80/20 Of Ecommerce – July 8, 2022

July 8, 2022
/ Blog
/ By sevenfiguresel
/ 17 COMMENTS

Amazon uses influencer relationships to bolster Prime Day sales

Image Credits: Pexels

Amazon has launched its Amazon Influencer Program with the belief that it would fuel the success of its upcoming Prime Day.

The program would leverage influencers to raise brand awareness and inform consumers about Prime Day deals and promos. Then, Amazon pays popular social media users to promote its goods on sites like Instagram, TikTok, and YouTube.

Recently, they organized some events that invited some influencers and gave them a sneak peek at the Prime Day deals. After reporting $3.8 billion in losses at the end of Q1 2022, Amazon’s Prime Day sales event is becoming more and more crucial.

Takeaway: Will Amazon’s last punch for Prime Day be an effective strategy? The move by Amazon to rely more heavily on influencers for Prime Day comes in this era of creator economy. So, it is up to the consumers to decide on which has more weight— their trust in the content creators or the recession that we are currently facing.

Retailers, determined to bulls-eye e-commerce growth

Image Credits: Pexels

The pandemic placed e-commerce into the spotlight. The last two years of juggling through the restrictions have pressured retailers to increase their digital capabilities and efforts.

However, the digital paradigm shift in the retail industry is not enough. Being in the virtual realm will not suffice as there are a lot of other variables such as inventory and inflationary pressures that might erode the business’s profitability. Retailers also fail to find their niche in this everchanging game.

Giant retailers are not an exception. Amazon, Target, and Walmart have been experiencing profit warnings and inventory pain points on their end.

46% of the respondents in the Publicis Sapient/Salesforce survey said that their e-commerce store is less profitable than their physical one, and 37% are hitting below profit target.

To address all these dilemmas, Hilding Anderson, Head of Retail Strategy in Publicis Sapient, emphasized how vital customer service is in their research. Online shopping apps should integrate the ease of use and improvement of CX. In other words, e-commerce should make its decisions for the welfare of its customers. After such, profitability follows.

Takeaway: Putting your products available online to keep up with current demands is one thing, but improving your digital customer experience is another. It encourages first-time buyers to come back — you should not settle for one-time purchases only.

Amazon sellers to ditch mylar stash bags

Image Credits: Innovative Sourcing

In their recent announcement, Amazon is giving their sellers until August 5 to eliminate all single-colored and opaque Mylar bags.

Mylar bags are included in the compliance checklist for drug and controlled substances associated products posted by Amazon’s drugs and drug paraphernalia help page. The page states, “Products must not be primarily used for making, preparing, or using a controlled substance.”

According to the users of this container, Mylar bags are one of the best ways to store and conceal illegal drugs due to their smell-proof nature.

Amazon’s advice for sellers: “If you use Fulfillment by Amazon (FBA) and have any remaining inventory of Mylar bags that are not clear or single-colored in Amazon fulfillment centers on or after August 5, 2022, these ASINs will be removed from the Amazon store. You must initiate a removal request within 30 days of receiving this notice to have your inventory sent to a location of your choice.”

Takeaway: Amazon Sellers, to know more about this new regulation you can see the full announcement on Amazon Seller Central.

In case you missed it:

Have a great weekend!

-Gary

About the Author sevenfiguresel

Meet Gary Huang, the creator of the AI for Amazon Sellers 28 Day Challenge and the founder of the 7 Figure Seller Summit. Gary's journey in the ecommerce world began in 2005, when he launched his first private label brand selling women’s shoes on eBay. Since then, he has steadily grown a portfolio of ecommerce brands on platforms like Amazon and Shopify, serving customers in marketplaces across the globe.

But Gary's experience isn't limited to just ecommerce. With a decade of corporate experience under his belt, he has managed supply chains in Shanghai, China, overseeing multimillion-dollar sourcing campaigns. This broad range of knowledge has provided him with a unique perspective on the ecommerce industry, which he now shares with others through his various initiatives.

He is a highly regarded figure in the ecommerce space, with his strategic insights and innovative approaches widely recognized in prominent media outlets including Forbes, NPR, and Bloomberg.

Recently Gary’s fascination with AI came from a simple observation: AI was changing everything, everywhere, all at once. This impact is affecting everything from education, politics, the arts, to ecommerce businesses.

This led him to spend hundreds of hours testing AI applications in his own business and interviewing other successful Amazon sellers and ecommerce experts at the AI and ChatGPT Summit for Amazon sellers.

His aim was to find out how AI could be used to grow ecommerce businesses, save time, and increase profitability. The insights he gained have played a crucial role in shaping the AI for Amazon Sellers 28 Day Challenge.

Outside of his own ventures, Gary has shared his expertise on platforms like the Helium 10 podcast, Jungle Scout's Million Dollar Case Study, Webretailer.com, and the Global Sources Summit. His understanding of global trade was even acknowledged when he served as the Chair of the American Chamber of Commerce in Shanghai's Supply Chain Committee, briefing White House Congressional officials on US-China trade and supply chain strategies.

Despite a career that has taken him around the world, from his native Los Angeles to Shanghai and now Japan, Gary remains down-to-earth, focusing on his role as a husband and father. His experiences, both personal and professional, inform his approach to business and the advice he shares through the 28 Day Challenge.

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