Amazon News: Pricing Wars, TikTok Shop Insights, Walmart’s Shift, and More
Hello Fellow Amazon Sellers, Welcome to this week’s newsletter, packed with updates to help you stay ahead in the ever-changing world of e-commerce! Here’s what’s trending:
News
Amazon Presses Chinese Sellers Over Temu Pricing
Amazon is pressuring Chinese sellers to stop offering lower prices on Temu, a competing e-commerce platform, to maintain its competitive edge. Sellers who fail to comply risk being removed from the coveted Buy Box, which significantly impacts sales visibility on Amazon.
This intensifies the battle between Amazon and budget platforms like Temu, which are gaining popularity with U.S. shoppers. Sellers are now caught between pricing demands from both platforms, struggling to balance profitability and compliance.
Create Custom Brand Imagery in Seconds with Image Generator
Amazon’s new AI-powered Image Generator lets sellers create custom, brand-themed images in seconds. These images can be used across Sponsored Brands, Sponsored Display campaigns, Brand Stores, and Posts to enhance product presentation and engagement.
With over 40 themes available, sellers can design seasonal and year-round visuals and save them in their creative asset library for immediate use. This tool offers an opportunity to test multiple images to see what resonates best with shoppers.
Does A+ Content Impact Amazon SEO? The Debate Continues
Steven Pope highlights that while Amazon officially claims A+ Content (Enhanced Brand Content) does not directly affect SEO, practical testing suggests otherwise. He explains that including specific content in A+ modules can lead to faster indexing and improved search result visibility, potentially driving more organic traffic.
For Amazon sellers, optimizing A+ Content could be a valuable strategy to boost search rankings and enhance listing performance, even if Amazon’s stance remains ambiguous.
Amazon’s New Feature: Unspent Campaign Budget Sharing for Advertisers
Sufyan Farid highlights Amazon’s introduction of the “Unspent Campaign Budget Sharing” feature, currently in beta, which allows advertisers to optimize their ad spend by reallocating unused daily campaign budgets within the same portfolio. This feature helps high-performing Sponsored Products campaigns maximize traffic on peak days while staying within the monthly budget cap.
Key benefits include dynamic budget utilization, up to 100% increased spending on high-traffic days, and better control over monthly ad spend. This update empowers Amazon sellers to improve their advertising performance and competitiveness.
‘The Culture is Different’: How Walmart Became More Like Amazon in 2024
Walmart has significantly accelerated its transformation into an Amazon competitor by expanding services like Walmart+ and launching Walmart Luminate, renamed Scintilla, to provide sellers and advertisers with valuable data. The acquisition of TV maker Vizio further integrates Walmart’s e-commerce and advertising efforts, mirroring Amazon’s Prime Video and Fire TV model.
Walmart’s e-commerce growth of 27% far outpaced Amazon’s 7%, and its marketplace reached 150,000 active sellers, tripling since 2022. Walmart’s advantage lies in integrating its physical stores with e-commerce capabilities, particularly through curbside pickup, leveraging its extensive retail footprint to compete with Amazon in innovative ways.
Thrasio’s Downfall: From Billion-Dollar Success to Legal Battles
Thrasio, once a leading aggregator raising billions to acquire Amazon brands, is now embroiled in a legal battle with its founders. The company alleges that its founders enriched themselves with hundreds of millions of dollars, triggering internal and external scrutiny.
This dramatic turn of events highlights the challenges and risks associated with rapid growth in the Amazon ecosystem. Sellers can take this as a reminder of the importance of sustainable growth and transparent practices in the e-commerce space.
TikTok Shop: The Future of Social Commerce and Its Impact on E-Commerce
TikTok Shop is reshaping e-commerce by seamlessly blending entertainment and shopping, creating a unique environment for brands to connect with highly engaged audiences. Leveraging the platform’s algorithm, creator-driven trust, and features like live shopping, TikTok Shop enables rapid discovery and conversion within a single app. Key success strategies include partnering with influencers, utilizing user-generated content, and optimizing product listings to align with TikTok’s trend-driven culture.
With its global expansion and innovative tools like AI personalization and in-app analytics, TikTok Shop offers brands a transformative opportunity to capture younger demographics while building long-term loyalty. For Amazon sellers, this platform represents an emerging frontier in multi-channel e-commerce strategies.
Amazon Competitive Edge Framework: Stay Ahead in a Rapidly Changing Marketplace
Russ Dieringer has updated the Amazon Competitive Edge Framework to help sellers adapt to the fast-paced changes required for success on Amazon. This framework cuts through distractions to focus on actionable strategies that differentiate sellers from competitors and capitalize on evolving trends.
For Amazon sellers, these insights provide a roadmap to navigate the platform effectively and achieve long-term growth. Staying updated with this framework is essential for maintaining a competitive advantage.
领英推荐
Amazon Sued by Liquidation Firm Over Alleged Overcharges and Inflated Pricing
Ohio-based Xcess Ltd has filed a lawsuit against Amazon, accusing the e-commerce giant of overcharging for bulk liquidation purchases and including unsellable items like expired or recalled goods. Xcess alleges that some Amazon sellers inflated retail prices, knowing the overcharges would be passed on to liquidation buyers, with items like basic solar eclipse glasses priced at $40.
The lawsuit highlights the challenges liquidation companies face with Amazon’s invoicing practices, citing millions of line items that made it difficult to identify overcharges. For Amazon sellers, this case underscores the complexities of pricing strategies and their potential implications within Amazon’s ecosystem.
Amazon Introduces the Conversion Path Report: Insights and Limitations
Isaac Gross highlights Amazon’s new Conversion Path report, which provides insights into multi-touch customer paths directly within the ad console, moving beyond AMC insights. While it showcases interactions between ad types, it misses critical metrics such as conversion rate (CVR) changes across paths, total ACOS per path, and the impact of organic clicks, making actionable insights challenging.
For Amazon sellers, this tool underscores the need for more detailed analytics to optimize ad spend and reduce cannibalization. Gross invites sellers to share how they’re leveraging the report and what additional features they’d like to see.
Video of the Week
Master Amazon SEO with Alex Chiru: Game-Changing Strategies for Sellers
Strong Opinions
E-commerce Wars: How the US is Losing the Battle
In “E-commerce Wars,” Shinghi Detlefsen outlines how US small businesses face growing challenges as foreign sellers, particularly from China, dominate platforms like Amazon. These sellers often exploit regulatory loopholes, avoid taxes, and engage in unfair practices like manipulating reviews and undercutting prices, leaving American entrepreneurs at a disadvantage.
The article highlights the economic impact of these practices, estimating a $4.75 billion annual tax revenue loss and significant harm to US jobs and innovation. Detlefsen proposes policy reforms such as withholding taxes from foreign sellers, closing loopholes, and strengthening intellectual property protections to create a fairer marketplace for US sellers.
$5 Million Stuck at FBA Without Reason: A Seller’s Frustration
An experienced Amazon seller with eight years on the platform and $50 million in annual sales shares their ordeal after Amazon shut down their account, freezing $5 million worth of inventory. The suspension stemmed from an unverifiable supplier issue on a single ASIN, despite the seller providing invoices from brand owners and national wholesalers.
The seller expresses frustration over Amazon’s lack of verification efforts, such as failing to contact the supplier and the severe impact this has had on their business, loans, and family. This situation highlights the need for Amazon to apply more context and accountability when taking such drastic actions against long-term, compliant sellers.
Temu’s Takeover Is Now Complete
Temu, the rising e-commerce giant, has successfully disrupted the market, challenging major players like Amazon with aggressive pricing and rapid growth. The platform’s ability to offer ultra-low prices stems from cutting costs in areas like marketing, shipping, and supplier partnerships, giving it a competitive edge.
For Amazon sellers, Temu’s expansion signals increased competition and the need to adapt strategies to stay relevant in a price-sensitive market. The shift in consumer preferences highlights the importance of agility and innovation for sellers operating in a rapidly evolving e-commerce landscape.
Featured Services and Software
RevSeller
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I hope these insights empower you to stay ahead and thrive in the dynamic world of e-commerce.
God Bless,
Todd Welch
Amazon Seller School