Latest / Selling on Giants: The eCommerce Marketplace Podcast / Amazon AI Push, A to Z Claim Issues, Search Disruption, and Rising Margin Pressure

Transcript

Amazon AI Push, A to Z Claim Issues, Search Disruption, and Rising Margin Pressure · Selling on Giants: The eCommerce Marketplace Podcast

• 0:00
  SPEAKER_00: Welcome back to Selling on Giants.
• 0:02
  SPEAKER_00: This is the show where we break down what is actually happening across Amazon, Walmart, and e-commerce, and more importantly, what it means when you are responsible for the PL and decisions actually have consequences.
• 0:17
  SPEAKER_00: This week is not about one major headline, it is about a pattern that keeps showing up from different directions.
• 0:24
  SPEAKER_00: And if you step back for a second, it becomes very clear that platforms are taking more control, while operators are being asked to do more with less margin for error.
• 0:35
  SPEAKER_00: That is the theme.
• 0:36
  SPEAKER_00: More control upstream, more pressure downstream, and less room in the middle.
• 0:40
  SPEAKER_00: Let's start with Amazon, because they are continuing to move deeper into guiding seller behavior.
• 0:46
  SPEAKER_00: They rolled out a new unmet demand feature inside Product Opportunity Explorer, and on paper, this sounds like exactly what sellers have been asking for.
• 0:55
  SPEAKER_00: High search volume, low conversion, clear gaps in the market, and an opportunity to go build something that customers already want but are not finding.
• 1:05
  SPEAKER_00: That is the promise.
• 1:06
  SPEAKER_00: In reality, the outputs are still too broad to act on in a meaningful way.
• 1:11
  SPEAKER_00: What you are getting is directional insight at a category level, not execution ready opportunity, at a SKU level.
• 1:19
  SPEAKER_00: It reinforces things you already suspect, like adjacent product expansion or ecosystem builds, but it does not tell you how to win inside that opportunity.
• 1:29
  SPEAKER_00: So what ends up happening is this becomes a validation tool, not a decision-making tool.
• 1:35
  SPEAKER_00: You still need third-party data, you still need competitive analysis, you still need to understand margin positioning and differentiation.
• 1:45
  SPEAKER_00: And this is important because it shows you where Amazon is going.
• 1:49
  SPEAKER_00: They are not just providing tools anymore, they are trying to guide strategy.
• 1:54
  SPEAKER_00: The risk is not that the data is wrong, the risk is over-reliance on it without applying operator judgment.
• 2:01
  SPEAKER_00: Now let's shift from strategy to enforcement because this is where the tone changes.
• 2:06
  SPEAKER_00: A to Z claims are still one of the most frustrating parts of operating on Amazon, and nothing here is new in terms of process.
• 2:14
  SPEAKER_00: The timelines are clear, the documentation requirements are clear, and the expectations are defined.
• 2:20
  SPEAKER_00: You respond within 72 hours, you provide proof of delivery, you show communication, you follow the steps.
• 2:27
  SPEAKER_00: The issue is not understanding the process, the issue is trusting the outcome.
• 2:31
  SPEAKER_00: What we continue to see, and what sellers continue to say, is that even when everything is done correctly, the claim still gets granted to the buyer.
• 2:41
  SPEAKER_00: That means the product is gone, the revenue is gone, and the seller absorbs the loss.
• 2:47
  SPEAKER_00: This creates a shift in behavior.
• 2:49
  SPEAKER_00: You start building systems around protecting against loss instead of optimizing for efficiency.
• 2:55
  SPEAKER_00: You over-document, you over-confirm, and you assume that the default outcome is not in your favor.
• 3:02
  SPEAKER_00: That is a very different operating environment than one where process equals result.
• 3:07
  SPEAKER_00: Now layer that into something most brands do not think about enough, which is supply chain complexity.
• 3:12
  SPEAKER_00: Not all products scale the same way.
• 3:15
  SPEAKER_00: Fragrance is a perfect example because it looks simple on the surface, but is extremely complex underneath.
• 3:22
  SPEAKER_00: Multiple sourcing layers, regulatory differences across regions, longer production timelines, and ingredient variability all create friction that shows up when you try to grow.
• 3:33
  SPEAKER_00: You cannot treat that the same way you treat a simple private label product with a short lead time and stable inputs.
• 3:40
  SPEAKER_00: So when we talk about scaling, we have to be honest about what can actually scale without breaking.
• 3:45
  SPEAKER_00: Now bring that back to Amazon at a macro level.
• 3:48
  SPEAKER_00: Andy Jassy made it very clear that Amazon is going all in on AI, and this is not about adding features.
• 3:56
  SPEAKER_00: This is about building infrastructure that sits underneath everything.
• 4:00
  SPEAKER_00: Search, ads, recommendations, operations, all of it.
• 4:03
  SPEAKER_00: What that means for sellers is that visibility is going to be influenced more and more by systems that are not fully transparent.
• 4:11
  SPEAKER_00: You are not just optimizing for an algorithm anymore.
• 4:15
  SPEAKER_00: You are operating inside a system that is constantly learning and adjusting in ways you cannot fully see.
• 4:22
  SPEAKER_00: That increases efficiency at scale, but it reduces control at the individual level.
• 4:27
  SPEAKER_00: Now take that same idea and apply it to search outside of Amazon.
• 4:31
  SPEAKER_00: Google is moving toward a model where answers are generated, not ranked.
• 4:35
  SPEAKER_00: That means fewer links, fewer clicks, and more concentration of visibility.
• 4:40
  SPEAKER_00: You are no longer competing to be number one on a page.
• 4:43
  SPEAKER_00: You are competing to be included in the answer itself.
• 4:46
  SPEAKER_00: That changes everything about how content needs to be structured, how information is presented, and how products are described.
• 4:54
  SPEAKER_00: If your data is not clear, complete, and easy to interpret, you do not get selected.
• 4:59
  SPEAKER_00: Now, this is usually the point where brands start to feel overwhelmed because it feels like everything is changing at once.
• 5:06
  SPEAKER_00: And the truth is that it is.
• 5:08
  SPEAKER_00: This is where we approach things differently at Bellavic's.
• 5:11
  SPEAKER_00: We do not chase every update.
• 5:13
  SPEAKER_00: We do not try to react to everything in real time.
• 5:16
  SPEAKER_00: We focus on where the constraint is actually forming in the business.
• 5:20
  SPEAKER_00: Is it margin pressure from fees and logistics?
• 5:23
  SPEAKER_00: Is it visibility from changes in search and discovery?
• 5:27
  SPEAKER_00: Is it conversion from pricing and positioning?
• 5:30
  SPEAKER_00: Is it inventory from supply chain variability?
• 5:33
  SPEAKER_00: Once you identify that, everything else becomes clearer.
• 5:36
  SPEAKER_00: Bellavics has helped brands generate over$500 million on Amazon, and the common thread across those accounts is not more activity.
• 5:45
  SPEAKER_00: It is better prioritization and cleaner execution.
• 5:49
  SPEAKER_00: If things feel more complex than they should or slower than they used to, that is usually the signal that structure needs to catch up with scale.
• 5:58
  SPEAKER_00: You can learn more at Bellovics.com.
• 6:00
  SPEAKER_00: Now let's keep moving because the environment around e-commerce is shifting just as fast as the platforms themselves.
• 6:07
  SPEAKER_00: Trade policy is becoming less predictable.
• 6:09
  SPEAKER_00: The WTO is signaling potential changes that could introduce tariffs on digital goods, which means the tools and services you rely on to run your business could become more expensive depending on how those policies evolve.
• 6:24
  SPEAKER_00: At the same time, regulation is becoming more fragmented at the state level.
• 6:28
  SPEAKER_00: Instead of one standard, you now have multiple overlapping requirements depending on where your customers are located.
• 6:36
  SPEAKER_00: That increases operational overhead, slows down execution, and introduces more risk into areas like data usage, marketing, and compliance.
• 6:46
  SPEAKER_00: Then you layer in consumer behavior.
• 6:48
  SPEAKER_00: Easter spending is hitting record levels, which tells you demand is still there, but the way consumers are making decisions is changing.
• 6:56
  SPEAKER_00: They are more price sensitive, more comparison driven, and more focused on value.
• 7:02
  SPEAKER_00: That means traffic alone is not enough.
• 7:05
  SPEAKER_00: You have to win on perceived value at the point of conversion.
• 7:09
  SPEAKER_00: Now bring this back to Amazon again because they are tightening enforcement in areas that used to be growth levers.
• 7:16
  SPEAKER_00: Variation strategies are being restricted.
• 7:19
  SPEAKER_00: Review consolidation is no longer reliable.
• 7:22
  SPEAKER_00: Each ASIN now has to build its own credibility.
• 7:26
  SPEAKER_00: That increases the cost and time required to launch products and it forces cleaner catalog structure.
• 7:32
  SPEAKER_00: From Amazon's perspective, this improves customer trust.
• 7:35
  SPEAKER_00: From a seller perspective, it removes a lever that accelerated growth.
• 7:39
  SPEAKER_00: Now look at Walmart because they are taking a different approach.
• 7:43
  SPEAKER_00: They are leaning into cultural relevance and limited drops to create demand.
• 7:48
  SPEAKER_00: The Devil Wears product collaboration is a perfect example of how retail is shifting from passive discovery to active demand creation.
• 7:58
  SPEAKER_00: This is not about being found.
• 7:59
  SPEAKER_00: This is about being anticipated.
• 8:01
  SPEAKER_00: And that introduces a different way to think about product launches, marketing, and timing.
• 8:06
  SPEAKER_00: Now expand that into discovery as a whole.
• 8:08
  SPEAKER_00: Alexa is introducing conversational ads, which means interaction is moving beyond screens into voice.
• 8:16
  SPEAKER_00: Reddit is influencing search results and shaping perception before customers ever reach a product page.
• 8:24
  SPEAKER_00: AI-driven ads are starting to show up inside conversational interfaces.
• 8:29
  SPEAKER_00: Discovery is no longer linear.
• 8:31
  SPEAKER_00: It is layered across multiple systems, and each layer reduces direct control from the seller.
• 8:37
  SPEAKER_00: Now add operational pressure on top of that.
• 8:40
  SPEAKER_00: Packaging costs are becoming volatile due to supply chain disruption and sustainability requirements.
• 8:46
  SPEAKER_00: What used to be a fixed input is now a variable cost that impacts both margins and customer experience.
• 8:53
  SPEAKER_00: At the same time, e-commerce as a whole is shifting away from growth at all costs and toward profitability and efficiency.
• 9:00
  SPEAKER_00: This is not a trend driven by preference, it is driven by necessity.
• 9:04
  SPEAKER_00: Costs are rising across acquisition, fulfillment, and operations.
• 9:08
  SPEAKER_00: Margins are tighter, competition is stronger.
• 9:11
  SPEAKER_00: So the playbook has to change.
• 9:13
  SPEAKER_00: When you zoom out, the pattern becomes very clear.
• 9:16
  SPEAKER_00: Platforms are taking more control, costs are increasing, discovery is fragmenting, consumers are becoming more selective, operations are becoming more complex.
• 9:27
  SPEAKER_00: Which means the edge is not in hacks, it is in execution.
• 9:30
  SPEAKER_00: Clean data, clear systems, fast decisions.
• 9:33
  SPEAKER_00: That is what holds up in this kind of environment.
• 9:36
  SPEAKER_00: If this episode helped you see what is actually changing behind the curtain, share it with someone on your team or another operator who needs to hear it and take a second to leave a review so more brands can find the show.
• 9:49
  SPEAKER_00: Mr.
• 9:50
  SPEAKER_00: Will here signing off from selling on giants.
• 9:52
  SPEAKER_00: Let's keep building.