Latest / Selling on Giants: The eCommerce Marketplace Podcast / Amazon’s Return Nightmare, Best Buy’s Marketplace Debut, and Retail Media Consolidation

Transcript

Amazon’s Return Nightmare, Best Buy’s Marketplace Debut, and Retail Media Consolidation · Selling on Giants: The eCommerce Marketplace Podcast

• 0:00
  SPEAKER_00: Welcome back to Selling on Giants, e-commerce news and updates.
• 0:03
  SPEAKER_00: I'm Mr.
• 0:04
  SPEAKER_00: Will, host of the Selling on Giants podcast.
• 0:06
  SPEAKER_00: Every week I break down what's happening across Amazon, Walmart, and the rest of the e-commerce universe so you don't have to scroll forums or decode platform PR.
• 0:16
  SPEAKER_00: Let's get into it.
• 0:17
  SPEAKER_00: The Dirty Secret Behind Amazon returns, sellers are paying the price.
• 0:22
  SPEAKER_00: We're starting this week with a story that sellers can't afford to ignore.
• 0:27
  SPEAKER_00: On September 16th, the Bellavics blog is publishing an article called The Dirty Secret Behind Amazon's Return Policy.
• 0:35
  SPEAKER_00: Small sellers are paying the price.
• 0:38
  SPEAKER_00: Consider this your preview.
• 0:40
  SPEAKER_00: If you've sold on Amazon long enough, you already know the dirty truth.
• 0:43
  SPEAKER_00: Every time a shopper clicks return, it feels free to them, but it costs sellers a fortune.
• 0:49
  SPEAKER_00: In 2024, 17% of all online orders were returned.
• 0:54
  SPEAKER_00: On Amazon, sellers report return rates three to four times higher than on Walmart or Shopify.
• 1:01
  SPEAKER_00: Each return wipes out roughly 30% of the item's value when you add shipping, fees, and lost inventory.
• 1:10
  SPEAKER_00: That's$15 gone on a$50 sale.
• 1:14
  SPEAKER_00: To make it back, you'd need to sell two to three more units just to break even.
• 1:19
  SPEAKER_00: And the fraud?
• 1:20
  SPEAKER_00: It's industrial now.
• 1:22
  SPEAKER_00: Buyers gut MacBooks for parts, swap Nike cleats for cheap flip-flops, or send back used soap.
• 1:29
  SPEAKER_00: Some sellers get inventory scanned back into sellable condition until the next unlucky customer receives the dud and leaves a one-star review.
• 1:38
  SPEAKER_00: It's not just financial pain, it's reputational ruin.
• 1:42
  SPEAKER_00: Bo and Belle Littles nearly lost their business when a used swim diaper was resold and reviewed.
• 1:49
  SPEAKER_00: Lisa Myers of Series Chill pulled her entire brand out of prime after FBA shipped one of her breast milk chillers with another mom's rotten milk inside.
• 1:59
  SPEAKER_00: Amazon has tools, safety claims, grade and resell, returnless refunds, but they mostly tilt toward protecting customers.
• 2:09
  SPEAKER_00: Sellers report denials even with proof.
• 2:12
  SPEAKER_00: Abusive buyers can't be blocked.
• 2:15
  SPEAKER_00: Returnless refunds feel like a no-win.
• 2:18
  SPEAKER_00: You're out the product, out the cash, and still carrying the hit to your account health.
• 2:23
  SPEAKER_00: The real problem is perception.
• 2:25
  SPEAKER_00: To customers, easy returns means hassle-free shopping.
• 2:29
  SPEAKER_00: To sellers, it means footing the bill while Amazon keeps buyer trust intact.
• 2:35
  SPEAKER_00: Takeaway, returns aren't background noise anymore.
• 2:38
  SPEAKER_00: They're a frontline battle.
• 2:40
  SPEAKER_00: If you're not protecting listings with clear photos and sizing charts, sealing products with tamper labels and tracking high return SKUs, you're bleeding money.
• 2:50
  SPEAKER_00: The full piece drops September 16th, but sellers start acting now.
• 2:55
  SPEAKER_00: Amazon business tops 35 billion in sales.
• 2:58
  SPEAKER_00: Now, from losses to growth.
• 3:01
  SPEAKER_00: Amazon business just crossed 35 billion in annual sales, and it's one of the fastest growing parts of the company.
• 3:08
  SPEAKER_00: What started as a B2B side hustle is now a procurement powerhouse.
• 3:13
  SPEAKER_00: Why should you care?
• 3:15
  SPEAKER_00: Because the buyers here aren't one-off shoppers.
• 3:17
  SPEAKER_00: They're schools, hospitals, Fortune 500s, and small businesses placing recurring bulk orders.
• 3:24
  SPEAKER_00: We're talking bigger baskets, steadier purchase cycles, and far less seasonality.
• 3:30
  SPEAKER_00: If you're in categories like office supplies, janitorial, medical, or packaged goods, Amazon business is the low-key gold mine.
• 3:38
  SPEAKER_00: Enroll in business pricing, set up quantity discounts, and highlight tax-exempt purchasing.
• 3:44
  SPEAKER_00: Sellers who ignore this channel are leaving institutional money on the table.
• 3:49
  SPEAKER_00: Best Buy doubles assortment with Marketplace Launch.
• 3:52
  SPEAKER_00: Meanwhile, Best Buy is making a bold move.
• 3:55
  SPEAKER_00: The electronics giant has officially launched its third-party marketplace, effectively doubling its online assortment overnight.
• 4:03
  SPEAKER_00: This isn't just an Amazon copycat play.
• 4:05
  SPEAKER_00: Best Buy's customers are loyal, high income, and trust the brand for tech.
• 4:11
  SPEAKER_00: Now they'll see expanded options in home, health, fitness, and even small appliances, categories ripe for non-electronic sellers.
• 4:20
  SPEAKER_00: The unknown is seller access.
• 4:22
  SPEAKER_00: Will Best Buy run it like Target Plus, invite only with strict approvals, or open the gates more like Walmart did in the early days?
• 4:31
  SPEAKER_00: If it's closer to Target's model, early movers will enjoy strong visibility with little competition.
• 4:37
  SPEAKER_00: If it's looser, expect a flood of sellers, but also a faster race to the bottom.
• 4:42
  SPEAKER_00: Either way, Best Buy stepping into marketplace territory is another sign.
• 4:46
  SPEAKER_00: The retail world now runs on third-party assortment.
• 4:50
  SPEAKER_00: For sellers, it's one more storefront worth monitoring.
• 4:54
  SPEAKER_00: Target CEO Brian Cornell steps down amid sales decline.
• 4:57
  SPEAKER_00: Over at Target, big leadership news.
• 5:00
  SPEAKER_00: CEO Brian Cornell is stepping down after years at the helm.
• 5:04
  SPEAKER_00: He led Target through the pandemic and helped grow Roundell, their retail media arm.
• 5:10
  SPEAKER_00: But sales have been declining, margins are tighter, and advertising growth couldn't cover the whole.
• 5:16
  SPEAKER_00: Why does this matter?
• 5:18
  SPEAKER_00: Because leadership transitions usually mean strategy shifts.
• 5:22
  SPEAKER_00: Sellers who've been eyeing Target Plus or testing Roundell ads should watch closely.
• 5:28
  SPEAKER_00: Will the new leadership double down on marketplace expansion or will they pull back and prioritize core retail?
• 5:35
  SPEAKER_00: Roundell has been a bright spot, showing steady year-over-year growth, but it's still a fraction of what Amazon Ads or Walmart Connect are pulling in.
• 5:44
  SPEAKER_00: Sellers investing here should expect either renewed energy or possible consolidation under new leadership.
• 5:51
  SPEAKER_00: Macy's Media Network joins Amazon's ad platform.
• 5:54
  SPEAKER_00: Speaking of retail media, Macy's has teamed up with Amazon to plug its ad network into Amazon's platform.
• 6:02
  SPEAKER_00: That means advertisers can buy Macy's shopper data directly through the same system they already use for Amazon campaigns.
• 6:10
  SPEAKER_00: This is a big deal.
• 6:11
  SPEAKER_00: Retail media is fragmenting fast and Amazon is trying to centralize it.
• 6:15
  SPEAKER_00: For brands, it means greater efficiency, one system to buy across multiple retailers, but it also means more competition for ad space and higher CPCs as all those budgets converge on Amazon's pipes.
• 6:30
  SPEAKER_00: The more networks Amazon consolidates, the more it becomes not just a marketplace, but the command center for retail media buying.
• 6:39
  SPEAKER_00: If you're running ads, the future looks efficient and expensive.
• 6:43
  SPEAKER_00: Amazon expands same-day fresh grocery deliveries to 1,000 US cities.
• 6:48
  SPEAKER_00: While Amazon tightens its ad grip, it's also going deeper into groceries.
• 6:53
  SPEAKER_00: Fresh same-day delivery is expanding to over 1,000 US cities.
• 6:58
  SPEAKER_00: This signals Amazon's ongoing push to capture everyday spend, not just prime day splurges.
• 7:04
  SPEAKER_00: For food and beverage brands, this is both opportunity and headache.
• 7:08
  SPEAKER_00: Opportunity because Fresh gives you a front row seat to repeat buyers who shop weekly.
• 7:14
  SPEAKER_00: Headache because grocery requires airtight cold chain, perfect packaging, and razor-thin margins.
• 7:21
  SPEAKER_00: If you're a DTC food brand thinking about Amazon Fresh, know that your competition isn't just other sellers, it's Walmart, Krager, Instacart, and every corner store in town.
• 7:34
  SPEAKER_00: Still, the logistics muscle Amazon brings, same day in 1,000 cities, is unmatched.
• 7:40
  SPEAKER_00: If you can survive the margin squeeze, the exposure is massive.
• 7:44
  SPEAKER_00: Walmart beats on sales but misses earnings as tariffs bite.
• 7:48
  SPEAKER_00: Speaking of margins, Walmart's Q2 tells a cautionary tale.
• 7:52
  SPEAKER_00: Sales were strong, but earnings slipped thanks to tariff-driven cost pressures.
• 7:57
  SPEAKER_00: For sellers, that's not just Walmart's problem.
• 8:00
  SPEAKER_00: Tariffs ripple down to supplier negotiations, packaging costs, and even your Q4 pricing strategy.
• 8:08
  SPEAKER_00: If Walmart can't fully absorb the hit, you better believe they'll push some of that pain onto marketplace partners.
• 8:15
  SPEAKER_00: Takeaway, audit your tariff exposure now.
• 8:18
  SPEAKER_00: Look at landed costs, see where you can diversify supply, and consider adjusting Q4 prices before you get caught flat-footed.
• 8:27
  SPEAKER_00: Amazon to remove irrelevant variation themes this fall.
• 8:30
  SPEAKER_00: Back to Amazon housekeeping.
• 8:32
  SPEAKER_00: Starting September 2nd through November 30th, irrelevant variation themes will vanish from product templates.
• 8:38
  SPEAKER_00: If you've been stretching parent-child relationships with creative variation hacks, expect error messages and broken parents.
• 8:46
  SPEAKER_00: Why it matters?
• 8:47
  SPEAKER_00: Broken parents mean no review aggregation, weaker discoverability, and conversion hits right before Q4.
• 8:54
  SPEAKER_00: Sellers should start auditing catalogs now and rebuild parents using only approved variation types.
• 9:00
  SPEAKER_00: Amazon tightens rules on percentage off promotions.
• 9:03
  SPEAKER_00: And finally, promotions are tightening.
• 9:06
  SPEAKER_00: As of September 2nd, percentage off deals without claim codes require a two-unit minimum.
• 9:12
  SPEAKER_00: That kills off single unit promos unless you pivot to coupons or claim codes.
• 9:17
  SPEAKER_00: The upside?
• 9:18
  SPEAKER_00: For high volume products, it could push basket sizes higher.
• 9:22
  SPEAKER_00: The downside, if you're running a single item hero SKU, you'll need to rethink your playbook.
• 9:28
  SPEAKER_00: Get ahead of this before your Q4 promos get flagged.
• 9:32
  SPEAKER_00: That's your selling on Giants news and updates for the week.
• 9:34
  SPEAKER_00: We covered Amazon's return nightmare, B2B growth, Best Buy's Marketplace debut, Target's leadership shakeup, Macy's retail media play with Amazon, Fresh Expansion, Walmart's tariff squeeze, and two big policy changes every seller needs to prep for before Q4.
• 9:51
  SPEAKER_00: If this saved you hours of forum scrolls and Slack debates, leave a review wherever you're tuning in.
• 9:57
  SPEAKER_00: It helps us keep the lights on and bring sharper guests into the mix.
• 10:01
  SPEAKER_00: I'm Mr.
• 10:01
  SPEAKER_00: Will, host of the Selling on Giants podcast.
• 10:04
  SPEAKER_00: See you next week.