The Hinge team just returned from Amazon Accelerate 2024, and we are excited about all the new programs and enhancements announced for Amazon sellers over the next year. We have boiled down our top 5 insights with key takeaways that every Amazon seller should know…
- Supply Chain Initiative: Amazon wants to be a seller’s complete logistics solution via Amazon Global Logistics (AGL), Amazon Warehousing & Distribution (AWD), Multi-Channel Fulfillment (MCF), and more.
Key Takeaways: Amazon is incentivizing sellers with discounts if they “manage” the supply chain end-to-end; this would potentially offset increasing FBA Fees but at a significant loss of control. AGL only supports China as the single country of origin, with no ETA for future production sources. Amazon historically incentivizes sellers through discounts and punishes them with fees to their change behavior for Amazon’s benefit, this entire suite of programs appears to be utilizing this model. Hinge’s initial recommendation is to approach this initiative with a test & learn method, starting with one program at a time for a subset of your ASINs. - Generative AI Expansion: New AI-based programs like Project Amelia (automating routine tasks & data-driven seller recommendations), Amazon Ads AI Video Generator, and Amazon AI A+ Content Creation were announced. All these tools are free to Amazon sellers and brands! In general, Generative AI was the talk of the conference, after Supply Chain by Amazon (which was Day 1’s messaging push).
Key Takeaways: Embrace with Caution; many of the tools seem great at a glance, but upon deeper inspection may not retain your brand voice, fully optimize for search, or adhere to compliance policies. Additionally, advertising and PDP content created using Amazon AI tools is not owned by the seller, and thus cannot be used on other non-Amazon platforms. But the AI-generated Video Ad and A+ creation showcased is easy to use and only takes a few minutes with a single product image and a few key inputs from the user. So it is worth a try if you need assistance with content generation for no additional cost, but you might get what you pay for initially. We know that these tools will get better over time, and as they do, they will provide the opportunity for a more level playing field between small sellers and big brands. Hinge continues to embrace all AI tools with a test-and-learn approach on behalf of ourselves and our clients; we love the promise of scalability and automation but are wary of the “AI can solve all your problems” sales pitch in this environment. - Enhanced Data Insights: New Customer Journey Analytics offers deeper insights into sales, traffic, and customer behavior within Amazon Brand Analytics dashboards. Enhanced audience segmentation will help brands unlock cross-selling opportunities and more.
Key Takeaways: This one is exciting. Way to go Amazon, a tool we can use to drive sales and new customer acquisition! Rolling out by the end of October 2024, this will give sellers the ability to see where customers left the marketing funnel to utilize re-marketing tactics and target them through Brand Tailored Promotions, DSP, and Sponsored Displays in a coordinated effort. Customer Journey Analytics is currently in beta and is only available to select Amazon sellers. - Amazon + TikTok Partnership: It is finally here! Amazon announced integrated shopping on TikTok utilizing Buy with Prime (BWP) via product advertising. This integration should be available next month.
Key Takeaways: Brands can now link their products on their TikTok shop with Amazon BWP which will allow customers to receive all the Prime benefits of shopping, like fast free delivery. Partnering with TikTok also means seller access to their huge content audiences, new customer acquisition, driving engagement, and increasing sales. Should you consider this? Our quick answer is “yes,” especially if you have a TikTok brand presence already or are in social media “friendly” product categories like health & beauty, apparel & footwear, grocery, and CPG. But don’t let those things limit you; run, don’t walk, to this opportunity before everyone else does! Remember when video ads and A+ content were the differentiators and increased conversions on Amazon? This is the next frontier; don’t be late to the party.
Additional Note: Buy with Prime has integrations with Shopify, PayPal, and Google as well! This ties into Amazon’s supply chain initiative of Multi-Channel Fulfillment. Amazon’s goal is to meet any potential customers where they are shopping but ensure they stay within Amazon’s ecosystem. - New Amazon Business Advertising Solutions: Sellers will be able to optimize their advertising campaigns specifically for their B2B customers on Amazon Business. The ad portal will have bid optimization and reporting capabilities in the coming months.
Key Takeaways: This one was also very exciting, as it has long been a frustration that advertising strategies could not be surgical in their approach for B2B consumers. The Amazon Business team at Accelerate 2024 led multiple presentations and was available to sellers and service providers for Q&A. They indicated to our team that this continues to be a growth initiative for Amazon as they want sellers to engage with this program. We cannot wait to use this new feature on many of our clients that have only begun to tap into the growth potential of Amazon Business.
Okay, that covers the top 5 insights from Amazon Accelerate 2024. Oh wait, I forgot about the drones! Amazon is at it again with drones for same-day 1-hour delivery. Testing is set to begin in Arizona and Italy later this year. We’re excited to see what the rollout of this looks like soon, but we guess it’s only a matter of time until Amazon delivery drones instead of delivery trucks fill our neighborhoods.
If you want to hear more about how Hinge Commerce is implementing all our Amazon Accelerate insights for our current clients or you want to hear what we can do for your brand or want to talk about Amazon drones, click the Contact Us button at the top of the page.
