Here is your midweek jetpack of Amazon seller news, updates, and other useful clicks for your e-commerce business…
When You Need it Now…
Amazon is reportedly looking to expand its same-day delivery capabilities by enlisting the help of other retailers. The company’s “Today” program aims to partner with brick-and-mortar stores to use their locations as mini-fulfillment centers for Amazon orders.
This is how it will work:
- You order a product on Amazon from a brand you love.
- Amazon sources the product at the brand’s local shop or fulfillment center.
- The brand delivers it to you within a day or prepares the item for you to pickup.
This move would allow Amazon to offer faster delivery times while also potentially reducing its reliance on its own warehouses– sorta like the same-day grocery delivery or pickup with Amazon Fresh.
If you own or represent a brand and also have a brick-and-mortar or can fulfill orders locally within a day, this may be a great way to add sales on top of your current structure.
PacSun and GNC are a few of the first brands to participate in the program.
Maybe this will help relieve Amazon delivery drivers so they don’t have to pee in bottles anymore.
Read the full story here.
3-year Growth Rates for the Big Six
Marketplace Pulse recently came out with a report which identifies the three-year performance of the big six large online marketplaces, measuring growth from pre-pandemic 2019 through 2022.
“U.S. e-commerce grew 8% in 2022 – the slowest growth in over a decade. Adjusted for inflation, it likely didn’t grow at all. But it reached $1 trillion in yearly sales and is still up 81% from 2019.”
Marketplace growth % over the past three years:
Image from marketplace pulse
A few details:
- Shein’s global gross merchandise value (GMV) grew 50% in 2022 as it reached $30 billion. It is now 10 times larger than its 2019 sales. Shein’s upcoming US marketplace has emboldened it to project $80 billion in GMV in 2025.
- Shopify’s global GMV grew by 12%. It has grown 229% since 2019. The growth is driven by new merchants, as well as the willingness of brands to sell directly to consumers, and the willingness of consumers to buy from these brands.
- Etsy’s global GMV shrank by 3% to $11.8 billion in 2022. However, it is still up by 151% from pre-pandemic 2019, and active sellers and buyers on its platform have doubled in size.
- Walmart’s US e-commerce sales grew by 12% in 2022, which makes up most of its $80 billion global e-commerce business. Its GMV is now twice as large as it was in 2019, and its growth has been accelerated by its online grocery business.
- Amazon’s global first party (1P) sales were flat in 2022. The retail giant, however, was still up by 56% from 2019, and even more in the US. There’s no data on its GMV and third-party seller sales, but most like these grew more compared to its 1P business.
- Ebay’s US GMV decreased by 11% in 2022, dipping to $35.9 billion from the previous year’s $40.1 billion. While its GMV in the US was up 17% from 2019, its global GMV went down by 15% and is only slightly up from its 2019 levels.
Shein to Amazon:
Read the full report here.
Amazon NFT’s Launching this Spring?
According to several sources, Amazon is making progress on its platform that will allow customers to purchase NFTs tied to real-world assets that will be delivered to their doorstep.
“Amazon shoppers, for instance, would be able to purchase a fashion-oriented NFT tied to a pair of jeans — and pay with a credit card, sources said, just as they would with any other Amazon purchase.”
The company is planning to notify every Amazon Prime customer in the US about the digital collectibles initiative, with a potential launch date reported to be on April 24, although the timing is still uncertain.
The company aims to create a private blockchain, but it is not yet clear if an Amazon token will be part of the deal.
How much are you throwing down for an NFT of Bezos in his undies?
Read the article here.
Second Headquarters on Pause for Amazon
Amazon has halted the construction of its much-hyped second headquarters in Arlington, VA, causing some to joke that it’s starting to look more like HQ1.5.
The company has put an indefinite hold on breaking ground for the swanky office park known as PenPlace, which would encompass three 22-story towers and a sleek helix-shaped building. Amazon began laying off 18,000 employees in January, and while it does plan to build PenPlace eventually, for now, it’s not short on office space.
“The company promised to bring 25,000 jobs to the region and turbocharge the local economy in exchange for $800 million in tax benefits and infrastructure improvements.”
Read the morning brew here.
TikTok in Your Car…..uhhh…..
This company continues to scare us.
TikTok has created a new contract with Mercedes Benz to integrate content directly into the screen of the new E-class car.
As the company explains:
“From passing time waiting while stationary in your vehicle to simply enjoying a moment to yourself while your car is at rest, before heading to your destination, TikTok will be your new favorite activity when parked, delivering you a stream of videos tailored just for you. Passengers can get in on the fun too! The two screens in the vehicle run independently, so both the driver and passenger can log in to their own accounts and For You feeds.”
Imagine a world where you can’t find a parking spot because zombies are sitting in their cars, watching TikTok, completely unaware that the sun is setting and the stars are rising.
Maybe we can sell them some awareness through their car screens?
Target to Deliver 50 Million Packages from Sortation Centers in 2023
Target is taking the phrase “next-day delivery” seriously by announcing a $100-million investment to expand its sorting centers across major U.S. markets.
Target’s Chief Global Supply Chain and Logistics Officer, Gretchen McCarthy, said, “Through our sortation centers and Target Last Mile Delivery capabilities, we’re able to move faster and with more precision—for years to come.”
The new facilities will not only provide next-day coverage but will also consolidate orders and batch deliveries, making it easier for carriers to transport packages. Target expects to deliver twice the number of packages it did last year, with approximately 50 million packages to be delivered in 2023 from its sortation centers.
Important Amazon Updates for Yo’ Bad Self
New Storage Limits
On March 1, the new and improved (supposedly) storage limits policy went into full effect. Our studly friend Chris Grant gave a great breakdown on what to expect:
- No more weekly or quarterly restock limits
- Your capacity limits for the next month will be figured on the third week of each month (around the 15th) and you will receive an estimate of the next two months as well
- Your monthly capacity limits will be set based on your IPI score (you need to make sure you understand this). Inventory management just got way more important
- If you want to find your monthly capacity limits you can look here: Inventory -> Inventory Performance -> Capacity Monitor (this will be a tab at the bottom of the page)
- If you run over your capacity limits it will cost you. $10 per cubic foot to be exact. For reference that’s about 2.5 shoe boxes in a cubic foot. So you send in 5 pairs of shoes over your storage limit and you pay $20 in extra fees. As a comparison, Shipbob charges $40 per month for an entire pallet (69 cu ft) for storage
- If you need more storage you can request it (meaning you can pay for it) in the capacity manager. You will be reimbursed that fee IF you sell through 100% of your inventory
Click here if you want to learn more about FBA Capacity Limits.
Also, there will be an Ask Amazon Event focusing on its updated
capacity limits and Capacity Manager. From 8 am to 5 pm (PT), Amazon reps will be answering questions on these topics. View the full announcement here.
Compliance Updates for European Sellers
If you sell on Amazon Europe, take note that Amazon has provided compliance updates with important upcoming dates for 2023 as well as reminders of legislation already in place. Failure to comply will result in either listing deactivation or account suspension. You can view the full list of compliance updates here.
Women’s History Month
It’s Women’s History Month, and to celebrate all the entrepreneurial women selling on Amazon, Amazon Lending has some activities and updates lined up:
- Amazon will have an exhibit space at the WBENC National Conference in Nashville, Tennessee from March 21-23, 2023. Women sellers are more than welcome to visit the Amazon exhibit space and learn how its programs can benefit business growth.
- Amazon’s partnership with Lendistry is now a full program, and will continue to support the goals of urban and rural small businesses in socially and economically distressed communities through short term loans which range from $10,00 to $250,000 with terms of up to 3 years. All US-based sellers are invited to learn more on Seller Central.
Learning Opportunities This Week
Here is a weekly roundup of learning resources:
Blog Posts:
- What Is the Amazon 1099-K Tax Form and What Do I Do With It by Chris Grant
- Amazon Sales Rank Chart 2023 (March Update) by Chris Grant
- How to Sell on Amazon Europe by Landing Cube
- Trademarks and Amazon: Everything You Need to Know about Selling Private Label and Name Brands by Payability
- Amazon Best Sellers and Trending Products in March 2023 by Jungle Scout
- Amazon Best Sellers Rank: Everything You Need to Know in 2023 by Jungle Scout
Podcasts:
- ChatGPT for Amazon Sellers by Helium 10
- Selling on Amazon Japan with Gary Huang by Seller Performance Solutions Podcast
- How to Make Money on Amazon in 2023 by The Next Amazon Top Seller
- Things You Need to Give Up In Your Amazon Business by Full-Time FBA
Upcoming Seller Events ????
Here are a few upcoming industry events that you might be interested in. Slick that hair back and start mingling, playa!
The Prosper Show (March 13-15, 2023) – Las Vegas, NV
A premier educational and networking event for Amazon sellers. The event will provide a platform for sellers to learn the latest industry trends, best practices, and strategies from leading experts in the field.
Retail Fest and Retail Global (March 27-30, 2023) – Gold Coast, Australia
A global conference that brings together online retailers, e-commerce businesses, and service providers to learn, network and collaborate about “all-things-ecommerce.” The event will take place in Gold Coast, Australia, and will feature keynote speeches, breakout sessions, panel discussions, and workshops that cover a wide range of topics.
Sellers Summit (May 23-25, 2023) – Ft. Lauderdale, FL
“The ultimate learning conference for e-commerce brands.”
Seller summit brings together e-commerce entrepreneurs, experts, and service providers to share strategies, tactics, and insights on how to succeed in the online marketplace.
White Label World Expo (May 3-4, 2023) – Las Vegas, NV
“Master being an online entrepreneur” – Keynote Theater 1 plays host to the Amazon Pro Seller Summit where experts share tips on top rankings, growth strategies, product detail optimization and many more!
Growth Labs (May 30-31, 2023) – Austin, TX
“Keep your finger on the pulse of retail media.” – Amazon Ads experts and other keynote speakers lead a deep dive into the power of data driven insights which you can leverage to grow your business. 150 seats are available.
SellerCon (June 1-3, 2023) – Austin, TX
“The most powerful tool to elevate your business.” Featuring Amazon experts like Destany Wishon, Vanessa Hung, and Aaron Cordovez, SellerCon promises to not only motivate you to push your business to new heights but also equip you with the roadmap to grow your business. 2,000 seats are available.
Other Quick Clicks
- Seaweed products in every household? Behind Amazon’s move to shake up Europe’s seaweed market
- These clever inventions are so damn helpful, Amazon shoppers who buy them say they use them everyday
- Jeff’s Brands to acquire Amazon.uk market leader in the $2 billion market of pest control products for 1.9 million
- Amazon NFTs will be tied to real-world assets, token possible
- Where will the Amazon vs Walmart fight be in 2026?
- Amazon to add diverse apparel imagery to reflect its customers
Thank you for reading. If you have any questions, comments or violent reactions, let us know below!
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