Here is your midweek jetpack of Amazon seller news, updates, and other useful clicks for your e-commerce business…
Will a TikTok Ban Hurt Amazon Sellers?
In a nutshell, YES.
Jungle Scout recently released a research brief detailing how a TikTok ban could disrupt ecommerce and hurt Amazon sellers.
This infographic sums up the impact TikTok has had on ecommerce and how its sudden disappearance would have a unique and immediate impact on Amazon sellers:
Image from Jungle Scout
TikTok has changed the way people of all ages shop immensely, and as a marketing tool, it has proven invaluable to small businesses due to its very large audience, pipeline to ecommerce, and sophisticated algorithm,
Also, there’s the continually evolving and expanding organic relationship it has with Amazon, which has a strong presence in its platform. For a significant number of Amazon sellers, TikTok has been instrumental to reaching new buyers and significantly increasing sales.
TikTok’s fate is still up in the air, and here’s hoping that after the cookie crumbles, everyone’s best interests are protected.
If you’re betting against the ban, check out How to Sell on TikTok in 2023 by Jungle Scout
Amazon’s Strong Q1 Surpasses Expectations
Amazon has released its first quarter results, reporting a 9% increase in revenue for Q1.
Amazon’s growth was mainly fuelled by its best performing sectors – its advertising business, which rose 21%, and Amazon Web Services which rose 16%.
Some highlights:
- Q1 revenue rose to $127.4 billion, a 9% increase from Q1 last year ($116.4 billion)
- Driven by its machine-learning investments, Amazon’s advertising business generated an income of $9.51 billion (21% increase).
- Sales from Amazon Web Services rose by 16% to $21.35 billion.
- Net sales at online stores were up 3%, totaling $51.1 billion.
- Sales from the North American region showed an 11% YoY increase to $76.9 billion, while international sales increased by 1% to $29.1 billion.
Amazon and Pinterest Team Up to Launch Third-Party Ad Program
Image from Chain Store Age
Pinterest is partnering with Amazon to integrate Amazon Ads promotions and improve its e-commerce capabilities. This collaboration will offer users an easier shopping experience for Amazon products on Pinterest, building on previous advertising initiatives such as the Idea Pins integration and the Verified Merchant program. The multi-quarter implementation will begin rolling out in late 2023.
Read the full story here.
Amazon Cracks Down on DMCA Abusers
Amazon is taking legal action against merchants who allegedly abused its Brand Registry to issue bogus DMCA (Digital Millennium Copyright Act) takedown requests against competitors. The company filed three lawsuits on March 30th, seeking injunctive relief, monetary damages, and special damages to deter future misuse of its copyright infringement reporting portal.
Read the full story here.
No Cookies Needed for Amazon DSP
Amazon Advertising is poised to lead a cookie-less advertising landscape as it recently unveiled machine learning updates to its demand-side ad platform that arms it with cookie-less targeting capabilities.
According to Neil Richter, director of advertising science at DSP, this is made possible by allowing advertisers plug their first-party data into DSP’s data clean room Amazon Marketing Cloud to identify their required audiences and even model their budget distribution.
The results of these updates have been stellar so far. In a test involving 140,000 ad campaigns, advertisers using these updates have reported increases in click-through-rate and return on ad spend and a decrease in cost-per-click.
With Google Chrome about to sunset third-party cookies next year, Amazon’s DSP’s model-based audience methodologies would most probably give it a definitive edge over its competitors.
Read the full story here.
Important Amazon Updates for Yo’ Bad Seller Self
Remote Fulfillment with FBA Fee Updates
On June 30, 2023, Amazon will be updating its Remote Fulfillment with FBA fees to reflect increasing costs on fulfillment, transportation, storage, and customer service, and to better align with the rest of US FBA.
The update will include the introduction of more granular weight tiers for fulfillment fees to better align fees and shipping costs.
Click here to learn more about the changes.
Amazon IP Program
Last April 26, 2023, Amazon celebrated innovation on World IP Day.
Amazon linked to their Brand Registry page which included all their advanced programs that helped protect trademarks, copyrights, patents, and other forms of intellectual property. If you’re a brand owner who sells on Amazon, you may want to check it out.
Amazon Removes Editorial Recommendations
According to Modern Retail, Amazon has quietly removed editorial recommendations from Amazon search results and replaced it with ad units.
The program, which worked with publishers to match top-rated products with editorialized blurbs, was viewed critically by a large number of sellers for its “pay-to-play” nature.
This is good news for sellers, as the added PPC slot will make bids go down and make the search experience for customers less cluttered.
This Week in Seller School…
Here is a roundup of learning resources for this week:
Blog Posts
- May 2023 Sales Tax Due Dates by TaxJar
- What is Sell-Through-Rate and How Is It Calculated? by Jungle Scout
- Increase Your Mother’s Day Sales with These Practical Tips and Market Insight by Seller Snap
Podcasts
- How to Use ChatGPT to Supercharge Your Amazon PPC by AM/PM Podcast
- Big Amazon Updates You Need to Know Today 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!
Seller Sessions Live 2023 (May 13, 2023) – London, United Kingdom
“The UK’s premiere conference for Amazon sellers.”
Amazon Webinar: Use Amazon Global Logistics’ Competitive Ocean Services to Inbound from China to the US/EU/UK (May 16, 2023, 1:30 pm)
Learn about the services offered by Amazon Global Logistics to successfully inbound from China to the US/EU/UK.
Amazon Webinar: Maximize Pay-Per-Click Advertising ROI with Scale Insights (May 18, 2023, 1:00 pm EST)
Learn how to optimize your PPC campaigns for maximum ROI.
Sellers Summit (May 23-25, 2023) – Ft. Lauderdale, FL
“The ultimate learning conference for e-commerce brands.
Internet Retailing Expo (May 24-25, 2023) – Birmingham, United Kingdom
Find new suppliers, new tech, and inspiration from retailers and brands at the IRE.
Growth Labs (May 30-31, 2023) – Austin, TX
“Keep your finger on the pulse of retail media.”
SellerCon (June 1-3, 2023) – Austin, TX
“The most powerful tool to elevate your business.”
European Seller Conference (June 6 – 10, 2023) – Prague, Czech Republic
“Meet Amazon sellers from across the globe.”
Amazon PowWow (July 12-13, 2023) – Palm Beach, FL
“Serious networking. Serious Learning. Serious Fun, A new standard in Amazon events.”
Midwest e-Com Conference 2023 (July 19 -21, 2023) – Minneapolis, MN
“Created by fellow sellers for our fellow sellers.
Other Quick Clicks
- Amazon’s Pharmacy business off to a good start, CEO says
- Cronos Labs partners with Amazon Web Services to scale Web3 startups, CRO rallying
Thank you for reading. If you have any questions, comments or violent reactions, let us know below!
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