Amazon News: Temu Ranks No. 2, AI Title Risks, and Holiday Fulfillment Fees
Hello Fellow Amazon Sellers!
Welcome to another edition of our weekly newsletter, packed with the latest Amazon updates, new tools, and important insights to keep you informed and ahead of the game. Let’s dive right in!
News
Temu Now Ranks as the World’s No. 2 E-Commerce Site
Temu has quickly risen to become the world’s second most visited e-commerce site, surpassing eBay and highlighting its rapid expansion strategy that could reshape competitive dynamics for Amazon sellers. The platform’s massive traffic, largely driven by paid advertisements, illustrates a new, aggressive form of market penetration that could influence advertising strategies and market presence for other sellers.
Despite Temu’s impressive web traffic stats, its actual sales and market impact remain smaller than Amazon’s, but it’s setting ambitious sales goals that aim to challenge Amazon’s dominance in the U.S. and Europe. This growth trajectory suggests that Amazon sellers may need to prepare for intensified competition and market shifts as Temu continues to expand.
Amazon’s AI-Driven Title Changes: A Risky Move for Sellers
Brandon Young highlights how Amazon’s attempt to roll out AI-driven title changes resulted in significant issues, including the de-indexing of keywords and a drop in organic rankings for sellers. These AI changes, intended to personalize titles, also posed legal risks due to errors such as infringing on Ray-Bans’ “Aviator” trademark during a conference presentation.
This situation underscores the potential pitfalls of automated systems in e-commerce, directly impacting sellers by affecting their visibility and compliance on the platform. Amazon sellers should be vigilant about these developments, as they could influence strategies for keyword optimization and compliance moving forward.
Amazon’s Fully-Managed Supply Chain Service Boosts Seller Sales by 20%
Amazon has launched a fully-managed Supply Chain service that simplifies seller operations and increases delivery speed, leading to an average 20% boost in sales conversions. Sellers can now leverage Amazon’s logistics, warehousing, and transportation services to streamline product movement from factories to customers more efficiently.
With features like Multi-Channel Distribution and discounted AWD rates, this service reduces inventory needs by 20%, preventing stockouts and saving on capital. For Amazon sellers, the new fully-managed option provides a game-changing solution for scaling their businesses without the burden of complex supply chain management.
Amazon Accelerates E-commerce Innovation with New Services and Features
Amazon has announced significant enhancements to its Buy with Prime and Amazon Multi-Channel Fulfillment services, aiming to improve the way sellers manage their operations and reach customers. The updates include the integration of PayPal for checkout on Buy with Prime, the introduction of new advertising solutions across platforms like Google Shopping Ads and TikTok, and growth in the Amazon Multi-Channel Fulfillment service, which now serves over 200,000 U.S. merchants.
These enhancements are designed to help Amazon sellers increase their visibility and sales across multiple channels, not just on Amazon.com , by leveraging Amazon’s extensive fulfillment network. The announcement was made at Amazon’s Accelerate conference, which focuses on providing sellers with tools and knowledge to expand their businesses effectively.
Amazon Prime Big Deal Days 2024: Everything You Need to Know
Amazon Sellers, get ready for Prime Big Deal Days on October 8-9, 2024! This 48-hour event offers Prime members exclusive access to deals across top categories like electronics, fashion, and toys, perfect for kicking off early holiday sales.
Prime members can expect new deals every five minutes and even shop early for select items, creating exciting opportunities for sellers to showcase their products. With brands like LEGO, Samsung, and Disney offering discounts, this is a huge chance for sellers to drive holiday sales.
Amazon Quietly Brings Ads to Rufus, Its AI Shopping Tool
Amazon is integrating sponsored ads into Rufus, its generative AI shopping assistant, offering new ad placements to help customers discover products. While similar to Amazon’s main search engine ads, advertisers are cautious, with concerns about context-matching accuracy and the lack of performance metrics.
For Amazon sellers, this could mean more visibility for products, but it may also come with less control over ad placements and a need to monitor customer feedback closely.
Is Amazon Eyeing TikTok for a Possible Acquisition?
Speculation is rising that Amazon might be considering acquiring TikTok, as the social media giant strengthens its ties with the e-commerce platform amidst talks of a U.S. ban. TikTok recently introduced a feature allowing users to shop Amazon products directly in-app, potentially paving the way for deeper collaboration or even an acquisition.
For Amazon sellers, this move could mean increased exposure and sales through TikTok’s vast user base.
Amazon Introduces AI Stylist: A Game-Changer for Shopping
Vanessa Hung highlights Amazon’s new AI Stylist, which could revolutionize shopping by offering personalized styling recommendations powered by Amazon Bedrock. This AI tool taps into customer order histories and catalog data to suggest outfits, while prioritizing fashion trends and preferences.
For Amazon sellers, this innovation could lead to increased product visibility and sales as shoppers rely more on AI-driven recommendations.
Massive Update to Amazon Business Reports
Isaac Gross shares a significant update that Amazon sellers will love—you can now search by ASIN directly in Business Reports! This simplifies the process by removing the need for Ctrl F or downloading Excel files to view ASIN-specific data.
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However, Gross notes that it would be even better to search by ASIN in the “By Date > Sales and Traffic” report, but it’s still a positive improvement.
2024 Holiday Peak Fulfillment Fees for FBA
Amazon has announced its 2024 holiday peak fulfillment fees, effective from October 15, 2024, through January 14, 2025. These fees, similar to those charged by other major carriers, help cover increased fulfillment and transportation costs during the holiday season.
While most fees remain unchanged from last year, a new fee applies for US FBA products priced under $10. For Amazon sellers, understanding these fees is crucial for planning ahead and managing profit margins during the busy season.
Seller Tips & Tricks
Massive Amazon Hack: Amazon Rekognition and How It Affects Your Product Ranking
Amazon Rekognition is a tool that uses deep learning to analyze images and videos, identifying objects, text, and more. For Amazon sellers, it’s crucial because if Rekognition doesn’t accurately identify your product, platforms like COSMO and Rufus might also struggle, which could impact your product rankings.
Max Sigurdson-Scott suggests testing different main images to help the AI better understand your product. By incorporating packaging with keywords into your images, you may improve product recognition and rankings.
When a Seller Passes Away: Ensuring Amazon Account Ownership & Continuity
Managing an Amazon account when a seller passes away can be challenging due to Amazon’s strict no-transfer policy. This is crucial for families or business partners who depend on the seller’s account for income. Exceptions may be made with proper legal documentation, such as a death certificate or will.
It’s essential for sellers to plan ahead, ensuring continuity by organizing legal paperwork and designating a backup account manager. This can help maintain business operations during transitions.
From Idea to Amazon Success: Numa Foods’ Journey
In his post, Justin Chen highlights the story of Jane and Joyce Zhu, the mother-daughter founders of Numa Foods, who introduced a traditional Asian milk candy to North America through Amazon. Their success came from blending cultural flavors with modern health trends, attracting a health-conscious audience.
Despite naming and logistical challenges, their strategic marketing and positive customer reception led to significant sales growth on Amazon. The lesson for Amazon sellers: perseverance, adaptability, and market research are key to building a brand that resonates globally.
Video of the Week
Best PPC Strategy for Resellers: Maximizing Your Amazon Ads
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How Chinese Sellers are Manipulating Amazon in 2024
This article highlights how Chinese sellers, who make up over 63% of third-party Amazon sellers, are employing various tactics to manipulate the platform. Some of the methods include using fake reviews, counterfeit products, and even stealing internal Amazon data to gain an unfair advantage.
Amazon sellers should be aware of these tactics, as they can directly impact competition, especially for those trying to build legitimate brands. The article also discusses ways Amazon can improve to level the playing field and protect both sellers and customers.
“Surge Pricing” Coming to Amazon?
Ryan Mulvany highlights a new Amazon patent issued on August 27, 2024, that suggests the potential for dynamic pricing on its platform. While not explicitly surge pricing like Uber, it hints at real-time price adjustments based on demand, shopping trends, or market conditions.
For Amazon sellers, this could impact both first-party vendor businesses and private label lines like Amazon Basics. Sellers should pay attention to how this might change pricing dynamics, especially during peak shopping periods or for high-demand items.
Tops Amazon Events
These updates present excellent opportunities to grow your business and stay competitive. Whether you’re interested in expanding internationally, preparing for Prime Big Deal Days, or leveraging new advertising tools, there’s something for everyone in this week’s news.
God Bless,
Todd Welch
Amazon Seller School