Early Prime Day Deals kicked off on July 15th, offering a preview of the main event. The spotlight was on Amazon’s own devices as they were featured prominently among the most heavily discounted items during this early access period.

New Amazon Prime Day Records Were Set

Amazon Prime Day 2024 set new records, demonstrating strong consumer participation and revenue growth. As reported by Adobe Analytics and others, key highlights include:

• Revenue reached $14.2 billion over the two days, up 11% from $12.7 billion in 2023.
• During Prime Day 2024, households spent an average of $152.33 with shoppers shelling out an average of $57.97 per order. 
• According to the research firm Numerator, best-sellers came from all over Amazon’s catalog and included Amazon Fire TV Sticks, Liquid IV Packets, Snail Serum, Premier Protein Shakes, and Glad trash bags. 
• Back-to-school and office supplies saw a dramatic 216% increase compared to average daily sales in 2024. 
• Children’s clothing led the apparel category with a 165% rise. Other notable increases included suits (36%), outerwear (19%), footwear (17%), and accessories (17%).
• The electronics sector experienced a 61% overall increase, with tablets (117%), televisions (111%), and audio devices (105%) seeing the most significant jumps. Other popular items included fitness trackers (88%), computers (80%), smartphones (71%), and cameras (60%).
• There was significant growth in the home goods category with small kitchen appliances the star performers, up 76%. Other home categories also saw increases: kitchenware and cookware (25%), mattresses (21%), home office furniture (14%), and bedroom furniture (11%).
• Third-party sellers outperformed Amazon’s own retail business, achieving their biggest sales day ever.
• The event spanned 24 countries, with increased global consumer involvement.

Mobile Shopping Continues to Expand

Mobile shopping reached new heights during Amazon Prime Day 2024, with Adobe Analytics reporting that 49.2% of all online purchases were made via mobile devices. This marks a significant 18.6% increase from 2023. This is one more reason why Amazon sellers need to focus on the importance of mobile-specific product listing optimization. 

Key points:

• Nearly half of Prime Day transactions occurred on smartphones or tablets, rather than traditional desktop computers.
• Amazon’s strategy of promoting its mobile app for Prime Day deals likely contributed to this trend. The app’s features, such as deal notifications and easy price comparisons, enhanced the mobile shopping experience.
• The substantial year-over-year growth in mobile purchases indicates a broader shift in consumer behavior, with more shoppers embracing mobile platforms for major sales events.

Canopy Partners Reached New Highs

Market-wide statistics are fine, but we’re here to help our partners grow. and, during Amazon Prime Day 2024, the Amazon sales of Canopy partners exploded!   

• The team saw a substantial increase in units sold and total sales across multiple clients, with some achieving up to 486% growth over daily averages.
• Year-over-year growth was a common theme, with partners seeing increases ranging from 20% to 250% in units sold.
• Social Commerce continues to be a force for (ecommerce) good with some partners attributing up to 7% of their sales from off-Amazon traffic. 
• Strategic ad spending kept TACoS low, often significantly below monthly averages, maximizing profitability. 

How Canopy Management Created Wins for Partners

Canopy Management’s Amazon experts demonstrated exceptional skills during Amazon Prime Day 2024. Combining custom-built data models, white-glove ad management, and SEO-friendly listing optimization, the impressive results were apparent throughout our large client base.

Key aspects of Canopy’s strategy included:

1. Targeted Ad Spend – Canopy Management strategically allocated advertising budgets across various ad types, including Sponsored Products, Sponsored Brands, and Sponsored Display ads. The custom-built, balanced ad campaigns ensured maximum visibility without overspending.
2. Dynamic Bid Adjustments – Canopy implemented real-time bid adjustments based on performance data, allowing the ad team to capitalize on high-converting keywords and placements while minimizing spend on underperforming areas.
3. Product Listing Optimization – In preparation for Prime Day, Canopy fine-tuned product listings to improve organic rankings and conversion rates, giving the paid advertising efforts a big head start.
4. Inventory Management – Canopy worked closely with clients to ensure adequate stock levels, preventing lost sales opportunities during the high-traffic event.
5. Performance Monitoring – Advanced analytics tools helped Canopy track performance in real-time, allowing for rapid adjustments to strategies.

Canopy Management: Next Steps For Ecommerce Sellers

As Amazon Prime Day 2024 comes to a close, it’s clear that this shopping event continues to grow in significance for both consumers and sellers. 

Canopy Management’s partner success during this event demonstrates the power of strategic planning, data-driven decision making, and agile execution. It also shines a light on what our teams of Amazon experts are doing every single day of the year to drive success for some of the biggest names on Amazon. 

If you’d like a little of the spotlight on your own Amazon brand, reach out to the team at Canopy. We love to help ecommerce sellers create the kind of sales velocity that can change a side gig into a full time, life-changing Amazon business. 

The post Amazon Prime Day 2024: How Next-Level Strategies Helped Fuel Partner Success   appeared first on Canopy Management.

And of course, all of us that have navigated the world-wide events over these last few years have seen how the pandemic and the economy have acted as an enormous lever on ecommerce.

However, it’s the way that Amazon casts a large, imposing shadow over their marketplace that has forced entrepreneurs to make the most frequent changes.

This post focuses on the tidal wave of Amazon listing suppressions that have plagued sellers over the last six months. It also explores strategic processes that Canopy’s Partner Success Management (PSM) team has used to reverse upwards of 90% of those sometimes fatal listing suppressions. 

Even if you’re not a Canopy Partner, this post will outline the challenges you’re facing, the best practices that might keep your seller central account out of trouble with Amazon, and the steps you can take to get your listing active again once it’s suppressed.

Amazon is On the Hot Seat

In late 2022, the FDA sent two separate warning letters to Amazon and Walmart regarding products that are sold on the companies’ online platforms. The FDA seems determined to encourage online retailers to better police their own ecosystems. 

What appears to have drawn the attention of the regulatory agency is the illegal sale of products known to contain prohibited drug ingredients or what they consider to be improper or overstated claims about the efficacy of supplements and other health-related products. 

To make the situation worse for Amazon (and other online retailers) recently, a stampede of legal action has been initiated that hints of possible responsibility for harm and damages being extended to any party that otherwise is involved in placing a product in the line of commerce.

Lawyers talk about following the money. Amazon is ground zero!  

Are you one of the many Amazon sellers that have suffered through the suppression of a listing these last few months? 

If so, in the next sections we’ll address steps you can take to move forward as strategically as possible.

Amazon Suspensions Are Ecommerce Business Killers

Much of the time, when someone is looking for something to buy, they begin their search on Amazon. Type in the most relevant keyword, and you’ve got thousands of possible products to choose from. 

Over 60% of product searches begin on Amazon. That’s why ecommerce brands have flooded Amazon’s marketplace as they attempt to use Amazon’s massive reach to enrich their bottom line. 

What many sellers fail to understand is that Amazon listings are not “set it and forget it.” Amazon product listings require constant attention. Listing optimization and Amazon SEO are moving targets. 

Experienced ecommerce sellers know that as the marketplace changes, so should your listings. That’s a large part of the reason why Amazon listings need to be constantly updated and maintained.

What Happens When a Listing Is Suppressed On Amazon? 

If any elements of a listing fail to meet Amazon’s guidelines, Amazon makes your listing disappear from potential searches. That’s a listing suppression. 

Even though the suppressed listing will still be present in your seller’s dashboard, Amazon customers can’t search for or find your product until you resolve the cause of the issue. If you don’t read the notification that you receive from Amazon, it might appear to you as if everything is normal. 

That is, except for the total lack of sales.

What Can Cause Amazon Listing Supressions?

Suppressed listings occur when a specific aspect of your product listing doesn’t meet Amazon’s standards. Amazon says that their (increasingly strict) guidelines are there to make it easier for consumers to locate, research, and actually purchase products on its platform. 

Remember, for Amazon, it’s the customers’ experience first and foremost. (That, and avoiding lawsuits from lawyers salivating at their seemingly bottomless bank account) 

An Amazon listing can be suppressed for several reasons.

The Following Factors May Lead to Your Amazon Listing Being Suppressed

1. Incomplete or inaccurate product information: Missing, incorrect, or misleading information in the product title, brand, category, or description can cause a listing to be suppressed.
2. Prohibited content: Listings containing content that violates Amazon’s policies, such as offensive or illegal items, can be suppressed.
3. Intellectual property violations: Selling counterfeit products, using copyrighted images or content without permission, or infringing on trademarks can lead to suppression.
4. Poor product images: Low-quality images, those that don’t accurately represent the product, or those that include watermarks, text, or logos can cause suppression.
5. Inappropriate keywords: Using irrelevant or prohibited keywords in the listing or hidden keyword section can lead to suppression.
6. Price discrepancies: Significantly overpriced or underpriced products, as compared to similar items on the platform, can cause suppression.
7. Safety concerns: Products that are deemed hazardous or have potential safety issues may be suppressed.
8. Restricted or regulated products: Listings for items that require special approval, are subject to sales restrictions, or are regulated by government agencies may be suppressed.
9. Multiple listings for the same product: Creating duplicate listings for the same item can lead to suppression.
10. Poor seller performance: Amazon may suppress listings from sellers with consistently low performance metrics, such as late shipping, high order defect rates, or poor customer feedback.
11. Inaccurate product condition: Listing an item in the wrong condition, such as selling a used item as new, can lead to suppression.
12. Non-compliant product bundles: Listings for product bundles that don’t adhere to Amazon’s bundling policies can be suppressed.

“Fixing” a Suppressed Listing

If you have a single Amazon ASIN, there’s a good chance you’ll be aware of the suppression almost immediately. Amazon will send you a notification. The problem arises when you are enterprise-scale and might have hundreds, if not thousands of listings. 

In that case, you might not be aware of the problem until it’s caused irreparable harm to your listing (and brand). 

Once you are aware of the problem, these are the steps that Amazon recommends that you take to identify and fix a suppressed listing: 

• In your seller account, click the Inventory tab, and select Manage All Inventory.
• Select Suppressed from the horizontal menu. (Suppressed” is only visible if you have suppressed listings to improve. If you do not have any suppressed listings, this option will not be visible)
• View all suppressed listings on the Fix your products page, or click Attribute to filter by specific type of issue.

If you are doing this yourself, there are two ways to fix a suppressed listing:

• Fix suppressed listings in Amazon’s Issue(s) to fix columns by entering the missing values in the editable cells or selecting missing values from the drop-down list then click Save.
• Fix suppressed listings that are not fixable in the editable grid (Option A) by clicking Edit and going to Amazon’s Edit product info page. In Edit product info, the missing product details will be highlighted and you will see informational messages that further detail the issue. For non-image issues, enter the missing value and click Save and Finish. 

(For image issues, follow the guidelines on Amazon’s Product image requirements page and then upload valid product images)

How Canopy Management’s PSM Team Can Help 

One of Canopy Management’s superpowers lies in our ability to quickly and successfully manage Amazon issues exactly like listing suppressions. In fact, we have an entire department dedicated to this, Partner Success Management (PSM). 

Canopy’s PSM listing suppression division is managed by a dedicated Amazon expert with 10 years of experience dealing specifically with Amazon listing suppressions. Over the last few months he’s been successful (sometimes within 24 hours) in over 90% of his listing suppression cases. 

We don’t just claim to be a Full-Service Amazon Management Agency, Canopy’s ecommerce pros are putting in the work every single day to make Canopy the first choice for increasing numbers of successful Amazon sellers. 

Canopy Management’s team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Rule #1 – Don’t Lose Money: How to Avoid Amazon Listing Suppressions appeared first on Canopy Management.

This pivotal move is seen by many as Amazon’s response to the growing competition from Chinese ecommerce platforms like Temu and Shein, which have significantly increased their footprint in the U.S. market by offering a wide range of low-priced products.

Amazon detailed the specifics in a recent closed-door meeting with Chinese sellers, according to The Information, which first reported the news, supported later by CNBC. 

The strategic initiative indicates a shift in Amazon’s approach, as the company has previously avoided direct comparisons with their Chinese rivals. However, faced with increasing pressure on its home turf, it appears that Amazon is intensifying its efforts to attract Chinese vendors and offer similar services.

Three main points that Amazon sellers might find particularly interesting are:

Direct shipping from China

Amazon’s Fulfillment by Amazon (FBA) program has been an important component of their ecommerce success. This new section will allow Chinese sellers to ship products directly from warehouses in China to U.S. customers, bypassing FBA. 

Though experts have said that consumers are less concerned with shipping speed if the products are heavily discounted, this change could lead to longer delivery times (estimated at 9-11 days). 

Product testing opportunities

Sellers might be able to use this platform to test small batches of products before launching larger quantities, similar to Shein’s model for minimizing unsold inventory. This approach allows for more agile product development and market testing, potentially reducing the risk of overstock situations.

Pricing and product control

It appears that Chinese sellers will have the ability to determine pricing and product selection for this new bargain section, giving them more control over their offerings. This increased autonomy could lead to a more diverse and competitive product range on the platform.

How This Move Could Affect Global Ecommerce 

It’s worth noting that this new initiative could have significant implications for the ecommerce landscape:

• The move could serve to boost Chinese sellers’ presence on Amazon’s platform, potentially increasing competition for American resellers of low-cost unbranded goods.
• It could also impact Amazon’s reputation for fast shipping, as the direct-from-China model may result in longer delivery times compared to Prime-eligible products.
• The new section might help Amazon capture a share of the growing market for ultra-low-priced goods, which Salesforce estimates could command 21% of Western spending in the upcoming holiday season.

While an exact launch date for this new storefront has not been announced, reports suggest that Amazon will begin accepting inventory from sellers in the fall. This timeline indicates that the new section will likely be operational after this year’s Prime Day event in July, potentially positioning it as a key player in the holiday shopping season.

As the ecommerce landscape continues to evolve, this move by Amazon demonstrates the company’s adaptability and willingness to compete directly with emerging players in the market. If this comes to pass as predicted, it’s going to be interesting to see how Amazon’s new platform affects both sellers and consumers in the coming months.

Want to keep up with the latest news? The team at Canopy Management has our ears to the ground and will continue to report on the facets of entrepreneurship and ecommerce that affect online sellers. You can always read more of our trending reports here.

The post Amazon’s Bold New Program: Embracing Chinese Imports to Outshine Temu and Shein appeared first on Canopy Management.

Exclusive to Prime members, the event will include special features like invite-only deals and early access to discounts on Amazon-branded devices. Prime Day will span 24 countries, underlining its international significance.

Shoppers can expect significant discounts on popular brands such as Clinique, Allbirds, Sony, and KitchenAid. New deals will be introduced frequently, with some dropping as often as every five minutes during select periods.

Exclusive Access

Prime Day deals are exclusively available to Amazon Prime members. The cost of a Prime membership is $14.99 per month or $139 per year. Amazon also offers discounted rates for students and eligible individuals, making these exclusive deals accessible to a broader audience.

Special Features

Invite-Only Deals: Returning this year, invite-only deals allow members to request invitations for exclusive discounts on high-demand items. This feature enhances the shopping experience by providing access to limited-time offers on coveted products.

Early Deals: Members can already access early deals, particularly on Amazon-branded devices like Kindles and Echo speakers. This head start allows Prime members to secure popular items before the main event begins.

Planning to Shop? Here’s How to Get Ready 

To maximize your Prime Day shopping experience:

• Set Up Deal Alerts: Configure alerts for specific products to get notified when they go on sale.
• Use Alexa: Leverage Amazon’s Alexa for notifications and personalized deal updates.
• Create Personalized Deal Notifications: Based on recent searches and views, members can receive customized deal notifications to help them find the best offers on items of interest.

Amazon Will Have Competition

Other major retailers, such as Walmart, are also planning their own sales events to compete with Prime Day. For instance, Walmart’s sale will run from July 8-11, aiming to attract shoppers before Prime Day begins. This competition benefits consumers by providing additional opportunities to find great deals across multiple platforms.

Why Does Amazon Prime Day Matter?

Prime Day has evolved into a significant shopping event, rivaling Black Friday and Cyber Monday in terms of discounts and consumer interest. It serves as an unofficial start to back-to-school shopping and even early holiday shopping for some consumers. 

What makes Prime Day particularly special is its exclusive nature—only Amazon Prime members can access the vast array of deals. This exclusivity drives a sense of urgency and privilege, encouraging more people to sign up for Prime memberships. 

Additionally, the range of discounted items is incredibly broad, spanning from viral beauty products and household essentials to the latest unlocked smartphones and electronics. This means there’s something for everyone, making it a highly inclusive and appealing event for a diverse range of shoppers.

Do You Really Save on Prime Day?

The savings on Prime Day can be significant, especially for Prime member-exclusive items. Historically, the prices for Amazon’s own hardware, such as Kindles, Fire Tablets, Fire TV Sticks, and Echo devices, are some of the lowest seen throughout the year during Prime Day. 

However, the level of savings can vary across different product categories. While many items do see substantial discounts, some may not be as heavily discounted as they appear. 

As a shopper, it’s essential to do your homework, comparing prices and ensuring you’re getting a genuine deal. Using price tracking tools or checking historical prices can help determine whether a Prime Day deal is truly a bargain.

Who Benefits from Amazon Prime Day?

Prime Day is designed to benefit Amazon Prime members by providing them with exclusive access to numerous deals and discounts. However, the benefits extend beyond just the shoppers. 

Retailers and third-party sellers on Amazon’s platform also gain significantly from the event. Prime Day drives a massive influx of traffic to the site, increasing visibility and sales for sellers. It also serves as an opportunity for sellers to clear out inventory, launch new products, and gain new customers. 

Additionally, the event helps Amazon itself by boosting Prime memberships, which in turn creates a more loyal customer base likely to spend more on Amazon throughout the year.

Last-Minute Strategies for Amazon Sellers to Maximize Prime Day Success

Selling on Amazon? It’s not too late to put yourself in the best position to have a great Prime Day. 

Here’s how:

Optimize Product Listings

Review and Improve: Ensure product titles, descriptions, and images are optimized with relevant keywords and are visually appealing to shoppers.

Increase Advertising Budget

Boost Ad Spend: Consider significantly increasing your ad spend, particularly for Sponsored Products. Some sellers increase their budgets by up to 300% for Prime Day to maximize visibility.

Set Up Last-Minute Deals and Discounts

Create Lightning Deals or Coupons: These can capture customer attention and drive more traffic to your listings.

Review Inventory Levels

Check Stock: Ensure you have sufficient stock of your best-selling products to avoid running out during the event.

Adjust Pricing Strategy

Competitive Pricing: Make sure your prices are competitive while still maintaining profitability. Consider strategies like product bundling or setting minimum order quantities.

Leverage Social Media

Promote Deals: Use your social media channels to generate buzz and drive traffic to your Prime Day deals.

Monitor and Adjust Campaigns

Real-Time Adjustments: Keep a close watch on your advertising campaigns during Prime Day and be ready to make necessary adjustments in real-time.

Improve Shipping Options

Attractive Shipping: Offer free shipping or upgraded shipping options to entice more Prime members to choose your products.

Be Flexible

Adapt Quickly: Stay prepared to pivot your strategy as needed, as Prime Day dynamics can be unpredictable.

Focus on Your Best Products

Promote Top Performers: Concentrate your efforts on products with good reviews, high ratings, and ample inventory to maximize impact.

How Canopy Management Can Help

As an Amazon agency, Canopy Management recognizes the immense potential that Prime Day 2024 presents for both sellers and shoppers. 

Events like Prime Day shine a spotlight on the importance of staying agile and informed in the Amazon marketplace. At Canopy Management, we’re committed to helping our clients navigate these high-stakes shopping events, turning the potential of Prime Day into explosive business growth and customer satisfaction.

What would adding 67% more organic sales mean for your brand?

When you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Amazon Prime Day 2024: Everything You Need to Know appeared first on Canopy Management.

That million dollar record followed right on the heels of two more big livestream totals. The day before, Simply Mandys, another cosmetics brand, set a record by surpassing $730,000 in sales. Less than two weeks prior, Jeffree Star hosted a stream that grossed $665,000.

TikTok has set an ambitious target for its U.S. operations. According to industry experts, for 2024 they’re planning on growing their U.S. business to as much as $17.5 billion, signaling a commitment to becoming a major ecommerce player.

TikTok’s approach to online shopping is very different from what we’re used to. Instead of relying on product listings and search functionality, TikTok leverages content creation and engagement. The platform’s shopping experience is deeply integrated with its video content and live streams, creating a unique blend of entertainment and commerce.

Social Commerce for the Win

While $1 million in sales is a big win for TikTok, it should also be a call to arms to Amazon sellers that want to separate themselves from the competition. Even though social commerce in Western markets – at this point – represents a small percentage of China’s explosive live-sales events, TikTok has been doubling down on its live commerce strategy. 

The platform is actively collaborating with select creators and adjusting its algorithm to prioritize video broadcasts. The success of Canvas Beauty’s livestream demonstrates the potential of this approach.

TikTok’s strategy has cleverly positioned itself not as a direct competitor to established giants like Amazon, but as a complementary discovery engine for commerce. By focusing on entertainment-driven shopping experiences, TikTok is clearly planning on carving out its own niche in the ecommerce landscape. 

As TikTok continues to evolve its shopping features and creator partnerships, it’s going to be important to be at the head of the line. 

Here are 5 more reasons why: 

Access to a Massive and Engaged Audience

TikTok’s user base is not just large; it’s highly active and engaged. With over a billion active users worldwide, the platform offers Amazon sellers an unprecedented opportunity to expand their reach. Consider these points:

• Demographics: TikTok’s audience skews younger, with a significant portion of users under 30. This presents a unique opportunity to connect with Gen Z and younger Millennials.
• Global Reach: TikTok is available in over 150 countries and 75 languages, allowing sellers to tap into international markets.
• High Engagement Rates: According to recent statistics, users spend an average of 52 minutes per day on the app, and open it an average of 19 times daily. This level of engagement surpasses many other social media platforms.

Boost Brand Visibility and Authenticity

TikTok’s format allows for more personal and authentic content creation:

• Storytelling Opportunities: Short-form videos are perfect for sharing your brand’s story, values, and mission in an engaging way.
• Behind-the-Scenes Content: Show the human side of your business by featuring your team, production process, or day-to-day operations.
• User-Generated Content: Encourage customers to create content featuring your products, building a sense of community and trust.

Leverage Viral Potential

TikTok’s algorithm and content discovery features make it easier for content to sell directly through the platform and for it to go viral compared to other platforms:

• Shoppable Videos: Add product links directly to your TikTok content, allowing viewers to purchase items without leaving the app.
• Live Shopping: Host live streaming events where you can showcase products and interact with potential customers in real-time.
• Influencer Partnerships: Collaborate with TikTok creators to reach their established audiences and leverage their credibility.
• For You Page (FYP): TikTok’s main feed shows users content based on their interests, not just who they follow. This increases the chances of your content being seen by a wider audience.
• Hashtag Challenges: Create or participate in trending challenges to increase visibility and engagement.
• Duets and Stitches: These features allow users to interact with and build upon your content, potentially expanding your reach exponentially.

Diversify Your Marketing Strategy

Adding TikTok to your marketing mix can provide several benefits:

• Risk Mitigation: By not relying solely on Amazon or a single platform, you protect your business from potential algorithm changes or policy updates.
• Cross-Platform Promotion: Use TikTok to drive traffic to your Amazon listings or other sales channels.
• Content Repurposing: Adapt your TikTok content for use on other platforms like Instagram Reels or YouTube Shorts.

Access to Cost-Effective Advertising

TikTok’s advertising platform can be more cost-effective than traditional digital advertising:

• Lower Competition: As the platform is still growing, ad costs may be lower compared to more established platforms.
• Targeted Advertising: TikTok’s ad platform allows for precise targeting based on interests, behaviors, and demographics.
• Organic Reach: With engaging content, you can achieve significant visibility without paid promotion.

How to Get Started with TikTok Advertising

1. Create a TikTok Business Account: Begin by setting up a TikTok Business Account. This will provide you access to TikTok’s advertising tools and analytics. Make sure to complete your profile with a professional image, engaging bio, and a link to your Amazon store.
2. Define Your Advertising Goals: Clearly outline what you aim to achieve with your TikTok ads. Having clear objectives will guide your ad strategy and help measure success.
3. Understand Your Target Audience: Research TikTok’s demographics to understand who your potential customers are on the platform. Tailor your content and ads to resonate with TikTok’s highly engaged user base.
4. Create Engaging Content: TikTok thrives on creative, authentic, and engaging content. Develop short, captivating videos that showcase your products in action, tell your brand’s story, or highlight customer testimonials. 
5. Leverage TikTok’s Ad Formats: TikTok offers several ad formats, including In-Feed Ads, Branded Hashtag Challenges, and TopView Ads. Choose the format that best aligns with your goals and budget. 
6. Set Up a Campaign in TikTok Ads Manager: Use the TikTok Ads Manager to create and manage your ad campaigns. Define your campaign objective, set a budget, and schedule your ads. 
7. Monitor and Optimize Your Campaigns: Regularly review your campaign performance using TikTok’s analytics tools. Track key metrics such as impressions, clicks, and conversions. 
8. Collaborate with Influencers: Partnering with TikTok influencers can significantly boost your reach and credibility. Identify influencers who align with your brand and have a strong following among your target audience. 

Why Partnering with Canopy Management Should Be Your Next Move

For Amazon sellers aiming to expand their reach and enhance brand visibility, TikTok is a gold mine. With its massive, engaged user base and unique content-driven shopping model, the platform allows sellers to connect with new audiences in innovative ways. 

To effectively navigate this new terrain and maximize your success, consider partnering with an Amazon agency like Canopy Management. Canopy’s expertise in strategic growth planning, content optimization, and advertising management can help you seamlessly integrate TikTok into your marketing mix, ensuring you capitalize on the platform’s full potential. 

Why Canopy? 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post TikTok’s $1 Million Dollar Day: Why Amazon Sellers Should Tap Into This Ecommerce Gold Mine appeared first on Canopy Management.

“As a performance-based firm, Canopy Management’s primary focus is on creating systems and strategies that add up to success for our partners. Knowing that we’ve been able to do that while prioritizing workplace culture is immensely satisfying and a huge win for everyone on the Canopy Management Tribe.”

– Haley Burt, Chief Operating Officer 

After collecting data from thousands of submissions, Inc. selected 543 honorees this year. Each company that was nominated took part in an employee survey, conducted by Quantum Workplace, which included topics such as management effectiveness, perks, fostering employee growth, and overall company culture. The organization’s benefits were also audited to determine overall score and ranking.

“While our partners’ explosive success is a huge satisfaction, we are equally proud – and thankful – that our people think we are a best place to work. It just goes to show that investing in our culture is not only a great way to prepare for Canopy’s growth as an agency, it also helps create a lot of wins for our partners!”

– Brian Burt, Founder and CEO

“Each year, Inc.’s Best Workplaces program recognizes the very best in terms of companies that have fostered a truly amazing culture,” says Inc. editor-in-chief Mike Hofman. “We use hard metrics and data as well as qualitative measures for judging in order to find the very best—and we’re proud that the program is highly selective.”

About Canopy Management

Canopy Management is a leading Amazon and Walmart agency, dedicated to helping brands scale their businesses, gain market share, and become Kings & Queens of their Category! With a track record of growing client profit by 87% on average and a 99.1% client retention rate, Canopy is the quiet force behind some of the most successful brands in ecommerce.

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print.

Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. See the full list here: https://www.inc.com/best-workplaces

About Quantum Workplace

Quantum Workplace, based in Omaha, Nebraska, is an HR technology company that serves organizations through employee-engagement surveys, action-planning tools, exit surveys, peer-to-peer recognition, performance evaluations, goal tracking, and leadership assessment. For more information, visit QuantumWorkplace.com.

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This big oopsie from Google has provided a rare glimpse into the closely-guarded algorithms and processes that power the world’s most popular search engine. The leaked files have pointed a floodlight on the factors that Google considers when ranking websites, as well as the intricate systems and techniques they use to determine search result rankings.

Why should this matter to ecommerce sellers? 

Canopy Management’s head of Data Analytics, Cory Chin, and his team combed through the available information as well as digging deeply into the massive pile of information. It’s not a huge leap to see the similarities between what was revealed, and what we think we know about Amazon’s own algorithm.

How Google Domain Authority and Amazon BSR Rankings Differ

One of the key revelations is Google’s likely use of metrics such as “Domain Authority” and “Homepage PageRank” to assess a website’s overall authority and relevance for ranking purposes. These metrics could play a significant role in determining how well a website ranks for specific search queries. 

When you type a phrase into Amazon search, you’ll see results based on its search ranking. Best Seller Rank indicates how a product ranks within the specific category. 

Still, the steps that online sellers take to improve Amazon BSR – including selecting the most relevant product categories, optimizing listings for search visibility, setting competitive prices, and leveraging advertising feels like it has a lot to do with the same tactics you need to employ to be found on Google. 

Google “Sales?” 

User interaction data, particularly click-through rates from search results, appears to be a major ranking factor. Google seems to differentiate between “good clicks” and “bad clicks,” using this information to gauge the relevance and quality of search results. Websites with higher engagement and user satisfaction are more likely to rank better. 

That sounds like Google’s version of a sale to me. 

Sandbox “Authority” Filters? 

The documents also hint at the existence of a “Sandbox” filter, which may delay new websites from achieving high rankings until they establish trust and authority. This could be a measure to prevent spammy or low-quality sites from quickly gaining prominence in search results.

Like many of you surely do, I see parallels to Amazon’s dependence on reviews to determine the trustworthiness of a newer ecommerce brand on the Amazon marketplace. 

Amazon Native Brands Anyone? 

Interestingly, Google may have a “whitelist” system that gives preferential treatment to authoritative websites during major events like elections or pandemics. This suggests that Google prioritizes trusted sources of information during times of heightened public interest or concern.

During the dark days of the recent pandemic, instead of brands bidding for the high profile slot at the top left of Amazon’s listings, the massive online marketplace began using this position for its private-label items, raising antitrust concerns.

The leak also indicates that Google may incorporate data from its Chrome web browser, such as page views, into its ranking algorithms. This data could provide insights into user behavior and engagement beyond just search interactions.

Niching Down, or Potentially Troublesome Territory? 

Several sophisticated systems and processes are mentioned in the documents, including “Mustang,” “Ascorer,” “NavBoost,” and “Twiddlers.” These systems appear to be involved in scoring, ranking, re-ranking based on user clicks, and making adjustments to search results. 

“Twiddlers,” for example, seem to act as filters that can boost or demote results based on specific factors like skin tone detection. 

Google “Listing” Optimization

The documents reveal that Google heavily analyzes anchor text (the visible, clickable text in a hyperlink) and may demote pages if there is a mismatch between the anchor text and the content of the linked page. This highlights the importance of relevant and accurate anchor text in both internal and external linking.

Again, it’s hard not to view this through the lens of Amazon SEO and the importance of search term prioritization in Amazon listings. 

Another notable system mentioned is “Panda,” which apparently determines a “Site Quality Score” based on user behavior signals and backlink analysis. This score can be used to boost or demote entire websites, indicating that overall site quality is a significant factor in Google’s rankings.

More Similarities with Amazon’s Ranking Factors

Other signals and factors that Google considers include content freshness, recency, backlink velocity patterns (how quickly a site acquires links), and version histories. The documents also suggest that feedback from human “quality raters” may impact rankings, providing a human element to the largely automated ranking process.

These factors quickly bring to mind the importance of an Amazon brand launch, reviews, and sales velocity. 

Google seems to collect a wide range of data points, such as content length, author expertise, and domain details, which likely contribute to its assessment of a webpage’s relevance and quality. Interestingly, there may be a promotion signal for personal or small websites, potentially giving them a boost in certain situations.

What This Means to Amazon Sellers

The leaked documents offer brand new insights into the complex and multifaceted nature of Google’s search algorithms. The combination of user signals, website authority metrics, content quality analysis, and sophisticated ranking systems highlights the immense effort and consideration that goes into delivering relevant search results to users. 

More importantly, they show that even though Google and Amazon’s algorithms are designed to do two very different things, the path they take to get there is pretty similar. 

What does that mean to ecommerce sellers? My first thoughts have to do with PPC targeting campaigns and off-Amazon traffic. 

As time goes by, I’m sure that leading online entrepreneurs will have a lot to say on the subject. In the meantime, If you’d like to follow along with what Canopy Management has been able to uncover, check the Canopy blog page here, to find the latest ecommerce news. 

The post What Google’s Leaked Documents Might Reveal About Ecommerce Rankings on Amazon appeared first on Canopy Management.

Clever Amazon brands are increasingly leveraging platforms like Instagram, Facebook, TikTok, and Pinterest for social commerce. Strategic product showcasing, social advertising, and influencer partnerships allow brands to drive awareness, consideration, and ultimately sales through their Amazon listings.

According to recent surveys, nearly half of online shoppers now regularly make purchases directly through social platforms. And one-third of shoppers say they’ve purchased a product after seeing it on social media. This shift in consumer behavior is a boon for nimble Amazon sellers embracing social commerce.

An influencer marketing strategy can absolutely move the needle for your target audience. By calibrating your social commerce to Amazon’s ecosystem, you can connect with social media users, compete against larger players, and future-proof your business in an increasingly crowded marketplace.

In this post, we’re going to look at how you can leverage social media platforms and influencer marketing campaigns to supplement and amplify your core Amazon business. We’ll define what social commerce means for Amazon-native brands, break down effective social strategies, and highlight some of the latest trends. 

But first . . .

What is Social Commerce?

Without a physical brick and mortar store to help drive social proof, social commerce has become an important part of the customer journey for those shopping online.

Social commerce involves leveraging social media’s multiple channels, communities, and influencers to promote products and enable seamless clicks through to Amazon detail pages for transactions. 

Whether it’s shoppable posts, optimized product images and videos, or strategically seeded giveaways, social commerce serves as a marketing channel to get products in front of more interested shoppers.

That’s why, for brands selling on Amazon, social platforms like Instagram, Facebook, and TikTok offer a way to directly engage with target audiences, create awareness, and drive traffic to their Amazon listings.

Amazon’s New Partnership With Meta Connects the Dots for Sellers

Amazon and Meta’s recent partnership allows users to link their Facebook and Instagram accounts to Amazon’s marketplace. That connects a lot of dots for ecommerce shoppers (and sellers). 

As I wrote in this article, by enabling the sharing of precious data for ad targeting, they’ve thrown open the door to full-throttle, foot-on-the-gas-pedal ecommerce. 

This is something that looks like it’s going to have the potential to move the bar for a lot of Amazon sellers. 

With – at least – one fewer click before reaching the Buy Box, it’s going to greatly simplify the purchase process and is bound to elevate conversion rates across the board.

5 Key Social Commerce Strategies

Social media platforms like Instagram and Pinterest have become a daily destination for product discovery and inspiration for today’s consumers. As an Amazon seller, you need to tap into these powerful social channels to drive awareness of your brand and products. 

With strategic social commerce initiatives, you can connect with customers beyond just your Amazon presence. This opens up new opportunities to grow awareness, engagement, and sales.

Here are five ways social commerce can help you reach customers:

1. Increase Discoverability Through Hashtags and Influencers

Leverage popular hashtags and connect with influencers on your preferred social media platform to get your products in front of interested audiences. 

When users are browsing topics like #amazonfinds, #shopthelook, or #musthaves, or following influencers in your niche, your branded posts have the potential to capture attention and drive traffic. Develop a hashtag strategy for your social media apps that includes a mix of branded, product-specific, and trending hashtags to maximize your reach.

Collaborating with influencers who align with your brand values and have a strong following in your target market can greatly amplify your message. Influencer partnerships, such as sponsored posts, product reviews, or takeovers, can introduce your products to new audiences and build trust through authentic endorsements.

Influencers might have a global reach, or have a specific niched-down audience. Although their follower count is smaller compared to macro-influencers or celebrities, micro-influencers’ narrow, specific area of expertise or interest, high engagement rates, cost-effectiveness, and targeted audience has made them a particularly effective element of influencer campaigns.

2. Encourage Social Sharing and Peer Recommendations

User-generated content (UGC) and peer recommendations are highly trusted forms of social proof that can propel sales. Make it easy for happy customers to share their purchases on social media through share buttons, tags, and messaging on your social media platforms.

Encourage customers to tag your brand, use branded hashtags, and share their experiences with your products. Incentivize social media influencers – and customers -to create and share content by running contests, offering rewards, or featuring their posts on your brand’s social media channels. 

The more your products are organically shared and recommended by real users, the more likely new shoppers are to discover and trust your brand.

3. Provide an Omnichannel Experience

Meet customers where they already spend time online by enabling seamless shopping through social platforms. From shoppable posts to integrated stores, social commerce allows for browsing, checkout, and payment without leaving apps like Instagram, Facebook, or TikTok. 

This omnichannel approach reduces friction in the buying process and caters to users’ preference for convenience. Use features like Instagram Shopping, Facebook Shops, and TikTok’s shoppable videos to showcase your products directly within social content.

Tag products in your posts, stories, and live streams, enabling users to easily access product information and pricing. Integrate your ecommerce platform with social channels to ensure a smooth transition from discovery to purchase, minimizing abandoned carts and increasing conversions for your online store.

4. Engage Through Interactive and Immersive Content

Create interactive and immersive social commerce experiences that captivate potential customers and drive engagement. Utilize features like Instagram Reels, TikTok videos, and Facebook Live to showcase your products in action, provide tutorials, or host Q&A sessions. 

These dynamic formats allow you to tell compelling brand stories, demonstrate product benefits, and connect with your audience on a more personal level.

For a next level experience, implement augmented reality (AR) filters or virtual try-on to enable users to visualize themselves using your products. This immersive technology enhances online shopping, builds confidence in purchase decisions, and sets your brand apart from competitors. 

By creating interactive and engaging content, you can capture the attention of new shoppers and leave a lasting impression.

5. Leverage Social Listening and Customer Insights

Use social listening tools such as Sprout Social, Brandwatch, or BuzzSumo to monitor conversations, trends, and sentiment related to your brand, products, and industry. They’re a critical component of targeted social commerce and a successful influencer marketing campaign. 

By tracking mentions, keywords, and hashtags, you can gain valuable insights into what potential customers are looking for, their pain points, and their opinions on your brand and competitors.

Use these insights to inform your social commerce strategy, product development, and customer service. Identify opportunities to engage with potential customers, address their concerns, and showcase how your products solve their problems.

By actively listening and responding to social conversations, you better demonstrate your brand’s commitment to customer satisfaction and build trust with new shoppers.

How Canopy Management Can Help

For Amazon-native brands, implementing social commerce is a critical piece of an omnichannel sales strategy. Relying solely on Amazon’s internal traffic is no longer enough in today’s competitive marketplace.

Embracing platforms like Instagram and TikTok provides new avenues to creatively engage shoppers, drive product discovery, and increase sales velocity for listings. The trends are clear – consumers want to discover and buy products through social channels.

Forward thinking Amazon sellers are getting ahead of this shift by proactively reaching out to top Amazon agencies for help building their brands on social networks. If you’re looking to future-proof your business and amplify your ecommerce brand’s staying power and profitability, it’s time to reach out to Canopy Management. 

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts. 

Ever wonder what adding 67% more organic sales would mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation

The post Closing the Loop: Converting Social Media Followers into Amazon Customers appeared first on Canopy Management.

This brings the tech giant’s total funding in Anthropic to $4 billion, making it Amazon’s most significant venture investment to date. It’s pretty clear that Amazon is fully committed to AI. As an Amazon seller, it’s probably a good idea to determine what this means for your business and how you can capitalize on the opportunities it presents.

Anthropic, a rival of OpenAI – ChatGPT’s parent company – is renowned for its advanced generative AI technologies. Over the past year, the startup has closed five funding deals worth about $7.3 billion, and with Amazon’s latest investment, that total now exceeds $10 billion. 

This strategic partnership is a win-win for both companies: Anthropic gains a massive cash infusion and access to Amazon’s cloud infrastructure (AWS) for training and running its future models, while Amazon secures preferential access to Anthropic’s next-gen AI for its Amazon Bedrock service.

What does this new era of AI-powered ecommerce mean to you as an Amazon seller? Let’s take a closer look at the key takeaways and explore how you can position your brand to thrive in a marketplace that’s undergoing a period of unprecedented change.

10X Your Ecommerce Tools with AI

One of the best things about the powerful software tool suites offered by established software as a service (SaaS) companies like Helium 10 and Jungle Scout is the way that the effectiveness of each individual tool is greatly magnified when used together. 

That’s a big reason why Amazon’s investment in Anthropic stands out. It’s hard to overstate the potential of integrating Anthropic’s advanced AI capabilities into – well, let’s just say, everything! 

Imagine having access to cutting-edge AI-powered tools for product research, shipping, fulfillment, listing optimization, pricing, inventory management and more.  

By leveraging AI’s ability to create an underlying architecture for these tools, you could gain a significant competitive advantage and make data-driven decisions that drive growth and profitability.

To best capitalize on this opportunity, it’s crucial to stay informed about new AI offerings from Amazon and adapt your strategies accordingly. Be proactive in exploring and experimenting with these tools as they become available. Take the time to measure their effects, and impact on your key performance indicators (KPIs). 

Embrace AI early and effectively and you’ll perfectly position your brand at the forefront of this technological revolution!

Personalize Customer Engagement

Another key area where a partnership between Anthropic’s AI and Amazon could impact your ecommerce brand is with customer engagement and personalization. 

Using the power of advanced AI, Amazon could offer more sophisticated product recommendations, tailored content, and personalized experiences that drive customer satisfaction, conversion rates, and lifetime value.

As an Amazon seller, this means that optimizing your product data and content will be more important than ever. By providing high-quality, detailed information about your products, you can help Amazon’s AI algorithms better understand and promote your offerings to the right customers at the right time. 

Additionally, by leveraging AI-powered personalization features as they become available, you can differentiate your brand through superior customer experiences that generate loyalty and repeat purchases.

Future Proof Your Ecommerce Brand

Amazon’s investment in Anthropic is part of a broader AI arms race among tech giants like Microsoft, Google, and Nvidia. All companies making significant investments and acquisitions in the AI space. As these pivotal companies compete for dominance, we can expect to see rapid advancements in ecommerce-focused AI, with new tools and capabilities emerging at an unprecedented pace.

For Amazon sellers, this means that the competitive landscape is likely to shift quickly and unpredictably. To stay ahead of the curve, you’ll need to be agile and adaptable, ready to pivot your strategies and tactics as new AI-powered solutions come to market. 

This may require investing in ongoing education and skills development for yourself and your team, as well as building partnerships with a technologically advanced Amazon agency that can help you navigate this dynamic landscape.

Amazon’s bet on Anthropic could have far-reaching consequences for the Amazon selling landscape as a whole. As AI becomes increasingly central to success on the platform, we may see a widening gap between sellers who are quick to adopt and leverage these technologies and those who are slower to adapt.

At the same time, AI has the potential to level the playing field for smaller sellers by automating tasks, optimizing processes, and enabling more efficient use of resources. By developing a strong AI strategy and investing in the necessary skills and tools, even mom-and-pop businesses can compete effectively in this new era of AI-driven ecommerce.

AI is Here to Stay – Next Steps for Amazon Sellers

Like it or hate it, artificial intelligence is here to stay. Given the volatility of Amazon’s marketplace, cutting-edge AI technology is in a perfect position to place an enormous finger on the scale. 

Maybe, you simply want to weather the storm. Or, you’d like to be at the forefront of this watershed moment. In either case, here are a few key pieces of practical advice to position your brand in the coming year:

Stay Informed 

Regularly monitor announcements, attend webinars, and participate in beta programs to gain early access to new tools and features. Understand how Amazon changes to their AI platform can benefit your business. 

Keep Experimenting 

Continue to experiment with new AI-powered tools as they become available, and measure their impact on your KPIs. Be willing to test and iterate to find the approaches that work best for your unique business.

Optimization is Key 

To take full advantage of AI-driven personalization – and like listing optimization and pay per click advertising – a high degree of – optimization is paramount. Ensure that your listings are complete, accurate, and rich with relevant keywords and details.

Develop Your AI Skills

Invest in developing AI skills and knowledge within your team. Encourage ongoing learning and provide resources and training to help your staff stay up-to-date with the latest AI trends and best practices.

Hire an AI Professional

If you’re not the smartest person in the (AI) room, hire someone who is! This strategy fuels the explosive growth of Amazon’s most successful sellers. An Amazon Agency that’s embraced AI technology has the experience to supercharge your ability to learn and implement the latest AI-infused marketing and sales processes.

How Canopy Management Can Help

Amazon’s historic investment in Anthropic is a clear signal that AI will probably have an outsized role in reshaping the future of ecommerce and the Amazon seller landscape. As competition among tech giants heats up, we can expect to see rapid advancements in AI capabilities and a proliferation of new tools and services designed to help sellers optimize their businesses.

These are changes that are happening right now. 

Canopy Management is powered by human ecommerce experts, and amplified by proprietary technology. Artificial intelligence is just part of this process, and an important way that our team synergizes our global marketing and advertising strategies. 

If you’re looking to get started on your AI journey but aren’t sure where to begin, our team at Canopy Management is here to help. We’re offering free brand assessments and strategy sessions for Amazon sellers looking to leverage cutting-edge technologies to drive growth and success. 

Contact Canopy today to schedule your session and take the first step towards an AI-powered future.

The post Amazon’s Billion-Dollar Bet on Anthropic: What It Means for Amazon Sellers appeared first on Canopy Management.

Temu, itself a rising star of Chinese ecommerce just made its own ecommerce power play.

A month ago, Temu began allowing sellers with local U.S. warehouses or 3PLs to sell on its platform. That was in addition to its existing consignment model where sellers ship inventory to Temu’s warehouses. Now, Temu has partnered with third-party warehousing and fulfillment companies WINIT and Easy Export to offer “Fulfillment by Temu” services similar to Amazon’s FBA or Walmart’s WFS.

Temu is also known for its innovative “shoptainment” model that gamifies the online shopping experience. By offering a treasure trove of affordable and quirky products, coupled with aggressive marketing spend, Temu has rapidly attracted millions of users. 

Now, for better or worse – and to the certain consternation of Walmart and Amazon – they’re right on the doorstep of North American shoppers. 

Leveraging Chinese Manufacturing and U.S. Demand

Temu capitalizes on the excess manufacturing capacity in China and the demand for low-cost goods from American consumers. By directly connecting these two entities, Temu offers a wide array of occasionally peculiar yet affordable products. 

The platform presents a wealth of items that shoppers never knew they needed, enticing them to explore and discover hidden gems. This carefully curated mix of affordability and excitement creates an irresistible allure for an increasing number of users.

Expanding the Marketplace Model

It was just a month ago that Temu started allowing sellers with local U.S. warehouses or third-party logistics (3PLs) to sell on its platform. This new “marketplace” model complemented Temu’s existing consignment model, where sellers ship inventory to Temu’s warehouses. 

At that time, according to research from Marketplace Pulse, 1,000 sellers, all based in China, took advantage of this opportunity by repurposing some of the existing us-based inventory they had intended to sell on Amazon.

This matters because it’s going to reduce complete reliance on the China supply chain alone while offering more pricing options and a greater selection and variety of goods. It’s also bound to help mitigate regulatory risks.

Partnering for Faster Fulfillment

That move by Temu allowed Chinese sellers with inventory in the U.S. to sell on their marketplace. It was the first big crux move in what’s clearly a long game. Now, Temu has taken the second step, and in doing so has created their own version of Fulfillment by Amazon (FBA), or Walmart Fulfillment Services (WFS). 

Temu has partnered with third-party warehousing and fulfillment companies WINIT and Easy Export. These partnerships offer “Fulfillment by Temu” services, and mirror Amazon’s FBA or Walmart’s WFS. 

This makes it possible for Sellers to ship bulk inventory to WINIT and Easy Export’s U.S. warehouses, where orders will be fulfilled and shipped to customers faster. This strategic move aims to provide a two-tier assortment – fast local delivery for popular items and a broader direct-from-China selection.

Temu’s aggressive expansion plans position the company as a formidable competitor to industry giants like Amazon, Walmart and Shein. By onboarding more Amazon sellers with U.S. inventory and targeting major brands, Temu aims to offer a compelling alternative to established players. 

Gamifying the Shopping Experience

Way back in 2016, Alibaba launched Taobao Live, which in large part threw open the doors to live shopping in China. Since that time, Chinese platforms have made huge advances in social commerce and the “gamification” of purchases. 

Increasingly, Chinese shoppers make their purchases after taking part in virtual exhibitions and performances that take advantage of the advances in artificial intelligence and virtual reality that we’ve seen over the past several years. 

Expert ecommerce watchers feel that a significant percentage of Temu’s success is through its embracing the still-innovative “shoptainment” model. It’s transformed the act of browsing into an exciting adventure with an online purchase the not-so-accidental result. 

Shoppers are greeted with spinning wheels that offer enticing coupons, creating an element of chance and anticipation. Temu’s algorithm skillfully presents products that cater to individual preferences, creating a personalized and immersive shopping environment. The combination of affordability and excitement keeps users hooked, eagerly anticipating their next unexpected find.

What’s In Store for Ecommerce Sellers

Temu’s innovative approach to ecommerce, combining gamification, affordability, and now, localized fulfillment, is revolutionizing the online shopping experience. By leveraging Chinese manufacturing, partnering with U.S. warehousing companies, and expanding its marketplace model, Temu is well-positioned to compete with industry giants. 

By continuing to disrupt the status quo and offering consumers an addictive blend of entertainment and affordability, Temu is going to be a force to be reckoned with.

How Canopy Management Can Help

To level up your own online-selling journey, check back here to stay in touch with the latest ecommerce news. The Canopy team is constantly updating blog content that also offers tips and strategies from some of the brightest minds in the Amazon marketplace. 

Want to find out more how Canopy can help you strategically scale your own brand? Reach out to the Amazon Management experts here.

The post Temu’s Ecommerce Evolution: Do Amazon and Walmart Have Anything to Worry About? appeared first on Canopy Management.