Amazon News: Lower FBA Fees, Target’s Gains, and AI-Powered Shopping
Hey Fellow Amazon Sellers, This week’s newsletter is packed with must-know insights to keep you ahead of the game. From Amazon’s fee reductions to shifts in global e-commerce, these updates could directly impact your business strategy. Let’s dive in!
News
Amazon Will Lower Some Fulfillment Fees in 2025
Amazon has announced that it will not raise U.S. referral and Fulfillment by Amazon (FBA) fees in 2025 and will even lower some fees to support third-party sellers. Key updates include reduced inbound placement fees for bulky products by $0.58 per unit and waived fees for up to 100 units of new ASINs under the FBA New Selection Program.
Amazon will also expand fee discounts for new sellers and high-demand essential products, making it easier for sellers to compete in key categories. These changes come as part of Amazon’s effort to simplify its fee structure and enhance its tools to help sellers optimize shipping costs and inventory management.
Amazon Still Leads as Lowest-Priced Retailer; Target Gains Ground Ahead of Holidays
Profitero’s 2024 Price Wars study reveals that Amazon continues to dominate as the lowest-priced U.S. online retailer, offering an average 14% price advantage over competitors. Target has made notable progress, narrowing its price gap with Amazon to 13% and excelling in categories like Home Furniture and Beauty. Walmart remains Amazon’s closest competitor with a 5% price difference, maintaining a strong position in toys and appliances.
For Amazon sellers, this report underscores the importance of competitive pricing strategies during the holiday season. Understanding how rivals like Target and Walmart are closing the pricing gap can help sellers optimize their listings and maintain profitability.
Who Should Amazon Worry About Now?
Amazon faces growing competition from Temu and Shein, particularly among younger shoppers. CIRP data shows 41% of Amazon customers under 35 have shopped at Temu, and 53% at Shein, compared to lower overlap with Walmart and Target in this demographic. Temu’s broad product range and Shein’s trendy, affordable fashion pose distinct challenges to Amazon’s dominance.
For Amazon sellers, this shift highlights the importance of catering to younger audiences with competitive pricing and trending products, as Amazon responds with initiatives like “Amazon Haul.” Staying attuned to these consumer trends can help sellers remain relevant in a changing marketplace.
Amazon’s Temu Competitor Haul Is an AI Image Wasteland
Amazon’s new budget-focused platform, Haul, has been criticized for poor-quality, AI-generated product images that range from distorted proportions to outright nonsensical depictions. Many listings even appear to violate Amazon’s strict image guidelines, raising questions about oversight and rule enforcement.
For Amazon sellers, Haul’s relaxed standards could be a double-edged sword—offering opportunities for rapid product listing but risking damage to brand credibility. As Amazon fine-tunes its AI tools and evaluates Haul’s early issues, sellers should monitor how this initiative might impact consumer trust and platform policies.
October Retail Sales Point to Strong Holiday Forecast
Retail sales in October 2024 rose 4.6% year-over-year, making it the second-best month of the year. Core retail sales (excluding auto, gas, and restaurants) grew by 5.4%, aligning with historical pre-COVID averages, signaling steady consumer spending.
Jason Goldberg highlights that platforms like Amazon, Walmart, Temu, and TikTok Shops are expected to be top performers this holiday season, while traditional categories like furniture and consumer electronics may face challenges. For Amazon sellers, the forecasted 5.5% growth for November and December presents an opportunity to capture increased holiday demand.
The Rise of “Family Warehouses” in U.S. E-commerce
Chinese immigrants in the U.S. are turning their homes into makeshift warehouses, helping cross-border sellers on platforms like Temu, TikTok, and Amazon fulfill orders faster and navigate regulatory pressures. These “family warehouses” handle shipping, returns, and inventory at low costs, appealing to small sellers who can’t afford larger facilities.
A recent U.S. government crackdown on duty-free imports under the “de minimis” rule is pushing more Chinese e-commerce sellers to store goods locally, further driving demand for these home-based operations. For Amazon sellers, this trend highlights the importance of adapting fulfillment strategies to compete in the changing e-commerce landscape.
Amazon Testing Review-Based Key Features in Search Results
Amazon is experimenting with displaying key product features, derived from customer reviews, directly in search results. Spotted by Jon Derkits, this Weblab test appears to highlight review-driven insights to enhance product discovery and help shoppers make quicker decisions.
For Amazon sellers, this could mean greater emphasis on the quality of customer reviews and the need to address buyer feedback proactively. If implemented, this feature may shift focus to how well your product resonates with customer expectations.
Amazon Statistics: Insights for Sellers on Trends, AI, and Revenue Opportunities
Amazon remains a dominant force in e-commerce, with a 50% share of the U.S. online market and 574.9 billion USD in revenue in 2023. Third-party sellers play a key role, contributing 60% of total sales, and many are embracing AI for listing optimization, marketing, and customer service.
Top-performing categories include beauty, home goods, and apparel, with 75% of shoppers discovering new products on the platform. Sellers looking to stand out should note that 63% of Amazon customers begin their searches on the site, emphasizing the importance of SEO and PPC strategies.
Target’s Struggles, Walmart’s Strength, and Costco’s Consistency
Ted McCaffrey highlights Target’s -4.5 % decline in comparable sales, driven by weak discretionary categories and inventory issues that left shelves empty during the Halloween-to-holiday transition. In contrast, Walmart posted +5.5% revenue growth, fueled by grocery sales and an omnichannel strategy where over 50% of eCommerce orders are fulfilled through stores.
Costco excelled with steady traffic and a focus on essentials, avoiding discretionary slowdowns. For Amazon sellers, McCaffrey’s analysis underscores the importance of inventory precision and adapting to consumer demand for essentials during economic shifts.
Unlock Valuable Insights Into Customer Shopping Behaviors
Amazon’s Customer Loyalty Analytics dashboard provides powerful tools to help sellers understand and target customer segments during the holiday season. Sellers can identify new customers, cart abandoners, or those who haven’t purchased recently and re-engage them with targeted promotions.
The dashboard also highlights loyal customers, allowing sellers to reward them with personalized offers, discounts, or holiday-specific promotions. These insights are crucial for crafting strategies that maximize conversions and customer retention.
Seller Tips & Tricks
How to Import Amazon Reviews to Shopify
Importing Amazon reviews to your Shopify store can enhance credibility, boost conversion rates, and improve your SEO visibility. By using third-party apps or manual options, sellers can seamlessly integrate reviews, aligning them with their branding to create a more engaging shopping experience.
This strategy allows sellers to showcase genuine customer feedback, helping potential buyers make informed decisions. To maximize impact, ensure compliance with Amazon’s guidelines, and customize the review display for optimal engagement.
How to Win the Amazon Price War by Focusing on Value
Winning the price war on Amazon doesn’t always mean lowering your prices. By enhancing your product’s perceived value—through better listing images, unique product features, bundling, and warranties—you can maintain or even raise your prices while still attracting buyers.
Techniques like leveraging Amazon FBA for faster shipping, offering free shipping, and using upselling or cross-selling strategies can create a better shopping experience. Sellers who focus on quality, customer satisfaction, and strategic value propositions often find more sustainable success than those who rely on price cuts.
How To Develop Emerging Leaders In Your Organization
For Amazon sellers managing teams, investing in leadership development is essential for long-term success. Prioritizing mentorship and coaching allows emerging leaders to learn from experienced mentors and receive personalized guidance tailored to their growth needs.
Focusing on soft skills like communication and emotional intelligence equips leaders to handle team dynamics and organizational challenges effectively. Offering real-world “stretch assignments” provides hands-on experience with strategic decision-making, preparing future leaders for senior roles.
2024 Holiday Brand Guide for Amazon Sellers
This guide provides actionable insights for Amazon sellers to maximize brand visibility and sales during the 2024 holiday season. It emphasizes the importance of leveraging advertising campaigns, optimizing product listings with holiday-specific keywords, and utilizing Amazon’s branding tools like A+ Content and Sponsored Brands.
The guide also highlights key shopping trends and provides a timeline for implementing strategies to capture holiday demand effectively. Sellers are encouraged to focus on customer engagement through deals, promotions, and excellent delivery options to stand out in the competitive marketplace.
New Product Launch Guide for Amazon Sellers
This guide provides a step-by-step framework for successfully launching new products on Amazon, emphasizing the importance of thorough market research and listing optimization. Sellers are encouraged to focus on using impactful product images, detailed descriptions, and strategic pricing to attract customers.
The guide highlights tools like Amazon Ads and Early Reviewer Programs to build initial traction and customer trust. By leveraging these insights, sellers can increase visibility, improve conversions, and gain a competitive edge during the critical launch phase.
The 2024 Ultimate Brand Guide for Amazon Sellers
This guide provides Amazon sellers with actionable strategies to build and scale their brand, focusing on optimizing storefronts, leveraging customer reviews, and maximizing the impact of Sponsored Brands ads. It emphasizes the importance of using data insights from Amazon Brand Analytics to understand customer behavior and refine marketing strategies.
Sellers are encouraged to strengthen their presence through A+ Content and storytelling to drive customer trust and loyalty. By following these steps, sellers can boost brand visibility and long-term sales on Amazon’s competitive platform.
Video of the Week
Amazon AWD Explained: Save on Fees, Simplify Logistics, and Boost Profits
Strong Opinions
What Could Trump’s Second Term Mean for Seattle-Based Amazon?
Donald Trump’s second term may significantly impact Amazon, with potential benefits and challenges for the e-commerce giant. Reduced regulation, including a likely withdrawal of antitrust lawsuits and a pro-business stance, could favor Amazon’s growth. Tariff increases on imports, however, might disrupt Amazon sellers reliant on China-based manufacturing, creating opportunities for U.S.-based manufacturers while challenging those needing to adjust supply chains.
Labor relations could shift as a less union-friendly National Labor Relations Board may reduce pressure on Amazon warehouse operations. Additionally, the Trump administration’s hands-off approach to AI development could support Amazon’s innovation efforts in artificial intelligence and cloud computing.
Amazon Not Raising Their 2025 Fees for Sellers Could Signal Economic Caution
Amazon’s decision to freeze its referral and Fulfillment by Amazon (FBA) fees for 2025 is unusual, breaking the company’s tradition of annual fee increases. While this may appear as a win for sellers, analysts interpret it as a sign Amazon anticipates potential economic challenges or slower consumer spending next year. The fee freeze aims to support third-party sellers by helping them maintain profitability and remain competitive during uncertain times.
This move could also be a defensive strategy to retain sellers and attract new ones, especially as rival platforms vie for market share. For Amazon sellers, the stability offers a chance to plan operations with fewer cost concerns, though it may also indicate caution about the broader retail economy.
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Stay tuned for more updates and actionable insights to optimize your Amazon selling strategy.
God Bless,
Todd Welch
Amazon Seller School
VAT Consultant at ECOM
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Partner at Ecomlabs
4 天前FBA fees lowered (or mostly staying flat) but the inbound placement fees introduced this year have been sky high for many. This isn't such a rosy picture.
Legacy-Driven Amazon FBA Entrepreneur | Building Iconic Brands & Customer Loyalty
4 天前Your updates on FBA fee cuts and AI trends are invaluable for staying competitive in the ever-evolving Amazon landscape.
Amazon Advertising I $13M+ in sales on Amazon, $2M+ Ad spend managed I Profit Growth Specialist I Using Proven and Up-to-date Advertising and Optimization Strategies
4 天前This is great news
E-Commerce Strategist | Amazon Marketplace Expert | Driving $2M+ Revenue & Brand Growth
4 天前Very informative