If you're keen on succeeding on Amazon, then data will be your best friend. Access to critical metrics allows sellers to make decisions for advertising, listing conversions, inventory, and so much more. This is precisely why Amazon improved its Brand Analytics reporting.
In one of their latest posts, they updated the Brand Analytics tool to improve the accuracy and convenience of their reports for sellers. These changes will be effective starting August 2022. It will contain significant modifications, including the following:
Amazon says the updated versions of their existing analytics dashboards will become accessible soon, with the Repeat Purchase Behavior dashboard released first. Note that some dashboards may redirect you to the old user experience until all updated versions are available.
When Amazon announced in October 2021 that small-scale businesses must purchase product liability insurance, they received heavy flak. Although insurance could benefit the seller, it is no longer required once you've reached $10,000 in sales.
When everyone thought Amazon would finally listen to its small-business merchants, they didn't. Instead, they changed the threshold and guidelines for this requirement. As a result, sellers whose gross sales are $1 million or less would not have any deductibles as of June 27, 2022.
That new policy was to be implemented seven days after the announcement, leaving sellers no room to change their business strategies. Moreover, since no-deductible insurance plans typically come with higher premiums, small Amazon merchants would be left with higher costs. The policy doesn't support small businesses in these cases, and it felt like the e-commerce giant favored larger, more prominent merchants.
These new rules received a lot of resistance from sellers, which led Amazon to roll back this policy. This week, they stated that "the deductible for any policy(ies) must not be greater than $10,000, and any deductible amount must be listed on the certificate(s) of insurance." They passed this along with a thank you message to the sellers who had expressed their feedback.
This year, inflation unexpectedly rose to 9.1%, the highest year-on-year increase since 1981. In addition, according to Jungle Scout's Consumer Trends Report, 38% of consumers say that their household income is unstable, and 34% rely on financial assistance or unemployment benefits.
Consumers' new spending habits
According to Jungle Scout's data, 77% of consumers say that inflation has impacted their spending habits, while 72% make fewer "fun" or impulse purchases. Furthermore, 52% only buy discounted products or products on sale, and 51% have shifted to buying from generic brands.
Effects of inflation on e-commerce
The increased inflation rate also drove higher prices, from raw materials and supplies to labor and shipping. Because of the current economic status, several e-commerce businesses are compelled to decide whether to reduce inventory and/or charge more for their products to sustain profitability.
Higher prices, less available stock, and reluctant shoppers are the outcomes of inflation in the e-commerce world. This was evident when the median product price for coffee increased by 8% in 2021, and its overall revenue was down by 32%. Similarly, unit sales in the electronics category dropped by 25% last year while prices rose to 7% - something to keep in mind when selecting your new product category.
With competition rising, sellers are honing in on tools and resources to optimize their selling techniques, such as using Chrome extensions. Fortunately, various extensions are available for different uses, including product research, price tracking, deal hunting, or keyword research. A JungleScout article outlined some of the best Chrome extensions for Amazon sellers that you can discover below:
It simplifies the Amazon product research process by providing crucial product insights. These include product demand, sales history, Best Sellers Rank, competitive data, and profit projections.
A tool that monitors almost every Amazon product's price and sales history. This is useful for sellers conducting product research for private label, wholesale, or arbitrage because it displays the product's previous sales and price history.
A distinct tool that adds a revenue calculator to every Amazon listing. This enables online arbitrage sellers to calculate profit potential and view the product's BSR.
It is an excellent Chrome extension for online arbitrage sellers because it searches for better deals online. So, for example, if you want to list an item that is available on Walmart.com, PriceBlink will look for a lower price elsewhere.
As its name suggests, this tool expands your Amazon-suggested search results. This extension is helpful for private label sellers looking for more keywords in their listings and KDP booksellers looking for niche topics.