Amazon News: Inflation, Legal Battles, and Policy Changes – What You Need to Know This Week!
Hello Fellow Amazon Sellers!
This week, I’ve got major news covering everything from inflation rates to legal battles that could affect your business. Let’s dive into these headlines and make sure you’re ahead of the game.
News
Amazon Inflation Outpaces National Average: Are Prices Rising from Fees or Inflation?
Amazon sellers have experienced significant price increases due to rising fees, particularly inbound placement and low inventory fees introduced in 2024. These fees have forced sellers to either absorb the costs or raise their prices to maintain profitability.
Third-party sellers, who make up the majority of Amazon’s marketplace, have been most affected, while Chinese sellers, though still offering lower prices, have also felt the impact.
The report highlights the importance of understanding fee structures and adapting pricing strategies to stay competitive on Amazon.
100% of My Sales Are Now in Deferred Transactions as of 10/01/2024
Amazon sellers are reporting that all transactions are now classified as “deferred” under the new “Delivery Date Policy,” meaning funds won’t be released until seven days after the product is delivered. This change is causing frustration for sellers, especially those paying a 1.5% fee for early access to funds for invoiced orders, as they still face delays in disbursements.
Many sellers see 2024 as a challenging year due to policy changes that are negatively impacting cash flow and operations.
FTC Gets Approval To Sue Amazon Over Antitrust
A federal judge has allowed the FTC’s antitrust lawsuit against Amazon to move forward, rejecting the company’s attempts to dismiss key claims. The lawsuit, filed in 2023, accuses Amazon of maintaining a monopoly by punishing sellers who offer lower prices elsewhere and requiring the use of its fulfillment services for better visibility.
For Amazon sellers, this case could have a major impact on how Amazon operates and its policies toward pricing and fulfillment. The outcome will shape the future of competition on the platform.
One of Walmart’s big bets is paying off in its retail battle against Amazon, analysts say
Walmart’s AI-powered warehouses are giving it an edge in logistics, pressuring Amazon’s fulfillment business. Walmart’s third-party logistics offering is about 15% cheaper than Fulfillment by Amazon (FBA), which could limit how much Amazon increases its fees in the coming years.
For Amazon sellers, this means more competition from Walmart Marketplace and possibly smaller fee hikes from Amazon. Analysts predict this competition could reduce Amazon’s revenue from FBA fees and impact its overall profitability.
Total Change in Amazon’s Product Returns – They are changing their policy for 2025
Starting January 1, 2025, Amazon will introduce a return processing fee for third-party sellers whose products experience high return rates. This fee aims to reduce the logistical costs of managing frequent returns and encourages sellers to offer more accurate product descriptions.
For Amazon sellers, this means that items with high return rates will incur additional costs, though smaller sellers shipping fewer than 25 units per month will be exempt. Customers, however, will not see any changes and can continue to enjoy Amazon’s hassle-free return policy.
Rosenblatt to Take Legal Action on Amazon Frozen Disbursements
Amazon sellers in the UK, led by the Rosenblatt law firm, are preparing to take legal action against Amazon for unlawfully freezing tens of millions in seller disbursements. Sellers claim that their earnings have been withheld due to unmet UK business establishment requirements or other issues like VAT updates, with some having up to ￡300,000 frozen.
Rosenblatt is calling on affected sellers to join the legal action to seek compensation and release of their funds, which are essential to their business cash flow.
Seller Tips & Tricks
Design Mistakes That Cost You Sales: Are Your Customers Seeing Clearly?
If you’re designing Amazon product packaging for younger customers, but your main demographic is 40+, you’re missing out. Max Sigurdson-Scott emphasizes the importance of understanding your customer’s needs—especially their vision.
For Amazon sellers, using bold, clear fonts, high-contrast colors, and simplified packaging is essential to avoid losing sales from aging customers who struggle with reading fine print or busy designs. Small changes can lead to big revenue boosts by making your products easier to read and more appealing to your core audience.
Showcase Your Fast Delivery Speeds on Google
Amazon sellers using Multi-Channel Fulfillment (MCF) can now showcase fast delivery speeds and free shipping directly in Google Shopping ads. By integrating MCF with Google Merchant Center, sellers can display estimated delivery dates and “Free 3-Day” shipping, which can attract more clicks and increase ad engagement by up to 7.6%.
This feature helps drive higher returns on ad spend by highlighting fast, reliable shipping to potential customers.
Video of the Week
Avoid Amazon Bundle Suspensions: Common Mistakes and How to Fix Them
Strong Opinions
Top Entrepreneurs Share Meeting Tips to Boost Productivity
Ineffective meetings waste billions of hours. In a post by Igor Buinevici, he shares how top leaders optimize their meetings. Elon Musk advises thorough preparation, while Steve Jobs keeps meetings small and focused. Larry Page encourages immediate decision-making, and Satya Nadella emphasizes extended leadership meetings for alignment. These insights are practical for Amazon sellers managing teams and time.
Apply these strategies to streamline your meetings and boost productivity.
Tops Amazon Events
Stay tuned for more updates next week as we continue to track key Amazon seller news!
God Bless,
Todd Welch
Amazon Seller School