Packaging Variations on Amazon Listings: A Subtle Challenge for Sellers
Hey, Fellow Amazon Sellers!
Welcome to another edition of our weekly newsletter! I’ve got some great insights and updates lined up just for you:
1. Packaging Variations on Amazon Listings: A Subtle Challenge for Sellers
Aaron Cordovez highlights a common issue faced by Amazon sellers regarding product images, specifically the placement of key features like “Sugar Free Gummies” on packaging. Despite variations in packaging being reported, Amazon typically does not penalize sellers as long as the actual product matches the one offered, even if the packaging differs from the image shown. This situation reflects Amazon’s leniency towards packaging variations, which can be crucial for sellers managing inventory with updated packaging designs. Cordovez’s observations suggest that Amazon prioritizes product consistency over strict adherence to image exactness regarding packaging details.
2. Walmart Lets Sellers List Used Collectibles, Runs Special Promo
Walmart has introduced a new “Collectibles Experience” for its marketplace sellers, allowing them to list used collectibles with significant perks. From July 1 to September 30, 2024, eligible sellers can benefit from zero referral fees. Additional advantages include flexible return policies, the option to offer preorders, and a forthcoming grading system for items like trading cards and comic books. This initiative caters to various collectible categories and aims to enhance both seller and customer experiences on Walmart.com.
3. Amazon Introduces Beta Sponsored Display Lead Gen Ads
Liran Hirschkorn highlights Amazon’s new initiative with Sponsored Display lead generation ads, aiming to bridge the gap with ad revenue leaders like Meta and Google. Despite its rapid growth, Amazon’s ad revenue is still significantly behind these tech giants. The innovative ad format enables direct sign-ups within the ads, improving lead capture without redirecting users away from their current activity. This strategic move is designed to attract non-endemic brands and leverage Amazon’s extensive shopper data for targeted advertising, presenting a valuable opportunity for brands outside traditional ecommerce.
4. Shein, Temu Drive 5% Air Freight Spike in November
The significant increase in e-commerce activity from companies like Shein and Temu led to a notable 5% rise in global air cargo demand in November, as analyzed by Xeneta’s Clive Data Services. These fast fashion companies are influencing air freight volumes significantly, mainly from export routes in China and Hong Kong, accounting for about 80% of airfreight volumes on some days. For Amazon sellers, this trend highlights the growing dependency of air freight on e-commerce and underscores potential challenges in logistics and supply chain management, especially for those reliant on rapid shipping for their inventory. The market’s focus on low-value goods raises sustainability questions about the profitability and long-term viability of such business models, affecting decisions around product sourcing and shipping methods.
5. Amazon’s Latest FBA Fee is a Blow for Brands. Here’s What They Can Do
Amazon has introduced a new fee for FBA sellers, penalizing those who do not maintain a specific inventory level—four weeks of stock. This change, aimed at optimizing logistics and supporting same-day shipping, challenges sellers with its stringent requirements and opaque calculations of optimal stock levels, making it harder to balance inventory without incurring additional costs. This adjustment demands sellers to adapt by possibly increasing their inventory, which could significantly raise their operational expenses. For Amazon sellers, this means navigating a new layer of complexity in logistics, requiring better forecasting and potentially seeking third-party assistance to manage these changes effectively.
6. From Likes To Listings: How Social Media Is Transforming Amazon Sales
Social media’s profound impact on e-commerce is shaping Amazon sales strategies. Platforms like TikTok have shown significant influence in driving traffic and conversions to Amazon listings by leveraging both organic and paid content. Successful integration of social media helps sellers not only enhance product visibility but also capitalize on direct engagement with potential buyers through innovative features like shoppable posts. For Amazon sellers, adapting to these trends is crucial for tapping into vast audiences and fostering sales growth, underscoring the necessity of a strategic approach to social media marketing that resonates with targeted consumer segments.
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7. While You Focused on Amazon’s New Discount Store, Arkansas Took Aim at Temu
Jon Derkits highlights a significant development in the competitive landscape between Amazon and Temu. Last week, while attention was on Amazon’s new discount store initiative aimed at rivaling Temu, a potentially more substantial threat emerged through a privacy rights lawsuit filed by the Arkansas Attorney General. This lawsuit, influenced possibly by Walmart—also headquartered in Arkansas and facing competition from Temu—carries weighty allegations with national security implications. This legal strategy mirrors efforts used against other tech giants like TikTok, underscoring a strategic pivot where traditional market tactics like undercutting prices might not suffice against Temu’s deep-pocketed operations.
8. New Amazon VAT Charges: What Sellers Need to Know
Starting August 1, 2024, Amazon will impose VAT at the standard 20% rate on all seller fees, including referral and Fulfillment by Amazon (FBA) fees, affecting VAT Registered UK sellers. This shift, resulting from Amazon’s change in the billing entity from Amazon Services Europe S.à r.l to Amazon EU S.à r.l, will necessitate updates in sellers’ bookkeeping practices to accommodate the tax adjustments. Sellers will need to manage increased operational costs effectively, which could potentially lead to higher prices passed onto consumers. It’s crucial for sellers to be vigilant in tracking these changes to maintain compliance and manage the potential cash flow impacts.
9. 12 Ecommerce Trends That Are Powering Online Retail Forward
In the rapidly evolving ecommerce landscape, the integration of augmented reality (AR), artificial intelligence (AI), voice search, and personalization is set to redefine how businesses engage with customers. These trends are critical for Amazon sellers to consider as they offer ways to enhance the shopping experience, increase operational efficiency, and drive sales. For instance, AR can reduce return rates by improving product visualization, while AI can optimize everything from customer service to supply chain management. Adapting to these trends will not only help sellers stay competitive but also cater to the increasing expectations of tech-savvy consumers.
10. Sponsored TV Ads for UK Market
Prem Gupta reports that Amazon has introduced Sponsored TV (STV) ads in the UK, currently in its beta phase, with guidelines akin to those of the US market. This move offers Amazon sellers a new advertising avenue to expand their reach within the UK, leveraging the visual impact of television advertising to drive more sales and brand recognition. Sellers interested in this opportunity should familiarize themselves with the specifics of STV campaigns to optimize their advertising strategies effectively.
11. Identifying Private Label and Exclusive Products on Amazon
As an Amazon wholesale seller, finding good products can be exciting and daunting. However, to thrive in this competitive landscape, you must carefully assess the products you plan to sell to avoid potential intellectual property (IP) complaints. This comprehensive video will reveal essential strategies to determine if a product is a private label item, sold by the brand itself, or under an exclusive agreement by a competing seller.
By mastering these techniques, you can steer clear of IP disputes and make well-informed decisions for your Amazon business.
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Keep your Amazon business ahead with these valuable insights!
Happy Selling,
Todd Welch
Amazon Seller School