Several quick commerce firms are in hot waters due to violations of labeling regulations. This shows how strict authorities are in ensuring brands’ compliance in declaring relevant information in product packaging.
Likewise, other agencies are also showing their fangs against equally appalling issues: fraudulent reviews. Read on to learn more about new regulations against these unethical matters.
- FTC’s new anti-fake review rule 🚫
- Your best holiday companion 🧑🤝🧑
- Amazon’s low-cost store requirements 📂
HOT TOPIC
ICYDK, the Federal Trade Commission’s (FTC) new rule banning fake online reviews took effect last October 21. As reminded by The Associated Press, the rule renders buying, selling, or posting fake reviews on platforms like Amazon illegal.
⛔ What’s the new rule?
The rule prohibits businesses from using the following:
- Reviews from people who don’t exist or have never used the product;
- Reviews generated by AI or written by company insiders; and
- False claims that mislead potential buyers.
In a nutshell, this new rule aims to help honest sellers thrive by cleaning up fake reviews and building a fairer marketplace.
- Fair competition. You no longer have to compete with sellers who use fake reviews to boost sales. 🥊
- Better customer trust. Shoppers can rely on real reviews to make more confident purchases.
- Steering away from penalties. Following the rule against fake reviews keeps you safe from fines or legal issues.
- Growth opportunities. Healthy competition pushes sellers to improve their products and services.
🎁 FTC’s new rule is one of the best holiday gifts you’ll receive. Not only will it protect your reputation, it’ll also open up more opportunities for you to succeed in a market built on trust and transparency.
TOGETHER WITH SELLER ALLIANCE
Make your holidays merrier and easier by joining this supportive seller community
Selling on Amazon isn’t easy. Whether you’re just starting out or have years of experience, the challenges are real and it’s easy to feel stuck.
But you don’t have to go it alone. You’ve got the drive—now it’s time to join a community that will fuel your success!
This is where Seller Alliance steps in. This community, powered by industry experts who've built 8-figure brands, is designed to help you grow and succeed.
👫 What’s in it for you?
- Access FREE, valuable resources, tools, and templates from Seller Interactive.
- Receive expert advice and personalized coaching from seasoned professionals.
- Take advantage of courses and modules to learn skills that boost sales.
- Get announcements, information, and insights to stay ahead of market trends.
🫂 Selling on Amazon is challenging, but it could be an enjoyable, profitable journey. The key is to surround yourself with a community of sellers who’ve been where you are and who are ready to help you thrive.
BITES OF THE WEEK
- Restricted Reselling: Amazon resellers will have it tough with Amazon's new restrictions.
- Sellers’ Share: Track your market share to see how much you contribute to Amazon's total sales.
- Strength in Community: Don't weather the storm of Amazon updates and restrictions alone—join Seller Alliance!
AMAZON NEWS
Amazon releases low-cost storefront requirements
It hasn’t been long since Amazon announced a new low-cost storefront to compete with Temu and Shein. And although experts even said it may not be a good idea, the plan pushes on full steam ahead.
According to Marketplace Pulse, some sellers have already shipped inventory to Amazon’s China-based warehouses based on the recently revealed rules and regulations for the storefront.
What you should know about the low-cost storefront
📌 Selling must-knows
- It’s invite-only. ✉️
- Seller fulfillment is not available. Amazon fulfills all orders from inventory stored in an Amazon-operated fulfillment center in Dongguan, Guangdong province, China.
- Sellers must list all products with a brand name of “Generic.”
- Items are not part of the regular Amazon search and must be accessed as a separate storefront via the Amazon app.
- The return window is 15 days from the date of item delivery.
- Important note: Products priced at $3 or less won’t be eligible for buyer returns.
- Returned items will be liquidated and not sent back to the seller.
- If liquidation isn’t possible, inventory will be sent for donation or disposal. 📥
- Fulfillment fees:
- $0.50 for products weighing 4 oz. or less and priced under $3
- $0.99 for apparel items weighing 4 oz. or less
- $0.88 for non-apparel items weighing 4 oz. or less and priced above $3.
- Products above 4 oz. start at $2.05 for apparel and $1.77 for non-apparel; the fees increase based on weight.
- Also, there’s a $0.40 per cubic foot per month storage fee.
📌 Item limits
- Items must not exceed 1 lb. in weight or 14 x 8 x 5 inches in measurement.
- They must not contain batteries, must not be ingestible (yep, food items are a big NO), or must not be intended to go on the skin topically.
- Items that require additional documentation for cross-border compliance (like baby, children’s, or pet products) aren’t allowed (for now).
- Items have maximum eligible price points at the product-type level (nearly 700 types). The most expensive categories are at $20.
- Listings above those price points will get deactivated. ❗
- Listings can only be created using the spreadsheet upload tool. Creating or editing listings using the List Your Products tool or Listing APIs is not supported.
The report also hinted that Amazon is doubling down on brandless commerce. Without the opportunity to build a brand, this new storefront may not be suitable for U.S. sellers.
What do you think? Will you want to sell on the new storefront?
