Amazon Seller Updates: Deforestation Rules, Return Insights, and Account Changes

This week’s Amazon news roundup covers key updates for sellers. 

First, the new EU Deforestation-Free Products Regulation takes effect on December 30, requiring compliance with environmental standards in European markets. Next, Amazon has enhanced its Product Opportunity Explorer tool, allowing sellers to now analyze return trends, offering valuable insights to reduce returns.

In addition, Seller Central will soon see changes as Amazon plans to remove inactive secondary users from accounts, tightening security and access controls. We’ll also discuss an exciting new tool for product visualization: free 3D models generated via iOS scanning, a feature that promises to improve listings and drive conversions. 

Finally, Amazon’s MCF (Multi-Channel Fulfillment) service now supports fulfilling social commerce orders with FBA inventory, simplifying order management.

Keep reading to see how these changes can directly impact your selling strategy, product compliance, and competitive edge on Amazon.

1. Amazon Announces EU Deforestation-Free Products Regulation Compliance Deadline

Effective December 30, 2024, Amazon sellers targeting the European market must comply with the new EU Deforestation-Free Products Regulation.

This regulation is a step toward reducing the EU’s contribution to global deforestation and forest degradation, with a focus on commodities that are often linked to these issues. Sellers will need to ensure their products meet stringent environmental standards to remain compliant in the EU or risk penalties and loss of market access.

Key Commodities and Products Affected

The regulation targets major commodities linked to deforestation, including cattle, cocoa, coffee, palm oil, rubber, soya, and wood products. These commodities are often found in everyday products like furniture, chocolate, coffee beans, and books. Sellers dealing with these goods need to carefully evaluate their supply chains to ensure compliance.

For instance, a furniture seller sourcing wood must confirm that the wood is not sourced from deforested lands. Similarly, chocolate and coffee producers must ensure their supply chains are free from deforestation-related impacts. Amazon has emphasized that sellers should consult external legal advisors to assess their specific obligations under this new regulation.

What This Means for Sellers

This regulation represents a shift in how sellers must approach product sourcing and compliance. If your products are listed within the categories mentioned in the regulation, you may be required to provide documentation proving compliance. Amazon may request this proof at any time, so it’s critical to stay proactive in adjusting supply chains to align with these requirements.

In particular, sellers that export to or operate within the EU will need to monitor their supply chain transparency and collaborate with suppliers to confirm that products do not come from recently deforested land. Failure to comply with the regulation could result in products being delisted or restricted from the EU market.

Preparing for Compliance

As the December deadline approaches, act quickly to evaluate your compliance obligations and implement necessary changes. Review Annex I of the regulation to determine if your products fall under the affected categories.

Adapting to this regulation not only ensures continued access to the EU market but also allows you to keep up with growing consumer demand for environmentally responsible products.

2. Amazon Introduces Returns Tab in Product Opportunity Explorer

Amazon has launched a new Returns tab within its Product Opportunity Explorer, a feature designed to empower sellers with crucial insights into product return trends. This update aims to help sellers proactively address customer concerns, prioritize product improvements, and ultimately drive better business outcomes.

By utilizing the Returns tab, you can gain a deeper understanding of why your products are being returned. This feature allows you to identify the top reasons for returns, enabling you to pinpoint potential design flaws or seasonal factors that might be impacting your products.

Suppose one of your products consistently receives returns due to sizing issues, you can take immediate action to adjust sizing specifications or provide clearer measurement information in the listing.

Or, if you notice a seasonal pattern in returns for a specific product during the holidays, you can take proactive steps to manage inventory levels or refine product marketing strategies in advance.

The process to access these insights is straightforward.

Navigate through Seller Central by selecting Growth from the main menu, then going to Product Opportunity Explorer. Click on View Niche Details for their specific product to easily switch to the Returns tab to review relevant insights.

In summary, the addition of the Returns tab in the Product Opportunity Explorer equips you with essential data that can improve your offerings and enhance customer experiences. By leveraging these insights you’re not only likely to see a reduction in returns but also an overall boost in your sales performance on Amazon.

3. Amazon to Remove Inactive Secondary Users from Seller Central Accounts

Amazon is set to improve the security of Seller Central accounts by removing inactive secondary users who have not logged in for over 12 months. This change, which will occur quarterly, aims to protect seller accounts and safeguard sensitive data from potential breaches.

Key Benefits of the Update

• Increased Security: By eliminating users who have been inactive for an extended period, Amazon reduces the risk of unauthorized access by malicious actors. This is particularly crucial for sellers who may have previously granted access to employees, consultants, or other parties who no longer require it. Keeping the user list current ensures that only authorized personnel can access the account, significantly mitigating the risk of data leaks or account misuse.
• Simplified Access Management: This update streamlines the process of managing user permissions. Sellers can now focus on maintaining access for active users while Amazon regularly weeds out those who no longer need access to their account. If an inactive user needs to regain access, sellers can simply navigate to the “Set and Edit User Permissions” section in Seller Central to re-add them.

Impact on Sellers

This update may prompt you to reassess your current user management practices.

For instance, businesses with multiple team members or those who have previously collaborated with external partners will need to ensure that their user list is current and reflective of their operational needs. By regularly reviewing user activity and permissions, you can better protect your accounts and prevent unauthorized access.

Overall, this change ultimately enhances security and simplifies account management for Amazon sellers. Keeping user access up-to-date is a proactive step that can help protect your business and its sensitive information.

4. Amazon Unveils New Tool for Creating Free 3D Product Models via iOS Scanning

Amazon has introduced a new tool within the Amazon Seller app that allows brand-registered sellers to generate free 3D models of their products through iOS scanning. This new feature helps sellers showcase their items from multiple angles, potentially increasing customer engagement and driving sales.

How It Works

• Access the Create 3D Models tool using the Amazon Seller app on an iOS device with iOS 17 or newer.
• The scanning process is user-friendly and takes just a few minutes, guided by the app.
• Eligibility for 3D scanning depends on factors such as:
  • Product category
  • Physical properties
  • Not all items may be available for scanning.
• Specific instructions for preparing your product for scanning will be provided within the app.
• After scanning, a 3D artist will review the model for quality assurance.
• Expect processing to take approximately three weeks before the scanned model is visible on your product listing.
• Once the model is live, it will automatically be added to your product listing, enhancing visual appeal and providing customers with a comprehensive view of the product.

If you wish to remove a 3D model from your listing, contact Amazon support; self-service options for removal will be available later.

What This Means for Your Business

The introduction of 3D models for products is set to revolutionize the way you present your brand offerings on Amazon. By providing customers with a more interactive shopping experience, you can potentially increase conversion rates.

For instance, a brand that sells intricate home decor items can benefit significantly from 3D models that allow customers to view details and textures from different angles, fostering greater confidence in the purchase.

Moreover, the enhanced visualization could be a game-changer in competitive categories, allowing you to differentiate your products more effectively. Given that consumers increasingly prefer engaging and detailed product representations, incorporating 3D models can lead to a more informed buying decision.

Visit Creating 3D models via mobile scanning to learn more.

5. Amazon MCF Now Offers Social Commerce Fulfillment with FBA Inventory

Amazon Multi-Channel Fulfillment (MCF) can now automatically fulfill orders placed on social commerce platforms like TikTok, Instagram, and Pinterest using your FBA inventory. 

To link your social media stores with your Amazon selling accounts, you can use various MCF integrations, such as WebBee, LINGXING, or Connector by Silk. This integration allows you to harness the power of Amazon’s extensive MCF fulfillment network, which has served over 200,000 US merchants and has seen a remarkable 70% increase in orders fulfilled this year.

The recent upgrades were highlighted during Amazon’s Accelerate conference, where the company unveiled additional capabilities aimed at improving merchant and shopper experiences.

Among these are faster delivery options:

• Amazon MCF has reduced its Standard Delivery time from five business days to just three at no extra cost.
• MCF now provides fast badges for merchant websites, giving shoppers real-time delivery estimates that can enhance conversion rates. For example, sports apparel company NXTRND reported an 8.9% revenue increase after implementing Amazon’s delivery estimate feature.

The impact of this update on sellers cannot be overstated. By integrating MCF with social commerce channels, merchants can streamline their fulfillment processes while providing a superior shopping experience.

Potential Drawbacks

• Dependency on Amazon: Sellers might become overly reliant on Amazon’s fulfillment services, which could pose risks if there are disruptions in Amazon’s operations.
• Fees: While MCF offers many advantages, it also comes with associated costs that could cut into profit margins, especially for small businesses.
• Limited Control Over Fulfillment: Relying on Amazon for fulfillment means sellers have less control over the shipping process and customer service, which could affect their brand experience.
• Complexity of Managing Multiple Channels: While MCF aims to streamline the process, managing sales across various platforms can still be complex and may require additional resources or learning.
• Adaptation Required: Sellers need to adapt to the new system, including learning about integrations and how to optimize their listings for social commerce, which could involve a learning curve.

Overall, while Amazon MCF’s social commerce fulfillment offers significant advantages for sellers, it also presents challenges that require careful consideration and management.

To get started, explore Amazon’s recommended social commerce integrations or try the MCF Integration Selection Tool to discover the best fit for your business.