The numbers are out, but it didn't report as expected for many people who were expecting more from the tech giant. Like many companies, Amazon has had a whirlwind of a year+ due to Covid-19 related challenges. But how much has it affected the overall growth, and how did it reflect on this quarter's reports?
Well, let's just say that while Amazon did see growth in the billions, retail had less to do with it than before. In 2018, retails sales were responsible for 60% of Amazon's revenue. Now in Q2 2021, that number has shrunk down to only 50% (and could have potentially been lower had Amazon not moved Prime Day 2021 into the second quarter). Nowadays, other services, including third-party marketplace, AWS cloud hosting, Advertising, and subscription, are what's rapidly advancing in Amazon's business.
Amazon's CFO made a statement claiming that Amazon's "stunted" growth is due to the Covid-19 situation as it evolves and people are shopping online less than they have been in the past year.
Whether you consider the Q2 growth to be lacking or not, one thing remains certain; Amazon is still dealing with the backlog in fulfillment brought on from the past 18 months. Ever since the pandemic began, Amazon has been playing catch up which we can expect to continue and contribute to the overall numbers for Q4.
Less than two months ago, British broadcaster ITV investigated a U.K. Amazon warehouse for how they managed their inventory disposal processes. They reported that millions of items were regularly destroyed or disposed of - some in mint condition or barely used. These items included smart T.V.s, laptops, and other high-value electronics. Obviously, this caused an uproar, and since then, Amazon has changed its processes launching new programs to manage used inventory from their warehouses.
FBA Grade and Resell: This program gives partners the option to resell returned items on Amazon instead of sending them back to sellers on a removal order or having them donated. It allows products to automatically be routed and evaluated as one of the following before it is resold:
*Available in the U.K.
*Coming soon: U.S, Germany, France, Italy, Spain
FBA Liquidations: With FBA Liquidations, sellers can use the wholesale resale channel to recover some of their inventory costs from returned or excess inventory.
*Available in the U.S., Germany, France, Italy, Spain
*August 2021: UK
Dealing with brand abuse is something many sellers will go through in their selling lifetime at least once in one shape, way, or form. Sometimes it's manageable, and you can make it go away pretty quickly, but other times it causes a lot more lasting damage to your brand. It's all in the name of competition, and we're not here for it, so we're sharing some ways to deal with black hat brand abuse on Amazon.
1. Try to identify who is conducting the suspicious actions by gathering as much information as you can about the situation. A great way to get started is to find the answers to the below questions:
2. When updating information on your listings, make a habit of using flat-file submissions to Seller Support to leave breadcrumbs whenever you make any updates. Anything out of the ordinary will seem suspicious and can be a significant first step to identifying who might be tampering with your listings.
3. Whenever there's suspicious activity on your listing, refer back to the records you left with Seller Support to identify which changes were authorized by you and which weren't. This information can help narrow down where any unauthorize changes originated from.
Using these three steps as a starting point is a great way to prevent and resolve brand attacks on Amazon. Always provide as much information as you can off the bat to better your chances of getting this fixed. If need be, escalate the situation as much as possible through Seller Support.