Sellers are reacting strongly because the new policy could significantly reduce their reimbursements for lost or damaged inventory. Amazon will now reimburse based on manufacturing costs, excluding shipping, handling, and customs duties, which could cost sellers millions of dollars. Many sellers feel misled and are concerned about potential financial losses.
Amazon claims the change is to provide greater transparency and predictability in how reimbursements are calculated. However, the policy shift has been poorly communicated, leading to widespread seller dissatisfaction. Some speculate that it is a way for Amazon to reduce costs, but Amazon states it aligns with industry standards.
The key changes include reimbursing based on manufacturing costs, which exclude shipping, handling, and customs duties. Effective March 10, 2025, sellers can either provide their own manufacturing costs or accept Amazon's estimate. Amazon may dispose of reimbursed items, including selling them on Amazon Warehouse, which has raised concerns about potential conflicts of interest.
Sellers should wait until Amazon provides its manufacturing cost estimates before inputting their own costs. They should also review and update their costs on the new 'manage your manufacturing cost page' starting in late January. It's advisable to use third-party tools like Helium 10 for profitability calculations to avoid sharing sensitive cost data with Amazon.
TikTok Shop has seen rapid growth since its launch in September 2023, leveraging the platform's massive user base and innovative shopping features. The success is attributed to its strong engagement and the growing popularity of social commerce, where users can seamlessly shop while browsing content.
Amazon EU is simplifying and adjusting FBA fees. They will lower average fulfillment fees for parcel and oversized tiers in the UK, Germany, France, Italy, and Spain. However, they will also increase fees for monthly storage, storage utilization, low inventory cost coverage, and preparation fees. The changes aim to align fees more closely with operational costs.
The Voice of the Customer Dashboard now includes return rate and star rating features. Sellers can see the return rates and star ratings for their products, helping them identify which products are performing well and which may need improvement.
TikTok is seeking a temporary halt to the law to prevent a potential ban in the U.S. The company is likely aiming to continue operating while legal challenges are resolved. Despite the uncertainty, many believe TikTok will not be permanently banned and will continue to grow as a platform.
Amazon DSP has launched two new targeting capabilities: specific fold positions for display and online video campaigns (above or below the fold) and native content placements in feed, in article, or recommendation widgets. These features provide advertisers with more granular control over ad placements, enhancing targeting precision.
BREAKING NEWS: Amazon sellers are angrier than I've ever seen them before because of this move that Amazon made that could be costing sellers millions. How crazy is that?
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We’re back with another episode of the Weekly Buzz with Helium 10’s Chief Brand Evangelist, Bradley Sutton. Every week, we cover the latest breaking news in the Amazon, Walmart, and E-commerce space, talk about Helium 10’s newest features, and provide a training tip for the week for serious sellers of any level.
Update to the FBA inventory reimbursement policy https://sellercentral.amazon.com/seller-news/articles/QVRWUERLSUtYMERFUiNHTU4yV1c1M0xMQlNKWlRB
)Is Amazon's new FBA inventory reimbursement policy a game-changer or a nightmare for sellers? Recent changes have sparked a significant uproar, and many sellers feel misled and worried about potential financial losses in the millions. We dissect this contentious shift, highlighting the importance of transparency and fairness in Amazon's communication while recognizing its right to shape its own policies. The discussion also provides strategic insights into managing these upcoming changes.
TikTok Shop US Sales Surpass Shein, Sephora https://www.silicon.co.uk/e-marketing/ecommerce/tiktok-shop-us-593031
)Return Rate and Star Rating features on Voice of the Customer Dashboard https://sellercentral.amazon.com/seller-news/articles/QVRWUERLSUtYMERFUiNHWEw1VEZNWTI2WFc0WTdO
)Temu Leaves Amazon in E-Commerce Dust, Topping Apple’s Most-Downloaded Apps List https://www.inc.com/kit-eaton/temu-leaves-amazon-in-e-commerce-dust-topping-apples-most-downloaded-apps-list/91067132
)Account vacation settings and support for the holidays https://sellercentral.amazon.com/seller-news/articles/QVRWUERLSUtYMERFUiNHN0w1UkNRQlZQR0E5SjJW
)TikTok asks Supreme Court to temporarily halt a law that would ban the app in the U.S. https://www.latimes.com/business/story/2024-12-16/tiktok-supreme-court-temporarily-halt-ban
)Enhanced display placement targeting features on Amazon DSP https://advertising.amazon.com/en-us/resources/whats-new/enhanced-display-placement-targeting-amazon-dsp/
)Join us for a comprehensive exploration of these pivotal shifts, equipping you with the knowledge to thrive in the Amazon space.
In this episode of the Weekly Buzz by Helium 10, Bradley covers:
00:52 - Amazon Drops Hammer On Reimbursements
23:28 - TikTok Shop Passes Shein
24:01 - Amazon EU FBA Fee Update
27:46 - Voice of the Customer Update
28:30 - Temu Most Downloaded
29:21 - Amazon Vacation Mode
29:52 - TikTok - Supreme Court
30:31 - New DSP Features