Having a presence on Amazon is vital to keep your customers and scaling your business. However, establishing a successful Amazon store is not easy. Whether you are starting a new channel, competing in a saturated marketplace, or building listings, vendors should use all the features available.
Amazon introduced various tools in 2022 to help Amazon sellers compete in this challenging industry. Here is information you need to know – including new tools – to help you boost your Amazon business this year.
1. New Seller Central Partner Network
Amazon recently merged the Marketplace Appstore and the Service Provider Network to create the Seller Central Partner Network. The SCPN is a hub that offers merchants tools to improve product research, create sales reports, and complete tax forms. The SCPN is available to all registered sellers and is an excellent resource if you’re looking to build your business.
2. Brand Referral Bonuses
New this year, the Brand Referral Bonus program is a way to help brands focus on non-Amazon marketing efforts and improve advertising efficacy. Participants get up to 10% of sales from traffic your brand drives to Amazon. This program can help you grow your brand by allowing your non-Amazon marketing efforts to bring customers to Amazon.
3. Reduction of IPI Thresholds
Having products sit in the warehouse for too long isn’t good for Amazon or your business. To help solve this problem, Amazon released the Inventory Performance Index in 2020. The index rates vendors from 0 to 1,000 and helps determine which inventory should stay and which items need to go. The higher your score, the better you are at managing your inventory.
While the IPI can be confusing at first, it can help you improve your inventory management if you learn how to use it. As of 2022, the IPI threshold was reduced from 450 to 400. Amazon imposes storage limits on your account if you fall below that threshold until your number improves. While managing your IPI score may seem like a burden, keeping your IPI score above the threshold can help you reduce costs, grow your business, and improve profits.
4. A+ Brand Story Updates
Amazon recently restructured its Brand Story feature, a product detail page where sellers can display information on their brands. This update allows sellers to upload information on their missions, values, and employees, allowing shoppers to learn more about the brands they already love. This new feature is an opportunity for vendors to acquire new customers, engage shoppers, and drive sales. Building an emotional connection with shoppers is an essential aspect of brand identity, and using Amazon’s Brand Story is a great way to connect with customers.
5. U.S. Referral and FBA Fee Changes
While Amazon introduced many new features in 2022, it also changed its referral and FBA fees for U.S. sellers. Due partly to freight price surges, FBA fees have increased from 5% to 10%. While these price increases are frustrating, knowing the news can help you adjust your prices accordingly.
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Do you need help increasing your Amazon sales? ScaledOn uses proprietary testing and evaluation techniques to help sellers improve their presence on Amazon. Contact us today to find out how we can help your business grow.