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#125 - Amazon Hits Record Low, AI is The New Third-Party Seller, and more

Amazon fulfilment center
Welcome to a world of Amazon news! Thank you for pausing from your busy day to read the #125 issue of FBA Monthly news. A curated digest of timely, must-read posts, the FBA Monthly news provides an in-depth look at the latest content from Amazon space. Enjoy reading!

Hot News

According to Marketplace Pulse research, 48% of the top third-party sellers on Amazon’s marketplace in the U.S. are American businesses. 48% is the lowest it has ever been. The recent high was 55% in March 2022, which it reached from the previous low in November 2020. The analysis was done on the top sellers because they represent a major share of the GMV and, as a group, are more informative than the total set of sellers.


Amazon, Shopify and eBay are all rolling out generative AI tools to write product listings for third-party sellers. These platform-specific AIs and broad deployments such as OpenAI’s ChatGPT can “see” an image and write persuasive marketing copy to sell it.


It may seem counterintuitive, but some sellers are listing unbranded products on Amazon, which the marketplace allows them to do by entering “Generic” as the brand. Not only is it allowed, but Amazon is helping such sellers with a new policy change.


Good to Know

Amazon’s massive third-party seller base anxiously anticipated the Federal Trade Commission’s antitrust complaint, which was years in the making. On an Amazon-run forum for sellers, merchants cheered the case. But not all sellers are in support of the lawsuit, and some are skeptical about the future outcome.


New Hampshire is one of 17 states suing Amazon.com, Inc., according to state Attorney General John M. Formella. The suit alleges the online retail and technology company is a monopolist that uses a set of interlocking anticompetitive and unfair strategies to illegally maintain its monopoly power.


“The intent of the program fee was to cover Amazon’s costs required to develop and run the program,” Amazon said in its announcement to sellers. “After careful consideration, we’ve made the decision not to implement this fee to ensure sentiment related to the fee does not impact program participation.”


New research from Amazon has found that 70% of owners of small and medium enterprises (SMEs) in Europe lack confidence on how to scale their businesses online1. This is despite the majority recognising the value and growth potential of digitising their businesses.


The rise of eCommerce has transformed the way consumers shop, and retail giants like Amazon and Walmart have capitalized on the shift by providing third-party marketplace solutions. These platforms give SMBs access to an extensive customer base and equip them with a range of tools and insights to maximize their customer outreach.


CEO Gilad Freimann believes it’s the best time for Amazon sellers to leverage influencer marketing in order to expand their business. Gilad announces VAA’s partnership with Amzbassador to provide software and workforce solutions that help Amazon Sellers maximize their sales potential.


Amazon and Walmart are targeting consumers who splurge on nonessentials. Amazon is accustomed to enticing customers as it faced challenges during last year’s Prime Day event, which included inflationary pressures. According to a PYMNTS Prime Day 2022 report that surveyed 3,245 shoppers, spending on Prime Day 2022 increased by 40% to $175.


Amazon explains the program as follows: “Amazon Vine is an invitation-only program which selects the most insightful reviewers in the Amazon store to serve as Vine Voices. Vine Voices have the unique opportunity to order items free of charge and share their product experiences with Amazon customers to help them make informed buying decisions.”


Companies want to have an installed base of avid users — enthusiastic buyers who remain loyal, transact frequently and don’t need much outreach in terms of marketing and promotion. These customers help margins. To monetize its ecosystem of customers, Amazon is testing a new feature on its app — “Buy Again” — that is designed to prod users to repeat purchases.


A seller shared a screenshot that shows Amazon continues to offer USPS First Class shipping labels, even though it’s been deprecated, alongside the option to print USPS Ground Advantage (GA) shipping labels.


Tips and Tricks

Amazon are updating their program policy for how Amazon product visibility works, to explain how they highlight products that customers may be interested in based on factors such as related products and customer reviews. These changes will come into effect on the 11th of October 2023.



Ever wondered how to make the most of the ‘Honeymoon’ period when you first start selling on Amazon? Or how to get people to organically search, find, and buy a product without breaking Amazon’s terms of service? Tune in to the latest episode of Serious Sellers Podcast, as our host, Bradley Sutton, unveils the intricacies and updates to the Maldives Honeymoon Launch Strategy, along with his prelaunch plan, the Bali Blast Strategy.