Many interesting moves are taking place in this new E-commerce era. August has been exciting, from Amazon’s groundbreaking partnership with TikTok to heated competition between major players like Shein and Temu. Welcome to the latest edition of our E-commerce Monthly News Update! Let’s dive into the top stories and how they might impact your business.
In this article, we will cover:
- Amazon And TikTok Partnership
- FBA Inventory Deadline For Holiday Sale
- Amazon Coupon Change
- Amazon New Bullet Point Rules
- Prime Exclusive Discounts
- New Digital Service Tax in Canada
- TikTok Shop Fee in UK Sellers
- Shein Vs Temu
- Alibaba AI-powered Product Sourcing Engine
- AI-Enhanced Reviews on Amazon
Amazon Teams Up with TikTok
In a surprising move, Amazon has teamed up with TikTok to offer a seamless shopping experience. Users can now discover and purchase Amazon products directly within the TikTok app without needing to leave the platform. This integration allows users to click on an Amazon ad in TikTok and buy products instantly.
The collaboration benefits both parties:
- Amazon gains access to TikTok’s young and highly engaged audience, particularly Gen Z.
- TikTok boosts its ad revenue while enhancing the shopping experience.
It’s a smart move, especially given TikTok’s focus on expanding its e-commerce features with TikTok Shop. If you’re selling on Amazon, this could open up a new avenue for product discovery and conversions through social media.
Amazon’s Holiday Deadlines and Fee Updates for Sellers
With big shopping events like Prime Big Deal Days, Black Friday, and Cyber Monday around the corner, Amazon has announced critical inventory deadlines for sellers. If you’re planning to participate in these events, mark your calendar:
- Prime Big Deal Days (October event): Inventory must arrive by September 13.
- Black Friday and Cyber Monday: The inventory deadline is October 19.
In addition to these deadlines, Amazon has introduced a peak holiday fulfillment fee starting from October 15 to January 14. This fee will apply across all fulfillment channels and product sizes, with a notable increase for items priced under $10.
New Coupon Options for Amazon Sellers
Amazon has rolled out a new feature that lets sellers control whether their coupons stack with discounts like percentage-off deals or “Buy One, Get One” offers. This can help prevent unintentional stacking of discounts, which sometimes leads to significant losses for sellers.
With this change, sellers have more control over which deals are applied at checkout, ensuring only the best promotions reach their customers.
Amazon’s Bullet Point Restrictions
Starting August 15, 2024, Amazon will enforce stricter rules on product listing bullet points. The platform is cracking down on using special characters, emojis, and certain phrases like “refund guarantees.” Amazon has even hinted at using AI to rewrite bullet points that don’t comply, so sellers might lose control over their listings if they don’t follow these new guidelines. This could be a good time to audit your listings to ensure compliance and avoid any future headaches.
Prime Exclusive Discount Fee
For sellers running Prime-exclusive discounts during major shopping events like Prime Day or Cyber Monday, Amazon has introduced a new $50 fee starting August 14, 2024. Previously, these discounts were free to run, but now, whether you have 20 or 100 products, you’ll need to pay this fee to participate. This fee change could impact your profitability if you rely on Prime-exclusive discounts to boost your sales.
New Digital Services Tax in Canada
Starting October 1st, Amazon will be adding a digital services fee for Canadian sellers, following a new tax regulation introduced by the Canadian government. Similar taxes have been implemented in countries like the UK, France, Italy, and Spain. If you’re a seller operating in Canada, expect to see this additional charge reflected in your seller fees.
TikTok Shop Fee Increase for UK Sellers
UK sellers on TikTok Shop should be aware that TikTok is increasing its commission fee from 5% to 9%, effective September 2nd. This significant hike could affect seller margins, so you’ll want to adjust your pricing strategy accordingly.
Shein vs. Temu: The Battle Heats Up
In a surprising twist, Shein has filed a lawsuit against its fellow Chinese competitor Temu, accusing the company of copyright infringement and building its business through fraudulent practices. Shein claims that Temu encourages sellers to copy other brands’ designs and won’t allow them to remove these products, even after admitting to copying.
Interestingly, Shein is also facing similar accusations from major brands like Levi’s and H&M, leading to a fierce legal battle. It will be intriguing to see how this rivalry evolves as both companies compete for dominance in the fast-fashion e-commerce space.
AI-Powered Product Sourcing
The world of e-commerce is becoming more tech-driven, and Alibaba is leading the charge with its new AI-powered product-sourcing engine. This innovative tool uses insights from over a million product listings to help B2B buyers find the perfect products faster and more efficiently. It’s designed to streamline the traditional sourcing process, which can often be time-consuming and complex.
If you’re in the B2B space, this tool could be a game-changer in helping you find the best products for your business quickly.
AI-Enhanced Reviews on Amazon
Lastly, Amazon is now using AI to vet product reviews before they are published. This initiative aims to reduce fake reviews and ensure genuine feedback is highlighted. While it sounds promising, only time will tell how effective the system will be, as AI isn’t always perfect.
Conclusion
August has been a whirlwind of e-commerce news, with new fees, AI advancements, and legal battles shaping the landscape. Whether you’re an Amazon seller, TikTok Shop vendor, or just keeping an eye on the fast-paced industry, these changes will likely impact your business. Stay tuned for more updates, and make sure to subscribe to our channel for the latest insights. See you next month!
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