|
▶ Video account attention cross-border navigation It is learned that recently, due to the UK Revenue and Customs Administration reducing Amazon 's taxes by 1 million pounds , its profits soared by nearly 60% to 204 million pounds. Foreign media reported that due to tax relief, Amazon's sales in Europe increased by nearly 16% to 51 billion euros. Without the tax relief, its losses in Europe would have been as high as 2.1 billion euros, a surge of 90%. In the current downward market environment and the siege of competitors, this is a good sign for Amazon. At the same time, some sellers speculate that as Amazon's profits continue to increase, the various strict restrictions on sellers and the additional fees for increasing revenue may also be reduced. Therefore, this news is also good news for Amazon sellers who were affected by Amazon's cost shifting in the first half of this year. In recent times, in addition to tax reductions, Amazon itself has also made several major adjustments, which are also worthy of attention from third-party sellers. Amazon cuts back on its own brands due to poor sales! It is learned that on July 16, according to foreign media reports, due to continued sluggish sales and strengthened supervision by the European Union, Amazon is significantly reducing the number of its own-brand products and discussing the possibility of completely withdrawing from the private label business to reduce regulatory pressure. According to reports, in 2020, Amazon had 45 private brands in different categories, providing a total of 243,000 products to platform users. Now, Amazon is taking steps to reduce the scale of its own products, reducing the number of products by half in the past six months. It is understood that this news caused heated discussions in the cross-border circle as soon as it was released. Some sellers applauded Amazon's private label's withdrawal from some competitive markets: “Just because Amazon doesn’t make money in some categories doesn’t mean we can’t do it.” “Independent brands will get more exposure on Amazon, which is a positive sign for third-party sellers.” “I think the biggest impact will be in ad placement and search result rankings, where Amazon’s own brands have always been at the top, and shrinking their own brands will help free up more ad space.” But more sellers said Amazon's move was not simple: "Amazon only throws away things that don't make money. Amazon never does anything at a loss." "It's just that the boutiques have become high-quality ones, and there will be more market resources to be consumed." As of now, there has been no official response from Amazon. However, in general, the reduction in the scale of private-label products does have the benefit of increasing product exposure and reducing competitive pressure for some third-party sellers, but an increase in product exposure also means an increase in advertising costs . Therefore, as product exposure continues to increase in the future, controlling advertising budgets may become the focus of sellers. In addition, Amazon’s newly launched “Account Health Rating” feature has also become a hot topic in the cross-border circle. Amazon launches new feature to help monitor account status! It is learned that recently, Amazon launched a new tool for sellers - a fully upgraded "Account Health Rating" function, which will be launched first on Amazon's US and Canadian sites in August , and will be promoted on global sites in 2023. It is reported that this function will help sellers fully understand their account status, prioritize potential problems, and ensure the healthy operation of the account through simple and easy-to-understand seller account value display. Recently, Amazon US has released an announcement stating that in the next few months, sellers will begin to see the following new features in Account Health: 1. The Account Health Rating (AHR) will be displayed as a point value based on a range of 0-1,000:- Red (unhealthy, account at risk of being deactivated)
2. The Account Health page will show the extent of the impact of the violation on the account so that sellers can prioritize potential violations with more serious impact. It’s worth noting that the account health rating feature does not change Amazon’s existing policies , but rather aggregates violations of certain Amazon policies into a single score to show overall account health. It is understood that this function mainly has the following two key points that sellers need to pay attention to:- Points deduction system : Amazon will grant points to sellers when they complete a minimum number of orders. All new sellers have an initial score of 200 points, which will be calculated based on policy compliance and sales activities in the past 180 days, that is, when product sales are low, the trial and error cost of the seller is relatively high.
- Account status dataization: The number of limits on relevant violation policies is clearly mentioned, such as the maximum number of repeated violations related to the infringement policy is 5 times, and the maximum number of repeated violations related to the restricted product policy is 2 times. In this case, the cost of competitors' spoofs is clearer, and sellers need to improve their ability to operate in a refined manner.
In response, many sellers have complained about Amazon’s new features: “It’s more dangerous to build a brand with a new account, the risk of scams is even worse, and there’s almost no room for error.” "When the score is not high, we should be more cautious and restrained. Before the policy is implemented, we don't know whether it is good or bad, so we should take it one step at a time." However, some sellers also mentioned that compared to new accounts that are treading on thin ice, old accounts have higher store weights, and occasional violations generally will not cause any problems. ▲ The picture comes from Zhiwubuyan But overall, it has become a consensus in the cross-border circle that compliant operations are the general trend . Not only Amazon, but other e-commerce platforms are also gradually withdrawing from relevant compliance policies as the number of third-party sellers increases. Therefore, we would like to remind all sellers that in the current situation where competition is becoming increasingly fierce and involution is prevalent, sellers who step out of the ivory tower and operate in a compliant and refined manner are more likely to bloom their own unbeaten flowers. What do you think about this? Welcome to discuss in the comment area~ |
