This may pressure Amazon to lower seller fees [Crew Review]

 

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Hey Reader,

It’s probably not news to you that Amazon has introduced new seller fees and increases this year. As expected, a lot of sellers were not too happy with the idea, especially since Amazon basically requires you to always have the Goldilocks number in terms of inventory–it can’t be too low nor too high. Plus, your products should be well-distributed over different fulfillment centers to make it easier for Amazon to fulfill its two-day delivery promise.

A lot of these new changes encourage sellers to use Amazon Warehousing and Distribution (AWD).

Of course, these new changes did not escape the notice of the Federal Trade Commission. The FTC is now examining these new fees and may give the e-commerce platform more pressure to reconsider.


It’s noteworthy that just last year, Amazon canceled the implementation of new seller fees that would have affected non-FBA sellers. This came before an FTC antitrust lawsuit was filed.

Would the same thing happen this time? Most sellers would hope so.

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How much of your money is still with Amazon?

Because of the sheer volume of inventory, orders, and returns, most Amazon sellers are unknowingly leaving a part of their profits with Amazon.

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Amazon Will No Longer Underwrite Loans for Sellers

Amazon has been underwriting loans for sellers since 2011. But more than a decade later, it will cease doing so, citing a growing number of third-party finance providers.

This may also be caused by the “increased uncertainty of business repayment ability.” A leaked document discovered by Business Insider last year shows the company’s economists are worried.

Some Amazon sellers shared the email they received online, prompting a discussion on the topic. The Amazon Sellers Group shared on X a screenshot of one of these emails.

The loans that Amazon provided were generally helpful to third-party sellers who needed a little more capital boost for their business. The company approves loan applications faster than most banks do, allowing sellers to grow and scale their businesses faster.

Amazon Lending will continue to honor existing loans, but they won’t be offering new loans anymore. The change took effect last March 6.

This Week's Trending Product: Straw Toppers

Just when you thought you'd seen every trend, here comes another one sweeping the market–straw toppers. This accessory is gaining rapid popularity across various platforms, with a big search boost in February—155,888 searches, a 1,274% increase from last year, and up 23% from January. Thanks to Target selling them for $1 for Stanley cups, its popularity has soared.

The 'Stanley Cup' is also trending, especially after their recent limited-edition release for Valentine's Day. This has led to a nationwide shopping frenzy and high demand.


Discover additional trending products on EcomCrew's latest beta version of the Trending Product Database at products.ecomcrew.com.

TikTok’s Creators Are Looking for Other Platforms

If you’ve read last week’s Crew Review, you know that the US Government is getting closer to a TikTok ban. A new bill was proposed, which would force TikTok’s parent company, ByteDance, to sell the app to avoid possible data breaches from Beijing.

Although TikTok’s CEO has repeatedly denied any connection with the Chinese Communist Party, the US Congress is not convinced.



This led some TikTok creators like Charli D’Amelio to look for other platforms where they can continue to earn.

If you’re a brand owner who promotes your products on TikTok, you may want to look for other platforms as early as now. Not only is there a potential for the app to be banned in the United States, but there’s also a decline in its growth rate.

Business Insider tracked the growth of the six most popular social media platforms and recorded a steep decline for TikTok. A significant number of its users may be getting busier by the day, preventing them from spending more time on the app.



 

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