Amazon News: New Shopper Trends, Ad Growth, and Tips for Managing Unfulfillable Inventory
Hey Fellow Amazon Sellers, This week, we’re diving into the latest Amazon insights and industry updates that could impact your selling strategy. From Amazon’s counter-move to fast-growing competitors to the rising demand for new product research techniques, there’s plenty of news to keep you on top of your game. Let’s get into it!
News
Trade War? Tariffs? How a Trump Election Would Change Tech
If elected, Trump’s proposed tariffs could reshape the tech landscape, hitting companies like Apple, semiconductors, and Chinese e-commerce platforms. Apple may be forced to move more production to the U.S. due to increased tariffs on Chinese imports, driving up costs. Semiconductors, crucial to tech production, could see sustained tariffs regardless of the election outcome, with bipartisan support for protecting U.S. access.
E-commerce giants like Shein and Temu might face tariff hikes or even bans, which could shift consumer options on platforms like Amazon. For Amazon sellers, these potential changes could lead to higher prices on goods sourced from China and an altered competitive landscape.
Understanding the 2024 Online Shopper: Insights from Global E-commerce Trends
DHL’s 2024 Online Shopper Trend Report reveals key insights for Amazon sellers looking to adapt to customer preferences. Competitive pricing and financial incentives are crucial, with high delivery costs driving cart abandonment. Social media is a major influence, especially among younger shoppers, and sustainability is increasingly important to buyers.
Free and easy returns, secure payment options, and clear information on shipping are essential for cross-border sales. To succeed, Amazon sellers should focus on flexible delivery, trust-building through reviews, and leveraging social commerce.
Amazon Says UPS Glitch Caused FBA Rate Spike
Last week, Amazon sellers noticed a sudden spike in UPS shipping costs for sending inventory to FBA centers. Amazon confirmed this was due to a UPS technical glitch that caused incorrect rates to appear in Seller Central.
The issue has been resolved, and refunds will be issued for any overcharged shipments during the affected period. With the holiday season approaching, sellers are especially watchful of any shipping delays or cost changes as they work to meet tight delivery timelines.
Amazon’s Plan to Tackle Temu, Shein? Sell More Toothpaste
Amazon is boosting its sales of everyday essentials like toothpaste and dish detergent to counter low-cost competitors like Temu and Shein. By offering more affordable daily items, Amazon aims to drive frequent shopping and larger basket sizes, even if it impacts average selling prices.
With its vast network of local warehouses, Amazon is well-positioned to deliver these essentials quickly and cost-effectively, a challenge for its rivals. This strategy also places Amazon in closer competition with Walmart and Target, who are also lowering prices to attract budget-conscious consumers.
Amazon’s Advertising Business Grows 19% in Q3, Making It a Major Competitor
Amazon’s advertising business surged 19% year over year, reaching $14.3 billion in Q3, aligning with analysts’ expectations. This growth contributes to Amazon’s total Q3 sales of $158.9 billion, surpassing projections and highlighting the expansion of its ad segment, now a serious competitor to Alphabet (Google) and Meta in the digital ad space.
With an 8.8% share of the global digital ad market, Amazon is leveraging its platform to attract more advertisers, providing a valuable opportunity for Amazon sellers to enhance visibility and reach. Competing against giants like Google and Meta, Amazon’s ad growth underscores the importance of digital advertising in e-commerce.
Amazon’s Latest Actions Against Fake Review Brokers: Joint Lawsuits with Google
Amazon and Google have filed parallel lawsuits against Bigboostup.com , a website that sold fake reviews targeting Amazon listings and Google business profiles. This legal action aims to prevent the site from continuing to deceive customers with manipulated reviews, which mislead shoppers into trusting products and businesses falsely represented as high-quality.
Amazon continues to prioritize review integrity, using machine learning to detect fake reviews and having blocked over 250 million suspicious reviews in 2023 alone. This partnership with Google reinforces the need for collaboration across industries to maintain trust in online reviews, which are vital for Amazon sellers aiming to provide genuine customer experiences.
Amazon UK Tightens Return Policies for International Sellers
Starting November 11, Amazon UK will require international sellers to provide a domestic return address or issue a prepaid return label with tracking; otherwise, UK buyers will automatically receive a refund without needing to return the item. Sellers have four days to offer one of these return options, aiming to make the return process smoother and enhance buyer confidence.
In line with customer convenience, Amazon is also extending the holiday return period across multiple European markets, allowing returns for purchases made between November 1 and December 25 until January 31. Amazon’s new policies are part of ongoing efforts to streamline logistics for customers and standardize return protocols.
Would You UberEats a Sweater or New Sneakers? Founders Are Betting on It
Consumer brands like Allbirds, Cuyana, and Blueland are partnering with UberEats to offer fast delivery for items like clothing and cleaning products, hoping to reach customers who want items delivered within hours. This aligns with evolving shopping expectations influenced by services like Amazon Prime and a growing demand for near-instant delivery.
Brands gain access to Uber’s extensive user base of 156 million while testing if rapid delivery can boost sales. For Amazon sellers, this trend highlights the increasing importance of delivery speed and multi-channel accessibility.
Image Manager’s Country-Specific Features Give You More Control Over Visuals
Amazon’s updated Image Manager tool now allows sellers to manage country-specific product images with greater flexibility. Sellers can view global and localized images in separate sections and delete country-specific images directly from the Image Manager.
These updates help sellers maintain organized and relevant visuals for each region, ensuring product images are appropriate and appealing for specific local markets.
Percentage Off Coupons Can Now Be Applied on Up to Five Items per Order
Amazon sellers can now let customers apply percentage off coupons to up to five items in a single order, making it easier for shoppers to save and reducing the number of orders sellers need to process. Previously, customers had to place separate orders to use coupons on multiple items, increasing sellers’ delivery costs.
By setting “Limit redemption to one per customer” to No in Seller Central, sellers can enable this multi-item discount option. Note that this feature does not apply to “money off” coupons, which remain limited to one use per order.
Seller Tips & Tricks
How to Manage Unfulfillable Inventory on Amazon: A Quick Removal Guide
Managing unfulfillable inventory is crucial for Amazon sellers to avoid storage fees and maintain accurate stock levels. Starting September 2024, Amazon requires European sellers to remove unfulfillable inventory within 23 days, after which items will be donated or disposed of. Sellers have several removal options: return, disposal, liquidation, or donation, each with its own cost considerations.
Automating the removal process can streamline operations and help prevent unexpected costs, improving profitability for sellers who stay proactive with their inventory management.
Amazon’s New Generative AI Tool for A+ Content Creation
Amazon has introduced a Generative AI tool designed to help sellers create enhanced A+ content for product detail pages. This AI tool assists in generating engaging descriptions, images, and layouts tailored to specific audiences, aiming to improve customer experience and boost conversions. Sellers can use this tool to streamline the content creation process and ensure brand consistency across listings.
For those looking to optimize product pages efficiently, this tool could be a valuable addition.
Are Amazon Reviews Copyrighted? Understanding the Legal Landscape for Sellers
Amazon reviews are technically owned by the reviewer, but Amazon’s Terms of Service grant the platform a royalty-free, global license to use, copy, and distribute these reviews as it sees fit. Sellers must understand that while reviews remain copyright-protected, Amazon can use them freely under its policies.
Ethical use of reviews, including correct attribution and respect for the original content, helps foster trust in the Amazon community. Staying informed about copyright laws and Amazon’s policies can also help sellers navigate content use responsibly on the platform.
How to Conduct Advanced Amazon Product Research
Advanced Amazon product research is essential for staying competitive in a saturated marketplace. Unlike basic research, advanced techniques focus on sales velocity, profit margins, competitor insights, and seasonality trends to uncover high-demand products with profitable margins.
Utilizing tools like Jungle Scout’s Product Database, Competitive Intelligence, and Opportunity Finder can help sellers identify untapped markets, optimize listings, and track competitor performance, positioning them for long-term success.
What AI Can Do for Amazon Sellers: A Complete Guide
AI is transforming the Amazon selling landscape, enabling sellers to automate repetitive tasks, optimize listings, and gain insights from customer reviews. Tools like Jungle Scout’s AI Listing Builder and Review Analysis offer sellers the ability to create competitive listings and improve product quality based on real feedback.
Additionally, AI-driven analytics tools help track profitability, making it easier to adjust pricing and manage costs effectively. Embracing these AI tools is essential for sellers looking to maintain a competitive edge in today’s market.
Video of the Week
What is a Fractional Amazon Logistics Manager? Save Time, Reduce Fees & Boost Profits!
Strong Opinions
Web Traffic for Jungle Scout and Helium 10 Drops 50%: Is Interest in Amazon FBA Waning?
Scott Needham reports that web traffic for Jungle Scout and Helium 10—key Amazon seller tools—has decreased by 50%, hinting at a possible decline in new Amazon sellers entering the market. This may signal the end of the “get rich quick” phase as fewer new sellers flock to Amazon FBA.
However, the industry remains strong, with Amazon’s marketplace revenue growing by 10-20% over the same period, primarily driven by large, established sellers. Needham suggests that the trend is market-driven rather than performance-based, as these tools are heavily dependent on the influx of new sellers.
How Would Low-Cost Amazon Store Impact Sellers?
Amazon’s potential low-cost store, aimed at competing with platforms like Temu and Shein, could dramatically alter pricing dynamics, especially with items shipped directly from China and new price caps ($8 for jewelry, $13 for guitars, $20 for sofas). This shift towards discount pricing might encourage a “race to the bottom,” impacting not only Amazon sellers but also those on eBay, Etsy, and similar marketplaces.
Lower fulfillment fees for this discount storefront may make it easier for sellers in China to reach U.S. customers quickly, challenging U.S.-based sellers’ pricing strategies and profit margins.
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Top Amazon Events
Stay tuned for more updates to help you navigate the fast-paced world of Amazon selling. Let’s keep adapting and growing together.
God Bless,
Todd Welch
Amazon Seller School
40% Increase In Amazon Sales Within 60 Days with No Retainer From an Award Winning $100.000.000 Amazon advertising team
1 周This is a fantastic roundup of the latest Amazon news and trends, Todd Welch