Boom and Bust of Amazon Aggregators
Funding for Amazon aggregators is down over 80% in 2022. However, much of the previously committed capital is yet to be deployed. Thus, despite little new funding, acquisitions have not stopped.
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DTC Brands Can Now Buy Ads on Amazon
DTC brands can now buy ads on Amazon that will drive traffic to the brand's website. The customer journey is convoluted but hints at Amazon's bigger ambitions to become a discovery platform for DTC brands.
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Amazon-Native Brand Hero Cosmetics Sells for $630M
Hero Cosmetics, an acne care brand born on Amazon, was acquired for $630 million this week. Hero launched on Amazon in 2017 with one SKU that has since become the #1 beauty product on Amazon.
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Shopify Tries To Fight Buy With Prime
Shopify doesn't want merchants using Amazon's Buy with Prime. It is warning them that installing Buy with Prime removes Shopify's ability to protect against fraudulent orders and could lead to stolen customer data.
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Amazon Seller Pharmapacks Files for Bankruptcy
Pharmapacks, one of the top Amazon sellers, filed for bankruptcy on Sunday. Despite annual sales exceeding $500 million, the business was unprofitable and failed to secure additional financing.
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Walmart Opens Third-Party Seller Floodgates
A lot more sellers are joining the Walmart marketplace after Walmart relaxed its strict approval requirements.
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Amazon Fulfillment Fees Up 30% in Two Years
Amazon has increased the fulfillment fees by over 30% since 2020. A series of small fee jumps has added up to a meaningful increase. Amazon is passing off its growing costs to third-party sellers.
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eBay Loses Pandemic’s E-Commerce Surge
eBay has lost all sales growth from the pandemic's e-commerce surge and will finish 2022 with GMV at 2019 levels.
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Prime Day is Social Commerce
Prime Day is the best example of social commerce in the U.S. - videos tagged with #primeday2022 were viewed 52 million times on TikTok. Shoppers turned to social networks to discover the best deals rather than trying to find them on Amazon.
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Amazon Is Not Abandoning Private Label Business
Amazon is not abandoning the private label business. While it slashed some slow-moving items, all of Amazon Basics and its other private label brands' best-sellers are still available.
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