Here is your midweek jetpack of Amazon seller news, updates, and other useful clicks for your e-commerce business…
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75% of Consumers Expect to Increase Online Shopping
Mirakl, a French cloud-based ecommerce software company, recently released the second edition of its annual consumer data report titled Consumer Preferences in the Digital-First Economy. The report surveyed 9,600 global consumers and focused on their in-person and online shopping habits and preferences.
Some key findings:
- 86% of US consumers focus on better value first when shopping (due to inflation)
- 71% of US consumers expect to increase online shopping this year to find better value
- US consumers reported using online marketplaces for 46% of their overall online shopping, and 39% reported shopping in online marketplaces once a week or more.
- 77% of global consumers believe large marketplaces are the most convenient way to shop online.
- 43% of the respondents have stopped shopping from a particular retailer due to rising prices, but 17% continue to shop with brands they trust regardless of price.
- 51% of U.S. consumers say they wish more of their favorite retailers had online marketplaces
It’s hard to believe that most brands still don’t have their own online marketplace, but it fares well for large marketplaces like Amazon.
Amazon Delivers Strong Q4, But Profits Take a Pounding
Amazon’s net sales this past Q4 grew by 9% to $149.2 billion, up from $137.4 billion the previous year. For the entirety of 2022, Amazon’s revenue increased to $513.98 billion, up from $469.82 billion in 2021.
Despite the glossy figures, Amazon’s profits took a severe beating as the company lost its stake in electric-truck maker Rivian. The $2.3 billion loss from the common stock investment took a huge bite out of Amazon’s profits and resulted in its net income plunging to $0.3 billion for Q4, a far cry from the $14.3 billion the company posted in Q4 2021. For the first time since 2014, Amazon posted a net loss, $2.7 billion to be exact.
Good news for third-party seller services:
“Third-party seller services (commissions, fulfillment, etc.) jumped 20% to $36.34 billion, well above estimates of $32.13 billion. Amazon’s ad business also grew, rising nearly 19% to $11.56 billion, which topped estimates.”
Amazon CFO Brian Olsavsky has warned of slower growth for the next few quarters citing the uncertain economic environment– with emphasis on the word growth. There doesn’t seem to be any forecast of sales slowing, just less firepower on the expansion.
Amazon expects Q1 2023 net sales to range between $121.0 billion and $126.0 billion, a growth of 4% to 8%, compared with the first quarter in 2022.
Read the full story here.
Amazon Warehousing and Distribution Program (AWD): Everything You Need to Know
To address the logistic woes of 3rd party sellers, Amazon launched the Amazon Warehousing and Distribution Program. The 3pl solution aims to address common logistical issues 3rd party sellers face such as insufficient storage capacity, high fees, unsteady inventory management flow, and lack of end-to-end visibility.
AWD helps bypass inventory capacity limit restrictions and can help you stay in stock of your FBA items, provided you have them at an AWD warehouse.
This blog post from Seller Labs explains the what, why, and how of AWD and how you as a seller can maximize its benefits.
Deadlines for Annual Tax Filings
The general filing deadlines for taxes:
- March 15, 2023 – businesses such as partnerships, S corporations, LLCs taxed as partnerships
- April 18, 2023 – individuals, C corporations, sole proprietors, single-member LLCs, LLCs taxed as corporations
Check out these resources for Amazon 1099-k help:
- Taxes for Amazon Sellers” Everything You Need to Know (But We’re Afraid to Ask) by Jungle Scout
- How to Reconcile the Amazon 1099-K Form by Ryan Grant of Online Selling Experiment
If you’d like your tax filing to be hassle-free, you can look into sales tax automation platforms like TaxJar. TaxJar automates sales tax filings across 11,000 jurisdictions and can ensure full compliance all the time.
Nine Outdated Strategies That Don’t Work on Amazon FBA Anymore
From PPC strategies and buying product reviews to filing damaged warehouse claims, this hour-long webinar by Orange Klik and guests covers nine strategies that no longer work for Amazon FBA sellers.
Learning Opportunities This Week
Here are a few learning resources for your Amazon business this week:
- A Beginner’s Guide to Amazon Business Reports by SellerEngine
- Amazon Sales Rank Chart 2023 (February Update) by Chris Grant
- The Complete Guide to Small Business Credit by Viably
- Two 7-Figure Amazon Sellers Share the First Products They Launched by Branded by Amazing
- Seven More Beginner Pitfalls to Amazon FBA Success by Full-Time FBA
Other Quick Clicks
- JAGGAER integrates Amazon business into its e-procurement search results
- Amazon Fresh Store expansion paused as it seeks better differentiation, economics
- Optimizing sustainability with AI: Amazon’s approach
- Jeff Bezos: The most important single thing is to focus obsessively on the customer
- Amazon now among leading utilities after record green power deals spree
Thank you for reading. If you have any questions, comments or violent reactions, let us know below!
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