Amazon’s plan to FBA-ify the supply chain 🪄 [MDSR #32]

Hot Off The Presses 📰

Don’t shoot the messenger, but the window between Thanksgiving and Christmas will be five days shorter this year…. And shipping logistics is where retailers can expect to really feel the burn. 

As far as workarounds, Sunday deliveries are still looking more viable than drones — but Supply Chain by Amazon is likely to come out on top as the best way for sellers to improve their delivery speed, and their conversions. 

That’s right. Accelerate 2024 saw Amazon unveil a bigger push to parcel, package, and deliver orders in their latest plan to maintain eCom dominance. 

The platform’s new consumer-facing gen AI features are just a tad underwhelming, but seller-facing developments like an ad video generator and Project Amelia for tailored business insights to drive sales — oh, and a new Shark Tank-style show giving sellers top billing in the marketplace — are all compelling enough. 

Of course, it’s not all sunshine and roses. American Eagle is suing Amazon for trademark infringement. Temu is poaching Amazon sellers as their US customer base shrinks. 

Inside Amazon’s own walls, their workforce is “rage applying” to new jobs over the latest 5-day RTO mandate. But there’s even more backlash on the horizon — Amazon’s fee cuts on cheap apparel are expected to increase retail arbitrage, stealing the coveted buy box away from first-party brands and awarding it to third-party resellers.  

And to absolutely no one’s surprise, Walmart is plotting an October sales event to compete with Amazon and Target. 

Unless it’s a deep discount of 30% off or more per Adobe Analytics, deal fatigue is getting very real for consumers — and sellers are the ones who have to deal with it. Shaking up pricing and promotional strategies, offering buy now, pay later options, and using self-gifting messaging in BFCM ads might be the antidote… 

But despite a rollercoaster of a first year, TikTok Shop will be one to watch this holiday season with their perfectly-timed launch of a keyword targeting tool, right when consumer appetite for authentic content about products will be at its highest.

Sure, marketing budgets are falling 15% YoY. But viral trends like Let Gen Z Write Your Marketing Script and the success of Nutter Butter’s bizarre TikTok strategy prove that brands can use TikTok to cut through the chaos at the noisiest time of year for next to no ad spend. 

Not to mention, more than half of US Gen Z-ers are planning to do their holiday shopping there. 

Million Dollar Advice 💸 

If you think operational efficiency only affects the day-to-day inner workings of your business, guess again. 

In a time when Amazon is rewarding businesses with smooth operations and penalizing those who don’t, it’s on sellers to do everything in their power to better manage their stock and avoid costly mistakes — and SoStocked’s very own Chelsea Cohen is here to help.

5 Must-Know Takeaways from Accelerate 🚀

Plenty of updates always come out of Amazon Accelerate each year and 2024 is no exception. 

On top of countless other growth initiatives as a company, Amazon is making significant strides to assist sellers in navigating the constantly evolving eCommerce landscape, with innovations driven by AI, opportunities for global expansion, and the introduction of powerful new tools.

ICYMI, here’s our top 5 takeaways and insights from Accelerate 2024: 

1. It’s time to lean into AI for business growth. AI is transforming the selling experience on Amazon, impacting everything from listing enhancements to advertising strategies. Start integrating AI solutions like Project Amelia and Generative AI for Amazon Ads into your operations to streamline tasks and boost productivity. Consider utilizing AI-generated content for your product listings and A+ pages to enhance conversion rates.

2. Make the most of Buy With Prime features. With the recent integration of PayPal and TikTok ads into Buy with Prime, it’s an excellent opportunity to evaluate how these features can benefit your off-Amazon sales channels. If you’re currently using Buy with Prime, prepare to utilize these new functionalities to drive additional traffic and improve conversion rates across all your platforms.

3. Streamline operations with Supply Chain by Amazon. Amazon’s fully-managed Supply Chain service and updates to Amazon Warehousing & Distribution (AWD) provide fresh efficiencies, particularly for sellers dealing with expiration-sensitive or large items. Analyze your supply chain operations to pinpoint areas for cost savings and logistical enhancements while ensuring you maintain flexibility in your processes.

4. Capitalize on Amazon’s personalization tools. Amazon’s Customer Journey Analytics tool allows you to track the complete customer lifecycle and develop more targeted promotions. Use these insights to refine your marketing approaches and tailor your product offerings to specific customer demographics. Customized, data-informed promotions are vital for increasing sales and enhancing customer loyalty.

5. Automate product listing compliance and improvements. Why do it yourself when AI can be used to monitor product compliance and enhance listing quality? Regularly audit your listings to ensure they comply with standards and use AI-driven tools to optimize titles, bullet points, and A+ content. Being proactive in these areas can help safeguard your account and boost conversion rates.

Think these takeaways are helpful? Feel free to pass ‘em along 🙂 

How to step up your influencer marketing 🤳

Have you started working with UGC creators and influencers? 

Check out JoinBrands network of over 100k creators and influencers that makes the process easy — from finding the perfect influencer to promote your brand on Tiktok & Instagram, to getting UGC images and videos made to improve your listings conversion — they’ve got you covered. 

With prices starting at $15 for images and $25 for TikTok videos — plus no subscription fee — it’s a no-brainer to sign up and get started. 

Head to JoinBrands and mention “MDSR” in their support chat and instantly receive $25 bucks to spend!

Seasonal Advertising Trends 🎁

If you’re reading this, you probably won't be surprised to hear that Q4 is by far the most competitive quarter on Amazon. Or that these jam-packed 3 months account for 35% of total ad spend on the platform, according to the latest research from JungleScout. 

With so many brands competing for a slice of the pie this time of year, sellers need data like this to make the most profitable decisions: 

📈 ROAS is 39% higher during sales events like Prime Day and BFCM than it is on actual holidays like Halloween or Valentine’s Day.

💰 Sponsored Display ads deliver up to 150% better ROI than other formats like Sponsored Brands and Sponsored Products.

🫰 Last year CPC across all Amazon ad types went up by 28% compared to the previous 10 days — and decreased 22% again two days after the shopping event.

🎄 In December 2023, daily ad spend increased an average of 11% every weekend leading up to Christmas.  

The writing’s on the wall that during holiday sales events, competition for ad space on Amazon can quickly drain promotional budgets. For expert tips on making the most of seasonal advertising, check out the full report from JungleScout. 

eCom Stock Watch 📊

We’re doing this a little differently now — click here or on the table below to view real-time data at full size.

MDS Community Spotlight 🔦

There’s nothing quite like gaining inspiration from the many achievements of our world class members 👏 Here’s to you, Brooks Powell!

Looking to connect with likeminded sellers like Brooks? It’s never too early to secure your early bird ticket for MDS Inspire 2025… 

Did you see that post 📲

And just like that, billions of dollars in trade come screeching to a halt…

Until Next Time ✌️

As always, thanks for sticking with us until the end. 

If you’d care to share your thoughts on this newsletter, we’re all ears. Just hit reply to sound off. 

See you next time with more of the latest and greatest content you need to succeed this year 🔥

Sincerely, 

Looking for a mastermind community?

Million Dollar Sellers (MDS) is an exclusive community of 650+ like-minded Amazon and DTC sellers from all over the world. Collectively, our members generate more than 8 billion in annual sales and dominate some of the biggest categories on Amazon. MDS offers world-class events, chapters, industry discounts, resource libraries full of SOPs, templates, and video recordings of private trainings, workshops, events and so much more.

If you are looking for a business professional community made for ecom entrepreneurs, then consider applying today. 

*To qualify, you must be a full-time seller or brand owner and do at least 1 million in verified annual revenue. Will Amazon’s Returnless Resolutions solve the returns debacle? [MDSR #30]