TikTok’s coming for Amazon in 2024 [MDSR #6]

New year, new you? Same us. Welcome back to the sixth installment of MDSR. 

Can we interest you in some fresh eCom intel and (free) million dollar advice? Let’s get into it.

Hot Off The Presses 📰

Did you feel the ground shake on January 3rd by any chance? It was the day Bloomberg reported on TikTok’s plans to grow their TikTok Shop business in the US tenfold to $17.5B this year. The day after, Amazon stock fell following the reports.

Things are already back on track for Amazon as far as the market’s concerned, and they may have the solution to a trillion dollar returns problem affecting the whole industry (spoiler: it’s not downstream fees for returns — but it might be the sizing standard Amazon is introducing through AI tools to help shoppers get it right the first time). 

It’s worth figuring out, given that fashion and apparel products are predicted to make up a quarter of Amazon’s sales by 2027. To be fair, highly-rated clothing items are already taking off on Amazon. Whether those positive reviews and ratings hold up enough to prevent mass returns remains to be seen.  

Behind the scenes, Amazon is going “super aggressive” on generative AI for productivity. And it may be time for all of us to fully embrace it — or at least start getting familiar with ChatGPT to make sure it’s familiar with us. If you missed your chance to get in on the ground floor of Google’s index, you might want to be among the first to archive your business and products in its knowledge base. 

Million Dollar Advice 💸 

Is this you? 

I don’t need a strategic business plan because they’re impossible to stick to. No one ever hits their goals according to a plan or timeline, so it doesn’t seem worth it….

If so, it’s time to let Lesley Hensell change your mind.

Listen to Lesley Hensell: Strategic Business Planning, SOPs, and "The Amazon Incubator" Book

Taking the temperature in the room 🌡️

Out of curiosity (and in the interest of adding more value to this newsletter), we’re hoping you’ll weigh in below. 

MDS Inspire is almost upon us  🗓️

And we have a special offer for you valid through January 15th. 

Join us at MDS Inspire 2024 in Las Vegas from March 3-5, 2024. Our dates conveniently overlap with Prosper Show so you can maximize your time in Vegas. Use the link below to register and save $300 off the regular price through January 15th — or until tickets run out.

What’s MDS Inspire all about, you ask? Imagine two days of the highest quality networking, super tactical presentations, elite partners, and prime dining experiences. 

Typically our events are only for members, but we’re branching out with this one to give back and show other sellers what MDS is all about. 

There will be mostly 7-8 figure sellers in attendance, so…

Secure your spot

Data rush 🌊

New benchmarks are arguably the best part of this time of year. RevenueGeeks did a great job with their roundup of seller stats, and we thought you’d be interested in some of the ones below.

In 2023 —

• 45% of Amazon sellers were generating $1,000-$25,000 per month, and 25% were making $25,000-$250,000 monthly. 

• 69% of Amazon sellers surveyed had a monthly ad budget of less than $2,500.

• 19% of Amazon SMB sellers saw profit margins of 21-25% last year, and only 3% of sellers generated profit margins over 50%.

• Private label was the preferred sales model among 54% of Amazon sellers.

• 86% of Amazon sellers used Fulfillment By Amazon (FBA) to deliver products to customers. 37% were Fulfilled By Merchant (FBM) sellers.

• 71% of U.S.-based Amazon sellers sourced products from China, down 3% from 2021.

Think these are helpful?

Did you see that post 📲

Here’s to tilling up the soil. 

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 in 2024 🔥

Sincerely, 

Looking for a mastermind community?

Million Dollar Sellers (MDS) is an exclusive community of 600+ 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.