Amazon Accelerate Takeaways
Amazon Accelerate is the company’s yearly conference where they unleash all the newest tools, gadgets, programs, and other goodies to sellers.
Since it’s Amazon’s equivalent to an Apple product release, it’s always fun to recap the big takeaways. Here are the 2023 highlights.
1. Supply Chain By Amazon Announced
Supply Chain by Amazon is touted as an end-to-end supply chain program that will “Combine services through Amazon Global Logistics (AGL), the Partnered Carrier Program (PCP), Amazon Warehousing and Distribution (AWD), Fulfillment by Amazon (FBA), Multi-Channel Fulfillment (MCF), and Buy with Prime. You’ll enjoy optimized inventory placement, automated replenishment for your sales channels, and reduced costs for shipping and storage.”
The program promises to reduce seller costs and make selling easier.
Here are my initial thoughts and observations.
- It seems they’re repackaging a number of their already existing services under a new umbrella term.
- I think this is a preliminary move to showcase their dedication to easing the sourcing and selling process as markets expand.
This makes a fair amount of sense given the recent shakeup in supply chains, and the prediction we’ll soon be seeing sourcing from different locations other than China.
Still, services are only available in the U.S. at the moment, but global expansions are in the works.
After all, the more Amazon can reduce risks of counterfeit products, delayed shipments, and poorly-manufactured goods entering their warehouses, the better, right?
- This might be a competitive move against companies like Nineyard.com who are already offering an “all in one FBA shipping solution.”
Honestly, it’s a little too soon to say what this will turn into in the long run.
I’ll be keeping an eye on it, though.
2. New and Improved Tools for Sellers and Shoppers
Amazon is enhancing its user experience by investing in a handful of new tools to help both sellers and shoppers alike.
- View in Your Room – This improved feature uses augmented reality (AR) to let shoppers view how certain items will look in their actual living spaces.
A sofa in the corner?
Wall decor for the bathroom?
Shoppers can even use the AR to preview products on their kitchen counter, bathroom vanity, etc.
The feature isn’t available for all products, but it should improve conversions and cut down on exchanges and returns.
- Fit Insights Tool – Amazon’s new Fit Insight tool will use AI to analyze product reviews, size charts, and customer feedback to suggest changes to a listing’s fitting chart.
This will mainly impact those selling apparel and will help both shoppers and sellers by reducing the rate of returns and exchanges, which are traditionally higher with clothing than in other categories.
- Buyer Abuse Protection – Amazon’s always had an “audit system” of sorts for identifying fake and fraudulent reviews.
When they suspect fake reviews, they’ll hold them for evaluation and then only allow vetted reviews back on the listing.
Amazon announced upgrades to its ability to determine fake reviews from real ones, with the capacity to vet reviews in real time.
This is a win for sellers as it will cut down on fake reviews from competition.
Federal Trade Commission Sues Amazon for Being a Monopoly
The Federal Trade is a U.S. agency whose job is to “prevent fraudulent, deceptive, and unfair business practices.”
The agency, along with 17 states’ attorney generals, are suing Amazon for its alleged monopoly power, claiming the company “artificially inflates” prices and creates unfair competition across Amazon and e-commerce platforms.
An FTC spokesperson claimed, “Today’s lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition.”
My thoughts? I’m not losing sleep over this.
First, a lawsuit of this magnitude is destined for years of litigation, so any resulting impacts would take even longer.
Second, from what I understand, one of the FTC’s main arguments is that Amazon makes it too difficult for Amazon sellers to profit due to the obligation to use the company’s expensive fulfillment services.
That said, assuming a successful lawsuit would relieve those burdens, wouldn’t small sellers like you and I come out on top? Food for thought.
Increased Fulfillment Fees Begin October 15 and End January 24th
Amazon’s increased fulfillment fees take effect on October 15th and will last until the end of January 2024.
Amazon explicitly states “Even if you do not have a deal planned for peak, assume that you will receive higher than normal volumes as a result of increased traffic to Amazon.”
The company also announced it’s hiring a quarter of a million seasonal U.S. workers to keep operations running as smoothly.
Prime Day to Take Place October 10th and 11th.
Amazon recently announced their second two-day Prime Event for 2023 will take place on Tuesday, October 10th, and Wednesday, October 11th.
The announcement comes after the success of record-breaking profits this past July.
Sellers in my Amazon Wealth Accelerator skyrocketed their sales during the summer event.
Make sure to stay tuned for next month for an update on their performances!
Is South America the New China?
My team and I are continually researching new markets to source Amazon products from.
We’ve found some interesting anecdotes that uphold our assumptions that there are untapped sourcing opportunities in Central and South America.
First, according to several articles published last month, Mexico has officially overtaken China as the U.S.’s top trade partner.
The info comes as no surprise as companies and governments continue to abandon business and trade ties with China; the result of a multitude of geo-political factors and an on-going U.S.- China trade war.
I predict the trend will continue.
Second, we’ve recently stumbled upon an Alibaba-like website that sources products from Mexico and South America.
Zipfox.com is a California-based website that boasts itself as a nearshoring option for sourcing e-commerce products from south of the border.
While I haven’t used it personally, it’s exciting to see a non-Chinese option for sourcing. Odds are this is the first of many. We’ll keep an eye out!
Are You Ready to Start Selling on Amazon?
My Amazon Wealth Accelerator (AWA) mentorship guides you through the entire Amazon FBA process and provides a community of support with others on the exact same journey.
You’ll get hands-on support from experienced sellers with your same goals and aspirations.
AWA gives you a much-needed safeguard from costly mistakes, dead ends, and failed product investments to efficiently reach your passive income goals.
So whether it’s solving issues with your Seller Central account, creative approaches to product research, scaling to new markets and niches, validating product ideas, customer service issues, and more, we’ve got you covered.
Learn more about it here.
