Category: Amazon

Is Amazon Clamping Down on Returns?

Posted on March 29, 2023 by - Amazon

amazon returns

Amazon has started flagging up “frequently returned” products on its marketplace. The label is being rolled out to encourage consumers to carefully check item descriptions and product reviews before purchasing. In addition to reducing returns, the move will help consumers identify misleading product descriptions and poor-quality products. Amazon has a solid reputation for its free and no-quibble returns policy. However, in recent years, the eCommerce giant has also been fighting the scourge of fake reviews and counterfeit, low-quality, and deceptively marketed products. No matter how easy it is for consumers to return these products, it still represents a poor customer experience and accounts for significant costs and environmental impact. The Problem with Marketplace Buyers In many ways, Amazon is a… Read more »

Is Amazon Squeezing Its SMB Sellers Too Hard?

Posted on February 14, 2023 by - Amazon, eBay

amazon fees

In the 25+ years I’ve worked in the eCommerce industry, I’ve met many busy fools. In the past, many of these sellers were burned by careless spending on paid search campaigns, mistaking the massive sales volume and associated turnover it generated for profit. It wasn’t until the end of the year that they realised they had destroyed any margin they had in a product for the sake of vanity metrics. However, today’s sellers are much more likely to complain that they are “working for Jeff Bezos” rather than running their own independent businesses. So the news that Amazon’s average cut of each sale surpassed 50% in 2022 will come as no surprise to many sellers. Amazon’s Increasing Cost of Sale… Read more »

Amazon Prime Air Drone Delivery Takes To The Skies in California and Texas

Posted on January 4, 2023 by - Amazon

Nine years after Jeff Bezos first announced that Amazon would start fulfilling orders by drone, Prime Air has taken to the skies and delivered its first packages. While many people at the time (myself included) dismissed the idea as nothing more than a fantastic piece of PR. It just goes to show that you should never underestimate the determination of a man who turned an online bookstore based in his garage into a business currently valued at $875.5 billion. Amazon Drone Delivery Cautiously Takes Flight According to media reports, in the run-up to Christmas, Amazon dropped its first drone deliveries off in customers’ backyards in Lockeford, California and College Station, Texas. The packages were delivered using Amazon’s hexagonal MK27-2 delivery… Read more »

Amazon Bows to EU Pressure on Marketplace Seller Data and Access to Buy Box and Prime

Posted on December 21, 2022 by - Amazon

Amazon EU

The European Commission has announced that commitments made by Amazon, addressing its use of non-public seller data and possible bias relating to access to its Buy Box and Prime programme, are to be made legally binding under EU antitrust rules. According to a recent press release, the Commission found that Amazon’s reliance on marketplace sellers’ non-public business data to calibrate its retail decisions distorted fair competition on its platform and prevented effective competition. It also concluded that Amazon’s rules and criteria for the Buy Box and Prime unduly favour its own retail business and marketplace sellers that use Amazon’s logistics and delivery services. How Did Amazon Comply? In relation to the Commission’s concerns about the online marketplaces use of non-public… Read more »

Amazon Announces Steep Multi-Channel Fulfilment (MCF) Fee Increase

Posted on December 20, 2022 by - Amazon

Amazon MCF

For online retailers selling across multiple channels, including eBay, Amazon, BigCommerce, and Shopify, the opportunity to use a single third-party logistics (3PL) partner like Amazon’s Multi-Channel Fulfilment (MCF) makes perfect sense. At Frooition, we always remind sellers that they don’t make money stuffing envelopes. Because the cost of running a warehouse can be prohibitive, it’s nearly always better to entrust your fulfilment to a third-party operator who can take advantage of economies of scale. 3PL companies, including FBA, Orange Connex, and Huboo, can also help smooth out the challenges of selling across borders and managing returns. Amazon Multi-Channel Fulfilment (MCF) With its massive network of fulfilment centres and the opportunity to ship goods in unbranded packaging, Amazon’s MCF service is… Read more »

Amazon Supports Independent Sellers With Launch of Small Business Gift Finder

Posted on November 25, 2022 by - Amazon

Amazon Small Business

While Amazon might be the epitome of big business, more than half of all products purchased on its UK website are actually sold by small and independent businesses. To help consumers support the 85,000+ small businesses on the online marketplace, Amazon has recently launched its Small Business Gift Finder service. As well as supporting small and medium-sized businesses, the Small Business Gift Finder helps consumers “shop local” by highlighting retailers by region. Shoppers can also easily identify products sold by small business sellers across the online marketplace by looking out for the Small Business Badge. Small Business Growth According to data released by Amazon, small business sellers on Amazon have enjoyed considerable growth over the last 12-month period, selling more… Read more »

Chanel, Gucci, Hermès, Louis Vuitton – One-Off Luxury on Amazon

Posted on October 26, 2022 by - Amazon

Shopping for handbags online

Sellers on online marketplaces like eBay and Amazon typically follow the “stack them high, sell them cheap” business strategy first coined by Sir Jack Cohen, founder of British supermarket chain Tesco. Flying in the face of this logic, luxury goods re-seller, What Goes Around Comes Around (WGACA), has recently opened an online store on Amazon selling one-off luxury goods from brands including Chanel, Gucci, Hermès, and Louis Vuitton. One-off items currently listed on the WGACA store include a pre-loved Red Clemence Evelyne III GM handbag by Hermès for $4,350 and a pre-loved Monogram Canvas Beverly bag by Louis Vuitton for $1,950. Luxury Goods and Online Marketplaces Luxury goods brands have been slow to recognise the potential of online marketplaces. Speaking… Read more »

Amazon Announces Top 10 Toy List For Christmas 2022

Posted on October 25, 2022 by - Amazon

Amazon Top 10 Toys

With the festive season primed to start a little earlier this year, Amazon has announced its Top 10 Toy list for Christmas 2022. As you might expect, the list features a number of big-name brands, including Lego, Playmobil, and Crayola. However, the list also features several apparently random toys, including a Dentist Play Set, suggesting that predicting trends in the toy business is as easy as pulling teeth. You can expect a brisk sales season if you are lucky enough to hold stock of these items in your eBay or Amazon store. However, if you’ve missed the boat, there may still be time to source similar products to meet demand. Top 10 Toys MathLink Cube Numberblocks 1-10 Activity Set (Learning… Read more »

Could Air Freight By Amazon Solve Logistic Problems This Christmas?

Posted on October 12, 2022 by - Amazon

Amazon Air Freight

When it is critical that products land on time, air freight offers a more convenient and expedited route to market than shipping by sea. But isn’t air freight prohibitively expensive? Amazon Global Logistics wants to change this perception. With the holidays fast approaching, the last thing a retailer needs is a delay in stock arriving at its warehouse. When sourcing and shipping goods from manufacturers in Asia to fulfilment centres in the UK, EU, and the US, there are so many unforeseen issues that can prevent items from arriving in time it can be difficult to plan your seasonal sales activities accurately. When the unforeseen happens and shipments are delayed, retailers either risk losing out to competitors already holding stock… Read more »

Could Amazon Ship to Seller Storage (STS) Solve Your Global Sourcing Problems?

Posted on September 29, 2022 by - Amazon

When margins are tight, retailers need to look for operational efficiencies in their businesses to drive profits. The ability to source products in bulk from overseas markets is an obvious opportunity to cut unit costs. However, the upfront investment in stock, logistical costs, and lengthy timescales can make sourcing products in large volumes seem unattainable to many sellers. For many smaller businesses, global sourcing can be a complete leap of faith, resulting in many lost nights of sleep until their goods are safe and sound in their warehouse and available for sale. With large sums of cash tied up in products that may be months away from retail, trust is a major issue. So what if we told you there… Read more »