Global Amazon sellers constantly optimize their strategies and explore international markets, so the competition for sales is constantly increasing. Therefore, staying up-to-date with the latest changes in Amazon seller news is essential for maintaining a successful business. Here are some key trends and changes impacting Amazon sellers in 2023.
Amazon Sellers Fee Changes
Changes in sales fees can have a significant impact on sellers. Amazon regularly reviews its rates and may adjust them as needed, so sellers should stay informed about any changes to keep their Amazon business profitable. These changes may include order fulfillment fees, referral fees, or additional fees for special services such as storage, order processing, and more. All these changes can affect a seller’s budget and potentially lead to increased costs if not managed properly.
Amazon FBA (Fulfillment by Amazon) is a program that allows sellers to store their products in Amazon’s fulfillment centers, from which they can take advantage of numerous benefits. These include access to Amazon’s customer service and logistics network, free shipping for orders shipped within the U.S., reduced shipping rates for orders going overseas, faster delivery times, simplified returns processing, and reduced supply chain disruptions. Additionally, by using the Amazon FBA program, brand owners can increase brand awareness and achieve a higher ranking in the search results, as their products will be listed at the top.
Amazon is a preeminent force among eCommerce platforms, attaining its stature primarily through fostering an efficient environment for commerce and shopping. It has become an essential resource for those looking to buy or sell items online, providing brand owners with cost-reducing services and programs for storing and shipping goods.
FBA Storage Fees
Since early January 2023, Amazon FBA sellers have seen a continuous rise in prices.
· The monthly off-peak storage fee (January to September) grew by 3–4 cents per cubic foot. Peak storage fees (October to December) grew by 20 cents per cubic foot for its non-sortable network.
· Since February 17, FBA outbound fee rates have increased by an average of $0.22.
· Starting on April 1, 2023, sellers with a higher relative storage cube of stock than their recent weekly sales will be subject to an overstock penalty. This penalty is for Amazon sellers who have worsened inventory or sales levels.
· Amazon will increase the surcharges applied to inventory stored between 271-365 days, effective April 15, 2023.
· Starting April 15, 2023, Amazon will impose a surcharge on items held in stock for 180-270 days. This does not apply to products in apparel, shoes, bags, jewelry, and watches categories.
Besides, Amazon introduced a new FBA capacity limit to optimize inventory management. They have combined restocking and quarterly storage limits into one monthly metric – the FBA capacity limit. This new limit determines how much inventory can be stored in FBA centers.
For more information about FBA Storage Fees, visit Amazon Seller Central.
FBA Fulfillment Fees
Amazon Fulfillment Fees are the charges imposed on sellers for using Amazon’s services to fulfill customer orders. This service includes everything from picking, packing, and shipping goods to providing customer support and managing any returns. The fulfillment fee is calculated per unit of product sold.
The shipping weight for all large standard and oversize items (excluding special oversize items) is determined by taking the greater of the unit’s actual weight or its dimensional weight.
FBA fulfillment fees (non-apparel)
Amazon charges FBA fulfillment fees ranging from $3.22 for small standard items to $158.49+ for special oversize non-apparel items. The following table enumerates the exact Amazon seller fees in detail.
FBA fulfillment fees (apparel)
Amazon charges an FBA fulfillment fee ranging from $3.34 for small standard items to $158.49+ for special oversize apparel items. The following table enumerates the exact Amazon seller fees in detail.
Fulfillment fee changes for dangerous goods
As this category of products requires special handling during packing and shipping,
the cost per job will be higher for Amazon sellers. Dangerous goods fees vary from $4.19 to $179.28+ depending on the product’s shipping weight.
For more information about FBA Fulfillment Fees, visit Amazon Seller Central.
Amazon small & light increased the maximum price to $12
Selling all sorts of “little things,” low-cost and small items, is incredibly profitable. Due to recent changes, the Small and Light program has become more accessible to more Amazon sellers. First, the item price for eligible products increased from $10 to $12 or less. Second, the size tiers have been adjusted:
small standard and large standard 1 lb and under is divided into 4 oz increments;
large standard over 1 lb is divided into 0.5 lb increments.
Unit fees are based on the weights and dimensions of products. Please note that larger standard-sized units will use a larger unit weight or volume weight, whereas smaller standard-size units will use the unit weight.
Test your products for compliance to get more profits. Your product qualifies for the Small and Light program if it has the following characteristics.
If Amazon sellers explore new markets, build brand loyalty, and expand the reach of their product lines, the Small and Light program is the ideal tool for boosting Amazon’s business.
Each Amazon seller must be ready and dynamic in responding to all price swings and changes in Amazon’s pricing policy. The price of your product should remain competitive but not unprofitable. Amazon is creating a comfortable retail environment and offering many FBA services to reduce checkout costs, increase customer loyalty, enhance scalability, and enable multi-channel selling.
Analytics software for sellers can help you find the right program for your product to make data-driven decisions. My Real Profit is an easy-to-use analytics solution for Amazon sellers that displays all hidden costs in a single table and provides key insights which can help you constantly optimize your product costs and drive sales. My Real Profit focuses on Amazon sellers’ profits and reduces the manual labor involved in running an online business. The advantage of this software is that it automatically tracks all fee changes, and you can instantly see how these fee changes impact your profits. My Real Profit allows sellers to focus on other areas of their business.
PPC product analytics for Amazon sellers
Amazon ads are growing at an incredible rate. Over the past few years, Amazon has become the third digital advertising company after Google and Meta and the first among other eCommerce platforms.
If you want to succeed on Amazon in the coming years, a comprehensive Pay-per-click (PPC) management strategy is essential. Amazon’s PPC enables brand owners, agencies, and third-party sellers to create ads for their products using target keywords that appear in search results and other product listings. With this feature, companies are better equipped to reach and convert more customers with their products.
PPC product analytics is a must-have report to be used by any seller on Amazon in 2023. These reports provide valuable information about the product’s performance and where opportunities for optimization exist. Sellers can use this data to make Amazon advertising budgets, manage rates, adjust keywords and phrases, and decide whether a product needs rebranding or additional marketing efforts.
Search Query Performance
Amazon’s Search Query Performance Tool (SQPT) is an invaluable service for sellers to optimize their search visibility. Using the SQPT, Amazon sellers can set specific parameters such as target keywords, price range, and customer rating preferences that enable them to optimize their campaigns accordingly. Additionally, they can monitor impressions and click-through rates to gauge the success of individual terms or phrases.
Another key feature of the SQPT is its ability to monitor trends within data sets. It allows users to identify changes in user behavior over time which could indicate potential opportunities for increased efficacy and better ROI performance from campaigns. With this new feature, sellers can develop more comprehensive marketing strategies tailored to their unique product offerings and customer segments.
Mobile App sessions
The global population is shifting increasingly towards mobile devices and tablets for online shopping, and all Amazon sellers need to keep up with these trends to remain competitive. With powerful functionality, Amazon Mobile Sessions furnishes retailers with invaluable information to improve their offerings for mobile users.
Amazon sellers can track customer behavior across platforms such as smartphones, tablets, and other devices, using app Sessions breakdown data. Sessions data also allows marketers to analyze data collected during mobile customer visits to determine how to optimize product content to increase conversions on mobile devices.
According to data from the 2019 E-commerce Year in Review infographic, 63% of traffic to retailers and 53% of sales happen via mobile. Mobile productivity on marketplaces only increased in 2023. That is why optimizing your content for mobile devices should be a priority. Make sure your Amazon store and offers are formatted correctly for these users, so you do not miss out on any potential.
Sponsored brands attributed products report
The world is moving towards globalization, and this trend has been reflected in digital marketing. Amazon advertising companies are not meeting the needs of major brands and medium-sized businesses have the potential and desire to drive sales and revenue. That is why most brands’ advertising campaigns have moved beyond Amazon, using multiple channels (Google, TikTok, YouTube, Facebook and Instagram, and other social media sites) to deliver marketing messages and offers.
The Sponsored Brands Attributed Products Report (SBA Report) can provide Amazon sellers with valuable insights regarding their ad spend. The report tracks the performance of sponsored product ads, CPC, and overall sales for each product listed. With this data, sellers can make informed decisions on which products to continue investing in, which ones to reduce their advertising costs on, and how to optimize their campaigns to generate more revenue. Sellers must track data regularly to stay competitive and increase sales.
Amazon Attribution is available to professional sellers, vendors, and brands registered with Amazon Brand Registry, as well as agencies that have clients selling products on the platform.
In 2023, the SBA Report will be even more valuable, providing data-driven insights into how well products are selling across different channels and identifying prime early access sale opportunities for Prime members.
Amazon Inspire
To keep up with the fast-growing trend of short-form videos on social media platforms like Facebook and Instagram, Amazon has unveiled a new feature – called Amazon Inspire – that enables customers to access similar content within its Shopping app.
Amazon Inspire is a convenient new feature within the Amazon Shopping app, providing customers with a unique combination of videos and images tailored to their interests. It allows buyers to access content from brands and influencers in one feed. Brands also benefit from this platform because it gives them to attract the attention of more potential customers to their products.
Conclusions
Follow the latest Amazon seller news and key trends to stay on track and pump up your Amazon store. Amazon offers a wide range of services to help small&medium businesses and major brands to make their mark in the eCommerce space.
To be on top of Amazon sellers in 2023, you should familiarize yourself with Amazon’s business model and the latest tools available for sellers. The efficient use of app Sessions, SBA reports, Amazon Inspire, and other Amazon features will help you gain insights into customer behavior and take your business strategy to the next level. Use these tools and stay abreast of changes in the Amazon business.
If you do not know how to boost your Amazon sales, optimize your product detail page, have no time to collect and process all the Amazon reports, need full real-time analytics for every product, and this information is not available on Seller Central – use My Real Profit Analytics Software for Amazon sellers.
The automated software provides objective and accurate data based on dozens of reports that update every 30 minutes. My Real Profit gets metrics that give insights into business performance and allows Amazon sellers to explore new strategies to help them stay ahead of the curve, including expanding into international markets and bringing their brand to new eCommerce platforms.
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