What Does Amazon’s Latest Q4 Earnings Report Mean For Brands Selling on Amazon?

Amazon is always honing in on how to make the lives of customers, brands and sellers better and easier every day. This past quarter Amazon has made Same-Day Delivery even faster in major metropolitan areas in the U.S., expanded Buy with Prime to all eligible U.S. merchants, launched a message-based virtual health service called Amazon Clinic, announced various upgrades and expansions to AWS and introduced a major technological advancement to their first fulfillment center. To learn more, click here to read Amazon’s recent press release.

On February 2nd Amazon announced its fourth quarter results for last year. Although Amazon saw a record-breaking holiday season with close to half a billion purchases from Thanksgiving to Cyber Monday, Amazon’s 1P vendor sales were down 0.9% and Amazon’s 3P fees increased 13.9%. In this article we’ll simplify what this means for brands selling on Amazon.

Top 3 Takeaways from Amazon’s Quarterly Business Report:

– Third party sellers are even more important to Amazon, and therefore should also be important and more closely monitored by brands selling on Amazon.

– Now more than ever is a great time to develop an unauthorized 3P strategy to help capture sales and mitigate impact of any 1P disruption.

– With the recent layoffs at Amazon, they have already increased the threshold of revenue a brand needs to have in order for them to receive support from a dedicated Vendor Manager. With that, you can expect less support from Vendor Managers going forward.

How POTOO Can Help:

Our Brand Protection service and team of marketplace experts help brands remain in control while investigating, targeting and monitoring nefarious unauthorized third-party sellers through data-driven insights. Let us provide your brand with full visibility of the Amazon marketplace, while driving more sales back to your brand and your authorized partners.

We utilize best practices to help brands navigate Amazon’s platform successfully. You will also have a dedicated Account Manager on your side to assist you with catalog optimization, launch of new products, expansions to new marketplaces as well as marketplace monitoring and unauthorized 3P seller investigation, communication and much more!

To learn more about how POTOO can help protect your brand and achieve your marketplace goals message us on LinkedIn or contact us at info@potoosolutions.com.