Hello, Fellow Amazon Sellers!
Welcome to another edition of our weekly newsletter, packed with the latest insights and tips to help you thrive on Amazon. This week, I am bringing you essential updates on Prime Day, the reliability of product reviews, top e-commerce marketplaces, and Amazon’s newest feature inspired by TikTok. Dive in and discover how to leverage these developments to boost your business.
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Live Stream guest:
- Thai Nguyen – Multi-Million Dollar Amazon Wholesale Seller – LinkedIn
- Corey Ganim – Sold over $12 Million with Amazon Wholesale – LinkedIn
1. Amazon Prime Day: Double-digit sales growth, short disruption on an advertising portal
Amazon experienced a brief disruption in its advertising portal during Prime Day, affecting a small number of advertisers’ ability to adjust ad budgets and bid on keywords. Despite this, the disruption did not significantly impact Prime Day sales, which saw a robust increase of nearly 12% in the first seven hours compared to the previous year. This event underscores the importance of Amazon sellers staying informed about system stability and having contingency plans during high-traffic events like Prime Day.
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2. Fakespot reveals the product categories with the most and least reliable product reviews
Fakespot has released a report detailing the reliability of Amazon product reviews across various categories, crucial for summer and back-to-school shopping. The report highlights the most and least trustworthy categories based on their advanced AI review analysis, marking categories like Apple products and video game chairs as highly reliable while warning against categories like slides and pajamas due to a high percentage of unreliable reviews. This analysis is vital for Amazon sellers to understand potential consumer skepticism and optimize their product listings accordingly.
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3. Top 5 E-Commerce Marketplaces in 2024
Amazon remains the giant in U.S. e-commerce, projected to hit $325 billion in sales this year, outpacing all other platforms combined. Walmart and eBay continue to be significant players, with Walmart expected to make $10 billion in marketplace sales and eBay maintaining $35 billion in sales with a focus on niche “enthusiast” markets. Emerging challengers Temu and TikTok Shop are also noteworthy, with Temu aiming for $60 billion in sales and TikTok targeting $17.5 billion in the U.S. These trends highlight the dynamic shifts occurring in the marketplace sector, offering vital insights for Amazon sellers on where the competition and opportunities lie.
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4. Amazon Inspire: The TikTok within Amazon
Amazon Inspire integrates the engaging aspects of platforms like TikTok and Instagram into Amazon, allowing sellers, influencers, and customers to post shoppable photos and short-form videos. This feature aims to capture the attention of a generation that prefers quick, engaging content and makes shopping from these posts straightforward through the Amazon app. Inspire is currently available in countries like the USA, UK, India, and several European nations. For Amazon sellers, Inspire offers a modern way to reach consumers directly, potentially increasing visibility and sales through social media-style engagement.
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5. Amazon Now Accepting Deal Submissions for BFCM and Prime Big Deal Days
Amazon has opened submissions for deals during the upcoming BFCM (Black Friday Cyber Monday) in November 2024 and Prime Big Deal Days in October 2024. Sellers interested in participating need to submit their deals for BFCM by September 6 and for Prime Big Deal Days by August 9. This opportunity allows Amazon sellers to plan and execute promotional strategies effectively, potentially boosting sales during these high-traffic event days.
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6. Amazon Sellers Lose Coveted Buy Box Ahead of Prime Day After Target Discount Snafu
Amazon sellers experienced significant disruptions when their products lost visibility in the coveted buy box due to price discrepancies detected by Amazon’s algorithms during a competing discount event by Target. This event, which coincided with the lead-up to Amazon’s Prime Day, led to reduced sales for sellers like Brandon Fishman, whose products appeared cheaper on Target, causing Amazon to prioritize other sellers in the buy box. The situation highlights the delicate balance sellers must maintain in pricing across different platforms and the challenges posed by Amazon’s stringent pricing policies aimed at ensuring the lowest prices for its customers. The incident has sparked discussions about the competitive practices and the pressures faced by third-party sellers on Amazon’s platform.
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7. Amazon Defeats US Consumer Lawsuit Over ‘Buy Box’ Product Listings
Amazon successfully defended itself against a U.S. consumer lawsuit alleging that its “buy box” favored listings that obscured potentially cheaper and faster alternatives, leading to higher costs for shoppers. The lawsuit claimed Amazon used a biased algorithm favoring its own retail offers or those sellers enrolled in the Fulfillment by Amazon program, thus steering consumers away from potentially better deals. U.S. District Judge Marsha Pechman dismissed the case, citing a lack of specific evidence from the plaintiffs about harm or missed opportunities to purchase lower-priced items. The judge has allowed a 30-day period for an amended lawsuit to be filed.
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8. Consumer Trends Report | Q2 2024
The Jungle Scout Q2 2024 Consumer Trends Report offers a deep dive into the latest spending behaviors and ecommerce trends, based on a survey of 1,000 U.S. consumers. The report highlights a significant rise in “social shopping,” with a 30% increase this quarter in consumers buying products directly from social media channels. It also addresses the impact of inflation, noting that Millennials are particularly affected, with many expressing concerns about their financial stability and adjusting their spending habits accordingly. Additionally, the report finds that rental status influences financial concern and online spending habits, with renters more likely than homeowners to feel financial strain and cut back on online purchases.
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9. Amazon Prime Day Frustrations for Sellers
Gwen McShea, President at Lean Edge Marketing, expresses her frustration with running discounts on Amazon during Prime Day, highlighting several challenges faced by sellers. She describes issues with Amazon-generated errors that incorrectly categorize conservative bathing suits and baby products as potentially offensive, complicating discount efforts. Furthermore, Amazon’s pricing rules demand that sellers beat the lowest price by 15%, even if it results in unprofitability, and new products without sufficient price history are ineligible for discounts. McShea criticizes these mechanisms for wasting time, preventing inventory turnover, and denying customers access to deals, indicating a broader discontent among sellers and brands with Amazon’s current discounting policies.
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10. The Big Amazon Vendor Study: Industry Insights & Key Statistics (2024)
Martin Heubel collaborates with Stratably in the 2024 Amazon Vendor Study, uncovering the challenges and business dynamics faced by Amazon’s first-party vendors. The study indicates that nearly half of the vendors employ a hybrid sales model, blending direct and third-party sales. Despite a challenging environment, 77% of vendors report growth aligning with or exceeding their market category. The survey highlights ongoing issues such as price control, competition, and complex annual negotiations that typically last one to three months, often resulting in reduced profit margins for nearly 35% of vendors. The findings underscore the necessity for vendors to adapt to Amazon’s demanding operational standards and market conditions.
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11. Brands Fear TikTok Shops Promo Pullback Will Dent Revenue
TikTok Shop has been a significant revenue driver for brands, leveraging strategies like covering discount costs and offering free shipping to attract sellers and buyers. However, recent trends show TikTok scaling back these incentives, with reduced discounts and higher thresholds for free shipping, which could potentially affect future sales and merchant participation. Initially, brands enjoyed substantial benefits, including enhanced visibility and increased sales, but the uncertainty around continued support from TikTok raises concerns about sustainable revenue on this platform. For Amazon sellers, this shift in TikTok’s strategy underscores the importance of diversifying sales channels and being cautious about relying heavily on platforms with volatile promotional policies.
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12. How To Use and Sign Up for Amazon Direct Fulfillment
Amazon Direct Fulfillment allows vendors to ship products directly to customers, offering a hands-on approach to inventory and shipping management compared to Fulfillment by Amazon (FBA). This program is particularly advantageous for vendors who wish to maintain control over the packing and shipping processes, reduce risks of stockouts, and expand their product catalog without being limited by Amazon’s warehouse space. The article provides a comprehensive guide on how to qualify for, enroll in, and manage Amazon Direct Fulfillment, emphasizing benefits like cost savings on shipping and increased control over customer service. Amazon sellers can leverage this information to explore an alternative fulfillment option that may align better with their operational preferences and business goals.
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13. Is it possible to block a specific customer from ordering from our listings?
Amazon sellers are expressing frustration over their inability to block specific customers who repeatedly engage in abusive behaviors, such as unwarranted returns and harassment. Despite multiple requests, Amazon’s policies currently do not allow sellers to block individual buyers, leaving sellers with limited options like canceling orders or temporarily deactivating listings. Sellers are concerned about the impact on their order defect rate and are calling for more protective measures from Amazon to handle problematic customers. This ongoing issue highlights the challenges sellers face in maintaining control over their sales environment on Amazon’s platform.
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14. Rising Concerns Over Retail Theft and Its Impact on Amazon Sellers
Retail theft involving stolen credit cards and reselling stolen inventory on Amazon is escalating, posing significant challenges for legitimate sellers. This form of “seller-on-seller crime” enables fraudulent sellers to undercut prices drastically, affecting the market and the buybox dynamics for genuine brands. Brands affected by such practices need to be proactive and persistent in reporting these incidents to Amazon and law enforcement to ensure proper action is taken. Amazon sellers should be vigilant and ready to escalate issues when they have evidence of such fraudulent activities.
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15. Mastering Amazon Growth with Virtual Assistants with Nathan Hirsch
Nathan Hirsch, an expert in remote hiring and operations, discusses the benefits of utilizing virtual assistants (VAs) to scale Amazon businesses. He emphasizes how VAs can handle repetitive tasks such as customer service, inventory management, and basic marketing, allowing sellers to focus on growth and strategy. Hirsch provides insights into effective hiring practices, ensuring that VAs are well-trained and aligned with the company’s goals. This approach not only optimizes operational efficiency but also enhances the ability to expand and manage larger volumes of sales on Amazon.
Top Upcoming Amazon Events
- ASGTG-AI 2024 – July 31, 2024, Brooklyn, NY, USA
- AMZ UNITED 2024 – August 27, 2024, Newark, NJ, USA
- AMAZON ACCELERATE 2024 – September 17-19, 2024, Seattle, WA, USA
Stay ahead of the game by staying informed and adapting to these emerging trends and tools. I hope these insights help you optimize your selling strategies and achieve greater success.
Happy Selling,
Todd Welch
Amazon Seller School
