In this Amazon Seller's Week in Review, Kiri Masters, our CEO and founder, shares her take on recent news highlights and what these could mean for brands selling on the Amazon marketplace.
1. Amazon poised to disrupt another entrenched industry.
Last week I reported that Amazon was investing more in the furniture category, and likely setting up dedicated distribution capabilities for this category. It turns out that the stock price of Wayfair and come other furniture companies went down just on the news alone!
And this week comes with rumors about another huge category that Amazon is reportedly investing in - Pharmaceuticals. This is considered a very challenging category because of patient privacy laws. This will be exciting to consumers for 2 major reasons: ordering prescriptions on Amazon sure beats lining up & waiting at a drugstore. It also could help to create more transparency in a market where consumers have little to no idea what they will ultimately pay for a drug, given the behind-the-scenes rebates and discounts that get passed between manufacturers, insurers, distributors and retailers.
2. US Tax reform proposal gets heat from the National Retail Federation.
The “Ryan-Brady plan” would transition the US from its longstanding income tax system toward a consumption tax system, and also includes a 20% border adjustment tax on imports. The proposed $1 trillion border adjustment tax would drive up prices for consumers and cost the economy jobs, by shifting the tax burden from corporations to consumers, the NRF said.
3. Walmart sales increase.
US retailer Walmart, who also run a successful marketplace service for third-party sellers, has reported a 63% jump in Q1 online sales over the period year on year. But it’s unclear what percentage of this sales increase is attributable to marketplace sellers, versus brands who sell to Walmart directly on a wholesale basis. The Walmart website now offers 50 million items compared with 10 million a year ago.
Let me know what Amazon has been doing lately that has you puzzled or excited. Until next week's round of Amazon Seller's Week in Review, join us in our private community for brand owners and Channel Managers on Facebook: Amazon Chanel Mastery for Brands. We share insider tips about e-commerce and selling on Amazon.