Unpacking the Latest Amazon Tools

Amazon has just dropped a new set of tools and compliance updates. Here is a roundup of what’s new.

If you sell in the UK, be sure your products comply with the latest Extended Producer Responsibility (EPR) obligations for packaged goods in the UK. This could me additional fees or cost and non-compliance may result in listing suspension so be sure you understand exactly what is needed. Amazon has also launched a new “Pay on Behalf” program to make compliance smoother for sellers.

Navigate the complexities of Multi-Channel Fulfillment (MCF) integration with a new Amazon tool to ensure that you find the right fulfillment solution for your business needs. 

On the marketing front, Amazon has implemented new coupon pricing requirements for both UK and US sellers to thwart coupon practices that may not be truly beneficial to customers.

Read on to learn more about what this means for you and your business. 

1. New EPR Obligations for Packaged Goods in the UK and Pay on Behalf Service

Amazon has introduced revisions to its EPR guidelines, impacting sellers involved in the trade of packaged goods or empty packaging within the United Kingdom. This adjustment mirrors the environmental regulations of the UK, seeking to enhance the accountability of producers regarding the entire life cycle of their products, with a specific focus on waste management and recycling practices.

New EPR Requirements Explained

The new EPR obligations require businesses involved in producing, supplying, or importing packaged goods to bear the responsibility for the post-consumer phase of their products. This includes guaranteeing the collection, recycling, and environmentally friendly disposal of packaging.

Your obligations under the Extended Producer Responsibility (EPR) regulations are contingent on the size classification of your organization, determined by specific criteria outlined below:

• Business type: Individual business, subsidiary, or group based in the UK 
• Annual turnover of £1 to  £2 million for small businesses and over £2 million for large businesses
• Used or supplied the following amount of packaging in a year:
  • More than 25 tons of packaging for small businesses
  • More than 50 tons of packaging for large businesses
• Involved in any of the following packaging activities: supplying packaged goods to the UK under their own brand, packaging goods without branding when supplied, importing packaging products into the UK, selling products through online marketplaces like Amazon UK, and renting or leasing reusable packaging. Additionally, businesses involved in supplying empty packaging are also considered covered by these regulations.

For both UK sellers and sellers operating outside the country, Amazon has introduced a “Pay on Behalf” service, streamlining compliance with these regulations. Through this service, Amazon will report sales data to the relevant agency and handle eco-contributions for these sales using a Producer Responsibility Organization (PRO) chosen by Amazon.

Important: Starting April 1, 2024, Amazon retains the authority to apply eco-contributions to your account, mirroring the contributions made to ensure your sales align with the EPR requirements for third-party sellers in the United Kingdom. This measure guarantees the compliance of your products for sale on Amazon.co.uk. More details can be found at the EPR services on Amazon Pay on Behalf page. Non-compliance may result in Amazon removing your listings from the UK marketplace.

For producers based in the UK, visit EPR Requirements: United Kingdom to access comprehensive details on ensuring compliance.

2. Easily Choose the Right MCF Integration Solution for Your Business

With its new MCF Integration Selection Tool, Amazon provides a diverse range of over 100 integration options. These include “Built by Amazon” apps, third-party apps, inventory and order management solutions, and custom APIs. 

Running an ecommerce business involves managing complex operations across various functions such as product development, operations, finance, and marketing. Outsourcing logistics to a third-party logistics (3PL) provider can alleviate the challenges associated with ecommerce.

Leveraging the 3PL’s expertise and infrastructure helps optimize end-to-end logistics operations, including order fulfillment and inventory management. Partnering with a 3PL offers benefits like access to state-of-the-art integrations, connecting ecommerce sales channels with 3PL and back-end systems, allowing for automated order fulfillment and various business advantages.

That’s also why selecting an ecommerce integration is a significant decision, requiring a thorough evaluation of available options to identify the solution that aligns best with your business requirements.

With the newly introduced MCF Integration Selection Tool, Amazon seeks to offer a convenient way to identify the most suitable integration for your business. Leverage this tool to find apps you can use to automate your shipping process for orders outside of Amazon, enabling you to save time and provide your customers with an excellent shopping experience across various sales channels.

3. New Coupon Pricing Requirements

Amazon is implementing a new guideline concerning coupon pricing to ensure customers genuinely benefit from coupon offers. Starting March 12th for US sellers and March 18th for UK sellers, products must possess a sales history to qualify for a coupon, and the promotional price must be lower than either the “was price” or the most recent lowest price. In addition, coupons are still required to have a discount percentage between 5% and 50% off. 

This measure is aimed at enhancing the value of coupon promotions for customers and to deter sellers from employing deceptive pricing tactics to present false discounts, a practice that goes against FTC rules.

Manipulating previous prices poses a significant challenge within ecommerce marketplaces, with Amazon having encountered past class action lawsuits accusing false advertising linked to fake strikethrough pricing on Prime Exclusive discounts.

As Amazon’s rolls out policies to combat deceptive pricing tactics, some sellers express apprehension that the algorithmic standards, especially during events like Prime Day with special limited deals, might compel them into a competitive downward pricing spiral. The 

concern stems from the potential impact on legitimate sellers who fear being pushed toward a “race to the bottom” pricing scenario.

Others criticized the lack of sufficient notice provided by Amazon about the coupon pricing update, indicating frustration and dissatisfaction among sellers. However, a few sellers acknowledged the potential benefits of the new policy in curbing scams and deceptive practices related to fake discounts on the platform. Overall, the general tone appears largely critical, with sellers questioning the impact on their pricing strategies and the platform’s effectiveness in addressing fraudulent activities.

Overall, as Amazon continues to operate in the face of government regulations, we can expect to see more changes to policies and guidelines in line with the various laws, rulings and investigations within this global landscape.

Related: Amazon Faces Backlash for Alleged Abusive Practices, How FTC’s Historic Monopoly Case vs. Amazon Might Impact Sellers, FTC Lawsuit Alleges Amazon of Tricking and Trapping Customers into Recurring Prime Subscriptions