Amazon News: Major Updates in AI Tools, Market Trends, and Compliance Alerts
Hey Fellow Amazon Sellers,
This week, we’re diving into exciting updates and trends on Amazon and beyond. From new ad strategies to marketplace challenges, a lot is happening that could impact your selling strategy. Let’s jump into it!
News
Amazon Just Launched “Amazon Haul” – A New Shopping Experience to Rival Temu and Shein
Amazon has introduced “Amazon Haul,” a budget-friendly shopping feature now live in beta in the U.S. app, offering items priced at $20 or less across categories like fashion, lifestyle, and electronics. This new section includes special discounts, free delivery for orders over $25, and free returns for items above $3, with purchases protected by Amazon’s A-to-Z Guarantee.
According to Amazon expert Vanessa Hung, this move could provide sellers of affordable essentials and trendy items a new opportunity to reach budget-conscious buyers, potentially competing with discount giants like Temu. Just in time for holiday shopping, Amazon Haul could attract users looking for low-cost, quick-access items.
Dangerous Goods Can Now Be Shipped in the US with Amazon Buy Shipping
Amazon sellers in the US can now ship dangerous goods using Amazon Buy Shipping with Amazon Shipping Ground and USPS Ground Advantage. To ensure compliance, sellers are responsible for meeting packaging and labeling requirements as per carrier guidelines, so those preferring other methods must coordinate directly with their chosen carrier.
This update allows sellers more flexibility in managing orders with restricted items while ensuring safe transport.
Small Brands Spend Three Times More on Amazon Ads Than Big Brands
Amazon sellers, especially third-party (3P) brands, are spending significantly more on advertising than established first-party (1P) brands to compete on the platform. According to SmartScout’s analysis, 3P brands allocate 127% more on Sponsored Products and 146% more on Sponsored Video ads relative to their revenue compared to 1P brands.
The dependency on Amazon as a primary channel for 3P sellers drives this ad investment, contrasting with larger brands that benefit from brand recognition and can afford to spend less on bottom-of-funnel advertising.
As Amazon opens access to more advanced advertising tools, including DSP, for smaller brands, 3P sellers may have new opportunities to balance brand-building and direct-response ads, intensifying competition across all stages of the sales funnel.
Amazon’s Shopping AI Is Confident and Wrong
Amazon’s AI shopping assistant, Rufus, now recommends specific products but often makes inaccurate suggestions. Launched widely in July, Rufus confidently answers shoppers’ questions with five product suggestions, yet it frequently misinterprets requests, showing irrelevant or suboptimal items.
Despite Amazon’s efforts to improve Rufus, this issue reflects broader challenges with AI in e-commerce. For Amazon sellers, the shift toward AI-based shopping means product visibility may increasingly depend on making it into the AI’s top recommendations, signaling a new focus beyond traditional SEO strategies.
Skechers Lawsuit Highlights Challenges Amid Rise of Chinese Brands
Skechers has filed a lawsuit against STQ Global and its Chinese affiliates, accusing them of trademark and patent infringement for selling footwear that allegedly copies Skechers’ designs and uses similar “S” logos.
The defendants are said to have used tactics like purchasing Skechers-related keywords on e-commerce platforms and using similar product names to capitalize on Skechers’ brand recognition.
This case illustrates the challenges that established brands face with the rise of China-based companies evolving from manufacturers to direct-to-consumer brands through platforms like Amazon and Temu.
For Amazon sellers, this highlights the importance of protecting intellectual property and being aware of potential infringement issues in a global marketplace.
The FTC Orders Sitejabber to Stop Faking Product Reviews
The FTC has charged Sitejabber with violating new rules against fake reviews, alleging it used point-of-sale feedback deceptively to inflate product ratings before customers even received their purchases.
Sitejabber allegedly gave clients tools to post these misleading reviews on their sites, causing potential confusion about the authenticity of customer experiences.
This case is part of the FTC’s broader crackdown on fake reviews, a move that could impact Amazon sellers and others reliant on genuine customer feedback for credibility and sales.
Canada Orders TikTok to Shut Down Operations Over National Security Concerns
Canada has ordered TikTok to end its business operations in the country, citing national security risks associated with ByteDance, its parent company. Though the app isn’t banned, TikTok must close its Canadian offices, impacting creators and businesses that rely on its platform for marketing.
For Amazon sellers, this decision is a reminder of how quickly social media channels can shift due to regulatory action. Sellers leveraging TikTok for brand visibility in Canada may need to explore alternative channels to maintain their reach.
The Children’s Place Launches Shein Storefront to Broaden Omnichannel Reach
The Children’s Place has partnered with fast-fashion leader Shein to launch an online storefront, allowing it to distribute products directly through Shein’s platform. This collaboration aims to expand The Children’s Place’s audience reach and diversify its digital presence, aligning with consumer expectations for convenience and accessibility.
For Amazon sellers, this partnership highlights a growing trend of established brands leveraging fast-fashion platforms for expanded reach. As more brands tap into alternative channels, competition for visibility and customer loyalty in the digital space intensifies.
India Raids Offices of Sellers Using Amazon and Flipkart Platforms, Alleging Rule Violations
India’s financial crime agency recently raided offices of select sellers on Amazon and Flipkart, alleging foreign investment and antitrust violations. The raids come after an antitrust probe indicated these platforms favored certain sellers and controlled inventory, which Indian law prohibits. Both Amazon and Flipkart face increased scrutiny as India seeks to level the playing field for local sellers, intensifying compliance challenges for foreign e-commerce players.
For Amazon sellers, this highlights the importance of understanding local regulations and potential risks when operating in foreign markets.
Display Videos Across Related Product Detail Pages
Amazon now allows sellers to display videos across multiple product detail pages for variations like size, color, and packaging. This feature helps enhance the customer experience by giving buyers more information, potentially increasing their confidence in purchasing decisions.
To use this feature, sellers can upload videos through the “Upload and Manage Videos” tool in Seller Central and enable the option to include product variations. Videos may take up to three days to appear on all related pages.
Seller Tips & Tricks
How Amazon Sellers are Navigating Capacity Constraints
With holiday demand on the horizon, Amazon sellers are contending with inventory delays and storage issues, especially at West Coast warehouses. As Amazon reroutes inventory and adjusts fees, many sellers are turning to costly alternatives like air freight or third-party logistics (3PL) to maintain stock levels.
For those reliant on Amazon’s Warehousing & Distribution (AWD) service, these bottlenecks create added pressure to manage inventory. Sellers are paying extra to ensure availability, as going out of stock during peak season could harm their rankings and sales.
Transitioning From Amazon Vendor Central To Amazon Seller Central
As Amazon phases out Vendor Central for some brands, shifting them to Seller Central, sellers must adjust to new levels of control and responsibility. Seller Central allows for greater customer interaction, pricing control, and promotional options, but it also requires proactive inventory management and adaptation to Amazon’s fee structure.
Brands should prepare for potential disruptions in page position and profitability, carefully adjust pricing to accommodate new fees, and consider additional advertising investments previously managed by Amazon. For Amazon sellers, the shift can offer both challenges and opportunities to increase sales and profit through strategic execution.
3 Incredibly Easy Costco Side Hustles That Can Help You Make Up To $5,000 Monthly
This article explores three profitable side hustles leveraging Costco’s bulk pricing, ideal for aspiring Amazon sellers looking to increase their income. First, the “Resale Hustle” involves purchasing discounted products from Costco and reselling them on Amazon via Fulfilled by Amazon (FBA), allowing hands-off profit generation.
A second method, Fulfilled by Merchant (FBM), gives sellers control over shipping and inventory; a 15-year-old entrepreneur reportedly earns up to $5,000 monthly using this model. Finally, affiliate marketing offers another revenue stream, where influencers promote Costco products to their followers for commissions, potentially generating passive income.
Video of the Week
AMAZON’S NEW GENERATIVE AI TOOL FOR A+ CONTENT CREATION
Strong Opinions
The Impact of Trump’s Reelection on eCommerce: What to Expect?
Trump’s reelection is expected to introduce significant challenges for cross-border eCommerce sellers, especially those importing from China, as tariffs are likely to increase, driving up product costs and squeezing profit margins. The potential rise in logistics costs, along with customs delays and shipping bottlenecks, could further complicate the supply chain for Amazon sellers dependent on international imports.
Currency fluctuations may also impact profit margins if the U.S. dollar devalues, affecting conversion rates for overseas sellers. Despite these challenges, U.S.-based eCommerce businesses may benefit from a renewed focus on domestic production, while sellers using TikTok for marketing can expect stability, as Trump has expressed recent support for the platform.
Will Amazon Continue Its Shift to a Third-Party Marketplace?
Juozas Kaziuk?nas discusses Amazon’s potential strategies for further transitioning to a third-party (3P) marketplace model. Recently, Amazon began reducing its reliance on first-party (1P) vendors by decreasing 1P relationships, which could signal a shift towards empowering third-party sellers. This shift could offer Amazon more flexibility and reduce operational costs, but it raises questions about how Amazon will handle essentials and low-priced items, typically managed by 1P vendors.
For Amazon sellers, understanding this trend could help in adjusting business strategies, especially as Amazon prioritizes its 3P model.
Featured Services and Software
Seller Snap
Is your current repricer causing price tanking? Optimize your Amazon store with profit-driven algorithms that ensure you secure your fair share of the Buy Box while maximizing profits. Outsmart the competition with Seller Snap’s advanced repricing solutions. Start your 15-day free trial today!
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.
Top Amazon Events
Stay informed, stay ahead, and make the most of these insights as you continue to build your Amazon business.
God Bless,
Todd Welch
Amazon Seller School