From Amazon Haul to New Seller Tools: What You Need to Know This Week

Here’s a look at the newest improvements and updates for Amazon sellers.

• Amazon is making waves with its upcoming discount store, Amazon Haul, aiming to challenge competitors like Temu this holiday season.
• Sponsored Brand ads are now available for authors in Canada and Australia.
• Sellers can now ship dangerous goods in the US via Amazon Buy Shipping.
• New feature for updating product dimensions and weight for return labels.
• Country-specific improvements in Image Manager that give you more control over your product visuals.
• New, hassle-free way to display videos across related product detail pages for different product variations.
• Make sure to review your holiday settings ahead of Thanksgiving to maximize your seasonal success.
• A new term loan solution for eligible Amazon sellers.

Don’t miss out—read on to uncover how these updates can drive success for your business and help you stay ahead in the Amazon marketplace.

1. Amazon Haul Set to Compete with Temu and Shein

Amazon is launching its own answer to popular discount platforms like Temu and Shein with the unveiling of Amazon Haul, a mobile-only shopping service that promises ultra-low-priced, unbranded products.

In a statement to USA Today, Sky Canaves, Principal Analyst at eMarketer, said, “The launch of Haul is a defensive move on Amazon’s part to match Temu and Shein's compelling value proposition of very low prices with slower delivery.” 

Amazon’s strategy is to offer similar low-cost goods while maintaining its strong presence in the US. However, Canaves notes that Amazon’s lead in the US ecommerce market remains unchallenged, and its move into the discount space is an attempt to bolster its position against rising competition.How Does Amazon Haul Work for Shoppers?With the holidays just around the corner, customers can take advantage of incredible deals on everyday products. Here’s how it works:

• Low Prices: Products priced at $20 or less, with the majority priced below $10.
• Free Delivery: Shoppers who fill their Haul cart with $25 or more will enjoy free delivery in one to two weeks. Orders under $25 incur a $3.99 delivery fee.
• Discounts: Amazon also offers 5% off orders over $50 and 10% off orders over $75.
• Free Returns: Any purchase over $3 can be returned for free within 15 days using over 8,000 drop-off locations, including Amazon Lockers, Whole Foods, UPS, and Staples.

The service is accessible within the Amazon app on mobile devices, and shoppers can also access it via a mobile browser at www.amazon.com/haul.

Impact on Sellers

While Amazon Haul’s low prices might attract bargain-seeking shoppers, sellers need to weigh the pros and cons. 

Low-priced items will be highlighted here, which bodes well for budget items and may offer an opportunity for sellers looking to quickly source and sell unbranded goods. However, competing with Chinese sellers will likely prove difficult as ready access to products at much lower prices is an obvious advantage of that seller segment.

Brands may not be able to afford the low margins required by Amazon Haul. The added cost of branding in itself makes it more difficult to compete with the unbranded, quick consumerism of bargain sites. 

Additionally, sellers must be prepared to navigate the dynamics of this mobile-only platform, which may require adjustments in product presentation and sales strategy.

Amazon Haul represents a strategic pivot in response to the growing influence of Temu and Shein. Its success will depend on how well Amazon can balance affordability, quality, and customer experience as it takes on these new competitors.

2. New Seller-Fulfilled Tools and Policies This Holiday Season

As Amazon gears up for the holiday season, a couple of updates have been introduced for seller-fulfilled sellers. Let’s dive in for the specifics and how they’re likely to affect the seller experience.

New Feature for Product Dimension Updates on Return Labels

Amazon’s latest update allows sellers in the seller-fulfilled network to adjust product dimensions and weight for Amazon prepaid return labels. The goal of this feature is to reduce the frequency of shipping cost adjustments due to incorrect product dimensions, a common issue that leads to increased fees for sellers.

This update automatically populates dimensions from the original shipping label purchased through Amazon Buy Shipping service, but sellers can further refine these measurements through SKU attributes in Seller Central.

Who Pays for Inefficient Returns? Amazon Sellers Call for Clearer Policies

While some sellers appreciate the attempt to minimize carrier fee adjustments, many are skeptical about its effectiveness.

A recurring complaint is that customers often return lightweight items, such as clothing, in large or inappropriate packaging, which dramatically inflates return costs. Sellers suggest that Amazon should require customers to use packaging similar to the original shipment or take responsibility for oversized return costs.

Updating Holiday Settings: Staying Active or Taking a Break?

With the holiday season around the corner, Amazon is urging seller-fulfilled users to review and update their holiday settings to maintain performance standards (i.e., minimum on-time delivery rate of 90% for seller-fulfilled orders).

Sellers who plan to pause operations can use the vacation status setting, which hides listings from search results to avoid orders they cannot fulfill. Alternatively, sellers can set specific operating days to ensure on-time deliveries are balanced around holiday schedules.

Sellers Ask for More Flexible Holiday Settings

While this is a welcome update, some sellers still feel that Amazon’s requirements don’t align with the realities of holiday shipping, as one seller expressed that it’s unrealistic to hold sellers to the same performance standards during holiday weeks when carriers are operating on limited schedules. 

Another seller also pointed out errors within the vacation mode feature, noting that orders occasionally appear even when vacation settings are enabled, creating confusion and disrupting planned time off. 

Here are some steps sellers can take in light of these changes.

1. Refine Return Dimensions Regularly: Regularly reviewing and updating product dimensions for Amazon return labels can help reduce unexpected carrier fees. Where possible, identify ways to encourage appropriate packaging for returns.
2. Set Clear Holiday Plans: Use Amazon’s holiday and vacation settings to minimize any gaps in customer service. 
3. Review Carrier Policies: Anticipate that holiday shipping schedules may vary across carriers and adjust your delivery promises accordingly. 

Proactive management and clear customer communication will be key to addressing the complexities of holiday fulfillment on Amazon.

3. Amazon Expands Buy Shipping for Dangerous Goods in the US

Amazon recently announced an expansion of its Buy Shipping options, allowing US sellers to use Amazon Buy Shipping for dangerous goods (DG) shipments.

Sellers can now ship hazardous items through Amazon Shipping Ground and USPS Ground Advantage (GA), which are equipped to handle such specialized shipments.

This new option could be a game-changer for sellers selling aerosol sprays, lithium batteries, cleaning agents, or other products categorized as dangerous goods. These products typically require specific packaging and documentation. 

Centralizing DG shipping allows Amazon to streamline costs, helping sellers avoid additional fees associated with third-party carriers while keeping them within Amazon’s infrastructure.

How the Dangerous Goods Update Works

• DG Option: Select the “This shipment contains dangerous goods” checkbox when arranging shipments.
• Automatic Refresh: Amazon Buy Shipping will refresh to display only shipping methods that support DG shipments.
• External Carrier Coordination: Sellers who choose carriers outside of Amazon Buy Shipping are responsible for directly coordinating with the carrier to meet all DG shipping requirements.
  

This new feature could simplify operations, but as always requires careful planning and adherence to strict compliance measures.

4. Updated Feature for Streamlined Videos Sharing

Amazon has made it easier for sellers to share video content across related product detail pages. This new feature enables sellers to upload videos and showcase them across multiple related product pages, including different sizes or colors of the same item.

To use this feature, go to Upload and Manage Videos and then follow these steps:

• Enter a "Title" for your video.
• Enter ASIN in the "ASINs" text box.
• Enable "Include ASINs’ product variations" to share your video content across related product variation detail pages.

Be sure to focus on creating high-quality, informative videos that show the product in use or highlight key features that differentiate each variation. Uploading videos that provide detailed context for every product variant can significantly improve customer engagement and reduce hesitation, which ultimately boosts conversion rates.

5. New Term Loan Solution for Eligible Sellers

Amazon has introduced a new term loan solution through a partnership with Uncapped, a global financial technology company. This new option promises to offer Amazon sellers the opportunity to access funding quickly and with flexible terms. However, as with any loan product, there are both benefits and potential risks for sellers considering this new Amazon financing solution.

How Does This Loan Work for Sellers?

• Eligibility and Loan Amounts: Eligible sellers can apply for funding, with loan amounts up to $5 million. The amount you qualify for will likely depend on revenue, sales performance, and business profile.
• Repayment Terms: The loan offers flexible repayment options, giving sellers up to 18 months to repay, depending on their specific loan terms.
• Easy Online Application: The loan application process is streamlined through Amazon’s platform, and sellers can receive a decision within just 1-2 business days. 
• Use of Funds: Sellers can use the loan for a variety of business needs, including inventory purchasing, marketing campaigns, hiring additional staff, or even expanding their product range.

Potential Drawbacks

• Risk of Over-Leveraging: As one seller pointed out, relying on loans from Amazon could be risky, given the potential volatility of the platform. Amazon has the ability to freeze funds or inventory, and this could put a seller in a difficult position if they are relying on borrowed funds to keep their business running smoothly.
• High Interest Rates: While the loan may be accessible, some sellers may find the interest rates higher than traditional lending options, which could erode profits over time if not managed properly.
• Dependence on Amazon: Taking out a loan with the platform could increase a seller’s dependence on Amazon’s ecosystem, leaving them vulnerable to policy changes or shifts in Amazon’s operational model.

Sellers must carefully evaluate the benefits and risks involved, particularly the potential volatility of their Amazon business and the consequences of over-leveraging.