October Tricks and Treats: Amazon’s New AI Tools & Support for Sellers

As October comes to a close, Amazon’s focus was on enhancing AI features, updating advertising tools, and improving seller support. While each change may seem small, they make a big difference for sellers and buyers. With the lovable AI assistant Rufus at the forefront, Amazon is making it easier for sellers to optimize listings, connect with customers, and gain a competitive edge in the shifting online market.  Let’s take a look at the key updates and how they can help your business.

October 2, 2024

Amazon Enhances Brand Tailored Promotion Audiences

Amazon has introduced a new “Cross-sell” goal, enabling brands to promote complementary products to existing customers directly. This update allows advertisers to select the “Complementary Products Remarketing” audience, targeting customers who purchased related items within the last 30 days but have not yet purchased the promoted products. This feature is expected to enhance ad performance and increase sales conversions. Brands looking to stay ahead can discover the October changes and how these updates may impact their strategies.

Amazon Updates Brand Tailored Promotions for Better Targeting
Amazon has refined its Brand Tailored Promotions feature, making it easier for advertisers to target specific customer segments. New audience categories include

• New Customer Acquisition
• Customer Retention
• Re-engagement
• Cross-selling

This structured approach allows for more effective campaign crafting, aligning with strategic business goals and optimizing advertising budgets. Utilizing available data is crucial for understanding customer behavior at different funnel stages. A customer analytics tool can help businesses segment their audience effectively, ensuring that campaigns are targeted and personalized for optimal results.

October 3, 2024

• Amazon Ads Launches Two New Sponsored Ads Certifications
  Amazon has revamped its Sponsored Ads certifications, offering two new opportunities

1. Sponsored Ads Certification Focuses on basic campaign strategies and setting up campaigns tailored to different product types.
2. Sponsored Ads Advanced Certification Delves into advanced optimization tactics, reporting, and measurement strategies.

These certifications aim to enhance knowledge among teams working with Amazon Sponsored Ads, ensuring they are equipped to navigate the evolving landscape of Amazon Ads.

• Amazon’s Sponsored Display Lead Generation Offers Unique Benefits
  The Sponsored Display Lead Generation tool allows businesses even those not selling on Amazon to collect leads directly within ad creatives. Customers can sign up for information without leaving their browsing experience, which could significantly enhance engagement and conversion rates. This tool empowers advertisers to measure and optimize lead generation effectively.
• Amazon Sets Crucial Deadline for Premium Beauty Sellers
  Premium Beauty sellers must update their product listings with complete information by October 10, 2024, or risk deactivation. Key compliance requirements include
  • Full ingredient lists
  • Drug Facts labels (if applicable)
  • Product name, purpose, quantity, and manufacturer information

This initiative is critical, as listings lacking complete information will be flagged and may be deactivated, emphasizing the importance of compliance to maintain visibility on the platform.

• Amazon Enhances Its Supply Chain and Logistics Capabilities
  Amazon is accelerating its logistics capabilities through several key initiatives

1. Supply Chain by Amazon A fully-managed supply chain solution aimed at optimizing delivery speeds and improving inventory management. Impact Reported a 20% increase in sales conversion on average for sellers using this service.
2. Amazon Shipping Introduces reliable ground delivery service with standard 2-to-5-day delivery timelines and no additional costs for weekend pickups. This enhancement aims to provide transparent pricing and a new Amazon Shipping app for better user experience.
3. 1-Hour Drone Delivery Amazon has launched the MK30 drone, with a pilot rollout in Tolleson, Arizona, and plans for international expansion. This innovative service aims to meet consumer demand for faster deliveries.

These updates highlight Amazon’s commitment to reducing delivery times and operational costs, thereby enhancing seller satisfaction.

October 5, 2024

Amazon Ads Expands AI Image Generator with New Features

The AI image generator now includes live images, new ad formats (landscape, vertical, and square), and over 40 thematic backgrounds. This tool allows brands to create custom images for different seasons, enhancing engagement and potentially increasing click-through rates and new-to-brand orders. The addition of motion in images through the live images feature is currently in beta testing and is expected to roll out to more advertisers in Q4.

October 5, 2024

Amazon Adds Seller Feedback Ratings to Organic Search Results

In a significant change for third-party (3P) sellers, Amazon has begun displaying seller feedback ratings directly beneath the Prime badge in organic search results. This visibility elevates the importance of maintaining high ratings, with a target of 4.9 or higher being crucial for success on the platform. For sellers evaluating 1P vs 3P on Amazon, visibility, customer relationships, and control over the selling experience are important considerations. Sellers are encouraged to monitor their ratings closely, as any negative feedback related to Amazon FBA (Fulfillment by Amazon) can be addressed. To streamline this process, it’s advisable to have virtual assistants (VAs) submit removal requests for such negative ratings, as Amazon often resolves these issues quickly. This update not only enhances customer transparency but also emphasizes the need for sellers to maintain excellent service standards to attract buyers effectively.

Amazon Introduces Brand Store Quality Ratings Based on Dwell Time
Amazon has rolled out a new feature that rates Brand Stores based on customer engagement, specifically focusing on dwell time—the amount of time customers spend browsing. Stores will receive ratings categorized as high, medium, or low, with longer dwell times correlating with a greater likelihood of purchase. This new metric is designed to help brands understand how well their stores are performing in terms of user engagement. Additionally, Amazon will provide monthly updates allowing brands to compare their store performance against similar peer groups. These insights will assist sellers in refining their store design and content strategies to enhance customer experiences and drive conversions.

Changes to A+ Content Comparison Charts

Amazon has announced important modifications to the A+ Content feature, specifically regarding Comparison Charts. Under the new guidelines, sellers are limited to one Comparison Chart per project. This change will take effect starting September 30, 2024, at which point any existing projects containing multiple Comparison Charts will be automatically reduced to one. The rationale behind this update is to improve the shopping experience by preventing information overload and simplifying the decision-making process for customers. Sellers are encouraged to optimize their single Comparison Chart to ensure it highlights the most relevant and compelling product features.

New API Update for DSP Managers
A new update for Demand-Side Platform (DSP) managers introduces critical frequency insights, offering data on saved impressions, savings reinvested, unique users, and incremental users. These insights provide a deeper understanding of campaign efficiency and targeting effectiveness. For instance, if both saved impressions and reinvested savings increase, it indicates that the campaign is becoming more efficient, with less waste in impressions. Conversely, if saved impressions decline while reinvested savings increase, it may suggest a strategic focus on quality rather than quantity. These insights empower DSP managers to adjust their campaigns and budgets proactively, optimizing ad spend for better results.

Amazon Ads Expands AI Image Generator with New Features
The Amazon Ads AI image generator has been enhanced to include live images, new ad formats (landscape, vertical, and square), and over 40 thematic backgrounds. This update allows brands to create tailored images for different seasons and occasions, which can significantly improve engagement and increase click-through rates and new-to-brand orders. The newly introduced live images feature, currently in beta testing, adds motion to images, making them more dynamic and appealing perfectly aligning with emerging graphic design trends. This tool aims to help brands efficiently produce high-quality creative content, especially crucial as the holiday season approaches. By facilitating easy updates for seasonal promotions, this feature empowers sellers to remain relevant and appealing in a competitive marketplace.

October 6, 2024

Amazon Launches Enhanced Product Listings for Grocery and Household Items
Amazon has updated its product listing features for grocery and household categories, allowing sellers to include additional product details such as usage instructions, recipe suggestions, and nutritional information. This initiative aims to enhance customer experience and help shoppers make informed purchasing decisions, potentially leading to increased sales.

New Shipping Policy for Grocery Items
Amazon introduced a new shipping policy specifically for grocery items, offering free shipping on orders over a certain threshold. This change is designed to encourage larger orders, improve customer satisfaction, and streamline the shopping experience for grocery shoppers.

October 7, 2024

AI Revolutionizes Amazon’s Ecosystem with Rufus

Amazon’s Accelerate conference underscored the integral role of AI in the platform’s ecosystem, primarily driven by Rufus, Amazon’s AI assistant designed to aid customers in making purchasing decisions. Here are the essential points

Feed Rufus the Data He Needs

• Listings: Optimize every corner of your product listing—titles, bullet points, descriptions, backend search terms, and technical details. Tools like Jungle Scout and Data Dive can make sure nothing is overlooked.
• Images: Amazon’s AI even reads text within infographic images, so make sure any visual content is optimized to feed Rufus accurate details.
• Customer Reviews: Routinely audit reviews and flag any FBA-related delivery complaints for removal. By keeping tabs on trends, you can prevent Rufus from linking your brand to quality issues.
• Community Q&As: This isn’t the time for one-liners. Give thorough answers to community questions to ensure Rufus understands the full picture of your product.
• Amazon Posts: Regular posting is key—aim for a daily post to keep feeding Rufus relevant information. A consistent flow of data here can mean big gains in visibility.
• ALT Text in A+ Content: Max out your ALT text with up to 100 characters per image to capture an often-overlooked SEO edge that will help Rufus pull your listing to the top.

Self-Test Rufus’s Responses
Amazon’s AI is powerful but still growing. To ensure your product details hit home, test Rufus by asking questions relevant to your listing, such as:

• How long does the battery last?
• Are there USB slots?
• What do customer reviews highlight?
• Is a warranty included?

If Rufus’s answers fall short, update your listings to cover any gaps. This is what Amazon recommends.

AWS Innovations AI-Driven Solutions for Sellers

AWS introduced various AI tools aimed at enhancing seller capabilities

1. AWS App Studio
   • Allows sellers to create inventory management or sales tracking apps using low-code, AI-powered tools without the need for app development services.
2. Amazon Q Apps
   • Empowers sellers to automate tasks such as report generation and data insights extraction using simple prompts.
3. Amazon Q Developer in SageMaker Studio
   • Supports data scientists by saving time in developing machine learning models through AI-generated suggestions. Teams pursuing AWS credentials often complement hands on learning with AWS exam labs resources to validate their cloud and AI expertise.
4. Amazon Bedrock
   • Simplifies the process of building and deploying generative AI applications with secure and responsible AI models. Meanwhile, AWS cost optimization helps reduce infrastructure costs for AI applications.

October 8, 2024

Prime Big Deal Days Showcases Strategic Changes and Impressive Metrics

The first day of Prime Big Deal Days saw noteworthy adjustments in strategy and impressive performance metrics, with overall sales increasing by 12.01% compared to the previous year. Key highlights include

1. Hyper-Personalized Deals Take Center Stage
   • Amazon featured numerous default recommendations on the homepage, along with personalized offers tailored to customer viewing history on mobile devices and through the Rufus assistant.
   • Takeaway Begin customer acquisition efforts well in advance of major events. Establish brand awareness early, then leverage event deals to convert first-time buyers. Tools like Amazon Marketing Cloud (AMC) and custom audiences facilitate easier cohort-based targeting.
2. Evolving Merchandising and Pricing Strategies
   • The branding for Prime Big Deal Days prominently featured red, regardless of the deal type.
   • Coupons now appear integrated with “Subscribe and Save” on mobile search results, prompting a reassessment of launching coupons for products not eligible for Prime Exclusive Discounts (PED).
   • Coupons and discount prices must now align with the lowest price of any seller for the past 30 days, influencing pricing strategies.
   • Sellers can no longer adjust the quantity of units for Lightning Deals mid-campaign, removing a previously exploited advantage.
3. Rising Cost Per Click (CPC) and Increased Competition
   • CPCs rose by 14% compared to last year, reaching 57% above the average from September. Sellers countered this by shifting investments from branded terms to generic keywords, prioritizing aggressive ad strategies.
4. Opportunities with Sponsored Brand Video
   • Sponsored Brand Video (SBV) placements provided smaller brands with significant visibility on high-traffic keywords like “anti-aging creams” and “hair care.” The limited competition for SBV spots compared to Sponsored Product ads enhanced opportunities for brands to gain exposure.
5. Amazon’s Focus on Affiliate Marketing
   • The mobile “Inspire” page was revamped to become a “deal inspiration” page, aimed at encouraging affiliates to promote products.
   • While social selling shows promise, the economics of unit sales remain uncertain when factoring in affiliate fees and Prime Day discounts.

Key Performance Metrics (Compared to Last Year)

• Total Sales +12.01%
• Organic Sales +19.81%
• Ad Sales -0.50%
• Net Sales +15.44%
• CPC +14.22%
• Ad Spend +32.95%
• Impressions +110.33%

October 8th generated 31.73% of September’s total monthly sales, underscoring the event’s impact.

October 11, 2024

Amazon’s Visual Search Capabilities Have Significantly Improved

The Amazon app now offers enhanced visual search features for a better shopping experience.

• New Features:
  • Visual Suggestions: Image suggestions appear when typing product descriptions.
  • Text & Image Combo: Customers can upload images with specific text for more accurate searches.
  • More Like This: Allows users to discover similar products easily.
  • In-Search Videos: Users can watch product videos directly in search results.
  • Circle to Search: Customers can draw a circle around an image to find it directly.

These updates streamline shopping, making it easier for customers to find what they need efficiently.

October 13, 2024

Amazon Introduces Major Changes to Support Sellers
Amazon is rolling out nine significant updates to assist sellers in improving their operations.

• Key Updates:
  1. Create immersive brand experiences and engaging video content using A+ Content and AI-powered tools.
  2. Enhance promotional targeting with increased ad bids for Amazon Business placements.
  3. Utilize Optimize Ads for ongoing Sponsored Products with exclusive performance reporting.
  4. Benefit from enhanced seller support with AI-enabled assistance and live chat coverage.
  5. Access expanded financing options, including cash advances and loans.
  6. Leverage AI-based selling assistance for automatic product listings.
  7. Gain insights from custom dashboards and customer journey analytics.
  8. Utilize comprehensive return analytics with Customer Return Analytics and Insights (CRAI).
  9. Navigate features quickly with the redesigned Amazon Seller Mobile App.

These updates aim to enhance product visibility, streamline operations, and refine sales strategies for sellers.

Rufus Exposes Deceptive Pricing on Amazon Prime Deals
Rufus, the AI tool, revealed deceptive pricing on an Anker docking station, preventing overpayment.

• Insights:
  • The docking station was marked up before being discounted, highlighting the importance of price history.
  • Rufus’s capabilities help uncover misleading sales tactics.

Amazon’s Prime Big Deal Event Exceeds Expectations Again
Shoppers turned to Amazon for basic needs during the Prime Big Deal Event, demonstrating growth.

• Trends:
  • Customers remain price-sensitive, seeking essentials rather than just electronics.
  • Amazon’s formula of low prices and fast delivery contributes to high customer satisfaction.
• Key Questions: How did your Prime Big Deal Day event go? Let us know in the comments!

Amazon Brand Story Templates Now Available
Amazon has released templates for crafting compelling brand stories.

• Template Features:
  • Covers brand presentation, founding story, product benefits, new launches, and awards.
  • Aimed at helping brands create or update their Amazon story effectively.

October 14, 2024

Tailored Promotions Reward Loyal Amazon Customers
Amazon Brand Analytics now enables sellers to create exclusive discounts for top-tier customers.

• Benefits:
  • Engages and retains loyal buyers.
  • Potentially increases repeat purchases and reactivates dormant customers.

Amazon Brand Tailored Promotions x Customer Loyalty Analytics
Imagine owning a bar where regulars receive a complimentary drink as a gesture of appreciation. This same principle applies to your top-tier Amazon customers.

• Customer Loyalty Analytics:
  • Provides insights into customer behavior, allowing segmentation based on loyalty and purchasing frequency.
• Tailored Promotions:
  • Offers targeted discounts from 10% to 50%, driving repeat purchases.
  • Even a small discount can yield significant results, with a 10% action rate translating into hundreds of additional orders.
• Engagement Strategies:
  • Keep loyal customers informed and motivated with ongoing promotions.
  • Reach out to at-risk customers with custom promotions to reignite their interest.

Amazon Introduces AI Shopping Guides to Streamline Product Searches

Amazon has rolled out AI Shopping Guides, using generative AI to enhance product searches.

• Key Features:
  • AI-Powered Research: Provides relevant product information and recommendations across 100+ categories.
  • Faster, Smarter Shopping: Reduces research time, allowing customers to browse products that match their preferences.
  • Seamless Experience: Integrates educational content and real-time answers within the app.

Pacvue’s Q3 PPC Report Reveals Rising Costs and Competition

Pacvue’s latest report indicates an increase in costs and competition for PPC advertising.

• KPI Highlights:
  • CPC Increases:
    • Sponsored Products: +4.4% (QoQ)
    • Sponsored Brands: +8.1% (QoQ)
  • ROAS Declines:
    • Sponsored Products: -7.3% (QoQ)
    • Sponsored Brands: -7.1% (QoQ)
  • Increased Daily Spend:
    • Sponsored Products: +11.3% (YoY)
    • Sponsored Brands: +20.7% (YoY)
• Key Takeaways:
  • Rising CPCs indicate heightened competition.
  • Declining ROAS suggests challenges in maintaining efficiency.
  • Increased spending reflects advertiser confidence.
• Actionable Steps:
  • Optimize keyword strategies to combat rising CPCs.
  • Diversify ad types for a full-funnel approach, balancing costs with conversion potential.

October 17, 2024

Amazon Extends Holiday Return Window
Amazon is extending the holiday return window to enhance customer satisfaction during the peak shopping season.
Key Updates:

• Customers can return purchases made from November 1 to December 31, 2024, until January 31, 2025 (Apple products can be returned until January 15, 2025).
• This longer return period allows sellers to manage stock and cash flow effectively.
• Increased customer confidence may lead to higher sales during the holiday season.

October 18, 2024

Investment Demands from Amazon
Amazon advises brands to request trial periods for new programs before making investment commitments.
Key Updates:

• Brands should ask for free trials for initiatives like Subscribe and Save to evaluate effectiveness.
• This approach allows for informed decision-making regarding program impacts on sales and ROI.
• It helps mitigate risks associated with long-term financial commitments to Amazon.

October 19, 2024

Amazon’s Compliance Fast-Track Program
Amazon has launched the Compliance Fast-Track program to alleviate the compliance documentation burden on sellers.
Key Updates:

• The program automates the collection of compliance documents from regulatory databases.
• Sellers can focus on growth rather than paperwork, reducing administrative workloads.
• It minimizes the risk of account flags and sales suppression related to compliance issues.

October 20, 2024

Multiple Brand Stories for Large Brands
Amazon introduces the ability for large brands to create multiple brand stories for better product categorization.
Key Updates:

• Brands can now create separate ASIN lists for different product categories.
• Each product group can have targeted brand story designs to enhance relevance.
• This strategy increases visibility and traffic, ultimately leading to higher sales.

Enhanced Targeting for Streaming TV Ads
Amazon has rolled out new targeting options for audiences who have viewed streaming TV ads.
Key Updates:

• Advertisers can now target viewers through remarketing in SD campaigns.
• This feature is expected to improve click-through rates (CTR) and conversion rates (CVR).
• A recommended strategy includes utilizing specific lookback windows for optimal results.

Sponsored Display for TV Ad Campaigns
Sponsored Display now allows remarketing to viewers of Sponsored TV ads.
Key Updates:

• This new touchpoint complements existing Sponsored TV initiatives.
• The development of Sponsored Display as a campaign type shows promise for increased usage by brands.

October 22, 2024

AI-Generated Image Tool
Amazon has launched an AI image tool that enhances product placement flexibility.
Key Updates:

• Users can now move and resize products within AI-generated images.
• This feature allows for creative experimentation and optimization of ad visuals.

October 23, 2024

New Amazon Image Manager

Amazon introduces the Image Manager with an Issue Alert tool to streamline product image resolution.
Key Updates:

• Sellers receive notifications about image issues directly within the platform.
• Enhanced visibility for all image problems allows for quicker resolutions.
• Quick fixes are facilitated through direct image uploads from the Image Manager.

October 24, 2024

Advanced Bidding Controls for Ads
Amazon is rolling out advanced bidding controls that enhance ad targeting capabilities.
Key Updates:

• Advertisers can now engage custom audience segments defined by themselves.
• Integration with AI tools like RUFUS and COSMO optimizes ad performance and budget efficiency.
• This update allows for strategic bidding based on specific audience behaviors, improving campaign outcomes.

Amazon Unveils Exciting Updates at unBoxed Event

Amazon introduces a suite of new advertising tools aimed at enhancing campaign measurement and targeting for advertisers.

Key Features:

• Long-Term Sales Impact Dashboard: Estimates potential sales over the next year, giving credit for customer engagements beyond immediate purchases.
• Multi-Touch Attribution: Divides credit for conversions across multiple Amazon Ads touchpoints, helping to assess the effectiveness of all ad interactions.
• Audience Bid Boosting: Allows advertisers to create custom audiences and adjust bids for those groups in Sponsored Products and Sponsored Brands campaigns.

October 25, 2024

Amazon Launches “Search This Page” Link on Desktop
A new feature directs users to Rufus, Amazon’s AI shopping assistant, increasing its visibility and potential usage.

Details:

• The “Search this page” link is positioned below the product title on desktop product pages, guiding users to a Rufus experience with ratings and reviews.
• The feature aims to enhance customer engagement with the AI assistant, similar to early Brand Store links that gained popularity over time.

Amazon to Launch “Low-Cost Store” by November 2024
A new storefront targeting budget-conscious consumers will feature strict price caps and no returns, posing a challenge for small American sellers.

Overview:

• Store Name: “Low-Cost Store” is designed to compete with Temu and Shein.
• Price Caps: Items like sofas will be priced at ≤$20, while jewelry can be sold for as low as ≤$8.
• Shipping and Returns: Products will take up to 11 days for delivery, and there will be no returns—customers receive instant refunds instead.

October 26, 2024

Amazon Introduces Bid Adjustments for B2B Buyers

Sellers can now increase bids up to 900% for business customers, offering significant revenue potential.

Why It Matters:

• B2B buyers purchase significantly more units and convert better than B2C buyers, making them a valuable audience.
• Sellers are encouraged to adopt this strategy to capture additional revenue opportunities within the B2B segment.

October 27, 2024

Amazon Expands Access to Marketing Cloud
Advertisers running only Sponsored Ads can now access Amazon Marketing Cloud’s insights through partnerships, broadening analytical capabilities.

Implications:

• This change democratizes access to advanced analytics, benefiting brands that may not fit into the traditional Amazon DSP model.
• Agencies can now provide strategic capabilities to Sponsored Ads-only clients, maximizing their advertising effectiveness.

Amazon Launches “Low-Cost Store” to Compete with Temu
The new initiative allows Chinese factories to sell unbranded, low-cost items, raising concerns for small American sellers.

Key Points:

• Products sold in the store will have no branding and will feature price caps on various categories.
• The move is seen as a strategic response to competition from platforms like Temu, which have gained traction among U.S. consumers.

October 28, 2024

Amazon Revamps App with New Features for Q4

The updated layout and personalized suggestions aim to enhance the shopping experience, particularly during the busy holiday season.

New Features:

• Buy Again Hub: Customers can easily repurchase previous items.
• Enhanced layout and personalized shopping suggestions based on user history, improving product discovery.

Total Recap

Amazon is reshaping its platform to better serve sellers and shoppers. The company is going all in on AI. Rufus is getting a big push, advertising tools are being enhanced, and strong support for sellers is being provided. The company is preparing to face new competition and adapt to market changes.  As these updates roll out, sellers must stay informed and adjust their strategies to thrive in Amazon’s evolving marketplace.

Arishekar N

Arishekar N is a Vice President (VP) of Marketing at AMZ Prep, specializing in ecommerce fulfillment and Amazon logistics strategies with a proven track record of driving growth for e-commerce businesses. He is a strategic leader with extensive expertise in marketing, e-commerce operations, SEO & advertising, and branding.

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