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On June 21, Amazon Global Store officially announced that Prime Day will be held from July 11 to 12. It is reported that this event covers 25 countries, including the United States, the United Kingdom, Australia and other markets, which is further expanded than last year.
As of now, Amazon has more than 200 million paid Prime members worldwide. During Prime Day 2022, Prime members purchased more than 300 million items, and consumers around the world purchased more than 100,000 items per minute. It is foreseeable that this year's membership promotion will also bring many explosive sales opportunities for Amazon sellers.
However, although the big promotion campaign is about to begin, many sellers are caught in a fierce price war while making all-out efforts. Prime Day starts early? Category BS leads to internal competition From new storage capacity policies to changes in platform rules and large-scale account verification, with the frequent adjustments of Amazon's policies, the "unstable factors" lurking along the sellers' overseas expansion journey have suddenly increased in recent times. This is reflected in actual sales, with product sales fluctuating like a roller coaster.
Of course, according to the rules of previous years, the current low order volume is usually a "cooling-off period" before the big promotion, so most sellers still have high hopes for Prime Day, a traffic feast.
However, at the same time, compared with order anxiety, more sellers are deeply worried about their profit prospects.
A seller revealed: "Small sellers don't have the capital to participate in flash sales and other activities. They only plan to offer member-only discounts, and then adjust advertising budgets and price cuts according to the situation. Considering the situation of warehouse explosion, the replenishment prepared for the Member Day has been shipped in late May, and they are just waiting to be put on the shelves during this period. However, observing the market recently, the prices of many similar products are getting lower and lower."
The seller worriedly said that the discount for Member's Day needs to be declared based on the lowest price in the last 30 days. In order to improve the ranking, prices have been continuously reduced at this stage. By the time of Member's Day, will there really be any profit after the discount?
Judging from feedback from all parties, the smoke of escalating internal competition seems to be spreading widely in the cross-border circle.
Some sellers admitted that the main products of the top sellers in their categories have been stable in the top 300 of the categories all year round, and they basically do not do flash sales or discounts. However, since March this year, the ranking has begun to decline. First, a 10% discount was given, and then the price was reduced by 2 US dollars. Recently, flash sales have been held every now and then. After a wave of operations, it still failed to prevent the ranking from falling outside the 1,000 in the categories. Although it is still BS in the small category, the profit and order volume have been greatly reduced.
Looking at the new product landscape of the entire market, the probability of successful survival and stable orders is only 10%. Especially in an ecological environment with fierce market competition and serious product homogeneity, the environment for promoting new products is becoming increasingly harsh. Therefore, more and more new products have their prices lowered as soon as they enter the market. This also forces old products to join the internal competition in order to maintain their existing territory.
"We used to have a small surplus every month, but recently the proportion of advertising orders has been increasing, and the advertising expenditure is a bottomless pit, which has seriously eaten up the already tight profit margin. In addition, the platform prices are rising, with a small discount every three days and a big sale every five days. This week there is LD and next week there is BD, and the profit margins are severely compressed, unless it is a product of high volume, with small profits but quick turnover, and some profits can be made." A seller said helplessly.
It can be seen that although the Prime Day campaign has not officially started, the price war has already been extremely fierce. According to this trend, more crazy promotional activities during the promotion period are likely to eat up a lot of sellers' profit margins.
"I have prepared 99% OFF and applied to participate in the battle." "The focus of this activity is to clear out long-term, unsalable and redundant inventory. The goal is clear: to survive by cutting off limbs." "I also have several products and plan to be a philanthropist on Member Day. The less loss, the more profit." "They are all scams. They didn't plan to make any profit during the two days of membership day. They just run the numbers and lay the foundation for the scam. There will be a little chance in the second half of the year."
It can be seen that looking forward to this Prime Day, some sellers are holding the mentality of clearing as much inventory as possible and making profits as little as possible; some sellers hope to occupy a market position and create opportunities for the second half of the year; and some sellers have no intention of participating in the charity gatherings of the big sellers and refuse to sign up to stick to their profits. Amazon has made another change, will the AC logo become history? In addition to the increasingly fierce internal battle, Amazon’s frequent policy changes in recent times have also made sellers nervous.
Recently, a seller said in a forum that when he opened the Amazon front desk to check the product, he suddenly found that Amazon's Choice was no longer in the search results column, but an Overall Pick was added. Clicking into the detail page, Amazon's Choice is still there, but the keywords following it are no longer the usual search keywords, but have become Overall Pick.
▲ The picture comes from Zhiwubuyan
In addition, the seller also found that the new product also had a new New Arrival Pick logo. The product shown in the picture was put on the shelves on March 21, and it has been sold for about a month. The average ranking is about 30,000, and the monthly sales are about 150 orders.
▲ The picture comes from Zhiwubuyan
From displaying sales, page views, and high return rate labels on the front page, to changes in the search box, and now to subtle adjustments to product logos, what signals is Amazon sending? The seller made a bold guess:
1. You may not be able to find out how many AC labels this ASIN has by reverse checking the ASIN
2. Non-head products may no longer be able to obtain long-tail keyword AC marks by promoting long keywords as before.
3. This change may make traffic and conversion more concentrated on top products, making the monopoly effect of top products more obvious
At present, the search results bar has mainly added the following three signs:
- Overall pick: Replaces the AC mark in the search bar and is the most selected item under the word
- Popular brand pick (“Fashionable” traffic brand selection): Brands with the widest vertical coverage and the best data under the keyword
- New arrival pick: an incentive sign for new products, which helps support new products
Some sellers said frankly that these three signs actually revealed Amazon’s plans for future development: that is, to target new products, hot-selling products, and brands, provide tracks, and help sellers find suitable sales strategies.
Overall pick is the optimal solution for the keyword, which consolidates the best-selling products under the keyword and stimulates further sales growth of top products; Popular brand pick encourages sellers to build brands and create product strength; New arrival pick helps new products go overseas and supports the rapid growth of new products.
Therefore, overall, this change is undoubtedly a positive signal as it helps sellers sell their products in different tracks.
However, after checking the product, I found that the Amazon's Choice logo has reappeared on the search results page. It can be speculated that the above new label is still in the testing stage, and it is still unknown whether it will be fully promoted.
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