Before we bid adieu to 2023, let’s take one last rollercoaster ride along this year’s Amazonian exploits and ecommerce marvels. 🎢
From the unveiling of game-changing Amazon features to the pulse-pounding stats of big retail events, here are the biggest, hottest scoops we delivered to help you become better sellers this year!
BIG BITES 2023
Buy with Prime was extended to all US merchants
- From exclusive to expansive. On January 31, 2023, Amazon officially opened Buy with Prime to U.S. sellers.
- The fees? There are 4 charges included: a Prime service fee (3% of order value), a fulfillment fee (starts at $5.38/unit), a storage fee ($0.87/cubic foot /month), and a payment processing fee (2.4% of order value + $0.30). 💸
- Are the fees worth it? Using the program can increase conversion rates by 25%. So yep, they're worth it—if used wisely.
Amazon's slow growth in 2022 was revealed
- What's this about? Amazon's remarkable quarter-century of ecommerce success hit a speed bump last year, a report said. 🛑
- Did Amazon's sales fall? Yes. It reported $220 billion of first-party sales last year, 0.9% lower than that in 2021. Third-party sales also showed a slow growth rate from 56% in Q4 of 2021 to 59% in Q4 of last year.
- What's the challenge for sellers? Low profits due to the rising prices of goods, cuts in consumer spending, and increased advertising and fulfillment fees. But as we all know, the ecommerce titan rebounded just fine. 🏀
Must-knows about the Best Sellers Rank were released
- What is it again? Amazon Best Sellers Rank (BSR) is a metric that ranks products based on sales performance. The lower the BSR, the higher the ranking (and sales). ⬆️
- How is it calculated? BSR is updated hourly based on present and past sales trends, price changes, and market performance.
- How can you raise your rank? Start by improving your pricing strategy, revamping your listings through creative images and videos, and/or expanding your product catalog. 💡
Frequently returned items were flagged
- What's this about? In March this year, Amazon rolled out a policy that flags frequently returned items. Affected products will have warning labels to help buyers identify low-quality goods and counterfeits. 🚩
- How do you avoid being flagged? Provide accurate product descriptions, conduct strict quality checks before shipping, and—most importantly—never sell counterfeit goods.
- What if bad actors exploit this policy? Don't worry! Amazon said it'll track "serial-returners" who will either be banned or charged fees.
Products' monthly views were displayed in search results
- What's new? Amazon now displays the number of product visitors as "monthly views." But, not all can view this info, as the display availability varies based on the product, the product category, and the device used to search for the product.
- A random addition or a part of a bigger plan? We vote for the latter. Because before this new feature dropped, Amazon already started displaying the sales data of products to optimize search results and improve data transparency. ✨
- How does this benefit you and your customers? For you, it could be a new tool to increase conversion and click-through rates. For your customers, it can help them make informed decisions before buying a product.
Amazon battled fake review brokers
- What are fake review brokers? They create and sell fake reviews to deceive and harm consumers and honest sellers.
- Should you be worried? Yes—and wary too! If you fall into this scheme, your products can get unjustly banned from the platform. 😮
- What did Amazon do? Last year, it blocked 200 million fake reviews (out of 1.5 billion customer reviews) from these bad actors! The retailer also collaborated with private sectors, consumer groups, and governments to educate customers about review solicitation. 🤝
Amazon Prime Day 2023 shattered records
- How so? Amazon Prime Day 2023 was crowned the biggest 2-day sales event in Amazon history. 375 million items were shipped, and ad spending was 9% higher than last year. 👑
- A big win for Amazon, but… Sellers felt pressured into settling for lower margins to boost sales.
- So, was it a win-win? More like a so-so. There are definitely some challenges for the merchants, but those who participated got to increase their brand awareness and find new customers.
Secondhand selling made a comeback
- Amazon allows the selling of used items? Yes! When the retailer was still an online bookstore, it also sold used books. No wonder secondhand selling is coming back. 📚
- Why should you start selling used items on Amazon? For starters, you don't need a huge capital to do so. That means you'll pocket higher profits! But there are other benefits, including contributing to environmental sustainability and tapping new customer bases.
- How do you sell second-hand items? We put together a 7-step guide on how you can start. 😉
Supply Chain by Amazon launch
- What is it? Launched on September 12, 2023, Supply Chain by Amazon (SCA) is an end-to-end, fully automated service that allows you to transport products straight from manufacturers to customers anywhere in the world. ✈️
- How does it work? After you create a shipment on Seller Central, Amazon will take charge of the entire supply chain—from product acquisition to customer delivery.
- Why use it? SCA offers many perks that simplify your logistics operations, such as the Amazon Warehousing Distribution (AWD) service, which offers up to 80% lower costs than FBA.
Prime Big Deal Days started a holiday price war among retailers
- What happened? Despite a record-breaking sales performance, Amazon's fall Prime Day showed how consumer spending declined over time. ICYDK, 3 out of 5 buyers plan to minimize their holiday spending.
- How did this start a price war? To convince more buyers to buy, retailers need to offer the best deals possible. But while discounts fell like rain in the sky, profit margins hit the ground fast like raindrops. 🌧️
- What did sellers do about this? Most focused on planning strategic pricing schemes to reduce the impact on their margins. Some improved their inventory to brave the holiday rush.
Meta allowed Amazon shoppers to do in-app shopping on Facebook and Instagram
- It was a long-awaited collab. In early November this year, Meta rolled out the feature that allows Amazon buyers to shop on Facebook and Instagram without leaving the apps.
- How does it work? Shoppers just need to link their Amazon and Meta accounts. Then, they can shop for products featured on Amazon ads on both platforms. 📱
- What's in it for you? Nothing much—except you can maximize your reach on social media and leverage the targeting capabilities of Meta!
Cyber Week was a big hit
- DYK Cyber Week beat experts' "chill" predictions? It even went a little overboard with $38 billion in sales—a 7.8% increase from last year!
- How did that happen? You can blame the enticing discounts and exclusive deals for that. And also the Buy Now, Pay Later (BNPL) option, which customers took advantage of.
- "Keep calm and sell on" was the motto of sellers for Cyber Week 2023. As it turns out, the spirit of gift-giving trumps inflation (which is easing, BTW).