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Amazon’s soon-to-launch low-price storefront will rival Shein and Temu

It’s the first day of July and that means we’re officially halfway in 2024!

Were you able to finally turn your business around? Or do you need more time to get that breakthrough you’ve been eyeing?

Regardless of where you are now, we believe that you’re on your way to a great milestone soon. But first, here are some hot ecommerce news to start your week right.

POST OF THE WEEK

BIG IDEA

So after the rumors about Amazon building a ChatGPT competitor, it seems like the ecommerce giant is now targeting their next competitors.

Their next big move? Building a low-price storefront.

TechSpot reported that the plan is to feature low-priced fashion and lifestyle goods products of sellers from China.

Sounds familiar? Well, it is—because it’s Amazon's way of taking inspiration from Shein and Temu. Also, it’s the retailer’s response to their attempt to snatch the online retail crown. 👑

What’s the plan?

Amazon announced this latest move at an invite-only conference for their target sellers.

  • The new storefront will let sellers from China ship their items directly to U.S. consumers, similar to Shein and Temu’s model. Delivery will be within 9 to 11 days.
  • Low-priced unbranded products like phone cases and facial massage tools will be available for under $20.

While the exact launch date for the new storefront isn't set yet, Amazon plans to start accepting products this fall.

💭 Sellers’ sentiments

Amazon’s big move has sparked different reactions within the ecommerce community.

  • Many see Amazon's move as important to stay competitive against Shein and Temu's growing influence in the market.
  • Some are concerned that this could disadvantage U.S.-based sellers struggling with lower-priced Chinese competitors. They question whether Amazon's strategy will maintain a fair playing field for all sellers.

🌍 This bold step by Amazon is set to shake up ecommerce. So, you should keep a close watch on how this unfolds—it could reshape the competitive landscape in the months ahead.

TOGETHER WITH SMARTSCOUT

Tool features every Amazon seller needs to speed up business growth

Selling on Amazon is overwhelming enough. But what they don’t tell you is how equally overwhelming tools for sellers are!

Of all the recommended tools out there, which should you invest in?

As a new Amazon seller, we recommend SmartScout. It’s the perfect tool to have, especially if you haven’t done your product research yet. This is the first step to selling on the platform, so if you have a trusty tool for that, then everything else will follow.

What can you do with SmartScout?

  • Explore all Amazon’s categories instantly

Imagine being able to explore all 25,000 subcategories on Amazon without hassle. Well, SmartScout makes this possible with its easy-to-use file directory system. It allows you to quickly analyze products and brands in related subcategories, enabling you to find the most profitable categories to sell in. 

  • Get realistic estimates with the Amazon FBA calculator

Amazon handling order fulfillment for you is a big burden off your shoulders. But have you ever felt like FBA fees are holding you back? This tool gives you a crystal-clear view of those fees. Make sure that you’re not overpaying for FBA services and maximize your earnings with the FBA calculator!

  • Know the “frequently” profitable items

SmartScout’s Traffic Graph feature reverse-engineers Amazon’s recommendation engine to help you understand competitor traffic. Moreover, you can use it to identify "frequently bought together" products and locate the best ad spots.

  • Scrutinize a product’s true potential with a UPC Scanner

This tool eliminates the tedious task of analyzing products one by one. You can import entire product lists with an Excel file and instantly identify the most profitable items.

  • Bonus: User-friendly Interface

SmartScout stands out with its simple yet sophisticated design, enhancing the user experience. This design choice ensures seamless navigation, allowing users to focus more on extracting insights from the data rather than wrestling with the interface.

We’re making it even better for you!

SmartScout has partnered with SellerBites to give you a 25% DISCOUNT for the FIRST 3 MONTHS. See how you can use their services to your advantage.

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BITES OF THE WEEK

BLACK MARKET

Why did Amazon block a seller's listings overnight?

Imagine you've been an Amazon seller for over 10 years with spotless account health. Everything is smooth sailing until one morning, you wake up to a listing removal notice. 🪧

This scenario pushed one seller over the edge, leading them to ask for advice on Seller Central.

📧 What was the problem?

The seller (OP) received an email containing the removal notification and the following information: 

  • There are new restrictions for listing Shoes, Handbags, and Sunglasses. Starting August 2, 2024, they cannot list these products, and existing listings will be removed.
  • The removal of listings does not affect the OP's account health.
  • OP is not approved to list these items, and the application for approval is currently closed.
  • If OP believes their products were misclassified, they were advised to appeal for review.
  • If no action is taken, the listings will not be available for sale.

The restriction caught OP off guard, causing significant strain on their business. They reached out to Seller Support but were met with generic responses and no clear solutions. Unfortunately, other sellers in the thread were also unaware of what had happened.

The resolution

In an unexpected turn of events, OP reported that all restrictions had been lifted a week later—but withoutany explanations. While it's unclear if this was an error on Amazon’s part, the situation simply resolved itself, much to their relief.

Moral of the story: Always double-check!

✅ To avoid similar problems in the future, always double-check if your product categories have special requirements. Even better, keep yourself updated with Seller Central updates and join seller communities for help and advice.

SELLER REFRESHER

ICYDK: You need a new UPC for value-added features of your products

It’s Prime Day month! This means you gotta put your full effort into making your offers attractive to shoppers.

One way to do that is to enhance your existing products through value-added features. If you plan on doing this, you should be reminded that you need a new Universal Product Code (UPC) for the improved version

🏷️ Wait, what’s a UPC again?

UPC is part of a “complete” barcode (UPC + GTIN) that helps identify and differentiate a product. Most retailers, including Amazon, require UPC for products to be sold.

Another important reminder: You can’t use the same UPC.

One seller sought help on Seller Central about how to create a new listing of their “base” product + new feature. Since the base product already has a UPC, they thought they could use the same as the added feature doesn’t change the base product.

However, another seller highlighted that a new listing requires a new UPC. An Amazon rep also informed the seller that the UPC/listing already exists.

📝 Quick refresher

If you’re a bit stressed out to ‘reminisce’ that process of creating a new listing, here are the straightforward steps:

  • Go to Seller Central.
  • Click “Add a Product.”
  • Select a product category.
  • Enter product information, including the new UPC.
  • Submit the form.

Easy peasy, right? If you still have questions, you can always post them in seller forums. Other sellers and Amazon reps are always ready to help.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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