Another major overhaul of Amazon's front desk? Sellers: Roll up to Taobao

Another major overhaul of Amazon's front desk? Sellers: Roll up to Taobao
After nearly two months of ups and downs in account verification, the Consumer Notification Act officially came into effect today.




The Consumer Notification Act takes effect today, and funds in accounts that fail verification will be frozen!



Last week, a screenshot widely circulated in the industry claimed that according to the notification from the account manager, based on the requirements of federal law, all stores that have not passed the complete account review by June 27 will be closed. Even if the seller has submitted all the information, if the Amazon review process is too slow, the account will be blocked.




The news caused panic among sellers. It is understood that sellers uploaded multiple pieces of information including identity information, company address, bank account, etc. as required and passed the verification.



The picture comes from the seller communication group


However, many sellers are still stuck in Amazon’s review process and have not yet successfully passed the verification.




However, many sellers have refuted the rumor. According to the reply received from the official customer service, stores that have not completed the review may have their sales rights suspended and their funds frozen, but they will not be closed uniformly.




With the implementation of the Consumer Notification Act, this rumor was dispelled.







On June 27, Amazon US released the latest announcement: The US Consumer Notification Act officially came into effect, and sellers must complete account verification and comply with new regulations as required. If the required information is not provided within 10 days of receiving this notice, the funds in the Amazon sales account will be frozen from July 7.




Amazon stated in the announcement that if the seller has fully submitted the necessary information, once verified, the account deactivation warning related to the Consumer Notification Act will be removed from the account health page.




On the other hand, if the seller needs to make changes to the information after passing the review, Amazon will re-verify the account. According to the law, sellers are obliged to confirm that the information of their sales accounts is updated at least once a year.




It is understood that up to now, a large number of sellers are still troubled by this wave of account verification. Many people have reported that the account verification process is rather chaotic. Some sellers' accounts have been temporarily frozen and their funds have been withheld, but Amazon has not yet received and reviewed the information submitted by these sellers.





The picture comes from the seller communication group



The vice president of a service agency that works with more than 60 Amazon brands said that the biggest problem sellers encountered in this round of verification was that Amazon's requirements for the required documents were not clear enough. One seller was asked to submit personal documents, but Amazon did not accept the brand's previous information, resulting in the suspension of sales for the brand's account. Although Amazon eventually made serious changes to the brand's existing documents with the help of the service agency, the delayed sales for several days could not be recovered.




There was also a seller with annual sales of over one million U.S. dollars who submitted verification information and was successfully reviewed by Amazon, but still received a warning that his "account was at risk of being deactivated." Other sellers even had their payments withheld by Amazon after submitting verification information.




In addition, many sellers believe that Amazon's time arrangement is also questionable. For example, Amazon sends a postcard through the U.S. Postal Service to confirm the seller's address, but only gives the seller a little more than a week to confirm. If the mail is lost during transportation or other problems occur, it is likely to cause the seller's verification to fail.


 

In addition, the Consumer Notification Act was proposed in March 2021 and passed in December 2022. Amazon had six months to complete the verification before the bill came into effect, but verification did not begin until around May, leaving sellers with only about two months to process. Amazon Prime Day is about to start in mid-July, and if verification is not passed in time, sellers will likely miss out on the big promotion.


 

Another major overhaul of Amazon's front desk? Sellers: Roll up to Taobao



In addition to the account verification trend, Amazon's rule rectification has also been undercurrent in recent times. Previously, many sellers found that the listing search results page began to display pageviews and sales, and speculation about Amazon or "Taobao" was rampant. Now, Amazon's search display seems to have changed again, taking a step further towards "Taobao".



Recently, a seller discovered that when searching for keywords for some products, a new button was added in the lower left corner of the picture. After clicking it, a new search box "More Like This" will appear. In this search box, the system will recommend other products with similar styles, and a large number of recommended results will be displayed when you pull down.



The picture comes from Zhiwubuyan



It can be seen that this button is equivalent to Taobao's "Find the Same Item" function. Foreign media previously reported that Amazon hired a technical team of dozens of people who had previously worked for Alibaba. Combined with the sales and pageview display functions tested recently, it is hard not to wonder.




If this "Find the Same Item" function is fully operational, what impact will it have on sellers' sales? The seller made the following guesses:



1. Subverting traditional traffic configuration

Previously, Amazon had many display locations, but they were basically in the keyword search interface and the listing display page. The new right pull-down box is a completely new module for system recommendations. When customers are attracted and enter the new section, they are likely to give up browsing other products on the search results page, resulting in a lot of traffic originally belonging to other display pages being snatched away.

2. The product traffic on the second page and beyond of the search display decreases

Amazon data shows that most of the clicks are concentrated on the first page of keyword search results, with the second page accounting for less than 20%, and the percentage decreases significantly thereafter. However, the results recommended by this feature are more accurate, so the possibility of customers turning pages further decreases, resulting in less and less product traffic after the first page.


3. Price involution intensifies

After using this function, the seller found that the products recommended by the current system are more accurate than the products searched by themselves. When customers enter the system recommendation box, they will compare the prices, ratings and other factors of the products in the box. Therefore, this function of accurately finding the same products may also intensify price competition among similar sellers.



Some sellers reported that this function had actually appeared quietly since early June, and a large part of the products searched out were Amazon's own products or brand products supported by Amazon.




Objectively speaking, this new feature helps consumers to systematically compare similar products and choose the most affordable products. If the seller's products meet the needs, then this change will help to obtain traffic. Through reasonable product positioning and label classification, displaying on the "Find Similar Products" page can increase product exposure and attract more traffic.




However, at the same time, this also means that consumers' price comparison thinking for similar products has been further strengthened, so factors such as product quality and price are particularly critical. For products with serious homogeneity, price involution will be further intensified, but on the other hand, this also encourages sellers to focus on product differentiation and create richer and more diversified brands.




Currently, this new feature of finding the same item is still in the testing stage and only appears in some categories. It is not known whether it will be tested on a small scale before being promoted on a large scale. However, it can be seen that Amazon has frequently tested and rectified the search display page recently, and there will probably be more changes in the future. For sellers, the era of stereotyped distribution has long passed, and price involution is by no means a long-term solution. If they want to maintain long-term competitiveness, they can only move towards high-quality products.



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