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Boost Your E-commerce Conversion Rates with Simple Pricing Strategies

Hey there fellow Amazon sellers,

Welcome to another edition of our weekly newsletter! I’ve scoured the web to bring you the latest updates and insights from the world of Amazon selling. Get ready to dive into some exciting developments that could impact your business!

1. Boost Your E-commerce Conversion Rates with Simple Pricing Strategies

Kevin King, an experienced e-commerce strategist, recommends a straightforward tactic to enhance conversion rates for sellers offering bundles or multipacks. By setting the price of these packs to be easily divisible by the number of products included (for example, $12 for a 6-pack), consumers find the pricing more straightforward and appealing. This approach not only simplifies the buying decision but also encourages customers to perceive higher value, potentially increasing their willingness to pay more. King cites examples where setting prices in this manner significantly boosted buyer preference. For those selling bundled items, testing this strategy could lead to increased sales and profits.

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2. Amazon Search Results Now Less Self-Centered, Study Finds

Recent research by a University of Minnesota economist indicates that Amazon’s search results have started showing less preference for its own products. This change aligns with Amazon’s new responsibilities under the Digital Markets Act (DMA) in Europe, impacting its operations both in Europe and the U.S. The study, analyzing eight million Amazon search listings, suggests a significant shift in Amazon’s product ranking behavior, particularly after its designation as a gatekeeper by the DMA. Regulatory pressures from both European and U.S. bodies aim to ensure fair treatment of all products on Amazon’s platform, without undue preference to Amazon’s own products.

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3. Amazon Defrauded by Vendor to the Tune of $19 Million

A vendor defrauded Amazon out of $19 million by exploiting the marketplace’s vendor system, according to charges brought by the US Attorney’s Office for the Southern District of New York. Four brothers are accused of wire fraud, money laundering, and conspiracy related to this scheme. They reportedly manipulated Amazon’s vendor system by shipping and invoicing for vastly greater quantities of goods than requested, substituting them with different, cheaper items at inflated prices. The case highlights potential vulnerabilities in Amazon’s vendor system, where even product detail pages can be altered by vendors.

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4. Amazon The Spy: Inside a Covert Operation

Kevin King discusses Amazon’s covert operation, Big River Services International, which has been operating under the guise of a bustling e-commerce business since 2015. Big River was designed to infiltrate e-commerce platforms by creating and selling products under fictitious brands, thereby gathering intelligence on competitors. The operation successfully penetrated marketplaces like Walmart and Zozotown by selling under disguised brands and using competitor logistics, such as Walmart’s and FedEx’s services, to gather data. Big River’s activities extended globally, impacting logistics and market strategies, and operated with high secrecy within Amazon.

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5. Amazon Added 5 Million Sellers Since 2018

Amazon has seen a significant increase in its marketplace, adding nearly 5 million sellers since 2018, with over 2,000 new sellers joining daily. This influx spans globally, with 40% of new sellers based in the U.S. and others spread across international markets like Brazil, which is experiencing rapid growth in both traffic and seller numbers. Despite this growth being largely invisible to consumers, it underscores Amazon’s pivotal role as a primary platform for entrepreneurs. The top 1% of sellers, who are mostly veterans, drive the majority of Amazon’s sales volume, highlighting the critical nature of experienced sellers in contrast to the vast number of new, often transient entrants.

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6. Amazon Prime US Customer Numbers Jump 8% to 180 Million, an All-Time High

Despite introducing ads to its Prime Video service and undergoing significant layoffs, Amazon Prime has reached a record-high 180 million customers in the US, an 8% increase from the previous year. This growth marks a significant recovery after a period of stagnation post-COVID. Consumer Intelligence Research Partners (CIRP) attributes the increase to the enduring appeal of Amazon’s shopping and shipping benefits, suggesting that US consumers find the Prime membership worthwhile. Additionally, the percentage of Amazon customers with Prime memberships has risen to 75%, indicating robust consumer loyalty despite the new ad integration in Prime Video.

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7. Amazon Introduces Option for Sellers to Declare Lack of Proper Invoices

Amazon has introduced a new option for sellers, allowing them to explicitly select if they do not possess proper invoices for their listed products. This update, spotted by a user and shared by @AmazonASGTG on Twitter, marks a significant shift in how Amazon handles seller documentation. This move is seen as surprisingly logical for Amazon, providing clarity and potentially reducing complications in seller account management related to invoice verification.

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8. No More Sticker Logos on Amazon: Important Policy Update for Sellers

Amazon sellers need to be aware of a significant policy change that could affect their Brand Registry status. According to Jon Elder, known as “The Amazon Private Label Guy,” Amazon is no longer allowing sticker logos on products. Sellers who continue to use sticker logos risk losing their Brand Registry, which includes access to tools like A+ content. To comply, sellers should update their existing FBA inventory and ensure that all future shipments feature permanent logos on products.

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9. How to Prepare for Amazon Prime Day 2024: Seller’s Guide

With Amazon Prime Day 2024 approaching, it’s essential for sellers to be thoroughly prepared to maximize sales. Prime Day, surpassing Black Friday and Cyber Monday, is now the largest annual sales event on Amazon, offering significant growth opportunities for brands. Preparation involves ensuring ample inventory levels to avoid stockouts, which can lead to missed revenue and a drop in SEO rankings. Additionally, sellers should analyze past performances to adjust strategies and optimize product listings early to improve visibility and conversions. It’s also crucial to adjust PPC budgets to remain competitive during this high-traffic event.

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10. New Amazon Supplement Policy: What You Need to Know

Amazon’s new dietary supplement compliance policy, effective from April 2, 2024, mandates that dietary supplement brands and sellers on Amazon verify their product compliance through approved third-party testing and certification organizations. This policy ensures that supplements sold meet rigorous criteria regarding manufacturing practices, contaminants, accurate ingredient listings, and the absence of undeclared drug ingredients. To maintain sales eligibility, sellers must annually verify their products are compliant, with the processes streamlined through Amazon’s Manage Your Compliance dashboard. Non-compliance can lead to product suppression or removal from Amazon’s marketplace.

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11. – Hire Top Virtual Assistants in the Philippines

Discovering this job posting service in the Philippines has been a game-changer for me. Now, I rely on it exclusively to hire long-term virtual assistants for my business needs. With a simple monthly fee, I can post as many jobs as I require, making the hiring process much more efficient. Within just 24 hours of posting a job, I usually receive over 20 resumes from skilled and qualified candidates. The best part is that the site offers competitive hourly rates, which has allowed me to build a talented and cost-effective team. If you’re looking to streamline your hiring process and find top-notch virtual assistants, this platform is definitely worth considering.

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Remember, staying informed is key to staying ahead in the competitive world of Amazon selling. Dive into these articles to gain valuable knowledge and insights that can propel your business to new heights!

Happy Selling,

Todd Welch
Amazon Seller School