Amazon Updates: May 2024
May 2024 saw a flurry of announcements from Amazon, impacting sellers, investors, and of course, eager shoppers. Here's a breakdown of the key updates you need to know:
Low Inventory Fee Gets an Adjustment
Sellers using Amazon's FBA fulfillment service received some welcome news in May. The new Low Inventory Fee, designed to encourage healthy inventory levels, was met with concerns from some sellers. Amazon listened to this feedback and made adjustments to the program.
Starting mid-May, the fee no longer applies to products that haven't sold more than 20 units in the past week. This provides relief for sellers with slow-moving items and allows them to continue offering these products without penalty. Additionally, Amazon will credit back any fees incurred due to excessive delays caused by their own inbound processing times. Finally, Prime Day will see a temporary exemption from the fee for products included in special deals. (Source: eCommerce Bytes)
Amazon's Q1 2024 Earnings Show Continued Growth
Investors were happy with Amazon's Q1 2024 earnings report, which revealed a 12% year-over-year sales growth in North America and a 10% increase internationally. The report also highlighted the growing importance of third-party sellers, who accounted for a staggering 61% of all units sold worldwide.
Amazon's workforce also saw a modest increase of 4% year-over-year, with a focus on warehouse operations and the exciting field of generative AI. The report further emphasized the booming ad sales business, with revenue surging 24% to a staggering $11.8 billion. Perhaps the most impressive statistic was the $100 billion annual revenue run rate achieved by Amazon Web Services (AWS), solidifying its position as a cloud computing powerhouse. (Source: eCommerce Bytes)
Prime Members Can Celebrate Faster Deliveries and an Earlier Prime Day
Prime members have even more reason to rejoice! Amazon announced that they shipped over 2 billion items worldwide with same-day or next-day delivery in Q1 2024. This incredible feat showcases Amazon's commitment to ever-faster delivery speeds. Prime members in major US metro areas can also celebrate, with nearly 60% of their orders arriving within a single day in March.
The good news continues with the expansion of Prime selection. Millions of products are now available for same-day or one-day delivery, offering shoppers unmatched convenience. Amazon also emphasized its strong partnerships with third-party sellers and major brands, ensuring a vast and diverse selection of products for Prime members.
The biggest news for Prime members, however, might be the confirmation of Prime Day 2024. While the specific dates haven't been revealed yet, Amazon promises the event will take place in July. Sellers had until mid-May to submit deals for consideration, and shoppers can expect "deep discounts" and a chance to get a head start on Back-to-School shopping. Prime Day will occur in 23 countries around the world, making it a global shopping extravaganza. Stay tuned for more details about Prime Day as the event approaches! (Source: eCommerce Bytes)