Monthly Amazon Update – August 2019

Amazon Info

With SBA („Sold by Amazon“), Amazon started a new program in the US for existing FBA Customers with a brand registry. With SBA, the product price will be controlled by Amazon and is supposed to protect seller margins. Even with price drops, sellers would collect their pre-negotiated margin. The products would still be sold as “Sold and shipped by Amazon”. A program launch in other countries is likely. Link

Amazon is supposedly negotiating the acquisition of a 26% stake in the Indian retail giant Reliance Retail. Earlier negotiations with Alibaba failed – the stake could give Amazon access to Reliance Retails 10.415 retail locations and the telecommunications platform Jio. The Indian e-Commerce market is expected to surpass USD 200 billion in 2026. Link

After AmazonBasics, Amazon launched its next private label for household items. AmazonCommercial is a line of “professional products with business customers in mind”. First products are extra large rolls of toilet paper und large packs of paper towels and tissues that are typically found in office bathrooms. Link

New features

A new featue in the fashion category has been rolled out: Customers can now upload a picture of a fashion look and Amazon will find the most fitting products on its site. The “StyleSnap” system uses artificial intelligence and machine learning to analyze picture and detect styles, shapes and patterns. Competitors like ASOS, Wayfair and Target are already using similar systems in their shops. Link

Marketing

After the request of two US senators, Amazon must make a statement about the process of choosing “Amazon Choice” labeled products until September 16. The concern has come up that products would be receiving the label through manipulated reviews after a report from the news website Buzzfeed claimed that many “Choice” products show inferior quality or faked reviews. “Choice” labeled products can see an increase in sales of up to 300% according to studies. Link

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