🕹️ Ranking as we know it will soon be extinct

Vanessa is an expert in Amazon flat files and problem-solving, and she recently notice some major changes in beta versions of Amazon’s new flat files that hint at the first steps to full AI search and listing analysis.

She believes Amazon is shifting from traditional keyword-focused SEO to an AI-driven contextual approach, signifying a major evolution in how products are presented and found.

As Amazon does testing, sellers are experiencing issues like changed titles, incorrect product colors and descriptions in their listings due to AI alterations in the backend.

Vanessa says change is part of a larger trend where Amazon’s AI system is evolving to understand products in a more holistic, contextual manner. It’s not just about keywords anymore; it’s about how products fit into consumers’ lives.

As a result, sellers will need to optimize their product images and descriptions to cater to this new AI-focused approach, ensuring that their products are contextually relevant and appealing rather than keyword stuffed.

Additionally, AI changes will have a profound impact on Amazon’s search engine functionality for consumers, altering how products are displayed and recommended based on consumer behaviors.

1. Optimize for Context: Enhance your product listings by focusing on contextual relevance. Go beyond keywords; describe how your product fits into the consumer’s lifestyle or use cases.

2. AI-Adaptive Imagery: Use images that tell a story about your product. For example, if selling a beach accessory, show it in a beach setting to help Amazon’s AI understand and categorize it appropriately.

🌎 STATS YOU SHOULD KNOW

Amazon is planning to introduce commercials on Prime Video starting January 29, which represents a significant shift in its business model. Amazon aims to use its extensive shopper data to target video ads effectively in the U.S.

However, the situation in Europe is markedly different due to upcoming regulations. Amazon sellers worldwide should be aware of these developments.

The changes in Europe could lead to similar regulatory pressures in other markets, including the U.S.

1. European Regulations: The European Union’s new Digital Markets Act (DMA) is set to bring substantial changes to how tech giants like Amazon operate. One of the notable requirements is that Amazon must seek consent from customers before using their shopping data for video ads in Europe.

2. Impact on Amazon’s Growth: The DMA and other EU regulations are likely to slow Amazon’s growth in Europet. Amazon’s sales outside North America have been lagging compared to its North American market, with a 9% increase in sales outside North America compared to an 11% increase in North America.

3. Challenges for Amazon: Amazon’s main challenge will be to design changes to apps and websites like Prime Video to encourage customer consent for data sharing. Restrictions on ad targeting in the DMA will also affect Amazon’s core ad business, potentially reducing the effectiveness of ads.

1. Background Preparation: Amazon began preparing for the DMA in December 2020. The company adjusted its strategies, including reducing its private-label brands and focusing on third-party sellers.

2. DMA’s Specific Provisions: The DMA bans practices like using merchants’ data to develop their own products and “self-preferencing” in search results. Amazon will likely have to modify its practices regarding its devices and media businesses.

3. Prime Badge and Fulfillment Services: Amazon can no longer discriminate against sellers not using its fulfillment services for the Prime badge. This change is part of the concessions made to end two antitrust probes in the EU.

Wondering how much you should pay influencers per post?

Payment is often contingent on the size of an influencer’s following. With this in mind, social media influencers are often categorized by their audience size:

– Celebrities and Cewebrities (1m+ followers):
Famous beyond social media, i.e., movie, TV, music, or sports stars.
 
– Macro-influencers (250k–1m followers):
Became popular by leveraging social media.
 
– Mid-influencer (75k-250k):
Their reach extends to an audience size that’s middle-of-the-road.

– Micro-influencers (10k-75k followers):
Everyday people with a decent following and influence.
 
– Nano-influencers (<10k  followers):
Everyday folks with smaller followings but not necessarily less influential.

A bigger audience doesn’t always yield better results. Micro-influencers have the best engagement rates even if their number of followers is smaller.

Influencer fees can vary drastically depending on the influencer niche, gender, engagement rate, location, etc.

These are average costs of a post by platform & type of influencer:

INSTAGRAM:

– Nano-influencer: $25–$200
– Micro-influencer: $200–$1000
– Mid-influencer: $1,000–$3,000
– Macro-influencer: $3,000–$15,000
– Celebrity: $20,000+

– Nano: $50–$300
– Micro: $300–$1,250
– Mid: $1,250–$3,500
– Macro: $3,500–$12,000
– Celebrity: $12,000+

– Nano: $100–$500
– Micro: $500–$3.000
– Mid: $2,000–$5,000
– Macro: $3,000–$20,000
– Celebrity: $20,000+

– Nano: $25–$100
– Micro: $100–$800
– Mid: $800–$2,500
– Macro: $2,500–$10,000
– Celebrity: $10,000+

Fortunet, a leading investment banking firm specializing in Mergers and Acquisitions for premium E-commerce businesses, analyzed over 150 of their Amazon clients to create benchmarks.

They dove into key metrics across a range of topics, such as Amazon Advertising, Sales and Financials, Customer Engagement, Market Share and Business Operations.

They then created a guide for you offering detailed methodologies, explanations, and buyers’ perspectives, accompanied by relevant benchmark ranges and suggestions for improvement.

2024 isn’t just about setting goals – it’s about shattering them!

You’re not just running a business – you’re writing a success story on one of the world’s biggest stages on Amazon.

Right now is the perfect time for Amazon sellers like you to gear up for a stronger, more successful 2024.

It breaks down what you need to know about the latest Amazon trends and top-selling products. 

Plus, it provides a clear explanation of the Amazon Algorithm. The guide will help you prepare for future platform changes and stay ahead of the curve.

🧧 KEY CHINESE NEW YEAR DATES
Courtesy of Burak Yoga at Forceget

• End of January: Suppliers will begin to stop production

• January 31: Last date to ship before Chinese New Year.

• Early February: Employees start leaving the factories.

• February 9: All employees have left the factory.

• February 10: Chinese New Year.

• Mid to late February: Employees start returning to the factories.

• February 29: Most employees have returned.

• March 8: Operations are nearly back to normal.

✌🏼 Make today a masterpiece!

See you again on Thursday …

The answer to today’s STUMP BEZOS is
Bytedance (TikTok)