Hey Fellow Amazon Sellers,
Welcome to another edition of our weekly newsletter, where I bring you the latest Amazon updates to help you thrive in the e-commerce world!
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News
Amazon Draws a Million New Sellers in 2024
In 2024, Amazon attracted over 900,000 new sellers globally, with a third joining the U.S. marketplace, reflecting continued interest in its platform despite rising fees and fierce competition. However, many new sellers struggle to gain traction, with most sales volume still dominated by businesses that started over five years ago.
While Amazon’s growing seller base indicates sustained appeal, it also highlights the platform’s challenges, including increasing costs that sellers must navigate. For Amazon sellers, this underscores the importance of building sustainable, competitive strategies to thrive in a rapidly evolving marketplace.
Updates to Packaging Requirements for Sharp Products
Amazon has announced new packaging requirements for sharp products, effective April 14, 2025. Sellers will need to package all sharp items in secure, cut- and puncture-resistant materials, such as hardened plastic or blister packs, as Amazon will no longer provide prep services for these products.
Sharp products arriving at fulfillment centers without proper packaging after the deadline will be disposed of at the seller’s expense without reimbursement. Sellers should review the updated requirements and ensure compliance to avoid unnecessary fees or inventory loss.
TikTok Ban Looms Amid Political and Legal Uncertainty
TikTok faces a potential U.S. ban set to take effect on January 19 due to national security concerns over data privacy and its ties to China-based parent company ByteDance. While the Supreme Court deliberates on the legality of the ban, bipartisan efforts in Congress and discussions within the Biden and incoming Trump administrations are exploring ways to delay or prevent it.
The decision could significantly impact TikTok users, many of whom are exploring alternative platforms. Amazon sellers should monitor this situation closely, as changes in social media landscapes can affect advertising strategies and consumer behavior.
Tech War: Chinese TikTok Sellers Shift Focus to Amazon and Shein Amid U.S. Ban Threat
Chinese merchants heavily reliant on TikTok’s U.S. platform are diversifying to alternatives like Amazon and Shein as the app faces a potential ban on January 19. Sellers are marking down inventories, delaying investments, and exploring other markets, such as Spain and Mexico, to mitigate the risks.
Many merchants are also hedging by expanding operations on established platforms, ensuring their business continuity. This shift could create opportunities for Amazon sellers, as new competitors and international brands adapt to the evolving e-commerce landscape.
Boost Sales with Amazon’s Climate Pledge Friendly Program
Amazon’s Climate Pledge Friendly program offers brands a chance to increase sales, with research showing a 12% sales lift in the first year of enrollment. By highlighting products with sustainability certifications, the program helps customers easily find eco-friendly options across categories like electronics, beauty, and household goods.
In 2023, 37.6 million customers switched to sustainable products through the program, showcasing the growing demand for environmentally responsible options. Amazon sellers can leverage this opportunity to attract eco-conscious shoppers and drive long-term growth.
Amazon Enhances Campaign Budget Rules for Better Ad Management
Elizabeth Greene highlights a major update to Amazon’s campaign budget rules, making them significantly easier to manage at scale. Previously, these rules required manual setup and frequent adjustments, which made them cumbersome and less effective for many sellers.
Budget rules allow sellers to adjust campaign budgets based on performance metrics like ROAS, ACOS, CTR, or CVR, or during events like Prime Day. With this update, sellers can now utilize these tools more efficiently to optimize their ad strategies and drive better results.
QuickBooks Becomes Amazon Seller Central’s Preferred Financial Partner
Amazon has partnered with Intuit QuickBooks to offer sellers integrated financial tools directly within Seller Central. This collaboration enables sellers to manage their finances comprehensively, including profitability, cash flow, inventory, and tax estimates, all in one place.
Key benefits include access to AI-driven financial insights, streamlined tax filing, and personalized loan options via QuickBooks Capital. This partnership aims to boost sellers’ success rates, improve financial decision-making, and simplify access to growth resources.
Seller Tips & Tricks
Mastering Alt Text: Unlocking Amazon’s AI Rufus for Better Rankings
Max Sigurdson-Scott highlights the importance of using semantically rich alt text to optimize product images for Amazon’s AI, Rufus. This AI uses visual label tagging and alt text to align images with customer search intent, increasing product visibility and recommendations, and ultimately driving sales.
To optimize images, sellers should identify those without detailed alt text, add descriptive tags, and re-upload them. While this process is currently manual, Max calls for efficient tools to streamline the task, emphasizing the significant ROI for Amazon sellers who implement these strategies.
How to Fix Recycled Barcode Issues on Amazon Without Losing Rankings
Steven Pope explains how sellers can resolve issues with recycled barcodes and comply with Amazon’s GS1 barcode requirements while preserving reviews and rankings. He advises creating a duplicate ASIN with a GS1-compliant barcode and merging the old ASIN into the new one to retain rankings and reviews.
Existing inventory with old barcodes can still be used for check-ins, while future products should include updated barcodes. Sellers should prepare for a time-intensive process, often requiring numerous support tickets to complete merges successfully.
Tips to Optimize Amazon Promotions Post-Holiday Sales
Amazon encourages sellers to extend their holiday sales momentum with Brand Tailored Promotions, offering discounts of 10%-50% to specific customer groups. Use strategies like engaging in-market audiences who viewed but didn’t purchase, or cross-selling to customers who bought related products within 30 days.
Re-engage past customers with Cart Remarketing to convert those who browsed but didn’t buy, or incentivize repeat purchases by offering limited-time promotions to recent customers. Tailored Audiences provides a data-driven approach to boost post-holiday sales and customer retention.
Webinars: Tips for Selling on Amazon and Growing with Prime
Amazon’s free live webinars provide sellers with tools, programs, and strategies to optimize their business. Key sessions include “Selling on Amazon 101,” which covers account setup, shipping methods, advertising, and creating effective product listings for beginners.
For all levels, “Grow Your E-commerce with Prime” highlights how to leverage Buy with Prime to expand reach, understand pricing, and boost sales using the trusted Prime brand. Both webinars feature interactive Q&A sessions for personalized guidance.
Video of the Week
AMAZON’S NEW GENERATIVE AI TOOL FOR A+ CONTENT CREATION
Strong Opinions
Mark Cuban Criticizes Amazon Seller Fees and Counterfeit Issues
Mark Cuban has called Amazon’s seller fees “insane and unsustainable,” cautioning businesses about over-relying on the platform due to high costs and risks. He highlighted the challenges sellers face, including counterfeit products undermining legitimate businesses and brands like Nike and Apple withdrawing from Amazon due to these issues.
To address counterfeiting, Cuban proposes measures like requiring importers to pay bonds, pre-register products, and bear responsibility for compliance, aiming to protect American businesses. For Amazon sellers, these concerns underscore the importance of diversification and vigilance against the platform’s operational complexities.
Featured Software and Services
Keepa: Historical Sales & Pricing Insights
I rely on Keepa, a valuable Chrome extension, to access historical sales ranking and pricing data of products before making wholesale purchases. By reviewing past sales performance and price trends, I can ensure the items have a solid sales history and maintain profitability in the future. To utilize Keepa, you’ll need to purchase a Data Package, which enables the extension to retrieve essential information from Amazon. At around $17 per month, this investment is undoubtedly worth it. Check out our video review for more insights.
Top Upcoming Amazon Events
- AMAZON HACKING LIVE 2025 – January 25, 2025, Berlin, Germany
- E-COMMERCE BERLIN EXPO – February 19-20, 2025, Berlin, Germany
- B2B MARKETING EXCHANGE – February 24-26, 2025, Scottsdale Arizona, USA
- VENDOR CONNECT 2025 – February 27, 2025, London, United Kingdom
- PROSPER SHOW 2025 – March 25-27,2025, Las Vegas, Nevada, USA
I hope these updates help you stay informed and make smart decisions as you continue to navigate the dynamic Amazon marketplace!
God Bless,
Todd Welch
Amazon Seller School
