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Transcript

eCommerce News Update: New Tariffs, Amazon Seller Rights, TikTok Shop Plus, and AI Shopping · Selling on Giants: The eCommerce Marketplace Podcast

• 0:00
  SPEAKER_00: Welcome back to Selling on Giants.
• 0:01
  SPEAKER_00: I'm your host, Mr.
• 0:02
  SPEAKER_00: Will, and this week the cost of platform dependence is becoming much easier to see.
• 0:06
  SPEAKER_00: Tariffs are resetting landed cost models days before brands approve Q4 inventory.
• 0:12
  SPEAKER_00: Congress is proposing new protections for sellers whose accounts, funds, or inventory get frozen.
• 0:19
  SPEAKER_00: Amazon is facing more scrutiny over how it enforces marketplace rules and influences pricing across retail channels.
• 0:27
  SPEAKER_00: At the same time, Amazon business has grown into a$60 billion operation.
• 0:33
  SPEAKER_00: Amazon ads is automating more media decisions.
• 0:36
  SPEAKER_00: TikTok is testing its own version of Prime, and AI assistants are moving closer to completing the transaction.
• 0:43
  SPEAKER_00: The platforms are becoming more powerful, but they are also becoming more accountable.
• 0:48
  SPEAKER_00: That creates opportunity for professional operators provided they understand where the platform's incentives end and the brand's interests begin.
• 0:56
  SPEAKER_00: We need to start with tariffs because the expected relief on July 24th did not arrive.
• 1:02
  SPEAKER_00: The temporary 10% import surcharge expired, but it was replaced by new Section 301 tariffs covering imports from 60 trading partners.
• 1:12
  SPEAKER_00: Depending on the sourcing country and product, the new duty is generally 10% or 12.5%, subject to exemptions and other tariff rules.
• 1:22
  SPEAKER_00: Two small businesses immediately challenge the action in the United States Court of International Trade.
• 1:29
  SPEAKER_00: That lawsuit may matter later.
• 1:32
  SPEAKER_00: It does not change the cost of importing products today unless a court blocks the duties.
• 1:37
  SPEAKER_00: This is where brands get into trouble by reading a tariff headline and applying one percentage across the catalog.
• 1:44
  SPEAKER_00: That is not how landed cost works.
• 1:46
  SPEAKER_00: Country of origin matters.
• 1:48
  SPEAKER_00: The HTS classification matters.
• 1:51
  SPEAKER_00: The product exemption list matters.
• 1:54
  SPEAKER_00: Existing Section 232 treatment matters.
• 1:57
  SPEAKER_00: The customs entry date matters.
• 1:59
  SPEAKER_00: Two products arriving from the same country can receive different treatment.
• 2:03
  SPEAKER_00: Canada is another example.
• 2:05
  SPEAKER_00: The administration announced an additional 50% duty on specific Canadian products beginning August 19th.
• 2:12
  SPEAKER_00: This is not a 50% tariff on everything imported from Canada.
• 2:17
  SPEAKER_00: It applies to products identified in the relevant tariff schedules with exclusions for certain items.
• 2:23
  SPEAKER_00: The operator move is not to panic and accelerate every shipment, pull every open purchase order, confirm the country of origin, confirm the classification, and ask the customs broker to provide the current duty exposure in writing.
• 2:38
  SPEAKER_00: Then decide whether moving inventory earlier actually saves money after expedited freight, storage, working capital, and forecast risk.
• 2:46
  SPEAKER_00: A tariff that adds 10% to landed cost does not reduce profit by 10%.
• 2:52
  SPEAKER_00: It can erase a much larger percentage of contribution margin because the duty is being added before Amazon fees, advertising, fulfillment, discounts, returns, and overhead.
• 3:05
  SPEAKER_00: If the brand has not rebuilt its Q4 margin model since July 24th, the model is already outdated.
• 3:12
  SPEAKER_00: The next group of stories centers on marketplace power, and this is one of the more important shifts we have seen in seller policy.
• 3:19
  SPEAKER_00: Representatives Becca Ballant and Nidia Velazquez introduced an online seller's bill of rights aimed at dominant marketplaces such as Amazon and Walmart.
• 3:30
  SPEAKER_00: The proposed legislation would create federal standards around seller suspensions, inventory holds, frozen funds, investigations, notices, and opportunities to appeal.
• 3:42
  SPEAKER_00: The bill is not law.
• 3:44
  SPEAKER_00: It does not change Amazon or Walmart policy today.
• 3:47
  SPEAKER_00: But it matters because seller due process is moving from seller forum complaints into Congress.
• 3:53
  SPEAKER_00: A marketplace can suspend a business within minutes.
• 3:56
  SPEAKER_00: Revenue stops immediately, but payroll, debt payments, storage, advertising commitments, software costs, and operating expenses continue.
• 4:07
  SPEAKER_00: Sellers can spend weeks trying to understand which document is missing or which policy Amazon believes they violated.
• 4:15
  SPEAKER_00: The proposed bill is attempting to address that imbalance by requiring clearer evidence, faster notices, more transparency, and reasonable limits on how long a platform can hold a seller's money or inventory without establishing unlawful conduct.
• 4:31
  SPEAKER_00: My position is that protections like this are overdue.
• 4:35
  SPEAKER_00: A platform should be able to remove counterfeiters, unsafe products, and bad actors quickly.
• 4:41
  SPEAKER_00: It should not be able to destroy a legitimate business through an automated decision and then force that seller into a support loop where no one will explain the evidence.
• 4:51
  SPEAKER_00: That does not mean sellers should operate as though Congress will rescue them, maintain organized invoices, authorization letters, compliance documents, test reports, shipment records, account access records, and supplier information now.
• 5:09
  SPEAKER_00: The seller with poor documentation will still be vulnerable, even under stronger rules.
• 5:16
  SPEAKER_00: Amazon's enforcement system is also facing a reported Senate inquiry into allegations of Chinese influence over the marketplace.
• 5:25
  SPEAKER_00: Senate small business committee staff have reportedly been interviewing sellers and consultants about intermediaries who allegedly offered to bribe Amazon employees to reverse suspensions or provide marketplace advantages.
• 5:39
  SPEAKER_00: There are no public committee findings, and an inquiry does not prove that Amazon or its employees committed wrongdoing.
• 5:45
  SPEAKER_00: Sellers should not treat an allegation as a verdict.
• 5:49
  SPEAKER_00: But the concern is serious because every legitimate seller relies on Amazon applying its standards consistently.
• 5:57
  SPEAKER_00: If bad actors can purchase reinstatement, internal information, competitor suppression, or favorable treatment, compliant brands are not competing on the same field.
• 6:08
  SPEAKER_00: Never use an intermediary who claims they can guarantee reinstatement through an Amazon employee.
• 6:14
  SPEAKER_00: Use the official appeal process, account health support, and qualified legal or compliance help when necessary.
• 6:21
  SPEAKER_00: A shortcut that involves an internal contact can turn a solvable account issue into a much larger legal and marketplace problem.
• 6:28
  SPEAKER_00: At the same time, Amazon's influence over pricing across channels remains part of California's ongoing antitrust case.
• 6:37
  SPEAKER_00: Internal records and interviews reviewed by The Guardian describe Amazon allegedly pressuring suppliers after lower prices appeared at Walmart, Target, Best Buy, and other retailers.
• 6:51
  SPEAKER_00: California argues those practices encourage suppliers to raise prices or remove products elsewhere.
• 6:59
  SPEAKER_00: Amazon denies the allegations and says its policies are designed to protect customers from uncompetitive prices.
• 7:08
  SPEAKER_00: The operator lesson exists regardless of how the case ends.
• 7:12
  SPEAKER_00: Amazon pricing cannot be managed separately from Walmart, direct to consumer, distributors, and wholesale partners.
• 7:20
  SPEAKER_00: Ouncontrolled discount can suppress the featured offer, trigger vendor central reimbursement pressure, disrupt retail relationships, or cause the brand's other accounts to demand matching terms.
• 7:33
  SPEAKER_00: Pricing governance needs a central owner.
• 7:36
  SPEAKER_00: Everyone running promotions needs to understand the downstream effect across every channel.
• 7:42
  SPEAKER_00: A decentralized pricing strategy is not flexibility.
• 7:46
  SPEAKER_00: It is a margin leak waiting to happen.
• 7:48
  SPEAKER_00: Now, despite all that scrutiny, Amazon continues creating major growth opportunities.
• 7:54
  SPEAKER_00: An Amazon business may be one of the most underused.
• 7:57
  SPEAKER_00: Amazon business reached$60 billion in annualized gross sales during the second quarter and now serves more than 11 million organizations.
• 8:07
  SPEAKER_00: More than 1.8 million organizations joined during the first half of the year, and the platform serves 97 of the Fortune 100.
• 8:17
  SPEAKER_00: That is not a side feature inside Seller Central.
• 8:20
  SPEAKER_00: It is a global procurement marketplace operating alongside the consumer marketplace.
• 8:26
  SPEAKER_00: A lot of brands enroll in Amazon business and then do nothing.
• 8:30
  SPEAKER_00: They use the same pricing, the same offer structure, the same content, and the same fulfillment logic they use for a household shopper.
• 8:39
  SPEAKER_00: That misses how commercial buyers behave.
• 8:42
  SPEAKER_00: Businesses may order by the case, replace the same supplies every month, require approval workflows, prioritize delivery reliability, and care more about specifications than lifestyle imagery.
• 8:56
  SPEAKER_00: They may need quantity discounts, business only pricing, palette delivery, recurring purchasing, or content written for a professional use case.
• 9:07
  SPEAKER_00: Office, janitorial, hospitality, healthcare, repair, food service, industrial, and institutional brands should review their highest potential SKUs now.
• 9:19
  SPEAKER_00: Look at business customer sales, order quantities, margin by order size, and whether quantity discounts could increase the order without giving away profit.
• 9:29
  SPEAKER_00: Amazon business is not automatically more profitable.
• 9:32
  SPEAKER_00: A 16-unit order can be worse than a one-unit order if the discount and fulfillment costs are wrong.
• 9:39
  SPEAKER_00: The opportunity comes from intentionally designing the offer for commercial purchasing.
• 9:45
  SPEAKER_00: Amazon ads is also pushing deeper into automation.
• 9:48
  SPEAKER_00: Amazon released 10 new capabilities across Brand Plus and Performance Plus, including first-party audience signals, expanded audio inventory, prime video signals, new optimization models, and automatic streaming television deal selection.
• 10:03
  SPEAKER_00: The interesting part is that Amazon is trying to give advertisers more control and take more control at the same time.
• 10:10
  SPEAKER_00: Brands can bring customer lists, AMC audiences, and other first-party segments into the system as optimization signals.
• 10:19
  SPEAKER_00: But those signals are not strict targeting boundaries.
• 10:23
  SPEAKER_00: Amazon can still search beyond the supplied audience for customers its models believe are likely to perform.
• 10:30
  SPEAKER_00: That distinction matters.
• 10:32
  SPEAKER_00: Uploading a valuable customer audience does not mean the campaign will only reach that audience.
• 10:37
  SPEAKER_00: It means the audience helps train and guide the model.
• 10:40
  SPEAKER_00: Some optimization features and inventory choices are also being enabled automatically on eligible campaign types.
• 10:48
  SPEAKER_00: Advertisers need to know what changed, which defaults are active, and what Amazon is buying in the background.
• 10:54
  SPEAKER_00: Automation is not the same as accountability.
• 10:57
  SPEAKER_00: Better models can improve performance, but they can also spend money faster across inventory the advertiser does not fully understand.
• 11:06
  SPEAKER_00: The advantage will belong to brands that supply stronger data and maintain enough oversight to know what the system is doing.
• 11:13
  SPEAKER_00: This is where Bellavix operates differently from teams that simply launch whatever the platform recommends.
• 11:18
  SPEAKER_00: Bellivix has helped brands sell over$500 million on Amazon, and we are a verified ad partner.
• 11:26
  SPEAKER_00: We use Amazon's automation, AMC, first-party data, and full funnel media when the business is ready for them, but we do not outsource the strategy to the platform collecting the spend.
• 11:38
  SPEAKER_00: Our focus is hands-on execution that turns marketplace complexity into a clear operating plan across advertising, catalog, creative, inventory, and profitability.
• 11:50
  SPEAKER_00: If your team has more tools and data than Clarity, visit Bellovic.com.
• 11:56
  SPEAKER_00: The battle for customer loyalty is also expanding beyond Amazon and Walmart.
• 12:00
  SPEAKER_00: TikTok is testing a paid membership called TikTok Shop Plus for selected United States shoppers.
• 12:06
  SPEAKER_00: Business Insider reviewed screenshots showing monthly prices of$6,$10, and$15 with benefits including free shipping, coupons, and product discounts.
• 12:17
  SPEAKER_00: TikTok has not publicly confirmed the final structure, and it remains unclear whether TikTok, participating sellers, or both would fund the benefits.
• 12:27
  SPEAKER_00: That unanswered funding question is the whole story for sellers.
• 12:31
  SPEAKER_00: A membership can increase conversion, repeat purchasing, and customer retention.
• 12:37
  SPEAKER_00: It can also destroy contribution margin if the seller is expected to fund the discount, subsidize shipping, pay commission, purchase advertising, and absorb returns.
• 12:48
  SPEAKER_00: TikTok is trying to solve a real problem.
• 12:51
  SPEAKER_00: A customer discovers a product in a video, then leaves TikTok to compare it or buy it on Amazon.
• 12:57
  SPEAKER_00: A membership program gives the customer a reason to keep discovery and checkout inside the same app.
• 13:04
  SPEAKER_00: This is not just TikTok copying prime perks.
• 13:08
  SPEAKER_00: TikTok is trying to copy the behavior Prime created.
• 13:12
  SPEAKER_00: Members shop more frequently because the shipping decision has already been made, the benefits feel prepaid, and leaving the ecosystem creates friction.
• 13:21
  SPEAKER_00: Brands invited into the test should not evaluate the opportunity on gross merchandise value.
• 13:26
  SPEAKER_00: Ask who pays for shipping, ask who funds coupons, ask whether the discount stacks with creator commissions, ask how returns affect the economics, ask whether participation is optional at the product level.
• 13:38
  SPEAKER_00: A loyalty program funded by the seller is only valuable when it creates enough repeat purchasing to justify the subsidy.
• 13:46
  SPEAKER_00: Meta is professionalizing another marketplace that many brands still treat like digital classified.
• 13:54
  SPEAKER_00: Facebook launched Seller, a standalone application for frequent marketplace sellers in the United States.
• 14:01
  SPEAKER_00: The app brings inventory, buyer messages, relisting, performance reporting, bulk listing, and AI assisted listing creation into one place.
• 14:11
  SPEAKER_00: Meta says roughly 430 million items are listed on Facebook Marketplace globally each month.
• 14:19
  SPEAKER_00: This does not make Facebook Marketplace a replacement for Amazon or Walmart.
• 14:24
  SPEAKER_00: It does make it easier for resellers, local retailers, furniture brands, collectors, and sellers of bulky products to operate the channel consistently.
• 14:33
  SPEAKER_00: The best fit is local inventory where pickup, direct communication, or same-day availability matters.
• 14:40
  SPEAKER_00: I would not dump an entire national catalog into it.
• 14:43
  SPEAKER_00: Start with a controlled local assortment, understand the labor involved in buyer messages, and measure whether marketplace creates incremental demand or simply creates another inbox the team has to manage.
• 14:57
  SPEAKER_00: Now we need to talk about Q4 shipping because FedEx released its holiday demand surcharges, and some of these numbers can materially change product profitability.
• 15:07
  SPEAKER_00: Additional handling demand charges begin September 28th at$8.80 per package and rise to$11.85 during the core holiday period.
• 15:20
  SPEAKER_00: Oversized demand charges start at$95.75 and rise to$117.25 between November 23rd and December 27th.
• 15:33
  SPEAKER_00: Residential and standard package surcharges are smaller, but they apply across greater volume.
• 15:39
  SPEAKER_00: The mistake is looking at one surcharge in isolation.
• 15:43
  SPEAKER_00: A shipment may carry a demand surcharge, residential charge, additional handling, fuel surcharge, dimensional weight impact, and a premium service cost at the same time.
• 15:55
  SPEAKER_00: Any seller fulfilling direct-to-consumer or merchant fulfilled holiday orders needs to model those periods now.
• 16:02
  SPEAKER_00: Identify which products become unprofitable during peak.
• 16:06
  SPEAKER_00: Then decide whether to raise the free shipping threshold, change packaging, adjust the service level, alter pricing, or reduce promotion.
• 16:15
  SPEAKER_00: Holiday profitability is increasingly determined in the shipping model before the advertising campaign launches.
• 16:22
  SPEAKER_00: Shane's newly disclosed financials show what happens when a business model built around import advantages loses part of that structure.
• 16:31
  SPEAKER_00: Shane reported a$99 million first quarter loss compared with a$395 million profit a year earlier.
• 16:41
  SPEAKER_00: The result included a large accounting charge, so it should not be blamed entirely on operating performance or tariffs.
• 16:49
  SPEAKER_00: Still, United States revenue declined more than 14%, and Shine said the removal of duty-free de minimis treatment hurt sales, growth, and expenses.
• 17:01
  SPEAKER_00: The company is considering price increases to offset part of the additional cost.
• 17:06
  SPEAKER_00: That does not mean Sheen is disappearing.
• 17:08
  SPEAKER_00: It remains a massive global retailer with strong technology, supplier relationships, customer awareness, and more than$40 billion in annual revenue.
• 17:19
  SPEAKER_00: What it does mean is that the structural advantage behind ultra-low-cost cross-border commerce is narrowing.
• 17:26
  SPEAKER_00: Governments are making it more difficult to build a model around shipping inexpensive individual parcels across borders while avoiding the costs faced by domestic retailers and traditional importers.
• 17:39
  SPEAKER_00: Brands competing against Sheen should watch category pricing, paid media intensity, assortment depth, and shipping promises.
• 17:47
  SPEAKER_00: Do not assume the competition is gone, but recognize that durable operations, compliance, domestic inventory, and brand trust may become more valuable as the cheapest import pathway becomes less reliable.
• 18:02
  SPEAKER_00: Finally, Microsoft Copilot is gaining a path from product discovery to completed checkout through a new Agentic Commerce solution from ESW.
• 18:12
  SPEAKER_00: The technology is designed to make brand catalogs available inside AI shopping experiences and allow shoppers to complete secure payments without moving through a traditional storefront.
• 18:23
  SPEAKER_00: This is early.
• 18:25
  SPEAKER_00: Most customers are not buying products through AI agents today, and a provider announcement does not prove widespread adoption.
• 18:33
  SPEAKER_00: But the direction matters.
• 18:34
  SPEAKER_00: The customer describes what they need.
• 18:37
  SPEAKER_00: The assistant evaluates a limited set of products.
• 18:40
  SPEAKER_00: The product is selected, added, and purchased without the shopper browsing a traditional category page.
• 18:47
  SPEAKER_00: That makes product data more than an SEO asset.
• 18:51
  SPEAKER_00: Titles, attributes, compatibility, specifications, price, availability, compliance, shipping information, and use cases determine whether an AI agent can understand and transact on the product.
• 19:05
  SPEAKER_00: The next shelf may not be a page with 20 search results.
• 19:08
  SPEAKER_00: It may be the three products an assistant chooses to mention.
• 19:12
  SPEAKER_00: When you connect the week together, the pattern is clear.
• 19:15
  SPEAKER_00: Tariffs are tightening landed cost economics.
• 19:18
  SPEAKER_00: Congress and regulators are challenging marketplace power.
• 19:22
  SPEAKER_00: Amazon business is opening a larger B2B opportunity.
• 19:26
  SPEAKER_00: Amazon ads is automating more media decisions.
• 19:30
  SPEAKER_00: TikTok is building loyalty.
• 19:32
  SPEAKER_00: Meta is professionalizing marketplace.
• 19:35
  SPEAKER_00: FedEx is raising the cost of holiday fulfillment.
• 19:39
  SPEAKER_00: Shine is losing part of its import advantage.
• 19:42
  SPEAKER_00: And AI assistants are moving from product research toward checkout.
• 19:47
  SPEAKER_00: The brands that win will not be the ones that chase every platform.
• 19:50
  SPEAKER_00: They will know their landed cost.
• 19:53
  SPEAKER_00: They will protect their seller accounts, they will centralize pricing, they will use automation without surrendering oversight, they will model fulfillment before approving promotions, and they will maintain product data that works whether the customer shops through Amazon search, TikTok, Facebook Marketplace, or an AI assistant.
• 20:15
  SPEAKER_00: If this episode helped you connect the stories behind the headlines, share it with someone on your team who owns Marketplace Growth or Q4 Planning.
• 20:23
  SPEAKER_00: And if you are getting value from selling on Giants, subscribe and leave a review so more operators can find the show.