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February 19, 2020

Amazon Seller News February 2020

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MerchantWords stays up-to-date on the latest news and announcements from Amazon and the world of e-commerce, so you can focus on your business.

Here are some of the most impactful headlines this month.

Amazon Launches a One-Tap Star Rating Feature For More Authentic Customer Feedback

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At the end of the last quarter, Amazon introduced one-tap ratings for product reviews. This change allows shoppers to provide a star rating without an accompanying written review. The update has already increased overall customer feedback and enabled new products to receive feedback sooner.

The new one-tap feature asks customers to select from one to five stars for a product. And, it’s only available to “verified buyers” – customers that have actually purchased the item from Amazon. Industry experts believe an indirect impact of the change will be a significant increase in authentic ratings and less fake reviews.

Fake product reviews have been attracting more attention from the media, regulators, and Amazon itself as online shopping continues to grow. Amazon has also filed at least five lawsuits related to fake-review schemes over the last five years.

Study Finds Amazon Advertising Drives Greater ROI Than Incumbent Advertising Platforms

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Feedvisor surveyed more than 1,000 U.S. brands and found a significant increase in the use of Amazon advertising over the previous year. The study also confirms why Amazon is considered a challenger to Google and Facebook, particularly for brands selling physical products.

Findings at a glance:

  • 73% of brands advertise on Amazon, up from 57% last year.

  • 83% of brands see at least a 4x return with Amazon Advertising.

  • 54% of brands selling on Amazon said e‑commerce marketplaces are their greatest source of opportunity.

  • 62% of brands use Amazon to drive sales.

See the full study here.

New US FBA and Referral Fees in 2020

In 2019, Amazon “invested more than $15 billion in infrastructure, programs, people, and 150 new tools and services to help our sellers grow their brands and businesses.” Driven by these updates and their FREE One-Day Delivery program for FBA, Amazon will be increasing fulfillment fees by 3%. Select referral fees will be decreased.

These changes are in effect as of February 18, 2020, except where noted.

2020 US referral fee changes

2020 US fulfillment fee changes

2020 FBA fee changes for monthly storage, Label Service and removal orders

2020 FBA Small and Light fee changes

FBA New Selection program

Amazon Offers Tips to Brace for the Impact of the Coronavirus

As the world waits for the economic impacts of the Novel Coronavirus, Amazon has posted recommendations for sellers to maintain their account health during this time.

These precautions include:

  1. Canceling previously placed orders that you are no longer able to fulfill.

  2. Placing your account in vacation status, or taking additional steps to manage your inventory. You can learn more on relevant Help pages in Seller Central: see Order cancellations; Listing status for vacations, holidays, and other absences; Update your listings from the Manage Inventory page.

  3. If your performance metrics have been impacted by this event, Amazon asks that you include a brief description of how your business was impacted when you respond to the relevant performance notification in Seller Central. The Coronavirus is considered an “unforeseen event” when they evaluate your account's recent performance.


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