[Crew Review] Amazon pauses more warehouses as its online ad sales grow

Pivot

After its blistering expansion over the pandemic, Amazon has delayed or canceled dozens of warehouses all over the country largely due to overcapacity as demand cools. On the flip side, its online advertising business, which affects third-party sellers just as much as warehousing and logistics, continues to flourish.

Here’s the story so far.

Amazon Top Terms

Here are the top 10 keywords on Amazon that could give you a leg up on the competition. This data was taken from Amazon between July 17th to July 30th.

When it comes to going viral online, there’s no real way of knowing what’s going to take off. A TikTok and Instagram influencer that gives pro tips on how to clean has revealed how a scouring stick made hard water toilet stains disappear, which is why “scouring stick” is taking our #6 spot in this week’s top terms.

Products related to this keyword have gone from selling 58 units per day to 224 units per day in the last few days.

Shopify Invests $100 million in Klaviyo

Shopify’s latest ‘strategic investment’ is a $100 million deal with in Klaviyo, an email marketing company primarily used by ecommerce sellers for email marketing automation.

Through this deal, the ecommerce company intends to make Klaviyo the recommended email service for Shopify Plus, among other perks, which could benefit both companies, as Klaviyo is already widely considered one of the best email messaging software for online sellers.

Shopify recently acquired Deliverr to enhance its ecommerce fulfillment capabilities and it laid off 10% of its ‘unnecessary’ workforce to make room to hire for more important roles.

Amazon Wins Over DC Attorney General

Last March, a lawsuit filed against Amazon over pricing policies allegedly designed to prevent third-party sellers from offering better deals for their products outside of Amazon was dismissed by the Superior Court of the District of Columbia.

This week, an attempt by DC Attorney General Karl Racine to revive the antitrust suit was denied, with the Court citing “lack of factual details in the complaint” and that the allegation of an illegal monopoly was backed merely by “conclusory statements devoid of factual information.”

This is a rare victory for Amazon, as the ecommerce giant is constantly bombarded with lawsuits and probes over potential monopolistic behavior.

Facebook Shuts Down Live Shopping

Facebook is shutting down live video shopping just a couple of years after launching the feature. The social media company announced that it will shut down live shopping officially on October 1, 2022 and will focus on Reels on Instagram.

This is apparently prompted by consumers’ viewing behaviors shifting to short-form content, and the company is urging content creators (sellers included) to experiment with Reels and Reel Ads on Facebook and Instagram to engage with audiences through video.

Amazon Faces Expanded Safety Hazard Probe

More Amazon sites have come under an expanding probe into the ecommerce giant’s workplaces for potential health and safety hazards, according to CNBC.

Last month, Federal Prosecutors launched an investigation into Amazon’s warehouses over allegations of unsafe working conditions and unfair policies like stringent productivity quotas that prevent warehousers from even taking short breaks. This week, investigators visited Amazon sites near Albany, New York, Denver, and Idaho, effectively expanding the ongoing investigation.

Amazon is a constant target of state and federal probes over its questionable workplace policies, ineffective (or total lack of) safety protocols, and COVID-related health concerns.

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