Amazon News: Custom Bundle Changes, AWD Challenges, and Key Holiday Updates You Need
Hello Fellow Amazon Sellers! Welcome to this week’s edition of the Amazon Seller School newsletter. We’ve got a mix of big updates that every Amazon seller needs to know heading into Q4.
From new policies on custom bundles to critical storage challenges and updates on holiday shipping deadlines, staying informed is essential as we enter the year’s busiest season. Let’s jump into the latest headlines!
News
Goodbye Custom Bundles? How Amazon’s New Rules Could Tank Your Q4
Amazon’s latest update to its Product Bundling policy, effective October 14, 2024, has made it much harder for sellers to create custom bundles. The changes, initially affecting grocery, pet products, baby products, and health and beauty, mean sellers can no longer mix products from different brands. This hits hard, especially for those who built businesses on creative bundling strategies.
The only option now is partnering directly with brands to bundle their products under a single UPC, a strategy that limits flexibility and innovation. These changes are a significant blow to sellers relying on bundling, especially with Q4 approaching.
Amazon AWD Faces Capacity Challenges—What This Means for Sellers
Amazon’s Warehousing and Distribution (AWD) service is currently facing capacity issues, leaving many sellers unable to send inventory. Sellers are receiving messages that AWD is full, and some are being forced to send inventory to alternate fulfillment centers, which can result in delays and increased shipping costs.
These challenges could lead to missed sales opportunities, especially during peak seasons, making it crucial for sellers to adjust their inventory strategies. Options include splitting shipments or using third-party storage to avoid bottlenecks and keep your business running smoothly.
Amazon’s New Refund Administration Fee—What You Need to Know
Aaron Cordovez recently highlighted Amazon’s introduction of a Refund Administration Fee, which deducts $5 or 20% (whichever is lower) from the referral fee on returned items. Historically, sellers would receive the referral fee back on refunds, but now this new fee cuts into profits even more.
With additional costs like FBA fees for shipping and removal or disposal fees, sellers are facing tighter margins. This new policy makes it crucial for Amazon sellers to closely track their earnings and adjust their pricing strategies accordingly.
Prime Big Deal Days 2024: Shopper Insights and Trends
According to Numerator’s insights, Prime Big Deal Days had a significant impact, with 95% of Amazon shoppers aware of the sale and nearly half shopping specifically for it. 57% of participants were highly satisfied with Amazon’s deals, and 24% used the event to kickstart holiday shopping.
Top-selling categories included household essentials, apparel, home goods, and beauty products, showing key areas for sellers to focus on. Additionally, 55% of shoppers compared prices with other retailers like Walmart and Target, emphasizing the need for competitive pricing.
Consumers Hate Paying for Return Shipping—Worse Than Jury Duty, Report Finds
A recent survey shows that 30% of consumers find paying for return shipping more frustrating than jury duty or going to the DMV. As online returns become more frequent, retailers are increasing return fees to manage rising costs, which could depress sales.
For Amazon sellers, strict return policies can impact customer satisfaction and sales, especially with return shipping costs climbing. Managing returns efficiently while keeping fees reasonable is key to maintaining customer loyalty.
Mercado Libre Sells Record 20 Million Products in August as Argentina Recovers
Mercado Libre saw record sales in August 2024, with 20 million products sold, reflecting Argentina’s economic recovery. Growth was particularly strong in nonessential categories like notebooks, tablets, and televisions.
For Amazon sellers, this highlights the growing competition in Latin American eCommerce markets, with Mercado Libre expanding both its eCommerce platform and FinTech offerings, including loans and installment financing for SMEs.
This surge in consumption and lending could signal new opportunities and challenges for sellers eyeing the Latin American market.
Indonesia Bans E-commerce Firm Temu Over Fears Its Small Enterprises Could Be ‘Destroyed’
Indonesia has upheld its ban on Temu, an e-commerce platform owned by PDD Holdings, citing concerns that its direct factory-to-consumer model could harm local small businesses. The country’s trade regulations require intermediaries, and authorities fear Temu’s business model could disrupt Indonesia’s micro, small, and medium enterprises.
For Amazon sellers, this highlights the regulatory challenges global marketplaces face in certain regions, emphasizing the importance of understanding local market rules when expanding.
UPS to Add Surcharge for Credit Card Payments, Impacting Shippers
UPS has announced a 2% surcharge on invoices paid via credit card starting October 26, 2024. This change could affect many online sellers who rely on credit cards for shipping payments, prompting experts like shipping consultant Gordon Glazer to recommend renegotiating terms with UPS.
Amazon sellers should review the 2025 UPS rates carefully, as these changes—along with peak holiday surcharges—could impact their shipping costs and profitability during peak seasons.
USPS Publishes 2024 Holiday Shipping Deadlines
The USPS has released its recommended holiday shipping deadlines to ensure packages arrive by December 25, 2024. This year, shippers have until December 18 for Ground Advantage and First-Class Mail and until December 19 for Priority Mail, with Priority Mail Express extended to December 21.
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For Amazon sellers, these deadlines are crucial to keep in mind during the holiday rush, especially if shipping to Alaska, Hawaii, or internationally, where deadlines are shorter.
Returns Window to Be Extended for 2024 Holidays
Amazon has announced that its standard returns window will be extended for holiday purchases made between November 1, 2024, and December 31, 2024. These items can be returned until January 31, 2025, with Apple products having a shorter window until January 15, 2025.
This extension applies to seller-fulfilled, FBA, and Amazon Retail orders, giving shoppers more flexibility during the holiday season. Sellers should prepare for this extended returns period while ensuring their items meet standard returns eligibility.
Make Product Compliance Easier with Compliance Fast-Track
Amazon has introduced the Compliance Fast-Track program to simplify product compliance for sellers. The program automatically sources compliance information from participating certification organizations for product categories like juvenile products, electronics, arts and crafts, and window coverings.
This eliminates the need for sellers to manually submit compliance documentation, streamlining the process and helping them focus on their core business.
Check which of your products qualify by visiting the Compliance Fast-Track program page.
Seller Tips & Tricks
Small Listing Errors, Big Profit Losses: Are You Prepared?
Vanessa Hung highlights the significant impact that small Amazon listing errors can have on profits and sales. Even minor mistakes, like incorrect SKU configurations or invalid attribute values, can lead to listing disruptions and lost revenue.
Vanessa’s updated guide offers practical solutions to address these common errors, helping sellers keep their listings active and compliant. The guide provides clear explanations and real-world examples, empowering sellers to protect their business and streamline their listing processes.
Video of the Week
Why Amazon is Enforcing Bundle Policies Now: Major Brands Push Back
Strong Opinions
Amazon’s AI Assistant Fumbles with Customer Service Requests
Brandon Young shares a frustrating experience with Amazon’s AI assistant, Rufus, when trying to report a counterfeit item. Rufus repeatedly provided the wrong customer service number, and even after being asked for the correct one, it gave the wrong number again.
For Amazon sellers, this highlights ongoing issues with Amazon’s automated support systems, potentially complicating the resolution of critical problems like counterfeit claims.
Amazon Laid the Brandless Foundation for Temu
Amazon trained shoppers to prioritize product reviews and ratings over brand names, paving the way for Temu’s success. On platforms like Amazon, generic or unrecognizable brands now dominate, as customers trust Amazon’s reviews rather than brand reputation. Temu took this concept further by emphasizing price over reviews, pushing the rise of brandless shopping.
For Amazon sellers, this highlights the importance of reviews and competitive pricing in a market that increasingly overlooks brand identity.
Tops Amazon Events
Stay informed, stay competitive, and let’s crush this Q4 together!
God Bless,
Todd Welch
Amazon Seller School