[Crew Review] Amazon pauses HQ2 || JD sparks fears of a price war

In this edition of Amazon’s post-COVID cost-cutting measures, the ecommerce giant is pausing Phase 2 of its nearly-complete HQ2 in Arlington, VA. This comes as the company is implementing its deepest ever job cuts and closing down some of its cashierless stores. 

Will sellers bear the brunt again?

Amazon Top Terms

Like every week, we give you an edge by unveiling the hottest terms on Amazon. We’ve run the numbers, and have come up with the top 10 trending terms that have jumped up in popularity from February 19th to March 4th.

In the wake of March, sales of “holi color powder” have gone through the roof. Holi is one of the most popular Indian festivals, where hundreds of Indians gather to throw colored powder at each other to welcome spring. This year, the event will take place on March 7 and 8 and so far, products related to this keyword have sold 4 units per day to 32 units per day.

It’s essential for Amazon sellers to stay up to date on social events to take advantage of seasonal products sales. Here’s a list of the important dates and events for Amazon sellers to take note of this year.

Amazon Accelerate Gets a Date

Amazon’s biggest seller conference is set for September 13-14, 2023 in Seattle.

Historically, Amazon Accelerate is when the company announces the latest tools and innovations for marketplace sellers. Last year saw the introduction of new email marketing tools that enable sellers to grow sales to existing customers. 

Stay tuned to the Crew Review for more information on registration, keynote speakers, and more.

New Antitrust Coalition Has Its Eye on Amazon

A trio of antitrust advocates launched the Responsible Online Commerce Coalition last Thursday to push back against Amazon's dominance over the online shopping ecosystem. The group includes small businesses and large brands and aims to bring their stories to policy makers to combat Amazon's actions. 

The group will advocate for competitive pricing for seller commissions, non-discriminatory search results, the freedom for sellers to offer discounted products, and limiting counterfeit products.

While it has not yet publicly announced member details, organizers say several companies have committed to joining, including a large publicly traded company and small third-party marketplace sellers, though adding that many other companies fear retaliation from Amazon.

Chinese Giant JD Sparks Fears of a Price War

Chinese ecommerce giant JD.com, Inc. has launched a whopping $1.4 billion discount campaign to attract new users, sparking concerns that other Chinese juggernauts like Alibaba may retaliate with price cuts of their own, potentially leading to a margin-eroding price war. 

The initiative comes as the Chinese government is starting to roll back restrictions set during a crackdown campaign in 2020, and in anticipation of a great year for economic recovery in the region.

Source: Bloomberg

A scary price war between Chinese suppliers that will lower costs for imported goods is possibly beneficial to US ecommerce sellers. JD is a great resource for those importing from China alongside Alibaba and PDD, which recently launched Temu to attract online shoppers in the US.

Ex-Amazon Exec Launches Seller-Friendly Software Company

Threecolts, a company that builds software for brands and retailers to manage their Amazon sales channel, has raised $90 million in funding. 

The London-based startup was founded by Yoda Yee, an ex-Amazon executive, and has gained 22,000 customers since its establishment in 2021. Yee previously worked at Amazon and saw firsthand how the company's position as both an enabler and competitor to retailers and brands complicates its relationship with third-party sellers. Threecolts aims to provide tools that Amazon cannot provide due to its inherent conflicts of interest.

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