Amazon News: 2024 Seller Fee Updates, Amazon to Expand Ad Services, Amazon Competes with Shein, and More
Amazon to Expand Other Ad Services After Announcing Exit from Ad-Serving Business
Amazon plans to shut down its ad-serving business, Amazon Ad Server, by Q4 2024, emphasizing a strategic shift towards areas like AI and machine learning. Despite discontinuing the ad server, Amazon's robust advertising business, with revenues exceeding $12 billion in Q3, reflects its strong position in the global digital ad market, accounting for 7.5%, and signals a broader strategy to invest in emerging technologies and advertising segments.
Amazon Fee Updates 2024
Amazon is set to increase fees for most sellers by around $0.15/unit, with adjustments more noticeable for sellers with inconsistent stock levels or new products. Sellers are advised to consider the "Ships in Product Packaging" program, maintain a balance between supply and demand, and note reductions in referral fees for apparel products under $20, effective as early as January 2024.
Amazon Inks Deal With IPG Mediabrands as It Spools Up Video Ad Business
Amazon has entered a three-year deal with IPG Mediabrands to strengthen its Prime Video ad business ahead of the planned launch next year. Prime Video will introduce limited ads in the U.S., U.K., Germany, and Canada early next year, expanding to additional countries later, reaching an estimated 115 million viewers monthly with "meaningfully fewer" ads than traditional linear TV channels.
Amazon Makes Another Attempt to Compete with Shein
Amazon may be buckling under the weight of fast-fashion retailer Shein's success. On Tuesday, Amazon announced it would reduce its seller fees from 17% to 5% for apparel under $15. Clothing priced between $15 to $20 will incur a 10% fee. The new rates will start in January. The move comes as Shein gains market share and recently filed to go public. Several retailers are trying to compete with Shein.
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Post from Laura Meyer :
The annual fee update email from Amazon has arrived, here’s what to know:
Fee Hike: Most sellers will see a fee increase of about $0.15/unit. If you’re well-stocked (think 4 weeks’ worth), this might not be a big deal. But for those with fluctuating stock or new products, expect to feel the pinch.
Smart Moves: Consider the “Ships in Product Packaging” (SIPP) program to cut costs. Keep your inventory balanced; aim for 45 days’ stock per product. Amazon’s going to charge for low inventory, so staying stocked is key. There’s some relief with reduced non-peak storage fees from January to September.
Apparel Sellers: There’s a big drop in referral fees for lower-priced items. Think 5% instead of 17% for items under $15. This is Amazon’s way of staying competitive with budget fashion retailers like Temu & SHEIN.
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Post from Harley Finkelstein :
After Black Friday Cyber Monday, is holiday shopping over? According to our latest Shopify-Gallup Holiday Shopping Pulse Survey, the answer is: no.
Holiday shopping isn't slowing down; 53% of shoppers under the age of 50 plan to do the bulk of their buying in December. This is on top of seeing the trend of deals starting earlier than ever before. Holiday shopping is clearly a marathon - not a sprint.
Checkout all the other trends we found out for holiday shopping, including who is most likely to shop late, on our latest survey...
Post from Jeffrey Cohen :
Are we witnessing the development of the Amazon Sports Network? Live sports is clearly a direction that Amazon Prime is headed, and for good reason. Overall, advertisers should be thrilled at some of the latest developments at Prime Video & Amazon Studios and what it means for reaching new audiences.
Beginning in 2025, NASCAR is coming to Prime Video. Prime Video will exclusively stream five NASCAR Cup races annually during this seven-year partnership.
This year, we marketed the 2nd year of Thursday Night Football and the 1st every Black Friday Football Game.
Prime Video and the Women’s National Basketball Association (WNBA) extended their existing multi-year agreement.
Starting in 2024, Amazon Prime Video will move to an ad-supported model, providing opportunities for brands to engage with new audiences via the Amazon Originals and MGM movies.
Post from Julia Malachowski :
Exciting News for Amazon Sellers!
Amazon is thrilled to introduce the European Expansion Accelerator (EEA), a game-changing offering designed to empower sellers to effortlessly expand their businesses across all EU marketplaces with just two clicks!
What's in it for Sellers?
Say goodbye to the complexities of expanding your reach! With EEA, sellers can now access a single page in Seller Central, identify untapped markets, and with just two clicks, initiate an automated process that handles account registration, setup, translations, listing, shipping configuration, product eligibility checks, and catalog customizations within three business days.
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