If in doubt, check our Absolutely-No-Spam Policy. Unsubscribe anytime.

#162 - Veteran Amazon Sellers Dominate, Big Losses for Sellers, and more

Amazon employee
Welcome to Issue #162 of the FBA Monthly Newsletter! As we journey through another month, we’re excited to share the latest insights and valuable resources to help you navigate the Amazon marketplace. In this edition, you’ll find key updates on industry trends, effective strategies to boost your sales, and tips for optimizing your operations to enhance customer satisfaction. Whether you’re looking to refine your listings or explore new marketing avenues, we’re here to support your growth and success. Let’s make the most of this month together!

Hot News

Over 60% of the current top 10,000 sellers on Amazon.com registered on the marketplace before 2019. Despite thousands of new sellers joining daily, the marketplace elite remains largely stable, with pre-2019 cohorts maintaining their dominance. Five years ago, half of the top sellers had been selling for at least four years; today’s data shows that threshold has risen to six-plus years for over 60% of top sellers.

marketplacepulse.com

Many sellers on Amazon count on China for manufacturing and assembly due to lower costs and established infrastructure – up to 70% of goods on Amazon come from China, according to Wedbush Securities. With nearly all imports from China being taxed a staggering 145% under the latest tariffs, Amazon sellers are having to decide whether to raise prices or absorb the vastly increased cost of importing their goods.

cnbc.com

Amazon’s online advertising business generated $17.29 billion in the fourth quarter of 2024, the company reported on Thursday, with total retail ecommerce profits hitting $20 billion in the holiday shopping period. "AWS performed best, while third party seller services and advertising were slightly light," Dan Romanoff, senior equity analyst at Morningstar, wrote in a research note published Friday.

mediapost.com


Good to Know

Still, the 34-year-old father of two has managed to build a profitable 10-person Idaho-based small business that generated $5 million in sales over the past year. His company Harkla, sells sensory swings and other specialized products aimed at children with special needs, mainly on Amazon, as well as offering online courses through his own website.

fortune.com

After a year marked by rising seller fees and, now, new tariffs, Amazon sellers are having to adopt a fresh marketing mindset. For many, the name of the game is efficiency. Sellers, who drive more than 60% of Amazon’s e-commerce volume, are reconsidering how and where they spend their advertising dollars on Amazon’s increasingly expensive and competitive marketplace.

modernretail.co

In a partial win for third-party seller Angel Seller LLC, a federal court in New York has refused to grant summary judgment to Fossil Group and Michael Kors, LLC on their claims that the company sold counterfeit MK-branded watches through its Amazon storefront. In a newly-issued opinion and order, the court denied both sides’ motions on the bulk of claims – finding that a jury must determine whether the watches in question were actually counterfeit and whether Angel Seller is liable for trademark infringement, counterfeiting, and dilution. The court did, however, dismiss Angel Seller’s defamation counterclaim and a New York deceptive business practices claim brought by Fossil and Kors.

thefashionlaw.com

There are currently more than 200 million people subscribed to Amazon Prime (according to a 2024 report by Statista). While there are many benefits to a Prime membership, fast, free shipping is an ever-present, growing appeal to purchasing products via Amazon Prime. Over 60% of sales on Amazon went to independent sellers on the platform, many of whom ship their products via Fulfillment by Amazon (FBA). This program allows independent sellers to use Amazon’s extensive fulfillment network and logistics infrastructure, earning the Prime eligible badge on their listings.

jumpfly.com

Inflation remains a hot button issue in the U.S. despite its cooling from 2021 highs. According to the U.S. Bureau of Labor Statistics, The Consumer Prices Index for all items rose 2.9 percent from December 2023 to December 2024. That’s down from 7.0% in 2021, 6.5% in 2022, and 3.5% in 2023. But on Amazon, traditionally known as the marketplace where you can get cheap items conveniently, inflation persists.

forbes.com

Amazon CEO Andy Jassy, in a TV interview, said the company was still evaluating the impact of the new tariff landscape. UBS says although the risk of a severe market downturn, or left tail scenario, has diminished, concerns still linger. DoorDash to start offering sidewalk robot delivery in select U.S. cities through anexpansion of its partnership with food delivery robotics company Coco Robotics.

seekingalpha.com

Japan is the only remaining established Amazon marketplace where local sellers represent the majority, with 54% of active sellers being Japanese businesses. This stands in stark contrast to most other Amazon marketplaces, where Chinese sellers increasingly dominate and local seller representation continues to shrink.

marketplacepulse.com

Japan is the only remaining established Amazon marketplace where local sellers represent the majority, with 54% of active sellers being Japanese businesses. This stands in stark contrast to most other Amazon marketplaces, where Chinese sellers increasingly dominate and local seller representation continues to shrink.

digitalcommerce360.com

Amazon South Africa hosted its inaugural Seller Summit at its Cape Town headquarters last week, welcoming more than 300 entrepreneurs from across the country. The event offered expert guidance, practical data-driven insights, and networking opportunities to help local businesses grow and thrive on amazon.co.za.

cioafrica.com


Tips and Tricks

Becoming an Amazon FBA seller is one of the most interesting, unique businesses you can start. FBA stands for Fulfillment by Amazon, and it’s a program offered by Amazon to third-party merchants that allows you to get your products on Amazon’s website and leverage its global fulfillment network to scale your e-commerce business. This is a huge simplification, but lots of people have made a healthy living, even small fortunes with Amazon FBA, and it is built on one of the most trusted brands in the world.

upgradedpoints.com


Podcasts

Join us for an insightful episode featuring Marcel Marculescu, the CEO of IntelliRank. From his early days in Romania crafting browser-based games to becoming a cornerstone in the Amazon selling community, Marcel’s journey is a testament to his entrepreneurial spirit. We unpack his expertise in Amazon ranking and advertising, examining the evolution of strategies for product launches and the importance of a harmonious blend of organic methods and PPC advertising.

helium10.com