Amazon has made a significant effort to enhance its available marketplace tools and programs for sellers by announcing a series of new upgrades and features for 2023. These developments aim to empower sellers with better control over their fulfillment operations, streamline the checkout process, and provide more engaging shopping experiences. New FBA Capacity Management System One of the most notable tool developments this year so far is the recently announced upgrade to the FBA capacity management system. The new system will provide most sellers with greater capacity limits, improve stock predictability, and allow for greater control when sellers need to request additional capacity. The new system will include:
- A single monthly FBA capacity limit to replace the current weekly restock limits
- An estimated capacity limit for the upcoming three months
- The option to request higher limits
Amazon will also set its capacity limits to measure inventory based on cubic feet rather than number of units. As always, FBA capacity limits will be influenced by Inventory Performance Index (IPI) scores and factors such as fulfillment center capacities, shipment lead times, and sales forecasts. The upcoming monthly capacities will be announced in the third week of each month. The adjustments aim to provide sellers an easier way to manage their fulfillment operations with better visibility and control over capacity limits. The new system will be available to access from the FBA Dashboard once the changes take effect from the 1st of March 2023. Retailers Tracked in Automated Pricing Feature Another welcomed upgrade for sellers is Automated Pricing will now automatically track retailers and adjust pricing up and down to ensure competitive rates are always available. When price rules are configured, Amazon will adjust marketplace prices based on external increases or decreases. Keep in mind this only applies when there are no additional offers for the same item on Amazon that meet the rule criteria. Sellers that are using third-party repricing tools should note that their software is likely to override any settings set by Amazon. Using Automated Pricing can be particularly beneficial for sellers looking to have their products displayed as the “Featured Offer” in search results, but it should be noted that price points can fluctuate noticeably depending on external websites’ offers. Buy With Prime Launches in the US Amazon has also announced a wider release for their direct-to-consumer tool that enables merchants to connect their own online stores to Amazon fulfillment, Buy With Prime. Initially launched in April 2022, Buy With Prime was previously an invitation-only program available to select merchants. However, following its successful trial with limited sellers, the tool is now widely available to all US-based merchants after 31st January 2023. The program offers fast, free delivery with a seamless checkout and easy returns, all on a merchant’s own online store to help build the brand and establish direct customer relationships. Participating merchants can also now leverage the new enhancements which enable displaying ratings and reviews from Amazon marketplace. According to Amazon’s own data, since its launch, Buy With Prime has shown to increase shopper conversions by an average of 25% when available on a store website compared to when it is not. Amazon Inspire Finally, Amazon has launched Amazon Inspire, which is a new feature on the platform that allows sellers to showcase their products using short videos and images. This new shopping feed is designed to provide a similar experience to TikTok and Instagram, serving customers with a more immersive and engaging shopping experience, which can lead to higher conversion rates and increased sales for sellers. By using Amazon Inspire, sellers can create more compelling product listings that stand out from the competition and drive more traffic to their store. Starting with Amazon Inspire is simple for users. All they need to do is select their interests and a personalised shoppable photo and video content feed will be created. A new feature that is set to make a big difference is the option to shop as you scroll, enabling users to quickly learn about products tagged in videos and photos, access reviews and add the item to their basket. Each user’s feed will develop and become more personalised as they like, comment, and engage with content on the platform. Amazon Inspire looks set to replace Amazon Live shopping features, which launched a few years ago but never became a popular tool with sellers or shoppers. Products featured in Inspire can help merchants increase their exposure and brand awareness, engage with shoppers through customisable content, and facilitate direct purchases. Closing Thoughts With several features announced already, Amazon is set to extend their support features for marketplace sellers in 2023. By taking advantage of Amazon’s latest tools and programs, merchants can increase their brand exposure, drive more traffic to their store, and increase sales. For more information about how to leverage these tools to enhance your marketplace presence, get in touch with Highlands.