. This financial turbulence indicates significant shifts in the e-commerce landscape, affecting market dynamics for Amazon sellers who compete in overlapping categories.
A Look Inside SellerX’s Dramatic Shift from Boom to Auction
Once a shining star in the Amazon aggregator boom, SellerX, valued at $1 billion, is now headed for auction, highlighting the volatile nature of the e-commerce sector. Initially thriving during the COVID-19 pandemic by acquiring and scaling up smaller online sellers, SellerX received substantial financial backing, including from BlackRock and Victory Park Capital.
However, the combination of a decrease in online consumer spending and aggressive competition has severely impacted its financial health, leading to significant debt and operational difficulties. This situation illustrates the high-risk environment for Amazon sellers who rely on aggregator platforms to enhance their market presence, emphasizing the need for careful strategic planning and awareness of market fluctuations.
领英推荐
Changes to Amazon Coupon Durations Effective September 5
Amazon is updating the maximum duration for different types of coupons starting September 5, 2024, to better target promotional strategies and enhance their impact. Standard coupons will now last 30 days, reorder coupons will extend up to 180 days, and Subscribe & Save coupons will have a duration of 365 days.
This differentiation is intended to optimize the use of each coupon type, helping Amazon sellers more effectively manage promotions and encourage timely customer action. Coupons issued before this date will remain valid for up to 90 days, unaffected by the new changes.
Seller Tips & Tricks
Essential Tip for Amazon Sellers Facing Black Hat Tactics
Aaron Cordovez , co-founder of Zulay Kitchen, shares a crucial tip for Amazon sellers struggling with black hat contributions on their listings. He advises contacting the Bezos/Andy Jassy executive relations team at [email protected] to request that Brand Registry Contributions be prioritized over Vendor Central contributions. This strategy is aimed at protecting your listings from malicious actors as your business grows, potentially saving significant headaches and safeguarding your brand integrity on Amazon.
Navigating Market Dominance on Amazon: Insights from SmartScout
Scott Needham of SmartScout reveals a new feature in their Subcategories tool that allows Amazon sellers to see the percentage of market share owned by Chinese sellers in various categories. This feature aims to help sellers understand the competitive landscape within their specific Amazon category, showing which areas are more dominated by Chinese sellers. For instance, the Health and Household category remains largely US-centric. SmartScout’s tool underscores that Amazon is not a monolithic market but consists of numerous sub-markets, each with its own dynamics of growth and competition.
New Feature: Boost Amazon Posts into Sponsored Brand Ads
Amazon has introduced a feature that allows advertisers to “boost” their top-performing Posts directly into Sponsored Brand campaigns effortlessly. By using a single click in the Post Manager of the Advertising Console, advertisers can now enhance their image and vertical video Posts, meeting higher resolution requirements with generative AI upscaling.
This integration not only broadens the reach and exposure of Posts at no additional cost but also provides a seamless transition to more structured advertising campaigns. It’s a valuable tool for increasing brand awareness and allows for testing and optimizing creative strategies before fully committing to Sponsored Ads.
Video of the Week
Getting Suppliers To Reduce Prices | Negotiating Discounts For Amazon Sellers
Strong Opinions
Decoding Amazon’s Recent UX Experiment: The Top-Nav SERP Weblab
Jon Derkits shares insights on a recent Amazon weblab where the desktop search results page (SERP) navigation bar was moved from the side to the top. This change allowed Amazon to increase the number of search results on the first page from the usual 16 or 48 to an impressive 72.
The primary aim behind this test appears to have been to determine if increasing the number of visible products per page could significantly boost the site’s Gross Merchandise Value (GMV). While the weblab has concluded, the ecommerce community is keenly awaiting results to see if this top navigation bar becomes a permanent feature.
Is the Amazon Aggregator business model dead?
The Amazon aggregator business model, exemplified by SellerX, is undergoing significant challenges as SellerX faces auction due to financial struggles. Founded in 2020 by Malte Horeyseck and Philipp Triebel, SellerX aimed to acquire and scale profitable Amazon-native brands with strong growth and margins. Despite substantial initial investments, totaling between $750 million and $900 million, the company is being auctioned off after failing to manage the complexities of scaling acquired businesses and dealing with massive debts incurred during acquisitions.
The downfall of SellerX highlights broader issues within the Amazon aggregator sector, including the difficulties of sustaining growth post-acquisition and the economic pressures on highly leveraged business models. This scenario casts doubt on the long-term viability of the aggregator model in the face of economic slowdowns and operational challenges.
AI Savings at Amazon: A Call for Better Support for Sellers
Chris McCabe , an expert in Amazon seller reinstatement and account health, discusses the mixed blessings of Amazon’s AI advancements. Amazon’s AI assistant, Q, reportedly saved the company $260 million and 4,500 developer years, yet sellers continue to struggle with AI-related issues. These include erroneous product flagging and listing takedowns, which can cause significant revenue loss and negatively affect the buyer experience.
McCabe suggests that Amazon should reinvest some of its AI savings into improving the AI systems that interact with sellers, to reduce errors and enhance overall efficiency. This investment is crucial for maintaining a healthy marketplace where both sellers and buyers benefit.
Tops Amazon Events
Stay sharp and keep an eye on these developments as you plan for the future. I’ll be back next week with more updates and insights to help you stay competitive.
God Bless,
Todd Welch
Amazon Seller School
Business Consultant | E-commerce Specialist | Amazon FBA, TikTok Dropshipping & eBay Dropshipping Expert??
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