Amazon News: FTC Lawsuit, FBA Capacity Limits & PayPal in Buy with Prime
Hello Fellow Amazon Sellers!
Get ready to dive into the latest news that can impact your business and boost your strategy! This week’s newsletter is packed with vital updates, industry trends, and regulatory changes that every Amazon seller should know about. Let’s get into it!
News
Promises of ‘Passive Income’ on Amazon Led to Death Threats, FTC Says
The FTC has filed a lawsuit against Ascend Ecom, an automation company that promised customers passive income by launching and managing Amazon storefronts. The company is accused of making false claims about earnings, using deceptive marketing practices, and even threatening clients who posted negative reviews. One customer, Jamaal Sanford, faced terrifying threats, including death threats, after leaving a negative review.
This case is part of the FTC’s broader crackdown on e-commerce scams, especially those misusing platforms like Amazon.
Judge Partially Dismisses FTC’s Antitrust Lawsuit Against Amazon
A federal judge has partially dismissed the FTC’s antitrust lawsuit against Amazon, though the details remain sealed. The FTC and 17 states had accused Amazon of engaging in anticompetitive practices, including raising fees for sellers and discouraging lower prices on other platforms.
Amazon countered that its pricing mechanisms and fulfillment requirements are standard retail practices benefiting consumers, emphasizing competition rather than restricting it. The lawsuit continues with some claims still under review.
Friendly Reminder: Your A+ Content Could Have Disappeared
Amazon sellers, Vanessa Hung alerts us to an important update in A+ Content projects, specifically impacting the Comparison Chart feature. Sellers can now only include one Comparison Chart per project, and starting September 30, 2024, any projects with more than one will be automatically reduced.
This update aims to simplify the shopping experience for customers, making it easier for them to make purchasing decisions. Sellers should adjust their A+ Content to stay optimized and customer-focused.
Temu Woos Amazon Sellers Amid US Challenges
Temu is actively courting Amazon sellers by offering a flat fee per item sold and eliminating fees for ads or logistics if sellers handle their own shipping. This could attract sellers frustrated by Amazon’s high fulfillment costs. Temu’s strategy aims to expand its local seller base and inventory, particularly by allowing fulfillment from US warehouses.
However, concerns about Temu’s future in the US, copycat goods, and regulatory headwinds—like the closing of tax loopholes—raise doubts about whether this will be enough to offset broader challenges.
Amazon’s Counterfeit Crimes Unit Files New Lawsuit Targeting Fake Trademarks and Complaints
Amazon’s Counterfeit Crimes Unit (CCU) has filed a lawsuit against bad actors who used invalid trademarks and fake infringement complaints to harm Amazon sellers. These false takedown notices aimed to reduce competition by wrongfully removing listings, giving bad actors an unfair advantage.
Amazon sellers benefit from this legal action, as it protects the integrity of the marketplace and supports legitimate sellers by removing deceptive practices.
Amazon Sellers Struggle with October FBA Capacity Limits
Amazon sellers are facing unexpected challenges with FBA storage limits in October, despite being told in July that their capacity would double. Some sellers report a 25% reduction in storage limits, causing major disruptions in preparing holiday inventory shipments.
With Amazon’s new FBA capacity limit system combining Restock and Storage limits, sellers are left scrambling to adjust, especially those reliant on holiday sales. The issue raises concerns about how sellers can plan inventory during the peak shopping season with unclear capacity expectations.
Amazon Integrates PayPal Services to Buy with Prime
Amazon has announced the integration of PayPal payment services into Buy with Prime, allowing shoppers to check out using PayPal on participating merchants’ websites starting next year. This initiative aims to enhance the shopping experience and drive sales for merchants by offering free shipping and seamless checkout options for Prime members.
The strategy includes expanded advertising options on platforms like TikTok and Google, allowing Buy with Prime merchants to leverage Amazon shopping data to attract more traffic. This integration is expected to help merchants increase sales and improve inventory management across various channels.
Amazon 1P Brand Revenue Distribution
Amazon is selectively terminating vendor relationships, focusing on those that provide minimal strategic or financial value to its retail operations. This move helps streamline and optimize Amazon’s supply chain by freeing up resources for higher-value partnerships.
Smaller vendors whose contracts are ended are often lower-volume sellers, and this process highlights Amazon’s ability to be highly selective. Vendors that offer unique products, favorable pricing, or streamlined logistics are more likely to maintain their positions within Amazon’s ecosystem.
TikTok Shop’s First Year in the US: A Mixed Bag for Sellers
TikTok Shop has generated billions in sales during its first year in the U.S., primarily benefiting niche brands through viral content and affiliate marketing. For Amazon sellers, this highlights the growing importance of social commerce and content-driven strategies, especially in categories like health and beauty.
While TikTok Shop isn’t yet a direct competitor to Amazon, its success offers lessons in leveraging influencer marketing and real-time content to drive sales. Sellers focused on innovation and expanding their sales channels should take note of TikTok’s potential as a new revenue stream.
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Amazon Seller-Fulfilled Heavy and Bulky Returns Update for EU Stores
Starting October 30, 2024, Amazon will implement a new return process for seller-fulfilled heavy and bulky items in Germany, France, Italy, and Spain, following the UK’s lead. Sellers must now offer prepaid return labels and home collection for items exceeding 31.5 kg or 175 cm, aligning with the policy for FBA and Seller Flex returns.
This change ensures consistency across Amazon stores, requiring sellers to manage returns more effectively to avoid A-to-z Guarantee claims. Sellers are encouraged to verify their carrier contracts to accommodate home collection.
Seller Tips & Tricks
Amazon’s New Ultimate Business Guide for Sellers: V4 Released
Amazon has launched the fourth edition of its Ultimate Business Guide, packed with updated strategies to help sellers grow and thrive on the platform. This new guide covers essential topics such as improving product visibility, optimizing ad campaigns, and mastering fulfillment options like FBA and Seller Fulfilled Prime.
For sellers, this guide offers actionable insights on increasing sales, improving customer experience, and reducing operational costs. Whether you’re new to Amazon or a seasoned seller, this guide is designed to help you stay competitive.
How to Optimize Inventory Levels Without Sacrificing Sales
This article provides valuable insights on how businesses can optimize inventory levels to avoid the pitfalls of overstocking or running out of products. Key strategies include just-in-time management, demand forecasting, and real-time inventory tracking to help streamline operations and improve cash flow.
For Amazon sellers, maintaining optimal inventory levels is crucial to meeting customer demand without tying up capital in excess stock or facing stockouts that can hurt sales. By implementing these techniques, sellers can boost efficiency and customer satisfaction.
Amazon Variation Listings: Bundles & Options Strategies To Boost Sales
Creating successful variation listings on Amazon can significantly boost visibility, customer experience, and sales. Bundling products, offering multiple options under one listing, and optimizing inventory are key strategies sellers can use to differentiate themselves in competitive markets. While challenges like inventory management and pricing arise, effective listing optimization and clear communication can help avoid confusion and improve conversion rates.
Amazon sellers can use variations to increase order value and stand out in crowded niches.
Is Your Amazon Main Image Big Enough?
Hannah Lyss Tampioc emphasizes the importance of ensuring your product’s main image stands out in Amazon search results. If your image is surrounded by too much white space, shadows, or reflections, it might appear smaller and less noticeable compared to competitors. A simple enlargement of the product in the image can make it look bigger, more readable, and instantly catch customers’ attention.
This small tweak could significantly boost your product’s visibility and conversion rate.
Video of the Week
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The Future of Loading and Unloading with Advanced Technologies
Amine Bouder highlights the transformative impact of automation, robotics, and intelligent systems in warehouse operations. By reducing the need for human intervention, these technologies significantly improve safety, speed, and overall productivity in material handling. For Amazon sellers, integrating such innovations can streamline logistics, lower risks, and enhance efficiency, making fulfillment faster and more reliable.
Amazon Sellers Face Triple Storage Rates for Q4 – Act Fast to Avoid Heavy Fees
Brandon Young emphasizes the importance of using the upcoming Prime Day to liquidate slow-moving inventory as Amazon’s Q4 storage rates are now three times higher. Starting today, storage fees will rise to $2.40 per cubic foot, making it costly for sellers to hold excess stock in FBA. He advises sellers to stay lean and avoid sending inventory too early for Black Friday unless they plan aggressive promotions for Prime Day.
Tops Amazon Events
That’s a wrap for this week’s updates! Stay informed and keep pushing forward.
God Bless,
Todd Welch,
Amazon Seller School
$62MM on Amazon | We win on Amazon with proven systems | Founder & Managing Director @ Gigabrain | Ready to scale? Let’s chat.
1 个月Great to see a concise roundup of Amazon seller news! The FTC lawsuits and FBA capacity limits are especially critical for sellers to stay on top of.