Amazon Prime Day & Competition Through Temu

On its U.S. marketplace, Amazon is currently testing a new AI-driven feature for summarizing reviews. They also plan to increasingly allow merchants to integrate augmented reality content. For Sellers, new Prime eligibility criteria went into effect on some European Amazon marketplaces yesterday as part of an agreement with the EU Commission. 

In the U.S., the Chinese low-cost marketplace Temu has managed to overtake competitor Shein in terms of sales. Along with this milestone, accusations from Amazon became louder, stating that Temu does not meet the requirements for a fair pricing policy. As a result, the online giant announced that it would exclude the provider’s products from its “Marketplace Fair Pricing Policy” in order to prevent the price level on the platform from matching that of Temu.

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Prime Day 2023: Tips for Vendors & Sellers

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Updates: Amazon

Amazon Plans an Ad Tier for Prime Video

Amazon is planning an ad-supported offering for its Prime Video streaming service after Netflix and Disney+ pushed through similar plans. The streaming industry has been struggling with a decline in new signups as a result of inflation. Going forward, Amazon plans to rely even more heavily on its media business – already the group’s global spending on video and music content, as well as its budget for TV shows, movies and music, has steadily increased from $13 billion in 2021 to $16.6 billion in 2022. The advertising subscription would also create another opportunity for brands to place their advertising on Amazon platforms.

Amazon Changes Prime Eligibility Criteria

Following an agreement with the EU Commission, Amazon has applied new Prime eligibility criteria for Sellers on its marketplaces in Germany, France, Spain, the Netherlands, Poland, Sweden and Belgium since June 21, 2023. For Prime eligibility, a product must, among other things, be available nationwide, be ordered with free shipping, and be returnable free of charge by Prime members. In addition, Sellers must meet other requirements per product category on a permanent basis, which primarily relate to the delivery promise and speed.

Amazon Tests AI for Product Review Summaries

Amazon is testing on a small scale a new feature that uses artificial intelligence to summarize both positive and negative customer feedback and display it under the notice “AI-generated from the text of customer reviews.” According to experts, this clear summary of product reviews could compensate for the disadvantage of new products that have fewer reviews compared to offers with many reviews.

Amazon and Hexa Cooperation for 3D Content

Amazon has partnered with 3D visualization specialist, Hexa, to enable retailers to integrate augmented reality (AR) content. Using artificial intelligence, Hexa develops 3D images from two-dimensional photos that can be used for 360-degree views or virtual product try-on. The deployment is said to be possible for Amazon merchants regardless of 3D or AR knowledge, and is intended to provide customers with an immersive shopping experience.

Updates: E-Commerce

Temu Overtakes Shein & is Excluded from Amazon’s “Fair Pricing Policy”

In the US, Chinese marketplace Temu has now overtaken competitor Shein in terms of sales and is already planning to expand into Southeast Asia. At the same time, Amazon has decided to avoid the price war with Temu by not matching prices on its platform, saying that the requirements for a fair pricing policy have not been met. Thus, Temu is excluded from the “Marketplace Fair Pricing Policy,” which revokes the Buy Box from merchants if they charge higher prices on Amazon than on competing platforms.

Despite Setbacks in the U.S., TikTok Aims for $20 Billion in Revenue

TikTok is aiming to more than quadruple its global e-commerce business this year and generate $20 billion in revenues. The company is focusing on Southeast Asia, but is also taking aim at the U.S. and Europe, despite its temporary withdrawal from the market. Given a looming ban on the platform in the U.S., building profitable relationships with U.S. retailers and brands could help TikTok gain allies.

Alibaba Plans Tmall Expansion to Europe

The Chinese online group now wants to launch its online store Tmall in Europe – according to outside reports, a pilot project has already started in Spain. Alibaba has announced its intention to serve local markets with local brands and customers. Currently, Alibaba is active in Europe with the online marketplace Aliexpress, where mainly Chinese products are sold.

What Caught Our Attention

Prime Day 2023 will take place from July 11 to 12. A second Prime Day deal event will probably take place in October, just before Black Friday.

Sellers without a brand registry can now add video content to their product detail pages on Amazon. Previously, this was only possible for sellers who had registered their brand on Amazon. The requirement without registration: Sellers must have sold on Amazon for at least three months.

It is now possible to distinguish between different types of attribution of different KPIs directly in the DSP console. This means that the console now also displays the attribution figures by clicks and not only by impressions as it did before, without having to download a report. For example, you can see the RoAS of DSP Ads by clicks.

Fact of the Week

In an international comparison, it is clear that a large proportion of subscribers use Amazon Prime for streaming movies and series in addition to the Prime delivery promise (source: International Amazon Shopper Report 2022, Remazing & Appinio).

Share of Voice von Remdash vs.Brand Impression Share von Amazon

Amazon’s Brand Impression Share shows the share of one’s ad visibility – but other important KPIs stay hidden. Remdash can detect both a brand’s organic and paid share of voice over a customizable period of time.

Interested in Remdash?
Just click here and book a personal product demo with our team.

Top 5 Amazon Keywords

These are the top 5 most searched keywords by country from June 11-17, 2023.

With summer temperatures continuing to increase, fans, air conditioners, and pools were again high in demand. In addition, we also saw increased searches for gifts for Father’s Day in the U.S., U.K., and France, where the holiday took place last Sunday.