Amazon News: Key Updates on Rufus Recommendations, Temu Restrictions, Storefronts, and More
Hello Fellow Amazon Sellers,
Welcome to another edition of our Amazon Seller School newsletter, bringing you the latest insights and updates to help you stay ahead in the ever-evolving e-commerce landscape. Let’s dive into this week’s top stories:
News
The Importance of Visual Content in Rufus Recommendations
Andrew Bell emphasizes that Amazon Rufus, a multi-modal recommendation engine, integrates both text and images to enhance product visibility. Sellers must optimize visuals with contextual overlays, product labels, and rich alt text to ensure their products are highlighted effectively in search results.
Visuals paired with meaningful text create clarity for shoppers and improve engagement. For Amazon sellers, failing to adapt visual content for Rufus could mean losing out on critical opportunities to stand out in the marketplace.
Amazon Effectively Bars Sellers from Temu Marketplace
Amazon is reportedly discouraging sellers from offering lower prices on Temu, a rapidly growing competitor, by threatening to remove them from the ‘Featured Offer,’ which significantly impacts sales. While sellers technically can’t be stopped from listing on Temu, Amazon’s tactics make it challenging to maintain visibility on both platforms.
This development highlights Amazon’s increasing focus on countering Temu, as evidenced by their recent launch of the budget-focused Haul app. For sellers, it may require strategic adjustments, such as using different branding or product variations across platforms, to navigate the evolving e-commerce landscape.
SPS Commerce to Acquire Carbon6 Technologies
Carbon6 has announced its agreement to be acquired by SPS Commerce, a leader in cloud-based supply chain solutions, with the acquisition expected to close in early 2025. This move aims to enhance value for marketplace sellers by integrating Carbon6’s tools with SPS’s supply chain capabilities.
Additionally, Kazi Ahmed has been appointed as the new CEO of Carbon6, leading the company into its next phase of growth as a global business unit under SPS Commerce. This acquisition signals significant opportunities for Amazon sellers to benefit from advanced supply chain solutions in their operations.
Amazon Storefronts to Take Center Stage in 2025
Youval Peltier highlights Amazon’s latest move to test storefronts appearing directly in search results, aiming to create a more direct-to-consumer (DTC) experience for brands. This shift underscores the critical need for sellers to have well-executed and optimized storefronts, as they play a key role in boosting conversion rates, sales, and average order value.
Peltier emphasizes that strong creatives and elevated storefront designs are essential for brands to stay competitive and capitalize on this new feature. Amazon’s efforts reflect its focus on enhancing brand visibility and improving the overall shopping experience.
Prime-Exclusive Discounts Move to Price Discounts Tool in 2025
Amazon is integrating Prime-exclusive discounts into the Price Discounts tool, streamlining the management of promotions for sellers. Starting January 7, 2025, the Prime Exclusive Discounts tool will be removed, and all new Prime-exclusive and general discounts must be created using the updated Price Discounts tool.
This tool allows sellers to easily manage promotions, view performance metrics, and search their catalog for eligible products, simplifying the discount creation process. Sellers can continue running previously scheduled discounts until their end date, but new discounts in the old tool will no longer be allowed after December 31, 2024.
Amazon Updates Compliance Issue Reporting for Product Images
Amazon has enhanced its Compliance Issue report to provide more detailed notifications about image issues, helping sellers resolve them faster. Notifications will now include previously unannounced image issues and detailed guidance on how to fix them.
This phased rollout will continue to add more issues throughout the year, while image guidelines remain unchanged. Sellers can access these updates in Seller Central under Menu > Catalog > Upload Images > Submission Status to view compliance issues and resolution steps.
Seller Tips & Tricks
Decoding Unusual Reviewing Activity on Amazon
Unusual reviewing activity, such as sudden spikes in reviews, unverified purchases, or clusters of negative feedback, can severely impact sellers by lowering search rankings, damaging trust, and risking account suspension. These patterns are often linked to competitor sabotage or review manipulation.
领英推荐
Sellers can combat this by monitoring review patterns, reporting abusive reviews, and improving product quality and customer service. Proactive measures and tools like Tracefuse can help protect your brand and maintain credibility in the marketplace.
Video of the Week
Amazon’s New Reimbursement Policy: Why Sellers Are Outraged
Strong Opinions
Why 2024 Was the Year Sellers Became Less Loyal to Amazon
In 2024, rising fees and increased complexity prompted many Amazon sellers to explore alternative platforms like TikTok Shop, Walmart Marketplace, and Shopify. While Amazon remains dominant, these alternatives offer lower fees and better profit margins, making them attractive options for sellers seeking to diversify their sales channels.
Sellers cite Amazon’s control over their businesses and account suspensions as key concerns, pushing them to invest in platforms that provide more autonomy and flexibility. Although most sellers aren’t abandoning Amazon entirely, they are strategically reallocating resources to reduce dependency and enhance profitability.
‘Gonna Be Interesting’: Mark Cuban on How Tariffs Could Boost Chinese Sellers on Amazon and Walmart
Mark Cuban highlights the unexpected impact of tariffs on e-commerce, suggesting they might benefit Chinese sellers due to their lower costs of goods sold (COGS). With the “de minimis” rule allowing goods under $800 to bypass tariffs and inspections, Chinese companies like Shein and Temu maintain their competitive pricing, a significant advantage over U.S.-based sellers.
The Biden administration is considering changes to the rule, which could level the playing field for American businesses but also shift competitive dynamics. As Amazon and Walmart adopt similar strategies, sellers should watch for regulatory updates that could reshape the marketplace.
TikTok Shop’s Coming Seller Boom
TikTok Shop has emerged as a significant player in social commerce, with over $50 billion in global gross merchandise volume in 2024, including $10 billion from the U.S. market. Despite concerns about a potential U.S. ban, TikTok Shop has proven to be a lucrative platform for sellers, particularly during events like Black Friday and Cyber Monday.
Many sellers are waiting to see if TikTok survives regulatory scrutiny, but experts predict a surge in adoption if the platform remains accessible in the U.S. For Amazon sellers, diversifying to TikTok Shop could unlock new opportunities as social commerce becomes an essential sales channel.
Featured Services and Software
RevSeller
RevSeller is an essential plugin that simplifies my product research on the Amazon US market. It allows me to swiftly assess the profit potential of a product and decide if it’s worth selling. With its valuable insights, I can instantly see the number of competitive sellers, the current sales rank, and historical price and sales rank averages. While it is exclusively designed for the Amazon US market, it has become an indispensable tool in my selling arsenal.
Seller Snap
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Top Upcoming Amazon Events
As always, stay proactive, informed, and prepared to navigate these changes in the e-commerce world!
God Bless,
Todd Welch
Amazon Seller School