Amazon News: Vendor Central Closures, FBA Fees, Walmart's Growth, and More!
Hey, Fellow Amazon Sellers!
As the Amazon marketplace evolves, staying informed on the latest updates is key to keeping your business competitive. This week, I’ve gathered essential news and insights—from Amazon’s new export tool to Walmart’s surprising e-commerce growth. Read on to stay ahead of the curve!
News
Amazon’s Vendor Central Closures: What Sellers Need to Know
According to Chris McCabe , Amazon is reportedly shutting down many Vendor Central accounts permanently, leaving sellers without the option to appeal. Sellers must transition to third-party (3p) accounts, but those unfamiliar with Brand Registry could face challenges.
Issues with video verification and mismatched business documentation may lead to delays or suspensions. Sellers need to stay prepared to navigate the transition and potential obstacles in listing contributions and account verification.
Boost Conversions with 3D Models on Amazon Listings
Amazon now allows brand-registered sellers to upload 3D models to their product listings, giving customers a more interactive way to view products from all angles. This feature currently supports categories like home, furniture, electronics, shoes, and eyewear, enhancing the shopping experience.
Sellers can upload 3D models through the Catalog’s Image Manager tab, but submissions must meet quality standards before publication. If you don’t have a 3D model, Amazon provides resources to connect with 3D content studios or use the mobile app for model scanning.
Amazon Launches Export Central for Easy European Expansion
Amazon’s new Export Central tool allows sellers in the Merchant Fulfilled Network (MFN) to export products to 39 European countries with just three clicks. This tool is part of the European Export Programme, which enables sellers to reach customers in countries without an Amazon store, such as Austria, Portugal, and Greece, without duplicating listings or registering new accounts.
FBA sellers are automatically enrolled, while MFN sellers need to provide shipping rates and transit times for international orders. The programme offers significant growth opportunities, with sellers experiencing up to a 10% sales uplift on average.
Massive Update to Amazon’s Business Reports
According to Isaac Gross , Amazon has introduced the ability to search by ASIN directly in Business Reports, eliminating the need for Ctrl+F or Excel downloads to access specific product data. However, the feature does not yet apply to the “By Date > Sales and Traffic” report, limiting detailed performance tracking by date.
This update is a step in the right direction for sellers and offers better data accessibility. More improvements are expected as Amazon Accelerate approaches.
Support for a U.S. TikTok Ban Continues to Decline
A recent Pew Research survey reveals that only 32% of Americans now support a U.S. TikTok ban, down from 50% in March 2023. While more people are uncertain about the ban, half of U.S. adults believe it is unlikely to happen.
Political differences remain, with Republicans more likely to support a ban than Democrats, though both groups have seen a decline in support. As TikTok usage increases, non-users have become less supportive of the ban, and TikTok users largely oppose it.
Amazon Coupon Duration Changes Effective September 5
Starting September 5, 2024, Amazon will update the maximum durations for three types of coupons: Standard coupons will be limited to 30 days, Reorder coupons extended to 180 days, and Subscribe & Save coupons will last 365 days. This change is designed to enhance the impact of each coupon type and differentiate promotional strategies.
Coupons created before this date will retain the previous 90-day limit.
Walmart.com Surpasses Amazon in Average Annual Spending
According to recent data, Walmart.com now exceeds Amazon in average annual customer spending in the U.S., reaching over $1,400 as of July 2024 compared to Amazon’s $1,000. The difference is largely driven by larger grocery orders placed for in-store or curbside pickup through Walmart.com .
Walmart.com and Amazon shoppers have similar order frequencies, but Walmart’s average transaction size is notably higher. The introduction of Walmart+ in 2021 also contributed to the increase in spending.
If You Sell Cosmetics, Heed Amazon’s Warning
Amazon has given sellers two weeks, until September 24, to update their cosmetic product listings to comply with FDA regulations. Sellers must include a complete list of ingredients, drug facts (if applicable), and product details to avoid the risk of their listings being deactivated.
This is part of Amazon’s effort to ensure cosmetic products sold on its marketplace meet regulatory standards. Sellers are advised to act quickly, as changes can take several hours to reflect on the platform.
Amazon Expects Indian Exports to Surpass $5 Billion in 2024
Amazon projects that Indian sellers will export over $5 billion worth of small-ticket items, such as textiles and household goods, through its platform by the end of 2024, up from $3 billion in 2023. The company’s Global Selling program, launched in 2015, now includes 150,000 small Indian exporters who reach international markets like the U.S. and the UK.
This growth reflects Amazon’s investment in tools to help Indian sellers optimize their reach and the broader trend of multinational companies diversifying supply chains away from China. Amazon aims for $20 billion in cumulative e-commerce exports from India by 2025.
How Hazardous Packages from Amazon Can Wind Up on Your Doorstep
In 2023, nearly 1 billion packages from China avoided import taxes and inspections, increasing the risk of dangerous products reaching U.S. consumers. Items like faulty carbon monoxide detectors and children’s sleepwear failing flammability standards have raised concerns, and Amazon is now being held responsible for hazardous third-party products sold on its platform.
This is crucial for Amazon sellers, as stricter regulations could lead to increased scrutiny of product listings, especially for imported goods. Sellers should ensure their products meet safety standards to avoid deactivations and liability issues.
Seller Tips & Tricks
Amazon Inbound Placement Fees: How to Reduce or Eliminate
Amazon introduced new inbound placement fees in 2024, impacting sellers using Fulfillment by Amazon (FBA). These fees can add up quickly, but strategies like leveraging Amazon Warehousing and Distribution (AWD) can help eliminate them, allowing Amazon to handle inventory distribution without added costs. Sellers can further minimize fees by optimizing packaging, shipment strategies, and inventory levels.
Amazon sellers looking to cut costs should consider using AWD for automatic restocking and reduced logistical complexity.
How Many Keywords Should You Have Per Amazon Ad Group?
Overloading Amazon ad groups with too many keywords, also known as “keyword dumping,” can harm the performance of your PPC campaigns. Ad groups with too many keywords result in issues such as mixed keyword strategies, uneven impressions, and budget inefficiency, preventing proper testing and optimization.
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Ad Badger recommends keeping between 35 and 60 keywords per ad group, ensuring each keyword has a clear purpose and adequate budget. This approach helps Amazon sellers achieve better campaign results and more accurate insights into keyword performance.
FBA Grade and Resell: A New Way to Recover Value from Unfulfillable Inventory
Amazon sellers can now recover value from unsellable inventory through FBA Grade and Resell. This program allows Amazon to evaluate returned items, grade them, and relist them as used products under different conditions like “Used–Like New” or “Used–Good,” instead of disposing of or removing them.
Sellers manage the listings, set prices, and control recovery value, making it a great way to maximize profits from returned inventory. The program can help reduce waste and provide an additional revenue stream for Amazon sellers.
How a ‘Sneakerhead’ Went from Garage Startup to Thriving Entrepreneur
Richard Brown, founder of Proof Culture, transitioned his sneaker restoration business into a thriving operation by selling custom shoelaces on Amazon. Leveraging Amazon’s tools like Fulfillment by Amazon (FBA) and analytics has been crucial to his success, allowing him to streamline operations and scale rapidly. Brown credits Amazon’s reliability and trust with customers for building his brand, while programs like the Black Business Accelerator and Amazon Accelerate have provided valuable networking and learning opportunities.
Is This the Best Cold Calling Opener?
Giulio Segantini shared a high-performing cold calling opener that received over 253,000 views and 9,959 likes, sparking a conversation about effective sales strategies. Segantini, a cold calling trainer, encourages sales professionals to find their own go-to opener and provides a guide with 13 additional templates for inspiration.
Amazon sellers can adapt these methods for client outreach and business development, particularly in competitive markets.
Why You Shouldn’t Burn Bridges in Business
Corey Ganim shares a story about being fired by a brand that wanted to manage its own Amazon sales. Despite good performance, the owner believed they could make more profit without third-party resellers. Four years later, after a drop in sales, the same brand reached out to Ganim for help managing their Amazon channel again.
For Amazon sellers, this highlights the importance of maintaining good relationships and doing quality work, as old opportunities can resurface.
Webinars: Grow with Prime and Unlock the Power of Shopping Events
Amazon is offering free live webinars to help sellers maximize their potential using tools like Buy with Prime, FBA, and Amazon Brand Registry. Sellers can learn how to grow their eCommerce sites with Prime benefits, optimize listings for shopping events, and leverage Brand Registry to protect and grow their brands.
These sessions are ideal for all levels of sellers looking to boost their business on Amazon.
Video of the Week
Maximize Your Event ROI: Networking and Note-Taking Tips
Strong Opinions
Scammers Targeting Private Label Listings on Amazon
I’ve encountered a scammer on one of my listings, and they’re getting smart—using day parting to appear mostly overnight, probably hoping I won’t notice. Amazon Brand Registry has been useless, as they require a test purchase before taking action, but the delivery isn’t scheduled until October.
I’ve emailed Jeff@, but it’s been days with no response. It’s frustrating to see such obvious scammers continue selling knockoffs at a fraction of the price, potentially scamming my customers with dangerous products.
Is Your Amazon Category Dominated by Chinese Sellers?
Scott Needham discusses how certain Amazon categories are being increasingly dominated by Chinese sellers, while others, like Health and Household, remain more U.S.-centric. SmartScout has introduced a new tool showing what percentage of market share in each subcategory is held by Chinese sellers, providing valuable insights for sellers looking to understand their competition and grow market share.
Amazon sellers can use this data to adjust strategies and navigate their specific market more effectively.
How the New Fulfillment By Amazon Fees Affect SMBs
Amazon’s recent FBA fee changes have made it more challenging for small and medium-sized businesses (SMBs) to maintain profitability. These adjustments include reduced fees for some items but introduced new costs like the inbound and outbound fee and low inventory level fee, significantly impacting sellers with lower sales volumes.
Many SMBs are struggling with increased costs, which often force them to compromise product quality or rethink their business strategies. Amazon’s changes may push sellers to explore other e-commerce platforms with more favorable fee structures.
Amazon Seller Support Falling Short? External Help May Be the Key
Steven Pope highlights how even Amazon’s own Seller Support is failing to resolve complex catalog issues, often referring sellers to external experts like My Amazon Guy for solutions. Many sellers have experienced frustration with Amazon’s support system, which is increasingly unable to handle certain challenges, especially around category and catalog management.
For Amazon sellers facing roadblocks, seeking outside help may be the best option to overcome these issues and get their listings back on track.
Tops Amazon Events
That’s all for this week! Stay tuned for more essential updates to keep your Amazon business thriving.
God Bless,
Todd Welch
Amazon Seller School
$62MM on Amazon | We win on Amazon with proven systems | Founder & Managing Director @ Gigabrain | Ready to scale? Let’s chat.
2 个月Interesting updates on Amazon's evolving ecosystem. As sellers, we must adapt quickly to these changes and explore new opportunities like Walmart's growth.