?? Could Amazon Give “Made in USA” a Boost?

??? CRASH COURSE in AMAZON RUFUS SEARCH

What is RUFUS?

RUFUS is Amazon’s AI-driven shopping assistant, designed to help customers with search and purchasing decisions by analyzing click data. It learns from user interactions to provide personalized recommendations beyond simple keyword matching.

Usage & Growth

Initially, RUFUS struggled with accuracy, but by September 2024, it had processed 100 million queries. By January 2025, this grew to 500 million, with projections suggesting that by January 2026, 10-25% of Amazon searches could be conducted via RUFUS.

How RUFUS Works

• User Interaction: Tracks clicks, scrolls, product views, and purchases.
• Behavior Analysis: Learns user preferences at individual, category, and search levels.
• Beyond Keywords: Connects intent-based searches, such as linking “gel nails” with “pure acetone.”
• Dynamic Learning: Adjusts recommended products based on ongoing user behavior.
• Feedback Loop: Continuously updates ranking based on which products and phrases get the most engagement.

Optimizing for RUFUS

Noun Phrase Optimization (NPO) – The New SEO

• Move beyond keyword stuffing by using descriptive noun phrases (e.g., "hand-carved mahogany bookshelf" instead of just "bookshelf").
• Build noun stacks that describe material, style, and purpose.
• Ensure titles, bullet points, and descriptions are rich with meaningful noun phrases.
• Optimize content for inference, linking product features to customer benefits.

Backend Optimization – No Longer Optional

• Fill out all optional attributes with detailed product information.
• Ensure contextual accuracy and avoid contradictions in backend data.
• Use natural language rather than keyword stuffing.

Image Optimization – Text on Images is the New Standard

• Add descriptive text overlays to images to highlight product features.
• RUFUS uses Optical Character Recognition (OCR) to read text on images.

Q&A Optimization – Embed Customer Questions in Content

• Structure product descriptions as natural conversations that answer common customer questions.
• Use question-answer pairs to align with how RUFUS ranks products.
• Enhance visuals by embedding Q&A content directly into images.
• Regularly check RUFUS responses and iterate content accordingly.

Continuous Testing & Iteration

• Ask RUFUS questions on your product detail page to assess its responses.
• If responses are inaccurate, adjust backend attributes and retest after 24 hours.
• Apply RUFUS optimizations first to underperforming products before changing bestsellers.

To read the full crash course, checkout Evan’s full report here

?? AMAZON Q4 EARNINGS REPORT SUMMARY

Amazon has likely surpassed Walmart in quarterly revenue for the first time, reporting $187.8 billion in Q4, compared to the $180 billion analysts expect from Walmart in two weeks.

This milestone challenges Walmart’s 12-year reign as the No. 1 revenue-generating company globally, though Amazon has had a higher market cap since 2015.

?? TEMU, SHEIN and AMAZON HAUL GET a TAX REPRIEVE

Just when it seemed like the $800 tax free de minimis loophole was about to close for good, President Trump decided to hit the pause button late Friday.

The exemption—allowing companies like Temu and Shein to ship low-cost goods to the U.S. tax-free—was initially set to be revoked.

But with billions of small parcels flooding U.S. ports and customs still scrambling for a clear policy, the decision has been temporarily reversed.

For now, Temu and Shein can continue their high-volume, direct-to-consumer business model without additional tariffs. But this delay doesn’t mean they’re safe permanently.

Meanwhile, the Made in America movement is gaining traction, and new rules could shake up e-commerce in ways many sellers aren’t prepared for.

This decision keeps ultra-low-cost imports alive for a little longer, but it also fuels a growing debate about U.S. manufacturing and fair competition. Here’s what sellers need to know:

Price Pressure from Temu and Shein Continues

With Shein and Temu maintaining their tax-free status, U.S.-based sellers still have to compete against ultra-cheap goods coming straight from Chinese factories. This makes it even harder for brands on Amazon, Shopify, and Walmart to justify their prices—especially those sourcing domestically or paying full import duties.

Rising Costs for Everyone Else

While Temu and Shein continue as usual, U.S. brands and Amazon sellers could see higher costs on imported goods if tariffs remain on China-based suppliers.

Some manufacturers in China are already passing these costs to U.S. buyers, meaning private-label brands could soon be forced to raise prices or find alternative suppliers outside China.

Temu’s Next Moves – The Most At-Risk Player

Among all companies affected, Temu is the most vulnerable. Here’s why:

• Temu’s entire business model depends on de minimis. Unlike Amazon, which has U.S. warehouses and fulfillment, Temu ships nearly all its products directly from China.
• They’re already lobbying hard to prevent a crackdown, investing in PR campaigns and legal teams.
• They’re exploring more U.S. distribution. There are reports that Temu is considering setting up American-based fulfillment centers to avoid future tariffs.

Despite the reprieve, Temu is in a race against time. If the exemption eventually disappears, their entire low-price advantage could collapse overnight.

Made in America – The Next Big Shift?

While cheap imports dominate the conversation, a countertrend is emerging:

Consumers Are Paying More Attention to “Made in the USA”

Surveys show that American shoppers are increasingly willing to pay more for U.S.-made products—especially in categories like:

• Supplements & Health Products (trust and safety concerns)
• Clothing & Apparel (fast fashion backlash)
• Kitchen & Home Goods (durability and sustainability)

Some states are even introducing new tax incentives for companies manufacturing locally, which could make domestic production more viable for smaller brands.

New “Made in the USA” Rules Are Coming

Right now, for a product to claim “Made in USA,” it must be “all or virtually all” made in America under FTC guidelines. But some lawmakers want stricter enforcement—meaning brands will need to be very careful with labeling to avoid fines.

? Sellers should double-check claims: If your supplier only assembles in the U.S. but sources components from overseas, you might not qualify for a “Made in the USA” label.

? Amazon has been cracking down: Amazon now requires proof of domestic production for brands advertising as “Made in the USA.”

Could Amazon Give “Made in USA” a Boost?

There’s speculation that Amazon may start prioritizing U.S.-made products in search results, similar to how they highlight Prime-eligible products. If this happens, it could be a game-changer for sellers who can source domestically.

For now, Temu, Shein, and Amazon Hauls get a temporary pass—but not forever. While ultra-low-cost imports remain, Made in America is gaining steam, and new policies could shake up e-commerce.

Amazon sellers need to stay ahead of these shifts, whether by adjusting sourcing, branding, or pricing strategies. Because when the U.S. government finally makes its move, the entire playing field could change overnight.

?? BUY BOX MAPPING HELPS PREVENT LOST SALES

Many Amazon FBA sellers unknowingly lose the Buy Box and ad spend due to regional shipping and inventory disparities, causing fragmented sales performance. Traditional analytics fail to highlight these gaps, making it difficult to pinpoint where sellers are losing conversions.

The Buy Box Map, a new feature in SmartScout, visually displays an ASIN’s shipping performance across the U.S., revealing states where slow shipping affects Buy Box ownership.

Since Amazon prioritizes fast delivery, delayed shipping can lead to:

• Buy Box losses in certain regions
• Lower conversion rates due to longer delivery times
• Ineffective ad spend when products aren't available for quick shipping

With 1 in 5 products having Buy Box winners split by state, the Buy Box Map empowers sellers to:

? Identify problem areas

? Optimize inventory distribution

? Improve Buy Box win rates

? Increase conversions

? Maximize ad efficiency

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?? See What Others Are Saying

?? LESS AMAZON is MORE FOR UPS

• UPS is cutting Amazon deliveries by more than 50% by late 2026 to focus on smaller, more profitable clients rather than volume.
• Amazon accounted for 11.8% of UPS's revenue in 2024, totaling $10.7 billion.
• To offset the volume decline, UPS will reduce sorting facilities, delivery trucks, and aircraft, aiming for $1 billion in cost savings.
• UPS's domestic operating margin is projected to rise to 12% in Q4 2026, up from 9.2% in 2024.
• 2025 revenue is expected to drop by over 2% to $89 billion, reflecting a shift to a leaner but more profitable model.
• Amazon now delivers over 70% of its own packages, a figure expected to grow, reducing reliance on third-party couriers like UPS and FedEx.