Amazon Q1 2023 Results | Amazon's 'Frequently Returned' Label | Manage Your Customer Engagement roll out
Amazon Q1 2023 Results
Good news all round from the Amazon Q1 2023 results. There was great relief from shareholders, given the challenging conditions.
Sales growth beat expectations with a 9% increase YOY versus a forecast of +5.2%. The majority of the growth came from the US business (11%) whereas the international segment struggled to a 1% increase. This signals again that Amazon is facing strong headwinds in the EU. Operating margin saw a significant uplift, exciting shareholders and demonstrating the impact of a relentless cost-cutting focus. Yet again the top prize went to Amazon Advertising with a strong YOY on growth rate of 23% vs 1st quarter 2022.
Looking forward, CEO Andy Jassy was cautious with growth and expected to net out at between 5-10%. He sighted recessionary fears and inflationary pressures and interest as the reasons for the uncertainty and moderate prediction.?
Amazon's 'Frequently Returned' Label
If you’re not already monitoring your customer return levels on Amazon, now is the time to start. As Amazon has introduced a ‘Frequently Returned’ label to product listings with unusually high return rates, warning shoppers to check the reviews to learn more.
We’re only seeing this on a few listings so far but if your products are well above the category average then it’s time to take some action. According to a recent report the average return rate on Amazon is usually between 5% and 15%. This varies considerably across different categories, with clothes and electronics at the higher end of the scale.?
You can monitor your returns levels in Reports > Retail Analytics > Sales on Vendor Central and in Reports > Fulfilment by Amazon > FBA Customer Returns on Seller Central
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Manage Your Customer Engagement (MYCE) roll out
Amazon US has announced a new feature within the Manage Your Customer Experience (MYCE) tool that allows sellers to target followers of their Brand Store, even if they have not made a purchase yet. Previously, Amazon sellers were limited to targeting repeat customers only, which restricted reach to a smaller audience.
With this new feature, sellers can expand their customer base and increase their sales potential by communicating directly with people who have already shown an interest in their products.
To use the feature, log in to your US Amazon account, navigate to the 'Brands' tab and select 'Customer Experience' and select "Brand Followers" as your audience to create a new campaign.
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That's all for this week. For more news on Amazon or other marketplaces, and updates about Tambo visit our?blog.