Amazon & Temu Swap Business | Prime Day 2024, Tiktok Launches on UK, Temu & More

Introduction

By: Shakat from eom Clips

Exciting Ecommerce Updates - July 2024

Prime Day Breaks Records

Prime Day on July 16th and 17th hit an all-time high with US shoppers spending a whopping $ 14.2 billion online over the two-day event. This accounts for about 11% of Amazon’s yearly sales. The top categories were consumer electronics and back-to-school products. Independent sellers, largely composed of small to medium-sized businesses, sold over 200 million items, making this the most successful Prime Day ever.

AI-Powered Shopping Assistant "Rufus"

Amazon launched their AI-powered shopping assistant, Rufus, for all US customers. Rufus aids in product discovery, comparisons, and personalized recommendations. While it's useful for answering questions about specific products, some shortcomings have been noted, such as difficulties navigating Amazon's extensive catalog.

New Low-Priced Section by Amazon

Amazon is preparing to introduce a new section on its site featuring low-priced fashion and lifestyle items, resembling Temu's strategy. Chinese sellers will ship directly to US customers, with delivery times ranging from 9 to 11 days. This move will benefit Chinese sellers by eliminating middlemen, but it poses competition challenges for US-based FBA sellers.

Temu's Local Shipping Strategy

Temu, perceived as an Amazon competitor, is transitioning to a model that includes local US warehouses to reduce shipping times and supply chain risks. As of now, 20% of Temu's US sales come from these local warehouses. This change allows Temu to offer larger items like furniture and e-bikes with faster delivery.

TikTok’s One Million Pound Club

TikTok launched the "One Million Pound Club" program in the UK to assist retailers with significant sales growth by offering benefits like commission-free sales for up to 90 days, free storage and fulfillment, and enhanced seller support. This initiative is part of TikTok's broader strategy to establish a foothold in the UK market.

New 3D Product Photos for Amazon Sellers

Amazon introduced a feature allowing sellers to create 3D product models directly from the Amazon Seller iOS app. The eligible categories depend on various factors, and the feature requires an iOS device with iOS 7 or newer. Once scanned, Amazon will create the 3D model within three weeks, and it will be added to product listings automatically.

Automatic Reimbursements for Amazon FBA Sellers

Starting November 1st, Amazon will automatically reimburse FBA sellers for items lost in fulfillment centers. This update eliminates the need for sellers to manually file claims, although claims for removal will still need to be submitted manually. A new policy for manual claim eligibility will begin on October 23rd.

Keywords

Prime Day
Amazon Rufus
AI Shopping Assistant
Temu
Local Warehouses
TikTok One Million Pound Club
3D Product Photos
Automatic Reimbursements
Amazon FBA Sellers

FAQ

Q: What was the total sales figure for Prime Day 2024?
A: US shoppers spent $ 14.2 billion during the two-day event.

Q: What is Rufus on Amazon?
A: Rufus is Amazon’s AI-powered shopping assistant designed to help customers find products, compare options, and receive personalized recommendations.

Q: How is Temu changing its shipping strategy?
A: Temu is utilizing local warehouses in the US to offer faster shipping and reduce supply chain risks, with 20% of its sales now coming from these local facilities.

Q: What benefits does TikTok’s One Million Pound Club offer?
A: The program offers benefits such as commission-free sales for up to 90 days, free storage and fulfillment, enhanced seller support, and additional promotional help.

Q: How can Amazon sellers create 3D product photos?
A: Sellers can create 3D product models using the Amazon Seller iOS app if their product is eligible, and the feature requires iOS 7 or newer.

Q: When will Amazon start automatic reimbursements for FBA sellers?
A: Automatic reimbursements for lost items in fulfillment centers will begin on November 1st, 2024.