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Jeff Bezos releases his annual letter to shareholders

We went ahead and summarized some of the highlights in this year’s shareholder letter: Bezos took the shareholder letter as an opportunity to remind legislators that while Amazon is the largest player in the growing ecommerce space, Amazon is still a small fraction of global retail sales: “Amazon today remains a small player in global …

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Amazon investing $800M to build out one-day shipping for Prime Members

Shortly after Amazon’s first quarter earnings report CFO Brian Olsavsky announced the company’s intention to enhance the standard Prime free two-day shipping program to a one day standard. Amazon introduced the Prime membership program 14 years ago, with free two day shipping being the principle benefit of the program. And while over the years Amazon …

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Amazon Advertising “New-to-Brand” Metric

In 2019, Amazon started tracking “New-to-brand” sales through their advertising console. The New-to-brand metrics determine whether an ad-attributed purchase was made by an existing customer or one buying a brand’s product on Amazon for the first time in the last 12 months. This metric is only available for sponsored brand campaigns.   The goal of …

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Fake Amazon Reviews Prompt FTC Action

In a statement issued on February 26th, the Federal Trade Commission announced the “first legal challenge of a marketer’s use of paid fake reviews on an independent retail site”. The FTC alleges that Cure Encapsulations Inc, paid the website, amazonverifiedreviews.com to create and post reviews of their weight loss product, producing an artificially inflated score …

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Doing More with Less

On December 26th, Amazon announced yet another record-breaking Holiday sales season. While this news itself is noteworthy, and we shared updates about this in last month’s newsletter, what is especially important is Amazon picked, packed, and shipped these record-breaking orders with 20,000 less seasonal workers.   According to Citi Bank Analyst, Mark May, it is …

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New E-commerce Restrictions Will Impede Amazon’s Growth in India

Effective February 1, 2019, the Indian government will be banning e-commerce companies from selling products where they have an equity interest. This will be especially harsh on Amazon and Flipkart (owned by Wal-Mart). In a statement earlier, the commerce ministry said:   “An entity having equity participation by e-commerce marketplace entity or its group companies, …

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Amazon Seller Central Referral Fee Changes for 2019

Early in 2019, Amazon will be rolling out fee changes in Seller Central: FBA Inventory Storage Fees: February 15th, 2019 FBA Fulfillment Fees: February 19th, 2019 Referral Fees: February 19th, 2019 FBA Inventory Storage Fee Changes Starting February 15, 2019, long-term storage fees (LTSF) will be eliminated for items that have been in a fulfillment …

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Amazon Third Party Seller War Tactics

The third-party (3P) marketplace on Amazon has been a competitive place for sellers since it opened. New strategies have emerged that make the competition on Amazon even more ruthless. These strategies combined with Amazon’s strict policy enforcement and difficult-to-navigate customer support create a high stakes atmosphere that can cost businesses their livelihood.   Amazon has …

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