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Navigating Amazon’s Fees with Tools and Tactics

Hey there, fellow Amazon Sellers!

Get ready for another thrilling edition of our weekly newsletter packed with the latest insights and tools to boost your Amazon business! Check out what’s in store for you below:

1. Navigating Amazon’s Fees with Tools and Tactics

During last week’s webinar hosted by Vanessa Hung, Chelsea Cohen, and Carbon6, attendees explored strategies to manage Amazon’s inbound placement fees effectively. While some software offers methods to bypass standard shipment procedures, Amazon counters with an “inbound defect fee” for any shipments not completed as planned. The webinar emphasized that Amazon’s FBA operates on a pay-to-play basis, suggesting that restructuring shipments for efficiency or using alternative methods like Amazon Warehousing & Distribution (AWD) or Seller Fulfilled Prime (SFP) are the most viable strategies to avoid excessive fees. Tips shared included resizing products for shipping and optimizing carton and pallet distribution to enhance profitability.

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2. Reminder for Amazon Sellers: Submit Your Prime Day Deals

Daniel Sodkiewicz, Co-Founder of GeekSeller, highlights an important notice for Amazon sellers regarding Prime Day 2024. Although the official date for Prime Day has not yet been announced, Amazon has informed sellers that they have until May 3 to submit their deals. This early notification allows sellers to prepare and ensure their products meet the eligibility criteria for the event. For further details on how to submit deals and check product eligibility, sellers are encouraged to visit their Seller Central accounts.

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3. Introducing Reorder Coupons for Amazon’s 3rd Party Sellers

Alexander Swade shares insights about a new coupon type available for third-party sellers on Amazon—Reorder Coupons. These coupons target customers who have previously purchased products but haven’t reordered within a certain timeframe. The specific duration of this “expected time” remains undefined, posing an intriguing question for sellers. These coupons can be set for durations ranging from 1 to 90 days and can offer discounts either as a percentage or a fixed amount off. To be eligible, the discounted price must be lower than the current, reference, and the lowest price within the last 30 days. Sellers must also set a budget for these redeemed coupons.

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4. Amazon Makes It Easier to Search Products and Add Offers in Bulk

Amazon has enhanced its seller tools, allowing bulk searches and additions of up to 500 product offers through Seller Central, as reported on April 11, 2024. The platform now supports searching for up to 20 products simultaneously and adding details like price and quantity in one step. Additionally, sellers can use a new feature to search for up to 500 products and input details via a pre-filled Excel template for bulk uploads. This update aims to streamline the listing process, making it quicker and more user-friendly for sellers.

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5. Risk of Deactivation Banner Panics Some Amazon Sellers

Amazon sellers experienced panic this week due to a banner alerting them of a possible account deactivation, which appeared to be linked to the verification process under the Inform Act rather than any immediate risk. This notification, intended as a reminder for annual verification compliance, caused significant stress among sellers due to its alarming phrasing. Amazon’s support responded by clarifying that this is a standard yearly request to ensure sellers’ information is up-to-date, urging sellers to complete the verification to avoid any disruptions. Despite assurances, the community expressed distress over the communication style used, which they felt was unnecessarily alarming.

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6. Is Amazon Online Arbitrage Worth your Time?

Amazon online arbitrage (OA) offers individuals a viable e-commerce strategy to earn profits by purchasing products from various online platforms at lower prices and reselling them on Amazon at higher prices. It presents an opportunity for flexible work hours, low initial investments, and access to a diverse product selection, making it a potentially lucrative venture without the need for extensive prior experience. However, the approach comes with challenges like high competition, the risk of account suspension, and potential price wars. Success in this area requires adherence to Amazon’s strict policies and proactive engagement with market trends and pricing strategies.

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7. What is the New Amazon SKU Economics Report and Why it Can Help You: Insights from François Maingret

Amazon has introduced a new tool called the SKU Economics Report, aimed at helping sellers analyze costs and profitability for each SKU. This report, accessible through Seller Central, allows sellers to generate detailed cost data, including various fees and advertising expenses associated with each SKU. The report, provided in an Excel format with over 40 columns, helps sellers track performance, identify high costs, and make informed decisions about their inventory and marketing strategies. It’s especially beneficial for those not using advanced third-party software, offering a straightforward way to manage and optimize financials directly through Amazon’s ecosystem.

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8. Amazon ‘Pet Day’ Returns in May: What to Know About the Prime Day-Style Shopping Event

Amazon’s Pet Day event, set for May 7-8, 2024, aligns with National Pet Month to offer a plethora of discounts on pet-related products, including supplies, toys, apparel, grooming items, and tech gadgets like monitoring cameras and automatic feeders. This event promises 48 hours of exclusive deals akin to those seen during Amazon’s Prime Day. Shoppers don’t need to be Prime members to access these deals, though members will enjoy additional perks like free shipping. Amazon will also support animal welfare organizations through donations during this event. Early deals start on April 23, with daily pet deals already available.

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9. Amazon Funded Quantity Discounts by Amazon

Amazon is introducing a four-week pilot for its new “Quantity Discounts by Amazon,” a component of the Discounts Provided by Amazon program. This initiative allows customers to receive discounts on selected products when purchasing multiple units in a single order. The discounts, funded entirely by Amazon, enable customers to save on bulk purchases without affecting the sellers’ earnings from their listed prices. Sellers can opt out if the discounts conflict with their minimum selling price policies. The selection of products included in the pilot is at Amazon’s discretion, and the company reserves the right to modify or discontinue the pilot at any time.

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10. Temu Sets Up U.S. Warehouses

Temu has established U.S. warehouses to facilitate faster delivery for its marketplace, mirroring services like Amazon’s Fulfillment by Amazon (FBA) and Walmart’s Fulfillment Services (WFS). The move, aimed at reducing delivery times from the usual week-long wait from China, involves partnerships with WINIT and Easy Export, which manage the warehousing within the U.S. This development allows Temu to store bulk shipments domestically and dispatch them swiftly to customers. Despite its growth, Temu’s marketplace still primarily serves Chinese sellers and has not yet expanded seller recruitment outside China or Hong Kong. This strategic shift is part of Temu’s effort to compete more effectively with rivals like Shein by offering faster shipping options without sacrificing the price advantage of direct-from-China inventory.

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Happy Selling,

Todd Welch
Amazon Seller School