Amazon Seller News
News for Amazon Sellers: Seller Information, Blackout Periods, Updated COO
Standards, Banned HTML, and More…..
Opening the Newest Amazon The tools
Amazon just released improvements on compliance as well as a new set of tools. This is a summary of recent developments.
Make sure your items meet the most recent Extended Producer Responsibility (EPR) requirements for packaged goods in the USA if you sell there. Make sure you are aware of all the requirements since failure to comply may result in additional fines or costs and listing suspension. Amazon has also introduced a new tool called “Pay on Behalf” to help vendors comply more easily.
Use a new Amazon tool to navigate the complexity of Multi-Channel Fulfillment (MCF) integration and identify the ideal fulfillment solution for your business’s requirements.
In order to prevent coupon activities that could not be really advantageous to
customers, Amazon has introduced new coupon price guidelines for both US and UK vendors.
Continue reading to find out more about the implications for you and your company
1. Pay on Behalf Service and New EPR Obligations for Packaged Goods in the USA
Amazon has made changes to its EPR criteria that will affect vendors who deal with packaged items or empty packaging in the USA. This modification is a reflection of USA environmental rules and aims to increase producer accountability for the whole life cycle of their goods, with particular attention to recycling and waste management.
Defined: The New EPR Requirements
Under the new EPR regulations, companies who manufacture, distribute, or import
packaged goods must take accountability for the items’ post-consumer phase. This involves making sure that packaging is collected, recycled, and disposed of in an eco-friendly manner.
The requirements of the Extended Producer Responsibility (EPR) legislation are
dependent on how big your company is, as defined by the following particular criteria:
● Type of business: USA-based sole proprietorship, subsidiary, or organization
● For small enterprises, the annual turnover ranges from £1 to £2 million, whereas for major businesses it exceeds £2 million.
● The following quantity of packing was used or provided annually:
● Over 25 tons of packaging for little companies
● Over 50 tons of packaging for major companies
● Engaged in any of the following packaging-related activities: renting or leasing
reusable packaging; bringing packaged goods into the USA under their own
brand; importing packaged goods into the USA; selling products through online
marketplaces such as Amazon USA; and supplying packaged goods under their
own brand. Furthermore, companies who sell empty packaging are also thought
to be under the purview of these rules.
Amazon has simplified compliance with these requirements by introducing a “Pay on Behalf” option for vendors operating both outside and in the USA. With this service, Amazon will use a Producer Responsibility Organization (PRO) of its choosing to manage eco-contributions for these sales and send sales data to the appropriate agency.
mportant: Amazon reserves the right, as of April 1, 2024, to apply eco-contributions to your account in an amount equal to the contributions made in order to guarantee that your sales comply with the EPR regulations applicable to third-party sellers in the United Kingdom. Ensuring the compatibility of your items for sale on Amazon.com is ensured
by this method. Visit the EPR services on Amazon Pay on Behalf website for further information. If you don’t follow the rules, Amazon can take your listings down from the USA marketplace.
2. Select the Best MCF Integration Option for Your Company with Ease
Amazon offers more than 100 integration possibilities with its new MCF Integration Selection Tool. These consist of third-party apps, “Built by Amazon” apps, inventory and order management programs, and unique APIs.
Managing intricate operations across a range of departments, including marketing,
finance, operations, and product development, is a necessary part of running an online retailer. Ecommerce logistics problems can be mitigated by contracting with a third-party logistics (3PL) provider for logistics outsourcing.
Order fulfillment and inventory management are two examples of end-to-end logistics processes that may be optimized by taking advantage of the 3PL’s infrastructure and experience. Benefits of working with a 3PL include automated order fulfillment, access to cutting-edge connections that link e-commerce sales channels with back-end systems, and other business advantages.
That’s also the reason choosing an e-commerce integration is a big choice that needs careful consideration of all of the possibilities to choose the one that best suits your needs as a business
Amazon aims to provide a simple means of determining which integration is best for your company with the recently released MCF Integration Selection Tool. Use this tool to identify applications that will help you automate the shipment of orders that are not fulfilled by Amazon. This will allow you to save time and give your customers a top-notch shopping experience across a variety of sales channels.
3. New Guidelines for Coupon Pricing
In order to make sure that customers actually benefit from discount offers, Amazon is putting into effect a new policy regarding coupon pricing. In order to be eligible for a coupon, items must have a sales history and the promotional price must be less than the most recent lowest price or the “was price” as of March 12th for US sellers and March 18th for UK sellers. Furthermore, coupons must still offer a discount of between five percent and fifty percent off.
This action is intended to increase the value that customers receive from coupon
promotions and discourage vendors from using dishonest pricing strategies to show fake discounts—a behavior that is prohibited by FTC regulations.
Ecommerce platforms have a great deal of difficulty when it comes to manipulating historical prices. In the past, class action lawsuits against Amazon have accused the company of fraudulent advertising connected to phony strikethrough pricing on Prime Exclusive discounts.
Some merchants express concern that algorithmic rules, particularly during occasions like Prime Day with special limited prices, would force them into a competitive downward pricing spiral as Amazon implements measures to counteract deceptive pricing methods.
The possible effects for respectable vendors, who worry about being forced into a “race to the bottom” price situation, are the source of concern.
Others expressed their irritation and displeasure with Amazon for not giving retailers enough warning about the coupon pricing modification. A few vendors did, however, agree that the new rules may help stop fraud and dishonest tactics including phony discounts on the site. Overall, it seems that most sellers are asking questions about how this will affect their pricing plans and how well the platform would handle fraudulent activity.
Generally, we may anticipate further policy and guideline modifications in accordance with the numerous laws, decisions, and investigations inside this global environment as long as Amazon operates under government rules.
Updated: Concerns and Observations About Amazon Aggregators
02/28/2024 (Originally posted 11/10/2022)
Updated on February 28, 2024: Thrasio, a major Amazon aggregator, has officially filed for Chapter 11 bankruptcy in a New Jersey court
A corporation that files for Chapter 11 bankruptcy hopes to continue operating while reorganizing under court supervision in order to get out of financial trouble. Businesses wishing to deal with excessive debt, work out a plan with creditors, and become financially independent often file for this kind of bankruptcy.
What takes occur after that?
The corporation, which is headquartered in Massachusetts, is starting a process of
financial restructuring and is asking the court to supervise the implementation of an agreement with its financial stakeholders. According to a press release from February 28th, Thrasio might experience the following consequences in Chapter 11:
● Proceeding with Operations: In contrast to Chapter 7 bankruptcy, which
frequently results in liquidation, Chapter 11 bankruptcy permits the to carry on
with its business activities, such as “offering consumers the incredible products
they have grown to expect from Thrasio’s brands, paying vendors and suppliers
for goods and services provided on or after the filing date, collaborating with
sellers to elevate brands and position them for growth, and paying cash
compensation and benefits as usual.” The current management may also carry
on managing the company’s day-to-day operations as a debtor in possession.
● Creation of a Reorganization Plan: The business creates a thorough
reorganization plan with the aid of financial consultants, legal counsel, and
occasionally a bankruptcy trustee. This plan describes the company’s approach
to resolving its financial issues, including how it will handle different financial
stakeholder classes.
● Talks with Creditors: In order to get their blessing for the restructuring plan, the
corporation talks with its creditors. This might entail talking about interest rates,
other financial agreements, and the terms of debt payback.
● Debt Repayment: In accordance with the conditions specified in the restructuring plan, the business pays back its creditors. This might entail longer payment terms, partial debt payback, or other agreed-upon agreements. Thrasio claims that the Restructuring Support Agreement (RSA), which includes most of its lenders for revolving credit facilities (81%) and term loans (88%), is going to
remove a large chunk of the business’s current debt, or around $495 million. In
addition, all interest payments in the first year after Chapter 11 will be postponed
under the terms of the agreement.
● Monitoring and Compliance: The business is still subject to court supervision and can be asked to provide periodic financial progress reports. Sustaining the
financial health of the corporation depends on adherence to the provisions of the
restructuring plan.
Thrasio has successfully obtained $90 million in emergency cash from its current
lenders in conjunction with this action. The $90 million cash “is expected to provide sufficient liquidity to support the Company throughout this process and beyond,” according to the massive Amazon aggregator. The funding, in particular, will make it possible for Thrasio’s brands to continue operating, support current business operations, and give the company access to fresh funding when it emerges from Chapter 11 to support future business activities.
End of an Era or Rebuilding with New Financing?
Thrasio has a history of generating nearly $3 billion through debt and equity to fund its consolidation plan. Its filing for bankruptcy protection is noteworthy as one of the key examples of the difficulties that high-growth tech and amazon e-commerce firms are presently facing.
Aaron Cordovez, a top 100 Amazon FBA seller, came to X to discuss the issue:
“Thrio declares bankruptcy. It’s not a rumor anymore. The statement “This marks the end of an era for Amazon aggregators that come from the Venture world” raises the possibility that Thrasio’s demise may give rise to a new business model. For instance, search funds rather than venture capital-backed aggs might become interested purchasers of Amazon firms as a result of the collapse.
In the search fund approach, a single entrepreneur or a group of entrepreneurs raise money to pay for the search and purchase procedure. After locating a viable company, the searcher assumes management or CEO responsibilities to expand and enhance the purchased company. Conversely, venture capital entails businesses overseeing monies that have been pooled from several investors. These businesses make investments in a variety of high-growth and startup businesses in a range of sectors, including e-commerce.
In addition, Cordovez said in a comment on TechCrunch’s report on Thrasio’s
bankruptcy, “Thrasio demonstrated the business model to the world, but it was not adequately implemented. Why spend so much money on staff who are unfamiliar with e-commerce?
The remainder of his remark has a little optimistic undertone despite the
disappointment. Cordovez says that, when done well, acquisitions may still be a good way to expand. He also says that he is actively purchasing companies in the same industry, which shows that he believes success is possible when done right.
“When done correctly, acquisitions remain a fantastic alternative for growth. In this market, we are aggressively purchasing brands. It is feasible.
Others in the community agree with the viewpoint, which acknowledges Thrasio’s
influence on the business while criticizing its implementation and maintaining hope for Amazon aggregators’ future success with a well-thought-out strategy.
All things considered, Thrasio’s filing for bankruptcy represents a strategic turnabout as it works through the intricacies of its financial situation, hoping to come out stronger and more resilient to “be better equipped to support our brands, scale our infrastructure and enable future opportunities,” according to a statement from CEO Greg Greeley. Related: Strategy Changes and Upheavals at Amazon Aggregator
