Amazon News: Chatbots, New AI Tools, and Prime Day Insights
Hi Fellow Amazon Sellers!
Welcome to another exciting edition of the Amazon Seller School Weekly Newsletter! This week brings game-changing updates, including Amazon’s push for automation, the rise of new seller tools, freight rate drops in China, and insights into e-commerce trends. Dive in and stay ahead of the competition!
News
Amazon Adds Chatbot for Its Sellers, Boosting Automation
Amazon has launched a new AI tool called Amelia to assist sellers with tasks like sales metrics, inventory management, and product advertising. This chatbot provides real-time answers on business performance and holiday preparation, aiming to act as a personalized expert for Amazon sellers.
Amelia’s automation is designed to streamline problem-solving, such as resolving delayed shipments without human intervention, which could reduce costs for Amazon. Initially available to a small group, it will soon roll out to nearly all U.S. sellers, helping to improve operational efficiency for sellers of all sizes.
Amazon Releases AI-Powered Video Generator for Ads
Amazon has launched a new AI tool called Video Generator, which is designed to create short product videos for advertisers using just a single image. Currently in beta, the tool automatically generates 6-9-second clips showcasing product features with customizable headlines, music, and brand logos.
This tool is available only for select U.S. advertisers in Sponsored Brands campaigns, aiming to provide visually engaging, high-performing ads without additional cost. As Amazon continues to innovate with generative AI, sellers can expect more creative advertising solutions on the platform.
Amazon Is Shipping 70% More Off-Amazon Orders
Amazon’s Multi-Channel Fulfillment (MCF) service has seen a 70% growth in off-Amazon orders this year, largely driven by sales on platforms like TikTok. This growth highlights Amazon’s increasing role in shipping for external marketplaces, allowing sellers to fulfill orders from various channels, including direct-to-consumer websites, using their FBA inventory.
For Amazon sellers, MCF presents a valuable way to expand beyond Amazon while benefiting from Amazon’s logistics network. This trend underscores Amazon’s growing dominance as a third-party logistics provider for non-Amazon sales channels.
Amazon Courts Third-Party Sellers Amid FTC Antitrust Lawsuit
At its annual seller conference, Amazon emphasized its partnership with third-party sellers, despite facing an antitrust lawsuit from the FTC accusing the company of coercive practices. Amazon reassured sellers that their success is a priority, unveiling new tools like AI-powered chatbots, expanded warehouse capacity, and improved fulfillment options.
For sellers, these updates aim to streamline operations and address the evolving marketplace, but concerns over Amazon’s influence and fees remain central topics. While the legal battle looms, sellers continue to focus on daily business without significant concern over its immediate impact.
Amazon’s New ‘Shark Tank’-Style Show Gives Winners Top Billing in Its Store
Amazon is launching a new competition show where entrepreneurs pitch their products to a live audience and judges, including Amazon executives and celebrities like Gwyneth Paltrow. Winners of each episode will earn $20,000 and have their products featured in a new Amazon “Buy It Now” store, providing small businesses with valuable exposure on the platform.
This show is Amazon’s latest effort to blend entertainment and e-commerce, helping sellers attract new customers and improve product visibility without heavy ad spending.
Walmart Extends Holiday Deals Event in October, Upping Competition with Amazon and Target
Walmart is extending its holiday deals event, now running from October 8 to 13, overlapping with Amazon’s Prime Big Deal Days and Target Circle Week. This earlier event offers extended savings on a wide range of products, allowing customers to plan holiday spending early and avoid last-minute stress.
For Amazon sellers, this highlights increased competition during the holiday shopping season, as Walmart’s expanded fulfillment capabilities and aggressive promotions could shift consumer spending patterns.
Amazon’s AI Stylist Redefines the Shopping Experience for Fashion Lovers
Vanessa Hung highlights Amazon’s new AI Stylist, powered by Amazon Bedrock, which is revolutionizing how customers shop by offering personalized fashion recommendations based on catalog information, trends, and customer order histories. This AI tool enhances the shopping experience by curating styles tailored to users’ lives.
For Amazon sellers, this could boost product visibility, as personalized recommendations may drive increased sales for fashion-related listings.
Amazon Business Reports Now Offer ASIN Search, Streamlining Seller Data Access
Isaac Gross shares a significant update for Amazon sellers—Business Reports now allow direct ASIN search, eliminating the need for manual workarounds like Ctrl+F or Excel downloads to find specific data. This improvement will help sellers quickly track product performance.
However, Gross notes that ASIN search by date in the Sales and Traffic report is still not available, but this update is a promising step forward.
New Returns Tab in Product Opportunity Explorer Helps Reduce Product Returns
Amazon sellers can now analyze return trends using the new Returns tab in the Product Opportunity Explorer. This feature allows sellers to identify common reasons for returns, helping them address design flaws, seasonal factors, or other issues impacting their products.
By understanding return patterns, sellers can proactively make product improvements, reduce return rates, and enhance customer satisfaction.
Seller Tips & Tricks
Amazon AWD vs. FBA: Which is Better for Your Business?
Amazon sellers now face a key decision between two logistics solutions: Amazon Warehousing and Distribution (AWD) and Fulfillment by Amazon (FBA). FBA offers faster fulfillment and Prime eligibility, but it comes with high storage fees and limited control over inventory. AWD, on the other hand, provides lower-cost bulk storage and auto-replenishment features, making it ideal for large inventories and multi-channel distribution.
Sellers can also combine both services for optimal efficiency—storing bulk inventory in AWD and using FBA for faster fulfillment.
Great Leadership Drives Amazon Team Success
Amazon sellers, are you frustrated with your team’s performance? According to Steven Pope, leadership plays a crucial role in overcoming these challenges. Clear communication, well-defined expectations, and specific deadlines are key to keeping your team on track.
Ensure your team understands the purpose behind each task and maintain regular follow-ups to improve accountability and results.
Maximize Your Amazon Brand Store to Drive Sales and Conversions
Amazon sellers, are you missing out on a huge opportunity by underutilizing your brand store’s subpages? Jason Landro suggests that simply listing products or having too many subpages can hurt conversions. Instead, curate a consistent, branded shopping experience to increase average order value and units per order.
Using brand analytics and store insights can help you streamline the path to purchase and drive incremental revenue with minimal effort.
How Brands Can Benefit from the Rapid Growth of TikTok Influencers to Drive Sales
TikTok’s influencer growth has become a powerful tool for brands looking to drive sales through authentic, viral content. With an average follower growth rate of 44.44%, TikTok outpaces platforms like Instagram and YouTube, offering brands high engagement rates and a unique opportunity to reach larger audiences.
Nano and small influencers are particularly effective, boasting engagement rates of up to 142.69%, making them ideal for conversion-focused campaigns. For brands aiming to scale reach, micro and macro influencers provide a balanced mix of engagement and visibility, ensuring strong returns on investment.
Amazon Testing Seller Feedback Ratings in Search Results
Jon Derkits recently shared that Amazon is testing a feature that displays seller feedback ratings directly in the search results. This update, visible on both mobile and desktop, could give honest sellers an advantage by highlighting their positive feedback right in the search experience.
If this feature rolls out permanently, it could help reputable sellers boost their conversions by building trust with potential buyers.
Video of the Week
Essential Rules for Successfully Launching a Product on Amazon
Strong Opinions
Did Martha Stewart Tell Amazon to Lower Fees?
During a fireside chat at the Amazon Accelerate Seller conference, Martha Stewart humorously called out the high cost of Amazon’s selling tools, leading to cheers from the audience and social media. Stewart, a long-time entrepreneur on platforms like eBay, Amazon, and Etsy, acknowledged that while Amazon’s programs may be expensive, they do deliver long-term value.
Her unfiltered commentary, which included reflections on AI tools and her belief in frugality, resonated with many Amazon sellers concerned about profitability.
FTC Calls Amazon a Monopoly: Are They Missing the Point?
Neil Saunders highlights the FTC’s recent complaint accusing Amazon of being a monopoly, a claim he finds misguided. While Amazon is undeniably large, Saunders argues that the platform has democratized retail by allowing independent sellers to compete with major brands.
He notes that over 60% of Amazon sales come from small businesses, many of which would not have grown without the platform. Rather than stifling competition, Amazon has empowered countless sellers to thrive in the retail landscape.
Why Amazon’s Second Prime Day Won’t Make or Break Holiday Sales
Amazon sellers are gearing up for October’s “Prime Big Deal Days,” but many believe it won’t have the same impact as the summer Prime Day. While the event provides a good opportunity to offload excess inventory, most sellers are focused on optimizing operations for the peak holiday season.
Despite this, sellers can still expect a sales boost, especially if they run promotions, as seen last year with a 113% revenue lift for those who participated. However, the real focus remains on Black Friday and Cyber Monday for major holiday profits.
Is “Surge Pricing” Coming to Amazon?
Ryan Mulvany highlights Amazon’s recent patent for dynamic pricing, which could lead to prices fluctuating based on demand, shopping trends, or market conditions. While not exactly like surge pricing seen in ride-sharing apps, this system may bring more real-time price adjustments, especially during peak shopping times.
For Amazon sellers, this could impact private label and vendor businesses where price control is more flexible. It’s worth monitoring to see how it might affect pricing strategies moving forward.
Tops Amazon Events
This edition is packed with valuable insights and updates, so take advantage of these opportunities to grow your business!
God Bless,
Todd Welch
Amazon Seller School
$1.2-Billion managed - MyAmazonGuy.com Agency Founder - Leveling Up Amazon Brands thru CTR PPC SEO Catalog Troubleshooting Trademarks Refunds | Amazon FBA Thought Leader
2 个月Love your news Todd
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