The year 2024 has started with continuous turmoil for Amazon, and even sellers operating with good practices can't help but feel frustrated as Amazon becomes increasingly difficult to navigate.
Table of Contents#
01 / Amazon's Strict Enforcement of Variation Violations
02 / Amazon's Low Inventory Level Fees
30 / Conclusion
01 / Amazon's Strict Enforcement of Variation Violations#
I personally believe this policy is beneficial for us sellers operating with good practices, as those engaging in tactics like merging zombie listings, relisting refurbished links, and manipulating reviews are the main targets of Amazon's crackdown. Therefore, we need to avoid the aforementioned violations in our upcoming operations.
Currently, the extent of Amazon's enforcement is unknown, but if Amazon truly intends to enforce variation rules against violations, then at least 50% of the links on the Amazon platform may be eliminated, especially in the clothing category, which could face a total wipeout.
What we fear most now is Amazon's misjudgment. Just yesterday, I received a warning for a variation violation, but after thorough checks, I confirmed that this link was compliant. Although my appeal has been accepted and there has been no impact on my account so far.
While veteran sellers have lost the advantage of seed links, this could be good news for new sellers. In the upcoming operations, we must avoid the following violations:
- No more merging zombie listings, relisting refurbished links, or manipulating reviews;
- No more separating variations to send VINE reviews and then merging them back;
- No more altering images or links that cause inconsistencies with the original listing;
- No more merging variations that differ too much;
Additionally, in the variation fields, we should accurately describe attributes, such as writing black, blue, white, etc., under color, and not writing size or other custom fields under color variations. This can help avoid misjudgment by Amazon regarding our compliance.
02 / Amazon's Low Inventory Level Fees#
Although Amazon officially began charging low inventory level fees on April 1, 2024, due to rising dissatisfaction among sellers, Amazon has delayed the implementation by one month, providing a transition period. The low inventory level fees for products shipped between April 1, 2024, and April 30, 2024, will be refunded in May.
Low inventory level fees apply only to products with a historical supply duration of less than 28 days for both long-term (past 90 days) and short-term (past 30 days). Amazon will charge a low inventory level fee ranging from $0.32 to $1.11.
It is important to note that this fee is calculated based on the parent listing, meaning that variations under the parent listing share the same metrics. Calculating this ourselves is quite complex, but Amazon has added a section for low inventory level fees in the Amazon Logistics dashboard, and it is recommended to check this metric daily.
Low inventory level fees do not apply to the following sellers or products:
- Non-standard size products;
- Newly registered professional sellers (within 365 days of the first inventory receipt);
- Parent products newly enrolled in the Amazon Logistics program (within 180 days of the first inventory receipt); (must register for the Amazon Logistics New Product Warehouse Incentive Program to enjoy this benefit)
- Products automatically replenished through Amazon's warehousing and distribution services.
The fourth point refers to Amazon's own AWD satellite warehouse service, which raises suspicions that Amazon's introduction of inventory allocation fees and low inventory fees is aimed at promoting its own services. I have not used these services myself, but feedback from other sellers in the market indicates that the experience with Amazon's official services is very poor.
Overall, this change tests our inventory management capabilities significantly. We need to monitor inventory closely and optimize the supply chain to shorten delivery times, ensuring that inventory can meet at least 28 days of demand at all times.
03 / Conclusion#
I am someone who is unwilling to compromise; as costs rise, I will also increase product prices. If a product does not allow me to make a profit, I will switch to another product. If Amazon cannot allow me to make money, then I will not sell on Amazon.
Although I often say that now is the best time to sell on Amazon because next year will be worse, given the current situation, Amazon is no longer the first choice for entrepreneurship. With the global economy in decline, platform fees and advertising costs are rising sharply, and sellers are competing against each other and engaging in charity.
- If you have a substantial entrepreneurial fund or plan to build a brand, you must prioritize building a brand website from the start, as marketing costs for independent sites are now lower than those on platforms.
- If your entrepreneurial fund is tight, I recommend focusing more on self-fulfillment and stocking, with everything oriented towards profit, and not competing with philanthropists.
Opportunities are always present; let us encourage each other.