Here is your midweek jetpack of Amazon seller news, updates, and other useful clicks for your e-commerce business…
US E-Commerce Sales Over $1 Trillion in Last 12 Months
The U.S. Department of Commerce recently reported that ecommerce spending in the US has exceeded $1 trillion over the past 12 months (that’s 12 zeros…).
Supporting takeaways:
- The $1 trillion+ milestone was originally predicted to hit in 2024
- The market nearly doubled in size in just 3 years
- Ecommerce spending is 25% bigger than pre-pandemic forecasts suggested.
- Ecommerce was up by 10.8% in Q3, back to double digits for the first time since Q2 of 2021.
- In Q3 of 2022, only 14.1% of consumer spending happened online*
*Excluding retail categories that don’t typically compete with e-commerce – restaurants, car dealers, and gas stations – e-commerce represented 21% of retail.
This means that despite massive current online spending rates, there is still room for e-commerce to capture a much larger portion of the total retail market. We are only at 21%.
Get your popcorn ready.
Read a summary from Market Pulse here and check out the Census Report here.
Peace of Mind: Is Your Account Eligible for Account Health Assurance?
After a few teasers this past fall, Amazon has formally announced a new, free benefit for eligible sellers called AHA (Account Health Assurance) which solidifies their commitment to providing more transparency, support, and tools for third-party seller accounts.
This program was launched in response to seller feedback requests after years of unfortunate account deactivations without explanations.
Under the new policy, an AHA-enrolled seller account will not be deactivated immediately if an issue arises.
“The Amazon team will proactively reach out and work one-on-one with sellers whose account may be at-risk to help them get back on track.”
To be eligible for this benefit, a seller will need to have an Account Health Rating (AHR) score of 250 or higher for at least six months, and have a valid emergency contact number on file. Professional sellers in the US and Canada who fulfill the criteria for eligibility will be automatically enrolled.
To learn more about this benefit, click here to view the Amazon’s AHA FAQs page.
2023 Amazon FBA Fee Increase Deets
Starting January 17, 2023, there will be significant fee increases for Amazon’s FBA Fulfillment Services despite the US referral fees staying the same.
Seller Labs came up with a definitive guide on these FBA fee changes. There are side-by-side comparison charts here that you can review so that you’ll be updated with upcoming fee changes starting next year.
Also, Jessica Wright, Brand Strategist on the Seller Labs services team, explains how the details impact Amazon sellers in this video.
Amazon FBA in 2023: What’s Most Likely to Come
Jungle Scout recently did an analysis of Amazon trends in 2022, and have come up with five predictions on how 2023 will be different for Amazon FBA Sellers.
Here is a quick summary:
Social media platforms will be major sales drivers in 2023.
Customer interest in “social purchasing” is on the rise, Tiktok and Meta are moving quickly into ecommerce, and experts are predicting influencer marketing on Amazon to blow up soon.
Virtual Reality tech will be utilized more in ecommerce to enhance shopping experience.
Walmart is already invested in AI-powered “try it on” technology to allow their shoppers to swap clothing items on virtual models based on their own bodies. You can bet Amazon is right there with them…
Advertising and influencer marketing will be even more important to sellers.
This goes hand in hand with the rise in social media ecommerce across diversified platforms. Amazon has already beefed up their advertising features, and ongoing integration into social platforms is improving daily.
“Brands will not be able to survive without headline ads and video ads. They will become the norm going forward.”
“Customers Ask Alexa” will be an invaluable tool to Amazon sellers.
Launched in September 2022, this feature allows brands to address commonly asked questions by consumers, as well as provide links to products that solve the consumers’ problems.
Sourcing will move closer to North America.
With China’s “Zero-Covid Policy” still threatening supply chains in the US, more sellers are thinking outside the box to bring sourcing closer to home. This is creating a much needed boom in domestic manufacturing opportunity.
Read all of Jungle Scout’s predictions in detail here.
Learning Opportunities: Black Friday and Cyber Monday Selling Strategies
This week is HUGE for sellers as Amazon is kicking off a 48-hour Black Friday promotion on Thursday, November 24, and then capping it with the Cyber Monday weekend event.
Here is a roundup of learning opportunities for this week:
- Podcast – Q4 Mistakes Even Smart Sellers Make on the Full-Time FBA Podcast
- Podcast – 3 Advanced Repricing Strategies for Black Friday and Cyber Monday on the Bqool Podcast
- Blog Post – 11 Amazon Black Friday Selling Tips to Boost Sales in 2022 by sellerapp
Other Quick Clicks
- Why Amazon is going all in on renewables – and how it intends to use 100% clean energy by 2025
- Amazon, Google, make healthy launches
- Gap taps Tinuiti to build “largest apparel” storefront on Amazon
- Amazon sets its sights on an even bigger prize: the non-endemic advertiser
- The next big thing in Amazon advertising: interactive audio ads
- We analyzed the top 1,000 Amazon seller names – here’s what we found
Thank you for reading. If you have any questions, comments or violent reactions, let us know below!
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