Changes on e-commerce platforms like Amazon happen often. Sometimes, it’s hard to keep up with all the updates. However, staying up-to-date with these changes will make your selling journey easier and sometimes risk-free. In this article, we’ll discuss the important updates that happened on Amazon and other platforms in December 2023. From TikTok Shop strategies to Multi-Language Videos on Amazon, there’s a lot to explore.

A quick view into the article:

• Aggressive Strategy of TikTok Shop
• Changes in Amazon FBA Fees
• Amazon Prime Video Ad-Free Plan
• Shoppable A+ Content Module
• Improved Live Chat Support
• Multi-Language Videos on Amazon Listings

Aggressive Strategy of TikTok Shop

TikTok Shop is an e-commerce solution integrated within TikTok. It enables merchants and creators to showcase and sell products for the TikTok community to discover and purchase directly through a complete in-app experience. It is a rising star in the social media universe and is making waves as it steps into the e-commerce platform. TikTok Shop has been enticing sellers aggressively by offering attractive deals – they waive fees, cover shipping costs, and provide tempting discounts to attract sellers onto their platform. One striking part of their approach is covering shipping expenses and absorbing discounts up to 30%, even while paying the full product price on each sale. This offer, when compared to fees on big platforms like Amazon, seemed almost too good to believe.

However, there’s a catch: to enjoy these offers, sellers must create and post numerous product videos regularly on TikTok. This condition highlights TikTok’s heavy focus on video-based marketing. This emphasizes how sellers need to engage with this medium to benefit from the platform’s incentives. All these will potentially boost product visibility and interaction within TikTok’s environment.

In reality, TikTok is attempting to take on Amazon and attract more vendors and users. There may not be an immediate threat to Amazon, though, given that customers do not yet fully trust TikTok’s platform and its shipping is slower than Amazon’s. However, they employ an obvious and aggressive marketing strategy. TikTok Shop is paving an entirely new way for brands to authentically connect with creators and communities to grow their business and drive meaningful shopping moments.

Changes in Amazon FBA Fees

Amazon recently announced its fee adjustments for 2024. These updates will bring changes to the Inbound Placement Service Fee and Outbound Fulfillment Costs. These alterations include reduced fees for specific product categories and the introduction of new inventory-related charges. In their announcement, Amazon highlighted their commitment to offering sellers value while collectively reducing costs. They anticipated an average fee increase of $0.15 per unit sold for sellers, yet also expected that some sellers might experience decreased fees per unit. Notably, Amazon emphasized that their fulfillment fees would remain substantially lower—averaging 70% less expensive than comparable two-day shipping methods provided by major third-party logistics providers.

The new changes introduce an inbound placement service fee for standard and Large Bulky-sized products. These fees, expected to commence on March 1, 2024, will average $0.27 per unit for standard-sized products and $1.58 per unit for Large Bulky-sized products. Sellers will have the flexibility to opt for reduced or even waived fees based on whether they send their shipments to a single or multiple locations. Go to the Inbound Placement Service Fee page for more details.

Additionally, reductions in FBA fulfillment fees for standard and Large Bulky-sized products are slated to begin on April 15, 2024, alongside the implementation of inbound placement fees. On average, they will decrease FBA fulfillment fee rates for standard-sized products by $0.20 per unit and for Large Bulky-sized products by $0.61 per unit. For products priced below $10, Amazon will continue to offer an additional $0.77 discount on per-unit fees. Moreover, they’ll introduce fulfillment fee discounts ranging from $0.04 to $1.32, depending on item size and weight, for eligible products enrolled in the Ships in Product Packaging (SIPP) program, starting February 5, 2024.

To manage inventory more efficiently, Amazon will introduce a Low-inventory-level fee for standard-sized products starting April 1, 2024, impacting sellers maintaining consistently low inventory relative to unit sales. Sellers can avoid this fee by keeping more than four weeks of inventory relative to sales. Furthermore, to maintain inventory levels, Amazon plans to reduce non-peak monthly storage fees for standard-size products from an average of $0.87 to $0.78 per cubic foot, from January through September.

These changes reflect Amazon’s ongoing effort to streamline costs, support efficient inventory management, and provide sellers with a comprehensive understanding of the upcoming adjustments in fees and policies.

Amazon Prime Video Ad-Free Plan

Amazon Prime Video’s recent announcement of introducing a new ad-free plan for an additional $2.99 per month. This change is a strategic response to the growing trend in the streaming industry. Platforms like Netflix and Hulu offer ad-free subscription plans at a premium price. Amazon wants to follow this trend by providing a more premium viewing experience for users who are willing to pay an additional fee.

The impact of this new ad-free plan on Amazon Prime Video’s viewership remains uncertain. However, it shows Amazon’s substantial investment in its streaming service. By offering a premium option without ads, Amazon aims to both attract new subscribers and retain existing ones who might otherwise consider switching to other ad-free streaming platforms. Ultimately, this plan provides choices between ad-supported and ad-free experiences and reflects Amazon’s commitment to enhancing its streaming service to meet the demands of its audience.

Shoppable A+ Content Module

Amazon has recently introduced a new Shoppable A+ Content module. This feature allows customers to shop by adding products directly to their carts from the module. This Shoppable A+ Comparison Chart module also displays real-time prices and ratings, making it easier for shoppers to decide quickly. This module presents different products on a single page, which simplifies the decision-making process for buyers. It’s designed to make product information and pricing easily accessible and visually appealing for a better shopping experience.

One interesting thing about this feature is that it showcases new products alongside existing ones, which can help sellers boost sales for their new items. According to Amazon, the module has a 2x higher cart conversion rate than existing Premium Comparison Chart modules that aren’t shoppable. In addition, more than 25% of the customers who click on shoppable Premium A+ Comparison Charts add an item to their cart directly from the chart. Here are some action points for sellers to make the most of this update:

• Optimize A+ Content: Ensure your A+ Content is compellingly visualized and accurately detailed to maximize the potential of the shoppable module.

• Showcase New Products: Utilize the module to spotlight and promote new items, and utilize its capability to drive increased sales and visibility.

• Performance Monitoring: Keep a close eye on performance metrics associated with the shoppable A+ Content module, such as cart conversion rates.

• Use Comparison Chart Builder: Customize the product order using the improved chart builder. This will enhance visual appeal and customer engagement.

Improved Live Chat Support

Amazon has expanded its Live Chat Support to cover more stores and issue types. This means that sellers can now use live chat for almost any problem, no matter which store they’re in or what language they speak. When sellers start a chat, they’ll connect with a support person right away to get help in real time. Amazon listens to seller feedback and knows that live chat helps clarify issues quickly, making it faster to find solutions. 

With this new feature, Amazon hopes to enhance the seller’s customer experience. Chat support can help sellers get back to selling their products as soon as possible by offering a more practical and effective way to resolve issues.

Multi-Language Videos on Amazon Listings

Sellers can now upload videos in multiple languages to their Amazon listings, This is great news for sellers as it helps them reach more customers who prefer different languages. This is ideal for sellers who want to reach customers who prefer to read content in their native language. Videos play a crucial role in boosting sales, reducing product returns, and making the overall shopping experience better for customers. 

For example, if you have a customer base in a Spanish-speaking country, you can upload videos in Spanish. In addition, Amazon Advertising allows sellers to showcase multiple products within a single video ad. This update complements the ability to upload videos in various languages and presents a brilliant opportunity for sellers to boost their brand visibility. Sellers can now capture customer attention more effectively. This is an excellent way for sellers to increase brand exposure while also encouraging customers to buy bundles or multiple products.

Final Thoughts

And that was all about the e-commerce news and updates of December 2023. These updates promise to bring a fresh perspective to online selling. As the e-commerce platform continues to evolve, staying informed about these changes is your key to success. 

If you have any queries, please let us know through the comment box or email us at info@ecomclips.com. We understand that every situation is different, so we offer a personalized approach to our service.

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