MGR Amazon Weekly Update | September 9, 2019
Top News This Week
Amazon is Testing a ‘New’ Badge for Newly Released Products
Amazon is clearly trying to expand its range of badges away from just Best Seller and Amazon’s Choice. They announced recently that we were testing a new Top Brand badge, and now want to roll out an additional badge to highlight newly listed products. Amazon said they are “experimenting to provide a better shopping experience for customers.” Right now the badge is showing only in very limited markets as Amazon tests to see the effect it has on product sales. If it’s anything like previous badges, products with it could see a considerable boost.
New Report on How Supply Chain Costs Will Be Effected By China Tariffs
Bank of America has released a new report analyzing the various tariffs that have been imposed and how it will impact overall production costs. They estimate that site-wide across Amazon, prices will have to go up 2.1-2.6% to compensate, which is reasonable. However, when broken down by category, costs can be more dramatic. The category that’s been hit the most so far appears to be home goods, where prices may need to increase by over 20% to compensate for tariffs. Other main categories impacted are: Health & Personal Care, Apparel, Sports & Outdoors, and Tools. Sellers in these categories may have to increase prices by 6-10% to keep healthy margins.
Other Notable Links:
1. For the first time, Amazon beat our Apple for the #1 ranking on “Millennials’ Favorite Brand” annual survey – BUSINESS INSIDER
2. Amazon is heavily pushing its new “Amazon Renewed” section where they sell refurbished items at a discount – BUSINESS INSIDER
3. Amazon is ramping up its fight to take over your living room – THE VERGE
4. Target is now offering 1-hour curbside pickup for online orders to battle Amazon – INC