Everyone seems to be leaving FBA, but is it the right choice?

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• Empty packages pose threats to customers' safety and honest sellers' sales

• Return fees for FBM sellers in 2023

• Many are leaving FBA, but is it the right choice?

• How to get abandoned carts moving

BIG IDEAEmpty packages pose threats to customers' safety and honest sellers' sales

It's the holiday season一online orders fill every home's front porch. But in addition to their expected packages, many people report receiving an unexpected cardboard square, according to an NJ.com article.

📦 Say what now?

These little squares may seem harmless, but they're actually part of a scam pulled by third-party sellers from Amazon, Walmart, and eBay. Images of these deliveries are circulating on Twitter and based on the photos, they come from the same Nebraska address.

Here's how the scam works:

• Someone receives a parcel they didn't order. Sometimes, it contains a product, but often, it only contains a piece of cardboard.

• The seller can use the delivery as proof to marketplaces that the recipient is a verified customer. 

• This boosts their listing's ranking due to many successful deliveries. Eventually, it'll attract more customers and increase their sales.

• U.S. Postal Inspection Service spokesman Greg Kliemisch says sellers obtain the customer's online profile. They even write a positive review without the mailing recipient's knowledge.

How does this affect customers and sellers?

• These unethical sellers acquire the customers' personal information, like address, Amazon username, and password, to write reviews on their behalf.

• It threatens honest sellers who earn their ranking spots. If these black-hat strategies catch on, sketchy sellers gain more visibility.

Unethical sellers are becoming craftier, prompting sellers and customers to stay on guard and ahead of the competition.

AMAZON NEWSReturn fees for FBM sellers in 2023

Amazon announced on its official seller forums that sellers would be shouldering carrier shipping correction charges on customer returns under FBM caused by incorrect return label information. This will take effect on January 14, 2023.

In the past, Amazon absorbed these correction fees on the sellers' behalf. But starting January 14, FBM sellers will be charged or credited for the following: 

• For incorrect dimensions and weight (or both) of your returns: You'll be charged or credited for the price difference between the label you paid and the correct label cost if the returned product has physical qualities that don't match your listing or outbound shipping.

• For incorrect or invalid return address: The carrier will impose an $18 fee for every package if your return address is undeliverable. So, your return address must be in the same country as your store and accept return packages.

• If any of your ASINs incur a shipping correction charge due to incorrect product attributes, return address or both, you'll receive a monthly email notification with a detailed report. Otherwise, you don't have to pay shipping correction fees.

BITES OF THE WEEK

• Panic ensues when Amazon displays wrong seller name - eCommerceBytes

• "Join the Seller Advisory Board" - Ed Rosenberg's LinkedIn

• Amazon looks to sell excess air cargo space as demand cools - Bloomberg

• Amid FBA fee hikes, sellers consider alternatives - PracticalEcommerce

• Amazon addresses regulator's concerns over its use of seller data and favoritism - eCommerceByes

TRENDINGMany are leaving FBA, but is it the right choice?

Fulfillment by Amazon (FBA) is Amazon's bread and butter, and they market it to sellers as their platform's best option for success. But even with its benefits, many are abandoning FBA, as discussed in this thread.

🛒 Why people are leaving FBA (according to OP):

• Undependable inventory space

• Lost shipments

• Broken products that Amazon charges sellers for

They shared that they would remove 90% of their FBA products and shift to FBM and other ecommerce platforms.

What others are saying:

• "We sell glass, and Amazon breaks 3 in 10 (shipments). So we are moving all but a few fast movers over to FBM."

• Higher fees for FBA fulfillment

• Delays in receiving inventory sent in advance

• Acceptance of fraudulent returns with no compensation for sellers

• Rising FBA costs

💛 Not everyone is leaving!

Although people are making the switch, FBA remains strong. Many sellers continue to choose this option as their primary selling model for good reason. 

FBA makes sense for sellers looking to scale or cut back easily. Sales are 10-30x more when using FBA than FBM, and Amazon's fees (even with the repeated increases) are still more affordable. Sellers also save time and resources by sending to fulfillment centers instead of fulfilling hundreds of individual orders

ACTIONABLE ADVICEHow to get your customers' abandoned carts moving

When customers add-to-cart and don't proceed to checkout, that's considered an abandoned cart. Having your products make it to that stage is great, but let's be honest; the real victory is completing the purchase. 

Here's how you can reduce cart abandonment, according to this article by Sagemailer:

• Run promo code campaigns. If your items are in their carts, they're definitely interested. A little nudge can go a long way, and a promo code can make the difference.

• Have a remarketing strategy. Amazon DSP allows sellers to buy display and video ads on and off Amazon programmatically. Your ads can show items from their carts, even off the platform. 

• Improve brand awareness. Some shoppers already have a trusted go-to brand they know and love. You can compete with this by increasing brand awareness and publishing more branded and converting content.

Don't neglect the last-minute (or late) shoppers; get your products out of shopping carts and into boxes this shopping season!