1. Amazon B2B is where it’s at in Europe – here’s how to make it work for you
It started in the pandemic (with a 25% annual growth rate, no less), and it’s showing no signs of slowing. For Amazon, B2B is where it’s at in Europe. But how can you make Amazon Business work for your brand? Read on…
Launched initially in Germany in 2016, Amazon Business has since expanded to the UK, France, Spain and Italy, with divisional VP Alexandre Gagnon telling Reuters that they recorded a 25% compound annual growth rate in Europe during the two-year pandemic.
Amazon Business is looking to expand even further into Europe – though they won’t say exactly where yet…
In any event, we see this as excellent for everyone.
With higher margins than Amazon B2C (thanks to cheaper, bulk deliveries), a massive market to tap and plenty of room to grow its share, expanding Amazon Business is clever thinking in this marketplace climate of slowing consumer demand, rising costs, retail closures and staff reductions.
And it’s equally good news for Sellers on the sales and growth front – Insider Intelligence predicts Amazon Business product sales in the US will grow 20.7% in 2023 to $43.05 billion, and there’s no reason not to expect fantastic returns from Europe too.
“Sounds good – we want in”
Now’s a great time to get in on the action.
Amazon is investing heavily in logistics to make it easier for European companies to bulk buy product lines from office, IT and healthcare equipment to school supplies.
And there’s a simple way to begin identifying product lines with potential.
Amazon’s ASINs Recommendations tool allows you to uncover items that companies are looking for, but can’t yet find on the marketplace – that “low competition, high demand” sweet spot.
It also gives you tailored suggestions based on your own store, so you can find items which align well with your existing range and brand, or introduce different variants of products you already stock.
But before you get going…
Remember – you do still need to apply due diligence thinking.
Make sure your chosen products aren’t subject to restrictions (like gated products that you’ll need brand approval for), and that you fulfil all necessary compliance requirements.
And crucially, your decision to go into Amazon Business should align with your brand’s overall Amazon aims.
For more on this, make sure to watch our recent webinar, where we dive deep into scaling your brand into Europe, covering everything from strategy through taxes to delivery.
Learn more and enrol in Amazon Business here.
2. Amazon working on its own version of Chat GPT
Search is set to change for good, as Amazon develops its own generative AI…
Amazon is recruiting for Advanced Machine Learning talent as they look to reinvent search with Chat GPT-style technology.
Though they’re well versed in machine learning, with lots of search elements already powered by AI (think the recommendations engine, for example), this project is something else entirely.
Reconfiguring Amazon’s product search engine is an unfathomably immense undertaking.
Used by hundreds of millions of people, it’s one of the world’s most-used services with billions of products indexed.
But, as generative AI develops and its use becomes not just wider but more normal, it will be essential for Amazon to use conversational machine intelligence to stay ahead of the curve when it comes to customer experience and delight.
This is next-level stuff, and we see the key to its success lying in how they make sure results are properly refined from voiced search queries.
After all, consumers will want a better experience, not one where they have to carefully consider their search terms or risk an endless scroll through a list of random products.
So we’re excited to see what comes next – and you’ll be pleased to know that our expert team are already on it, working out exactly how we can use this new tech to optimise your listings and drive your sales even harder!
Watch this space…
3. Good news for Sellers of “Large and Heavy” Amazon goods!
Do you sell products classed as large and heavy (23kg+) on Amazon? This one’s for you…
Amazon has made some tweaks to their shipping templates which can boost your flexibility and improve the customer’s delivery experience.
Introducing new Transit Time options
Say hello to the “Arranged Delivery” template, designed to help you be more accurate in your delivery time promises.
Available in the “Large and Heavy Items” shipping template, choose from the following transit times:
1 day, 2 days, 1-2 days, 2-3 days, 2-4 days, 2-5 days, 3-4 days, 3-5 days, 5-7 days, 5-10 days and 7-14 days.
How does “Arranged Delivery” work for customers?
On the product page and at checkout, customers are told that they’ll be contacted to arrange their delivery, and are asked to update their phone number before completing their order.
You (or your courier) then need to contact the customer by call, text or email to finalise delivery arrangements.
“But I always use Scheduled Delivery – what’s happening to that?”
Nothing, everything else is the same.
As before, Scheduled Delivery lets customers pick their preferred delivery date or slot when they check out, using a calendar that you’ve set up in advance.
“I need help setting up my delivery options…”
Not sure what works best for you? Click here to speak to our team of experts.
4. Is a purge of Fake Amazon Reviews on the horizon?
We certainly hope so! Here’s why we think a fake reviews clampdown might be on the cards…
As all Amazon (and actually, all online) Sellers know, reviews are crucial to the sales success of a product – and, to underline just how crucial, we’ll just drop a stat from eComm consulting firm Pattern’s recent analysis here:
Improving review ratings by even one star can boost product sales by up to 26%.
Sadly, some of us also know the shattering effect that fake negative reviews can have on our brands’ sales and growth, so any updates on Amazon’s ongoing war on fake reviews are good news all around.
Bringing the Fake Reviews fight to Europe…
Way back in November, we looked at how Amazon is bringing their fight against so-called “bad actors” to Europe, with various legal actions in place in Italy, Spain and Germany.
And now, signs are pointing to an upcoming round of review purges, with Amazon removing customer reviews numbering the hundreds of thousands from some of their own Amazon Basics listings*
There are a variety of conflicting theories going round about why Amazon has made this move, from simply protecting their own sales and credibility to more cynical opinions involving antitrust watchdogs and anti-competitive behaviour markers.
But, whatever their reasoning, they usually then roll out these initiatives to their wider customer base – and so we’ve got fingers crossed that this is a step that bodes well for Sellers everywhere.
* Some listings saw review counts reduced by 75%+!
“I’m worried about fake negative reviews”
We can’t emphasise enough how important it is to stay vigilant against bad actors looking to hijack or sink your product range with fake negative reviews.
If you’re concerned that you’re being targeted, make sure to follow Amazon’s Product Review Policy and report anything you think is a violation as soon as possible.
Need some help from our time-served Amazon experts? Click here to speak to the team.