MGR Amazon Weekly Update | September 23, 2019
Top News This Week
Amazon’s Algorithm Favors Products That Generate the Most Profit For Them, Which is Often Their Own Products
This may not come as a huge surprise to most Sellers, but the details are important. Amazon is not just favoring its own products in search results, but also products that generate a higher profit for them. This means products that use FBA vs being seller fulfilled rank higher because Amazon collects more in fees from FBA products.
The ethics of this on Amazon’s part are certainly questionable, and it’s very likely that this will be added to anti-trust investigation currently being conducted by the FTC. However, for sellers this is a very important fact to keep in mind. At the end of the day we all play by Amazon’s rules, so if you’re trying to lower your fees that you pay to Amazon, be aware they may hit right back by dropping your rankings.
Amazon is Expanding its Influencer Program, Now Giving Them Storefronts
Amazon is trying to double down on its influencer program to bring in even more influencers. They are creating a better experience for both influences and advertisers in two ways: by giving influencers a dedicated storefront to recommend items that they will get cut of for each sale, as well as greatly improving influencer campaign performance tracking for advertisers.
Tracking results from influencers can be difficult, but by sending consumers to Amazon directly, advertisers can now know exactly how much traffic and how many sales came from influencers. This also allows influencers to partner with sellers and get paid to feature certain products, and they can also feature products that they love and recommend to their followers while generating affiliate revenue.
Other Notable Links:
1. CCPA will be bigger than GDPR, here’s what you need to know – MGR
2. You can now pay cash to buy things on Amazon, yes cash – USA TODAY
3. Is your product becoming very successful? Don’t worry Amazon will just make a carbon copy while undercutting your price – THE VERGE
4. Amazon is taking UPS and others on directly, will roll out 100,000 new electric delivery vans by 2021 – CNBC
5. How Instagram became the new mall – MODERN RETAIL