New AI Ads, Vendor Central Changes, Walmart Lawsuit & Amazon's "Shark Tank" | Update October 2024

Introduction

Welcome to our latest update for sellers! Here’s all the buzzworthy news from October 2024 that you need to know.

New AI-Powered Advertising Tools

During the Unbox 2024 event, Amazon introduced exciting new tools for sellers that make it easier to create impactful advertisements. With the audio generator feature, sellers can create interactive audio ads in just a few clicks. By selecting their products, the tool generates tailored ad copy, allowing for customization with different speakers and music settings, along with companion banners. Furthermore, a free video generator tool was unveiled, enabling sellers and vendors to create high-quality videos quickly—an invaluable asset for those who lack the resources or time to produce video content.

Changes for Vendor Central

In significant news, many vendors received notification that Amazon is terminating its agreements. This has left numerous sellers with no option but to transition to Seller Central. If you're affected by this recent decision and have encountered similar restrictions, feel free to reach out to us for assistance.

Walmart Lawsuit by Amazon Sellers

In a major legal development, a group of four Amazon Marketplace sellers has filed a $ 5 million lawsuit against Walmart. The sellers claim that Walmart has failed to adequately vet its third-party vendors, allowing organized retail crime and illegal business practices, which allegedly violates the RICO Act. They have filed a class-action lawsuit and are pushing for a jury trial, marking a significant escalation in the ongoing competition between these retail giants.

Amazon's Price Adjustments

Amazon is also shaking up its pricing tactics with a new low-cost store initiative. Recent reports indicate that Amazon is providing sellers with specific pricing guidelines for various items. For example, jewelry is suggested to be priced around $ 8, guitars at $ 13, and sofas at just $ 20. This move appears to be part of Amazon's strategy to establish budget-friendly shopping sections while also launching direct shipping from facilities in Guandong, China, to U.S. customers, potentially lowering fulfillment fees for sellers.

Amazon's "Shark Tank" Launch

On a lighter note, Amazon is entering the entertainment space with a new show inspired by "Shark Tank". Titled "Bite," the show allows aspiring entrepreneurs to pitch their product ideas to investors and potential customers. If a product gains enough positive feedback from the audience, it will be highlighted in a special section of the Amazon store, offering a unique opportunity for creators.

TikTok Enables Influencer Sales

TikTok is also leveraging the influencer market by encouraging more users to become paid shopping influencers. With just about 1,000 followers, users can start earning commissions by partnering with businesses. An example includes a 50-year-old mother of six, who, after starting with a modest following, generated around $ 95,000 in commissions in just a few months through genuine product testing videos.

Shutdown of Same-Day Delivery Service

In other news, Amazon is winding down its same-day delivery service known as Amazon Today. The company has halted new developments for the service, planning to shut it down by December 2, 2024, although select retail partners will have continued access until January 24, 2025.

That concludes our October updates! Stay tuned for more exciting news next month, and as always, take care and stay safe!

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Keywords

• AI Ads
• Vendor Central
• Walmart Lawsuit
• Seller Central Transition
• Amazon Bite
• TikTok Influencers
• Same-Day Delivery Shutdown

FAQ

Q: What is the new AI-powered ad tool introduced by Amazon?
A: Amazon launched an audio generator and video generator that allows sellers to create ads and videos quickly and easily.

Q: Why are vendors being asked to switch to Seller Central?
A: Amazon is terminating agreements with many vendors, making it necessary for them to transition to Seller Central.

Q: What is the lawsuit filed against Walmart about?
A: Four Amazon Marketplace sellers are suing Walmart for $ 5 million, alleging it allowed illegal business practices and organized retail crime through its third-party vendors.

Q: How is Amazon changing its pricing strategies?
A: Amazon is establishing specific pricing guidelines for various products to promote a more budget-friendly shopping experience.

Q: What is Amazon's "Bite" about?
A: "Bite" is Amazon's new show where entrepreneurs pitch their products to investors and customers, providing an opportunity for featured products in the Amazon store.

Q: What happened to Amazon's same-day delivery service?
A: Amazon is shutting down its same-day delivery service called Amazon Today, with full discontinuation planned by December 2, 2024.