What a Trump Presidency Means for Amazon Sellers - 3fin Weekly Briefing #24
Also this week: Key Q4 shopping dates, Amazon faces lawsuit, Black Friday tips
News of the Week
New Automatic FBA Reimbursement Policy in Effect: As of November 7, 2024, Amazon has introduced a proactive reimbursement policy for lost FBA items. Sellers will now receive automatic reimbursements as soon as fulfillment centers report items as lost, removing the need for manual claims. However, the window to manually file for reimbursements has been significantly shortened.
Key Dates for Holiday Shopping Season: Mark your calendars for the upcoming holiday shopping events:
Black Friday: November 29, 2024
Black Friday Week: November 25-December 1, 2024
Cyber Monday: December 2, 2024
Amazon Faces Lawsuit from Sellers: Ecom Authority, along with 595 other Amazon sellers, has filed a lawsuit against Amazon in the U.S. District Court in Miami. The suit alleges that Amazon's business practices are unlawful, potentially impacting the seller community. This legal action highlights ongoing tensions between some sellers and the e-commerce giant.
Deepdive: What a Trump Presidency Means for Amazon Sellers
With President-Elect Donald Trump’s return to the White House, Amazon sellers may face shifts in trade policy that could impact your business. Although no official changes have been announced, preparing now can help you stay ahead of potential impacts, such as tariffs on imports from specific countries.
Possible Trade Changes to Watch
Trump's proposed trade policies could lead to significant tariffs on imported goods:
25% Tariff on goods from Mexico
20% Tariff on goods from non-China countries
60% Tariff on goods from China
These tariffs, if implemented, could start as early as Q1 2025, potentially raising costs for any imported products.
How This Could Affect Your Business
Cost and Margin Pressures
Higher tariffs may lead to increased costs, leaving you with the decision to absorb costs (reducing margins) or raise prices (risking sales).Supply Chain Challenges
If you rely on overseas suppliers, especially in China, sourcing alternatives could be complex and costly.Competitive Landscape Shifts
Sellers who can adapt—sourcing domestically or diversifying supply chains—may gain a competitive edge.
Strategic Moves to Consider
Evaluate Supply Chains: Explore lower-tariff countries or U.S. suppliers if you primarily source from China.
Plan Inventory Early: To avoid congestion, consider preemptive imports if tariffs become likely.
Look Into Exclusions: Certain products may be exempt from tariffs. Research or apply for potential exclusions.
Consider Domestic Production: U.S.-based production may qualify for tax benefits, helping offset costs.
Stay Informed and Adaptable
While the specifics of Trump’s policies remain uncertain, staying informed and flexible in your approach will be essential to navigate these changes successfully. Being proactive now can help you mitigate risks and seize new opportunities in the Amazon marketplace.
Tip of the Week: Get Your Listings Ready Ahead of Black Friday
Optimize Your Listings: Make sure your product titles, descriptions, and bullet points are clear, concise, and packed with relevant keywords. Including seasonal phrases like “Black Friday deals” or “holiday gifts” can attract more shoppers, while high-quality images make your listings more appealing and professional.
Leverage Amazon Ads: Boost visibility by investing in Sponsored Products, Sponsored Brands, and Sponsored Display ads. With competition surging, having ads live and ready can keep your products front and center for shoppers during peak hours, giving you a leg up in this high-traffic season.
We hope you’ve enjoyed this week’s briefing. If you wish to learn more about 3fin, you can book a call or try it for free.
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