eComm Updates: Amazon AI, Shipping Optimization & Compliance

The latest from Amazon promises to enhance the shopping and selling experience on the platform. Among the most significant updates is the nationwide roll out of Amazon’s AI-powered shopping assistant, Rufus, now available to all American customers through the mobile app. This AI-powered tool is set to revolutionize how consumers interact with eCommerce, offering personalized shopping assistance and recommendations.

For sellers, Amazon has released new features in Veeqo, its multi-channel fulfillment software, designed to streamline order fulfillment and reduce costs. In addition, the retail giant’s new “Send it Again” feature simplifies the process of replenishing FBA inventory by allowing sellers to replicate previous shipments with a single click. This upgrade reduces the time and effort needed to manage inventory, making it easier to keep popular items in stock.

Another critical update is the introduction of an ASIN Exclusion feature in Brand Tailored Promotions, allowing sellers to exclude specific products from catalog-wide promotions. 

Lastly, Amazon is preparing for the upcoming Extended Producer Responsibility (EPR) regulations in Germany, affecting products containing single-use plastics. Sellers will need to register their brands by January 1, 2025, to comply with these new environmental standards.

Read on for more detailed insights into these updates and how they could impact your business.

1. How Rufus Could Change Amazon’s Shopping Landscape for Consumers and Sellers

With the launch of Amazon’s AI-powered assistant, Rufus, the way customers interact with the platform is set to undergo significant changes. This also means the way sellers conduct business will undoubtedly change as well.

Rufus offers a personalized shopping experience by providing product recommendations, comparisons, and insights drawn from Amazon’s extensive product catalog, customer reviews, and additional web data. This tool aims to guide users in making better purchasing decisions, whether they’re hunting for household items or niche products like dinosaur toys.

Simplifying the Customer Shopping Experience

For consumers, Rufus promises to simplify and enhance the shopping experience on Amazon. By answering questions and providing tailored suggestions, Rufus helps users navigate the vast array of products more efficiently. This AI assistant is particularly useful for those who want quick, informed recommendations without sifting through endless options.

However, the system isn’t without its challenges. According to Engadget, Rufus sometimes provides a seemingly random assortment of well-reviewed products, which might not always align with the user’s specific needs.

There’s also concern about the accuracy of the information provided, as it primarily pulls from product descriptions, which can vary in reliability. This limitation highlights the need for users to verify the information provided – and for brand owners to ensure accurate listing content.

Impact on Sellers

For sellers, Rufus could be a double-edged sword.

On one hand, it offers an opportunity for high-quality products to gain visibility based on merit rather than advertising spend. This could level the playing field on Amazon, prioritizing products that genuinely fulfill customer needs.

However, if Rufus’s recommendations are swayed by ad dollars, it could reinforce existing market dynamics where visibility is linked to advertising budgets. This might disadvantage smaller sellers or those with limited advertising resources, potentially making it harder for them to compete.

Related: Tim Jordan’s Absolute Best Method for Running External Traffic That is Affordable & Powerful

Overall, Rufus could change the dynamics of product visibility on Amazon, impacting marketing strategies for sellers.

Vanessa Hung, Co-Founder at Seller Assist by Carbon 6, recommends providing as many details as possible and ranking for specific, long-tail keywords when creating listings in the era of AI.

“Ranking and indexing for long tail keywords with much context about the occasion, feature, function, audience, location, event, and activity. Pretty much all the functions COSMO was built for. Broad generic search terms are (I think) going to be things of the past or at least be less impactful than context-rich keywords,” Hung added.

For now, it appears to focus on user needs and preferences, which could favor high-quality products with positive reviews. This focus encourages sellers to maintain high standards and customer satisfaction to benefit from organic visibility through Rufus.

Related: How to Get Positive Customer Reviews to Boost Your Amazon Rank, How to Rank Organically on Amazon

Looking Forward

As Rufus evolves, it will be crucial for both consumers and sellers to monitor its development closely. Customers may find value in a more personalized shopping experience, while sellers will need to adapt to the changing landscape of product visibility and competition on Amazon. Rufus’s success and its impact on eCommerce will largely depend on how Amazon navigates the balance between innovation and fair competition, especially with its FTC lawsuit pending.

2. New Veeqo Features: Enhancing Efficiency and Reducing Costs for Sellers

Amazon has recently rolled out new features for its Veeqo platform, designed to significantly enhance order fulfillment and lower costs for sellers. Veeqo, Amazon’s free multi-channel fulfillment software, is already a valuable tool for managing orders across various platforms. These latest updates aim to streamline processes and boost efficiency.

Here’s a closer look at how the new features will benefit sellers:

Identify and Merge Orders from the Same Customer

One of the standout features is the ability to automatically identify and merge orders from the same customer. This functionality is particularly useful for sellers who tend to get multiple orders from a single customer within the same shipping time frame. By consolidating these orders into one shipment, sellers can:

• Save Time: The automation reduces the manual effort needed to review and combine orders.
• Cut Shipping Costs: Combining shipments can lower the overall shipping expenses, as fewer packages mean less cost per shipment.
• Enhance Customer Experience: Customers benefit from fewer packages and a streamlined delivery process.

Sort Orders by SKU, Customer, or Bin Location

The new sorting capabilities in Veeqo allow sellers to organize their orders based on SKU, customer, or bin location. This feature offers several advantages:

• Streamlined Operations: Sorting orders by SKU or bin location helps in efficiently managing inventory and picking processes, reducing time spent locating items.
• Improved Accuracy: Sorting by customer ensures that all items for a single customer are picked and packed together, minimizing errors and improving order accuracy.
• Efficient Document Handling: The ability to sort and print documents in the chosen order aligns with the sorting preferences, further enhancing operational efficiency.

Efficient Order Routing

The advanced order routing feature enhances the fulfillment process by selecting the warehouse closest to the delivery address. This helps sellers:

• Speed Up Delivery: By routing orders to the nearest warehouse, products can be delivered faster, improving customer satisfaction.
• Reduce Shipping Costs: Shipping from a nearby location often reduces transportation costs, contributing to overall savings.
• Ensure Inventory Availability: The system checks stock levels in the selected warehouse before allocating inventory, preventing delays due to stock shortages.

Seller Feedback: Mixed Reactions

Despite the promising features, seller feedback has been mixed. Some sellers have reported significant issues with Veeqo’s performance:

Order Merging Concerns

While the feature aims to reduce costs, there are concerns about A-Z buyer protection when orders are merged. If a merged order has varying ship-by dates, protections may not fully apply, potentially leading to disputes or customer dissatisfaction.

Ensure that you only merge orders that share the same shipping address. Veeqo provides a UI pop-up to remind users of this risk, but it’s crucial for sellers to be aware and manage these orders carefully.

Technical Glitches

Other sellers have experienced technical problems, such as inventory discrepancies and connection issues that led to out-of-stock items being incorrectly listed as available. These problems can result in increased troubleshooting time, canceled orders and dissatisfied customers.

In summary, while Veeqo’s new features offer promising benefits like cost savings, operational efficiency, and faster delivery, they also come with potential risks and technical challenges. Weigh these factors carefully and monitor your systems closely to ensure that the benefits outweigh the drawbacks.Go to Veeqo for more details.

Related: How To Ship To Amazon FBA (And Speed Up Check-In Times)

3. ‘Send It Again’ Feature Replicates Previous FBA Shipments With One Click

Amazon has introduced a new feature called “Send It Again” for FBA shipments to streamline the process of replenishing inventory. This enhancement aims to simplify how you manage and replicate your FBA shipments, but how does it measure up in practice?

Here’s an overview of the feature, its benefits, and potential drawbacks.

Overview of the “Send It Again” Feature

The “Send It Again” feature allows you to replicate SKUs and quantities from previous FBA shipments with a single click. This is a significant improvement over the traditional method, which required you to either manually select SKUs or use a bulk upload process for replenishment.

The steps to use this feature are straightforward:

1. Navigate to the Inventory tab and select FBA Inventory.
2. Go to the Shipments drop-down menu > Manage Shipments.
3. Under the Next steps column, choose Send it again.

This feature simplifies the replenishment process, allowing for faster restocking of inventory that has already been sent to FBA.

Benefits of the “Send It Again” Feature

Efficiency Boost

• Time-Saving: Replicating previous shipments with a single click eliminates the need for repetitive SKU selection and data entry, significantly speeding up the replenishment process.
• Reduced Manual Work: You no longer need to manually input SKUs or use bulk uploads, reducing the chance of errors and saving valuable time.

Consistency

• Uniform Shipments: By replicating previous shipments, you can maintain consistent quantities and SKUs, ensuring that your inventory levels remain stable and that they meet demand without overstocking.

Flexibility

• Easy Adjustments: Although the feature simplifies replication, you still have the option to manually add or remove SKUs and adjust quantities before finalizing the shipment. This flexibility allows for modifications based on current inventory needs or market conditions.

Potential Drawbacks

Limited Customization

• Feature Constraints: While the new feature simplifies Amazon’s FBA restocking process, it may not accommodate complex inventory scenarios where significant adjustments are needed. Sellers with highly variable inventory needs might find the feature less useful if their replenishment requirements deviate significantly from past shipments. Regularly review and adjust your inventory strategies to avoid stocking products that are no longer in high demand.

Potential for Mistakes

• Replication Risks: If past shipments contained errors or if there were issues with the inventory levels, replicating those shipments could perpetuate the same mistakes. Ensure that previous shipments were accurate before using the feature.

Amazon’s “Send It Again” feature represents a significant improvement in managing FBA inventory, offering increased efficiency, consistency, and flexibility. It’s especially useful for sellers who have stable and predictable inventory needs.

However, you should be mindful of the potential drawbacks, such as the limitations of the feature for more complex inventory scenarios. By understanding both the benefits and limitations, you can leverage this feature effectively to optimize their inventory management processes.

Go to Create shipments with Send to Amazon to get started.

4. Exclude Products From Catalog-Wide Brand Tailored Promotions

Amazon has launched a new ASIN Exclusion feature within its Brand Tailored Promotions to give you greater control over your promotional strategies.

This feature allows you to exclude up to 100 parent ASINs from a catalog-wide promotion, refining your marketing efforts and improving targeting precision.

What is the ASIN Exclusion Feature?

The ASIN Exclusion feature enables sellers to manage their promotions with more specificity by excluding certain ASINs from being part of a catalog-wide promotion. This tool is particularly useful for brands looking to optimize their promotional strategies and avoid including specific products that might not align with their current sales objectives.

How It Works

To use the ASIN Exclusion feature:

1. Select Your Brand and Audience: Begin by choosing the brand you want to promote and the target audience for your campaign.
2. Product Selection: During the product selection phase, you have two options:
   • Add All Products: This will include your entire brand catalog in the promotion.
   • Exclude Specific Products: Choose this option to exclude up to 100 ASINs from the promotion. You can exclude parent ASINs, which will also exclude all related child ASINs, or exclude individual child ASINs.
3. Complete Promotion Details: After setting exclusions, enter any additional promotion details and submit the promotion.

How this Might Benefit Sellers

Enhanced Control Over Promotions

• Targeted Campaigns: By excluding specific ASINs, you can tailor your promotions to feature only the products you want to highlight, potentially increasing the effectiveness of your campaigns.
• Avoiding Unsuitable Products: This feature allows you to avoid promoting products that are out of stock, have lower margins, or do not align with current marketing goals.

Improved Inventory Management

• Stock Allocation: Excluding certain ASINs can help manage inventory better by ensuring that only available or prioritized products are promoted, reducing the risk of stockouts and unsatisfied customers.

Customizing Customer Experience

• Focused Promotions: Sellers can create more relevant and engaging promotions for their target audience by excluding products that may not appeal to them or are not currently a focus for the brand.

Limitations and Considerations

No Retroactive Changes

• Current Promotions: ASINs cannot be excluded from promotions that are already “running” or “scheduled.” This means that once a promotion is active, exclusions cannot be applied retroactively, which means sellers must carefully plan campaigns.

Exclusion Limits

• 100 ASIN Cap: The feature allows for the exclusion of up to 100 parent ASINs. While this is a significant number, larger catalogs may find this limit restrictive if they need to exclude more items.

Implementation Complexity

• Management Overhead: While the feature provides more control, it also adds a layer of complexity to promotional management. Sellers will need to carefully select which ASINs to exclude and ensure that their promotional strategy aligns with their overall business goals.

Amazon’s ASIN Exclusion feature in Brand Tailored Promotions offers you greater flexibility and control over your promotional campaigns. By allowing the exclusion of up to 100 ASINs, it enables more precise targeting and inventory management.

However, you need to be aware of its limitations, such as the inability to exclude ASINs from ongoing promotions and the cap on the number of exclusions. Overall, this feature can enhance promotional strategies and improve customer targeting, provided it is used thoughtfully and strategically.

5. Register Brands For EPR Single-Use Plastics In Germany

Starting January 1, 2025, Germany will implement the Extended Producer Responsibility (EPR) regulation for Single-Use Plastics, affecting how products containing single-use plastics are handled. (See “What are Single-Use Plastic products” or Self-check on SUP product for more guidance)

This regulation is designed to encourage sustainable waste management and reduce plastic pollution. To continue selling these products on Amazon.de, sellers must comply with the EPR requirements.

Here’s a step-by-step guide to help you navigate the registration process and ensure your compliance.

Step-by-Step Registration Process

Step 1: Obtain Registration Numbers

Before anything else, check if you are considered a producer of single use plastic products in Germany here.

For Producers Established in Germany

• Register Your Brands: Sign up for the Single-Use Plastics Fund platform (DIVID) provided by the German Environment Agency. Register all your brands under each applicable single-use plastic category to obtain your registration numbers.
• For Drop-Shipping or Reselling: If you are not the original producer but instead drop-ship or resell single-use plastic products, you need to obtain the registration numbers from your upstream suppliers.

For Producers Not Established in Germany

• Create an Account: Register on DIVID to create an account. You will also need to appoint an authorized representative in Germany who will handle the single-use plastic requirements on your behalf.
• Register Your Brands: Starting August 1, 2024, you can begin registering your brands on DIVID.

Step 2: Submit Registration Numbers

• Compliance Portal Submission: Once the Compliance Portal is available (expected in Q3-Q4 2024), submit your obtained registration numbers through this portal. Amazon will notify you when the portal goes live, so keep an eye out for this update to ensure timely submission.

Step 3: Annual Reporting and Payment

• Annual Reporting: Beginning in 2025, you must report the types and quantities of single-use plastic products sold in Germany to DIVID annually.
• Eco-Fees: Pay the eco-fees (levy rates) associated with your single-use plastic products. This is crucial for maintaining compliance with the EPR regulations.

Additional Recommendations

• Early Registration: Start the registration process on DIVID as soon as possible to ensure you have your registration numbers ready when the Compliance Portal becomes available. Early registration helps avoid last-minute issues and ensures you can prove compliance to Amazon without delays.
• Stay Informed: Regularly check for updates from DIVID and Amazon regarding any changes or additional requirements related to the EPR regulation.
• Monitor Compliance: Continuously monitor your compliance status to avoid having your listings deactivated. Ensuring that you meet all EPR requirements will help maintain your selling privileges on Amazon.de.

By taking these steps now, you’ll be well-prepared for the upcoming regulations and can avoid disruptions to your listings on Amazon.de. For more information on EPR requirements, visit the EPR requirements: Single-use plastics in Germany page.