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Amazon Prime vs. Walmart+ Spending

Hey, Fellow Amazon Sellers!

Welcome to another edition of our weekly newsletter, packed with the latest updates and insights to supercharge your Amazon journey. Let’s dive in!

1. Amazon Prime vs. Walmart+ Spending

The analysis compares the annual spending habits of members and non-members of Amazon Prime and Walmart+, highlighting the spending differences within these programs. Members of both Amazon Prime and Walmart+ tend to spend significantly more than their non-member counterparts, with Walmart+ members spending about $2,200 annually compared to $1,000 for non-members. This data suggests that membership programs are either attracting higher spenders or encouraging more spending from existing customers, or possibly both. The spending patterns between Amazon and Walmart’s online platforms show similar trends in consumer behavior, indicating the potential influence of membership benefits on spending habits.

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2. Amazon Asks Court to Toss FTC Case, Saying Its Practices Are ‘the Essence of Competition’

Amazon is pushing back against a Federal Trade Commission antitrust lawsuit by asserting that its business strategies are fundamentally competitive. In a legal motion, Amazon argues that it constantly innovates and competes against numerous retailers, which benefits consumers by ensuring low prices and high-quality services. The company’s filing highlights its efforts to match discounts from other retailers and claims that its practices encourage overall market competitiveness. Amazon is seeking dismissal of the case on several grounds, including the argument that its actions are procompetitive and that the FTC has not shown how Amazon’s practices harm competition.

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3. Ready, Set, Sell! Prepare for Prime Day 2024

As Amazon gears up for Prime Day 2024, a pivotal sales event, sellers are encouraged to optimize their strategies to capitalize on the surge in shopper traffic. Prime Day 2023 witnessed over 375 million purchases globally, indicating the event’s massive scale. Professional sellers, especially those with brands registered under Amazon Brand Registry, can employ tactics such as using coupons and Lightning Deals to attract customers. Moreover, adjusting advertising budgets, managing inventory effectively, and fine-tuning ad bids are crucial steps to ensure visibility and competitive pricing. Sellers are also advised to create a Prime Day-specific storefront and consider external advertising channels to boost visibility and engagement. These strategies are instrumental in leveraging the full potential of Prime Day to enhance sales and expand customer reach.

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4. Exciting Update: Amazon Introduces the Cart Abandoners Feature!

Amazon has launched a new feature aimed at tackling the prevalent issue of cart abandonment. The “Cart Abandoners” feature enables sellers to reconnect with customers who have not completed their purchases, providing a significant opportunity to increase sales and improve the overall shopping experience. Pratyay Amrit, an Amazon Advertising Manager, highlights this update and promises to share detailed strategies on how sellers can effectively leverage this feature in his upcoming post.

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5. Amazon Wields Fulfillment Network to Fend Off Rivals

Amazon is aggressively expanding its fulfillment network, signaling the end of its post-pandemic logistics contraction. In 2024 alone, Amazon has matched its total lease signings from 2023, focusing on locations in the western U.S. This expansion is a strategic response to the growing demands of e-commerce and competition from rivals like Walmart, which uses its stores to fulfill online orders, and emerging online retailers Temu and Shein. Amazon’s network includes various types of facilities, from sortable and non-sortable fulfillment centers to sortation and receive centers, each playing a crucial role in enhancing delivery efficiency and customer satisfaction.

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6. Cheat Code for Getting Discounts from Wholesale Suppliers: The 2 PO Method

Corey Ganim, an experienced e-commerce entrepreneur, shares a strategic method for negotiating discounts with wholesale suppliers known as the “2 PO Method.” This approach involves creating two purchase orders: a smaller initial order and a significantly larger second order with a requested discount. By presenting these options to the supplier and emphasizing the benefits of the larger discounted order, sellers can effectively encourage suppliers to choose the more substantial, discounted purchase. This method, which Corey suggests conducting over a phone call rather than email, reportedly has a high success rate in securing better pricing.

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7. Would Amazon Enable Bad Buyers with Pilot Return Program?

Amazon is reportedly testing a new return process in Florida and Texas, where its own drivers will pick up returns directly from customers’ homes and transport them to Amazon facilities. This initiative, reported by The Information, could streamline returns and keep Amazon in control of the process from start to finish. However, concerns arise about potentially making it too easy for customers to return purchases, similar to issues faced by Mercari with its return policy. The program could pose a threat to UPS, which currently handles many of Amazon’s returns. The effectiveness of using Amazon’s delivery network for reverse logistics remains scrutinized.

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8. Amazon Sellers BEWARE – This AI Update will Yank Your Listing

Steven Pope, founder of MyAmazonGuy.com, warns Amazon sellers about a critical AI update from Amazon that could jeopardize their listings. According to Pope, Amazon is implementing an “opt-out” AI feature that might autonomously alter seller descriptions, potentially adding inaccurate health claims and subsequently removing those listings. Pope criticizes Amazon’s decision not to allow sellers to “opt-in” and expresses concern over the additional monitoring this policy necessitates for agency owners like himself who manage numerous accounts.

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9. Analyze Aging and Excess FBA Inventory with New Analytics Page

Amazon has introduced a new FBA Inventory Age & Excess Analytics page designed to help sellers manage and analyze their aging and excess inventory more effectively. This tool provides a comprehensive view of inventory trends over time, correlates aging inventory with FBA sales and aged inventory surcharges, and offers excess inventory recommendations. Sellers can access a year’s worth of historical data to strategize their inventory management better. Instructions for accessing the page and adding necessary permissions are available, along with an invitation for users to provide feedback on this new feature.

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10. My Cashflow Plan Template – Master Your Cash Flow​

    Managing your cash flow is crucial for achieving business success. That’s why I’ve crafted a powerful template that helps me allocate every dollar with precision over a two-week period, perfectly aligning with my disbursement cycle on Amazon. This template has been a game-changer for me, and now you can grab your copy below and customize it to suit your specific needs. Take control of your finances and watch your business thrive!”

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    Top Upcoming Amazon Events

    That’s a wrap for this week’s newsletter! Stay tuned for more exciting updates and valuable insights to fuel your success on Amazon.

    Happy Selling,

    Todd Welch
    Amazon Seller School