Amazon’s FBA program is a tremendous asset for brands who sell products on the platform. With FBA, retailers can outsource the heavy lifting of logistics such as warehousing, fulfillment, and distribution for a fee. In the last few years, sellers have expressed the need for more capacity, predictability, and control over their inventory. Amazon’s recent update helps sellers tackle those challenges and so much more.
Amazon just announced a new streamlined FBA capacity management system that will go into effect on March 1, 2023. With this new system in place, Amazon FBA will be turned into an auction where sellers can bid for additional storage space.
The system will now incorporate a single, month-long FBA capacity limit rather than weekly restock limits that can make inventory planning challenging for sellers. Now, capacity limits for the upcoming month will be announced in the third full week of each month via the Capacity Monitor in Seller Central and email notification. According to Amazon, the majority of sellers will now have access to greater capacity volumes than before.
With this new update, Amazon also announced they will provide estimated limits for the following two months to help sellers plan over a longer period. In a recent blog post highlighting the announcement, Dharmesh Mehta, Vice President of Amazon Worldwide Selling Partner Services stated, “We will forecast how much space and labor we expect to have to provide these estimates, but these estimates may vary up or down based on how efficiently sellers are using their capacity, as measured by the Inventory Performance Index (IPI) score.”
With the new Capacity Manager in place, sellers will also be able to request additional capacity based on a reservation fee that they specify. Mehta noted…
“Requests are granted objectively, starting with the highest reservation fee per cubic foot until all capacity available under this program has been allocated. When additional capacity is granted, sellers’ reservation fees are offset by earning performance credits from the sales they generate using the extra capacity. Performance credits are designed to offset up to 100% of the reservation fee, so sellers don’t pay for the additional capacity as long as their products sell through.
Our goal is to provide sellers with more control over how much space they can have while limiting unproductive use. We’ve piloted this feature with certain US sellers, and we’re excited that with this launch, we will expand it so all sellers can request higher FBA capacity limits.”
The recent announcement also highlighted how Amazon will set capacity limits and measure sellers’ inventory usage in cubic feet (vs. number of units), which better represents the capacity sellers’ products use in our fulfillment centers and transportation vehicles. As many sellers prefer to plan in units, Amazon will continue to show inventory usage in units but will also provide an estimate of how many units specific cubic volume capacity limits are likely to permit.
Tinuiti’s Take on the New FBA Capacity System
Change is certainly on the horizon. Let’s hear from Tinuiti’s own Bjorn Johnson on tips for how you can prepare for the FBA change coming March 1st.
“These changes are likely to be impactful, especially to sellers with larger products. Amazon reverting to cubic foot-based storage limits is likely to reintroduce previous issues for these clients in maintaining healthy inventory levels. Their difficulties look to be exacerbated by the addition of the bidding system. In order to keep their already high-fulfillment-fee products in stock, they’ll need to bid on large amounts of space. On the other hand, sellers with smaller products are likely to be able to store more units than before, and have the flexibility to bid on smaller amounts of space. The decision from Amazon looks like a clear effort to encourage small, light, easy-to-ship and fulfill products.”
– Bjorn Johnson, Operations Manager at Tinuiti
Want to Learn More About the New Auction System for FBA Storage Space?
We will continue to keep you informed as we learn more about the new FBA capacity system. If you’re interested in learning more about our Amazon offerings or if you have any questions concerning FBA, contact us today.
Although often underrated or reduced to a “networking platform,” LinkedIn has the potential to help you drive traffic to your website, increase brand awareness, and boost your revenue. How? Through LinkedIn sponsored updates or ads.
Salesforce has announced an integration between Salesforce Commerce Cloud and Google Merchant Center to help merchants highlight the availability of products in stores. The move builds on Salesforce data that suggests both the widespread use of online search in advance of brick and mortar store visits, and an increased likelihood of shopping trips when consumers can see that a store has an item in stock.
Using this new integration, merchants using Commerce Cloud will be able to turn local inventory data into local product listings on Google Search and Google Maps and in the Shopping tab.
Varför vi bryr oss. The distinction between digital and real-world commerce continues to collapse. Those online shopping behaviors that exploded during the pandemic will be with us for the foreseeable future, but it doesn’t mean store visits are a thing of the past.
Rather, consumers are looking for seamless connections between an online product discovery experience and in-person purchases. This integration seeks to support that aim at a granular local level.
The Salesforce data that supports the move can be found here.
Embedding commerce in discovery. The integration also braids together online discovery and the commerce experience. Just as many merchants now seek to provide a frictionless transition from finding a product online to making a digital purchase, this sees the opportunity to link discovery with in-person shopping.
This move pairs with the recent announcement of Salesforce’s Einstein GPT for Commerce that combines proprietary and generative AI models with real-time data such as customer demographic data and shopping history, to automate and tailor shopper recommendations in Commerce Cloud.
Kim Davis är redaktionschef för MarTech. Född i London, men en New Yorker i över två decennier, började Kim täcka företagsprogramvara för tio år sedan. Hans erfarenhet omfattar SaaS för företaget, digital-annons-datadriven stadsplanering och tillämpningar av SaaS, digital teknik och data i marknadsföringsområdet.
Han skrev först om marknadsföringsteknologi som redaktör för Haymarkets The Hub, en dedikerad marknadsföringsteknologiwebbplats, som sedan blev en kanal på det etablerade direktmarknadsföringsmärket DMN. Kim började på DMN proper 2016, som senior redaktör, och blev Executive Editor, sedan chefredaktör en position som han hade till januari 2020.
Innan han arbetade med teknisk journalistik var Kim Associate Editor på en hyperlokal nyhetssajt i New York Times, The Local: East Village, och har tidigare arbetat som redaktör för en akademisk publikation och som musikjournalist. Han har skrivit hundratals New York restaurangrecensioner för en personlig blogg och har varit en och annan gästbidragsgivare till Eater.
82% of marketers believe that AI will be the future of marketing—in fact, many of them already believe AI writes better than a human (Capterra study).
Well, with ChatGPT flying past 100 million users in just two months…we’re living in the future.
AI is revolutionizing the way we work, think, and create.
I joined Content at Scale as the VP of Marketing this January in a bold move of ‘adapting or die’ for my career in content—one month in, what I’m seeing, learning, and facilitating for marketers and teams is blowing my mind. Let’s talk about it.
Reduce Content Overhead Costs and Frustrations by 5x-25x With the AIO Model
It’s now the Stone Age to sit at your computer and drum up 2,500 words for an SEO post from a blank slate.
When you can generate long-form SEO content (2,500 words or more) that’s fully original and well-written inside of five minutes or less, you’ll never want to go back.
On average, I’m seeing a 5-25x reduction in associated content creation costs (which is mind-boggling!), and a time savings of 5-10x. (My full-time writer at Content Hacker went from 7 hours per post to one hour per post after we adapted this model.)
Here’s the AIO model I’ve built out reflecting the difference of what you can do in your business and marketing by replacing the human blank-slate writing with AI blank-slate writing, based on hundreds upon hundreds of use cases from Content at Scale clients:
Artificial Intelligence as the baseline writer (replacing the human writer and blank slate)
The human writer as an optimizer of the AI baseline content
With the time and money savings, it’s an absolute no-brainer to switch to AI as the baseline.
The Human Process Involved In AIO
While we see AI perfectly capable of writing an entire 2,500 word blog from scratch, with a single keyword and one-sentence prompt:
We also see the need for the human optimization process pre-publicera more necessary than ever.
Without your unique story (or client case studies/testimonials) woven in, the human touch of adding statistics, double-checking facts and cutting the fluff; AI-written content simply won’t stand out. It won’t set you apart in the content sea; it won’t drive customers and loyal fans in droves to your email list. So, the human touch is necessary.
My C.R.A.F.T. framework within AIO defines the steps writers should take to make the AI content more human and personalized once you take it from AI and get it ready to publish (from AI to O):
1. Cut the fluff
2. Review, edit, optimize
3. Add images, visuals, media
5. Trust-build with personal story, tone, links
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Humans are needed for the optimization side, and for that human touch that must be applied to the content AI generates. Content itself will never be a fully automated, 100% AI process; but AI can remove hours and hours of painstaking work from the content creation pipeline, which will save countless amounts of energy and dollars in the coming months and years when marketers adapt in full force.
Predictions About the Future of Content & AI
This year, Capterra surveyed almost 200 marketers using AI in their marketing. 82% of them said that the content written by AI was just as good if not better than human-generated content.
One of the first Generative AI experts in the world, Nina Schick (founder of Tamang Ventures, and creator of Substack project ‘The Era of Generative AI’), has told Yahoo Finance Live that she believes ChatGPT will completely revamp how digital content is created, and by 2025, software built with ChatGPT will enable us to reach 90% of all online content now being generated by AI. She said: “ChatGPT has really captured the public imagination in an extremely compelling way, but I think in a few months’ time, ChatGPT is just going to be seen as another tool powered by this new form of AI, known as generative AI,” she said.
Google Trends shows a HUGE jump in interest and traffic around the term “ChatGPT:”
Search traffic shows that the interest in AI is the highest it has ever been. The previous peak was in January 2012:
375 million jobs obsolete in the next ten years. In the next three years, it’s predicted that 120 million workers around the globe will need to be retrained and re-skilled for this new world.
Newer and better-paying jobs in AI will come on the scene, but they won’t replace the amount of jobs lost; so without retraining and reskilling, and learning how to adapt, average people will have difficulty finding new work.
Are You Ready to Join the Future?
I’m excited to see just how much AI will revolutionize human efficiency and optimization.
We’re in new times.
Are you ready to join the future of marketing and learn about all things AI?