Key Amazon Updates for Faster Deliveries, Flexible Shipping, and Targeted Ads to Maximize Reach

Amazon recently announced several key updates for Prime members and sellers.

Amazon is now delivering at its fastest speeds ever, with more than 5 billion items arriving the same or next day, a 30% year-over-year increase.

Sellers in Europe can also expect updated program policies for smoother operations, while for businesses looking to gain more control over their shipping, Amazon Freight’s new Flexi Transit offers flexible delivery timelines and cost optimization for both on- and off-Amazon shipments. 

And, in a major move for brands, Amazon now allows country-specific images across all stores, offering tailored visuals for international markets. Local businesses will also benefit from Spectrum Reach’s new ad deal with Amazon, which opens up more streaming inventory (available ad space on digital streaming platforms) for targeted ads.

Read on to see how these updates can help boost your business.

1. Amazon Sets Record for Fastest Prime Delivery Speeds, but Sellers Remain Divided

Amazon recently announced that it achieved its fastest Prime delivery speeds ever this year, delivering over 5 billion items on the same or next day globally. This milestone marks a 30% year-over-year increase in delivery speeds, primarily benefiting Prime members who enjoy faster access to products.

However, this improvement isn’t solely due to Amazon’s internal logistics.

The company attributes the success to three initiatives: expanding the Same-Day Delivery network in over 120 US metro areas, regionalizing fulfillment centers, and employing machine learning to optimize inventory placement.

While this achievement has been celebrated by many, the feedback from sellers has been mixed. A significant portion of the 5 billion fast-delivered items were sold by third-party sellers who use FBA.

However, some sellers argue that Amazon may be delivering faster, but they’re paying more for that privilege, and it’s already cutting into our bottom line, making it difficult to sustain their businesses.

The regionalization of Amazon’s fulfillment network, which reduces the distance between warehouses and customers, has allowed faster deliveries in urban areas. Yet, sellers remain skeptical about rural delivery, citing that increased speed is more difficult to achieve in these more remote locations.

Moreover, many sellers expressed frustration over being punished for not using FBA by requiring them to maintain a minimum On Time Delivery Rate of 90% for seller-fulfilled products and automating handling time for processing orders, thereby reducing control over their fulfillment processes. For these sellers, Amazon promotes FBA heavily, but when things go wrong with inventory placement, they’re the ones paying the price.

As Amazon continues to push for faster delivery speeds, sellers must weigh the benefits of using FBA against the rising costs. While quicker deliveries enhance the customer experience, it’s clear that the accompanying fee increases remain a point of contention for many in the seller community.

2. Amazon Updates European Program Policies

Effective October 2, 2024, Amazon will implement important updates to its European program policies, impacting sellers and their operations on the platform.

One of the key changes is the renaming of the “Funds Withholding Policy” to the “Funds Disbursement Eligibility Policy.” This update aims to enhance transparency around the circumstances under which funds may be withheld, and it outlines the process for sellers to appeal disbursement decisions.

In a LinkedIn post, Amazon expert Vanessa Hung warns sellers that they will now have 60 days, reduced from the previous 90 days, to appeal after account deactivation. So, sellers need to be proactive in understanding these policies and managing their appeals effectively.

The updated policy also provides clearer communication on the rationale behind fund withholding, as well as examples of activities that may lead to such decisions. By improving the clarity surrounding these processes, Amazon aims to foster greater accountability and trust within its marketplace.

However, this also means that sellers must be diligent in ensuring compliance with all policies to avoid potential disruptions to their cash flow.

In addition to changes to the funds disbursement policy, updates will be made to the Amazon Partnered Carrier terms for Germany and to other existing policies, which will be centralized on the program policies page for easy access. While these changes are primarily for clarification and do not alter sellers' rights and obligations, they are critical for maintaining operational compliance and understanding contractual relationships with Amazon.

Sellers should take the time to understand these updates to successfully steer their operations in the shifting dynamics of Amazon’s European marketplace.

3. Amazon Freight Introduces Flexible Shipping with Flexi Transit

Amazon has launched Flexi Transit under Amazon Freight, providing sellers with more control over their delivery timelines and shipping costs, whether for Amazon or off-Amazon orders. This service offers several key benefits that can help streamline logistics for sellers:

• Adjustable Delivery Schedules: Select delivery windows that suit your operational needs. Flexi Transit allows Amazon to hold shipments for up to 24 hours to accommodate your preferred delivery window.
• No Impact on Pick-up Times: No need to worry about disruptions to your supply chain, as changes to delivery schedules won’t affect the original pick-up times.
• Transparent Pricing: The service provides clear, upfront pricing based on the delivery window selected. You will know exactly how much you’re paying, with no hidden fees.

For sellers, Flexi Transit could be a game-changer, offering flexibility and cost control. However, it may not be ideal for those who need immediate deliveries without delays, as holding shipments for up to 24 hours might slow down the process in some scenarios. 

In situations where you need to balance flexibility with speed, carefully evaluate your shipping requirements before opting for Flexi Transit.

Here are a few steps you can take:

• Assess Delivery Urgency: If dealing with time-sensitive products, such as seasonal items or perishable goods, you may need to prioritize faster shipping options instead of Flexi Transit to ensure timely deliveries.
• Use Flexi Transit for Non-Urgent Shipments: If managing less time-sensitive inventory or needing more predictable delivery windows, Flexi Transit is a good option. For example, if shipping bulk items for warehouse replenishment that aren’t needed immediately, you can leverage Flexi Transit’s flexibility to better match internal schedules.
• Leverage Cost Savings: Take advantage of Flexi Transit’s transparent pricing. If a longer delivery window reduces costs significantly without impacting customer satisfaction, using this option could improve overall profit margins. For example, small or medium-sized sellers shipping items with flexible deadlines can save on shipping costs by selecting a wider delivery window.

By understanding your specific needs, you can decide when Flexi Transit offers the most value and when it may be better to opt for faster, more rigid shipping methods.

4. Country-Specific Image Upload Tool for Brands

Amazon has rolled out a new feature that allows brand owners to upload country-specific images across all Amazon stores.

With the Country-Specific Upload Tool in Image Manager, brands can now create localized visuals tailored to individual markets, enhancing their appeal to customers in different regions.

Localized images are a key asset in reaching global audiences, as they allow brands to communicate more effectively. For instance, brands can upload images with text in the local language, making the product feel more relatable and culturally relevant. This personalized approach can help customers make more informed purchasing decisions by offering visuals tailored to their regional expectations and needs.

How to Use the Tool

• Navigate to the Bulk image upload section of the Image Manager
• Select the appropriate country from a drop-down menu
• Submit the images

However, note that brands must have an active listing in the target store, and uploaded images are not guaranteed to replace global images on the product detail page.

This update is a valuable step for brands looking to simplify their global expansion. By customizing visuals to specific markets, sellers can increase their chances of resonating with international customers, potentially boosting sales.

For example, a clothing brand might use country-specific images to showcase seasonal trends or cultural fashion preferences, making their products more appealing in different regions. However, since the images may not always display on the product page, carefully monitor your listings to ensure that the intended images are shown.

Leveraging the Country-Specific Upload Tool allows brands to better connect with global customers, ultimately improving their market presence.

5. Amazon Partners with Spectrum to Boost Local Business Access to Streaming Ads

In a significant move for small and medium-sized businesses (SMBs), Spectrum Reach, the advertising sales division of Charter Communications, has entered a multi-year collaboration with Amazon Ads.

This partnership allows Spectrum Reach to become a local reseller of Amazon Ads, providing SMBs access to a wide range of streaming advertising inventory across popular platforms like Prime Video, Freevee, and Fire TV.

This collaboration offers SMBs a unique opportunity to tap into Amazon’s expansive streaming network while leveraging Spectrum Reach’s existing TV and streaming ad inventory. By combining these two forces, local businesses can now reach nearly every household in their region, even extending beyond Spectrum subscribers.

According to Spectrum Reach, its streaming inventory reaches about 90% of viewers within its service footprint.

How This Deal Benefits Businesses

For local businesses and sellers, this partnership marks a turning point. It makes reaching various audiences across multiple media channels easier by combining traditional TV ads and online streaming ads in one place. As a result, SMBs can now more efficiently target potential customers with ads that appear across a variety of platforms—ranging from TV to online video and social media.

The availability of first-party data from Spectrum Reach further allows advertisers to fine-tune their campaigns, helping them maximize return on investment by reaching the most relevant audiences.

David Kline, Executive VP of Charter Communications and President of Spectrum Reach, highlighted the value of this partnership: “We can offer small to medium-sized businesses the ability to more accurately measure and optimize their advertising spend.” This means SMBs can track the performance of their ads more effectively, ensuring they get the most out of their marketing budget.

Potential Limitations

While this partnership provides excellent reach and data-driven insights, it may also present challenges for smaller sellers who may not have significant advertising budgets.

The combined offerings of Amazon Ads and Spectrum Reach could lead to higher costs due to broader audience reach and premium ad placements, which may not always align with the financial capacity of some SMBs.

Amazon’s collaboration with Spectrum Reach opens up a world of advertising possibilities for local sellers, giving them access to advanced ad solutions typically reserved for larger companies. However, businesses will need to carefully weigh the potential costs against the benefits of greater household reach and targeted advertising options.