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Amazon Restructures Seller Fees to Match Its Regional Fulfillment Strategy Amid Ongoing FTC Lawsuit

Hey there, fellow Amazon Sellers!

It’s been a while but I’m back ready to share with you the latest insights from the world of e-commerce. Let’s dive into these updates:

1. Amazon Restructures Seller Fees to Match Its Regional Fulfillment Strategy Amid Ongoing FTC Lawsuit

Amazon is restructuring its seller fees to align with its regional fulfillment strategy, a change that comes amidst an ongoing lawsuit by the Federal Trade Commission (FTC). This modification in fee structure aims to encourage sellers to distribute their inventory more evenly across Amazon’s fulfillment network. The goal is to enhance efficiency in order fulfillment and delivery, although it’s occurring against the backdrop of the FTC’s lawsuit alleging anticompetitive practices by Amazon.

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2. Amazon to Charge Sellers New Fee for Low Inventory Levels

Amazon is set to introduce a “low inventory fee” in 2024, requiring sellers to maintain sufficient stock levels to avoid additional charges. This fee is part of a larger strategy following Amazon’s decision to decentralize its Fulfillment By Amazon (FBA) network into regional hubs. Sellers will need to accurately forecast demand, as the fee is tied to historical sales data and unit sales. Additionally, Amazon will start charging an “inbound placement service fee” for distributing inventory across these regional centers. The changes, aimed at optimizing network efficiency, have raised concerns among sellers about the predictability of their costs.

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3. Inside Amazon’s secret robot factory code name ‘Bos 33’

Yahoo Finance’s Allie Garfinkle goes inside the top-secret Amazon robot facility in Boston Massachusetts. The technology at this factory aims to drive efficiencies, improve safety, and solve some of the biggest challenges facing e-commerce. With over 10 years in the making, this robotic workforce army of 750,000 robots hopes to drive profits and market share for Amazon.

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4. Walmart Fulfillment Doubles Unit Growth on Black Friday

Walmart Fulfillment Services (WFS) experienced significant growth on Black Friday, doubling the number of units fulfilled for sellers compared to the previous year. The platform saw its highest-volume sales days during the Black Friday and Cyber Monday Deals events. Walmart Marketplace also recorded its two most substantial sales days, with peak orders per minute quadrupling on Black Friday. Notably, 40% of Walmart Marketplace orders during these events included items from small and medium-sized businesses. This surge in sales marked a milestone for many sellers on, with thousands achieving their highest sales ever and many new sellers recording their first sales on the platform.

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5. Amazon Cyber Week Sales Surpass Previous Years

Amazon’s Cyber Week sales have exceeded those of previous years, indicating a successful holiday shopping season for the e-commerce giant. This performance showcases the company’s ability to attract a significant number of consumers, likely due to a combination of competitive pricing, a vast product range, and effective marketing strategies. The achievement also reflects Amazon’s continued dominance and resilience in the online retail sector.

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6. More US Retailers Adopt ‘Keep It’ Returns Policies to Shelter Profits from Holiday Surge

In a bid to protect profits during the holiday shopping surge, an increasing number of U.S. retailers are adopting ‘keep it’ return policies. These policies allow customers to keep unwanted items while still receiving a refund, particularly for low-cost or bulky products. This approach helps retailers mitigate the high costs and logistical challenges associated with processing returns, especially during the peak holiday season.

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7. Brands Selling on Amazon Are Losing Thousands of Dollars By Not Lowering Their Price

Amazon’s recent policy change, effective from August 29, 2023, offers lower FBA rates for products priced under $10, maintaining the same delivery speeds as standard FBA. This change means that products priced at $11 are yielding less profit than if they were priced at $9.99. Many sellers are unaware of this and continue to list products between $10 and $11, consequently losing significant revenue. Lowering prices within this range could increase sellers’ returns and enhance their conversion rates, making it an essential strategy adjustment for third-party sellers on Amazon.

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8. Key Insights from Jungle Scout’s Consumer Trends Report Q4 2023

  • The trend of shopping locally and from small businesses for holiday gifts has seen a significant rise in 2023, with one in five shoppers prioritizing these types of purchases – a statistic that has doubled since 2022.
  • Amazon continues to dominate as the preferred destination for holiday gift shopping, with 67% of U.S. consumers planning to buy presents from the platform.
  • Black Friday and Cyber Monday are particularly popular among younger demographics, with 60% of Gen Z and 55% of Millennials expected to shop during these sales events, in contrast to only 30% of Baby Boomers and 36% of Gen Xers.
  • Overall consumer spending in Q4 has remained relatively stable, with 45% reporting no significant change, the highest this figure has been in the past two years. Despite concerns about inflation, two-thirds of consumers plan to spend the same or more on holiday gifts compared to last year, with a notable shift towards small/local business shopping and DIY or homemade gifts.

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9. 20 Amazon Seller Statistics & Facts You Need to Know in 2023

Amazon has cemented its position as a leader in online shopping, with a strong focus on seller success and customer experience. The platform’s massive global reach has been a key factor for individual sellers looking to expand their business. In 2020, Amazon facilitated an impressive $200 billion in sales for third-party sellers, showcasing its significant growth and dominance in the e-commerce market. This article compiles 20 crucial Amazon seller statistics that highlight the abundant opportunities available for those who can effectively leverage Amazon’s marketplace.

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10. US E-Commerce to Exceed $1 Trillion in 2023

The U.S. e-commerce market is projected to surpass $1 trillion in 2023, a significant milestone that underscores the continued growth and expansion of online retail. This growth trajectory reflects the evolving consumer behavior towards online shopping and the increasingly digital nature of commerce. The milestone highlights the substantial opportunity for businesses and sellers in the e-commerce space.

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That’s the roundup for this week! Stay tuned for more updates and insights as we navigate the ever-evolving world of Amazon selling.

Happy Selling!

Todd Welch
Amazon Seller School