Tens of thousands of profits lost in an instant! Is the "Amazon effect" cooling down? The investment manager actually "lost money"!

Tens of thousands of profits lost in an instant! Is the "Amazon effect" cooling down? The investment manager actually "lost money"!
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Since the beginning of 2022, sellers have experienced many ups and downs in just a few months. The resurgence of the epidemic and the collective increase in freight rates have affected the operations of some cross-border people to a certain extent, and the current tense situation between Russia and Ukraine has even more impacted the cross-border circle.
 
Under this circumstance, many sellers inevitably have pessimistic views that the future of doing business on Amazon in 2022 is bleak, and the number of new sellers entering this track this year seems to be no better than in previous years.
 
However, while Amazon is constantly adjusting its policies, it has also recently launched a number of benefits, bringing a glimmer of hope to sellers.
 

European site launches support policy, sellers call for price increase as profits evaporate?


The situation between Russia and Ukraine has been deadlocked for a week. The European site is undoubtedly the most affected by the war between the two sides. In recent days, the air delivery prices on European routes have skyrocketed, transportation has been interrupted, and the exchange rate has plummeted. The confidence of sellers on the European site has also been hit hard.
 
At this time, Amazon launched relevant support policies for European sellers.
 
It is learned that Amazon Europe recently announced that it will launch a 12-week program to help sellers develop more sustainable products and drive increased sales of sustainable products.
 
 
Sellers who participate in the program have the opportunity to receive:
 

  • £10,000 equity-free grant
  • $25,000 in AWS Activate Credits
  • £5,000 in Amazon Advertising Sponsorship Credits

 
It is worth noting that Amazon said the program is best suited for brand owners who are registered in the European Economic Area, the United Kingdom or Switzerland and are in the early stages of operations. In other words, it is mainly aimed at relatively "new" sellers in these regions.
 
A grant worth 10,000 pounds is still very attractive. After the announcement was released, sellers selling related categories were eager to try it out. However, there are certain thresholds for participating in the program. Some sellers pointed out sharply: This is mainly for new sellers. Is it so easy to fleece Amazon?
 
  The picture comes from the seller communication group

For sellers on the European site, these welfare policies are ultimately insignificant in the face of a series of chain reactions brought about by the Russian-Ukrainian war. As of now, the euro exchange rate has fallen below the 7 line, and the latest price is 6.9671.
 
An old seller on the European site complained that the euro exchange rate plummeted, and the first leg price soared to more than 60/KG overnight, and the profit evaporated by tens of thousands in an instant. In this situation where there are no orders and no profits, many sellers called on their peers to raise prices together.
 

Amazon launches a big gift package for newbies, are sellers feeling mixed emotions?


However, Amazon’s recent welfare policies are more than that. Recently, Amazon launched new projects on the US, European, and Japanese sites, and launched a starter package for novice sellers starting March 1.
 
 
New sellers who have registered for the Amazon Brand Registry program and have been confirmed as brand owners can enjoy the following benefits:
 
1. 5% rebate on branded merchandise sales in the first year or the first $1 million, up to a maximum of $50,000.
$2,200 off Amazon Vine Program
$3.100 Transparency Plan Offer
 
In addition, you will also receive multiple discounts such as new product warehousing and product promotion.
 
In short, for new stores opened and branded in 2022 that reach sales of $1 million for the first time, Amazon will return a certain amount of money on a monthly basis.
 
At present, the new stores of sellers have received this notification. However, many sellers are skeptical about Amazon’s affectionate call of “Come on, fellows, Amazon will give you free money and cashback”: Is it because there are fewer sellers this year that Amazon launched the novice gift package to attract new sellers?
 
Some sellers said frankly that on the one hand, it seemed to the naked eye that there were fewer "leeks" this year, and on the other hand, such a cash back model also revealed Amazon's deep intention to "cut leeks" in the long term.
 
  The picture comes from Zhiwubuyan

"The new chive cultivation plan" - start! Please prepare for harvesting. "
"He is anxious. It was not pleasant to harvest leeks last year, which caused Chinese sellers to lose a lot of money. It's a typical case of giving a slap in the face and then giving a date."
"I don't want this. Give me back my shop. I don't want to play anymore."

Amidst all the different opinions, it also tells the bitterness and helplessness of sellers who are deeply "cared" by Amazon in 2021. Of course, getting back to the point, this welfare policy is still beneficial to eligible sellers.
 
However, the sellers’ views are not without reason. According to feedback from multiple parties, the number of new sellers entering Amazon seems to have cooled down this year.
 

The investment manager’s attitude has changed drastically, and sellers have lost their enthusiasm for opening accounts?


2020 is undoubtedly the year of the explosion of cross-border e-commerce, with countless newcomers entering this field unprecedentedly. In the past two years, the popularity of Amazon, a "gold mine", has remained high. At the beginning of last year, a foreign professional organization analyzed that Amazon maintained a terrifying growth of 155 sellers entering the market every hour on average.
 
However, after a period of wild growth and flourishing, with the fading of the boost from the epidemic and the upgrading of platform regulatory measures, many Amazon sellers, especially new entrants, have experienced considerable bottlenecks, and the "Amazon effect" seems to be gradually disappearing.
 
In October last year, Amazon launched a new round of investment promotion. However, some sellers reported that many people’s enthusiasm for opening new accounts has declined a lot, and the attitude of investment promotion managers has also changed greatly.
 
According to sellers, few people have asked for the contact information of the investment manager this year, and the attitude of the investment manager has changed from not replying to messages to actively "paying for it". Under such circumstances, does Amazon still have a future in 2022?
 
  The picture comes from Zhiwubuyan

It is learned that there are many sellers who are unwilling to register new accounts this year. In the final analysis, it is due to the following concerns.
 
First, under the heavy hammer of account blocking last year, many sellers had a large number of stores blocked and funds frozen, resulting in heavy losses, which made sellers unwilling to wade into new muddy waters; second, freight rates, platform service fees and other fees have increased exponentially in the past two years, and the prevalence of price wars has greatly squeezed sellers' profits.
 
Opening a new account not only requires a lot of money and effort, but also faces many unknown risks from the platform and external factors. Therefore, the enthusiasm of sellers has obviously declined.
 
In this light, the sellers' concerns are understandable. However, as 2022 has just started and it coincides with the traditional off-season, it is normal for performance to be slightly sluggish. Sellers do not need to be too anxious. Now that Prime Day has sounded the horn, all sellers need to do at this stage is to calm down and prepare for the peak season promotion in the near future.


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