The 2022 was an unpredictable year for eCommerce and Amazon. The economic instability and inflation have set the tone of people’s spending habits, especially for the past two quarters. Despite its 50% stock plunge, Amazon still remains the leading retail outlet for consumers in America.
As we look ahead to 2023, let’s reflect on what changes in running an FBA business may come about.
According to the EIU, the inflation rate in OCT is back to 6.3%, which was 8.1% back in 2022, but still, we can not see any changes in the commodity prices. Also, there is a chance that Govt. will increase the interest rates to 4.5%-4.75% at the start of February 2023.
So there is no chance of a reduction in Fulfillment/Storage fees next year, which were raised in 2022. There is a chance to see the increase in Fulfillment/Storage fees again in 2023.
Amazon lost around $1 trillion due to the customers being afraid of the economic instability and the fact that people are returning to pre-pandemic habits, due to which we have seen that Amazon shares have fallen almost 50%.
So, there will be a very slim chance of seeing any significant spike in sales in the following years as people will go back to the old ways and buy things from physical stores instead of online shopping.
Ahmed Ali – BellaVix Marketplace Specialist
Similar to Google Adwords, Amazon will start offering automated bidding options based on a target KPI.
ROAS will decrease across most categories due to higher CPC and increased efforts to build brand presence.
Amazon will put much more effort into bringing in off-site traffic. They could do renovations on website-Amz store integration and maybe even social media platforms.
Alp Bilgin – BellaVix Advertising Specialist
CPCs will continue to rise, and sales could be either get even lower or at the same pace as 2022 because of the recession.
Amazon may introduce a reel type feed in addition to Amazon Posts. as all the social media platforms have adapted the reels/shorts form of content.
In September 2022, Amazon launched its “Customers ask Alexa” feature, which brings benefits for brands to give helpful answers to commonly asked questions by customers on Alexa devices. This includes problem-solving links and products. “Costumers ask Alexa” 2023 will more and more expand where eventually will become available for all Amazon registered brands.
Basit Shaikh – BellaVix Advertising Specialist
Amazon will try and replicate TikTok formatting to make the detail page more attractive for mobile users, user-friendly, and more engaging.
I believe videos will be a more significant part of Amazon this year.
Amazon will probably start working on a “try on” feature, enabling the customers to see virtually how their product would fit in before buying it.
Blenda Luta – BellaVix Strategist
With inflation, people will take more care of their finances and be willing to buy items that add value to their lives instead of luxuries. Many will be willing to invest in technology. Still, most will be ready to save as much as they can. People will be more inclined to invest in online businesses, many sellers will come to Amazon to boost their businesses. Shipping and storage costs will also increase with inflation, making products more expensive for consumers. Sellers will have to find new strategies to create competitive products at affordable prices.
Catalina Santana – BellaVix Strategist
TikTok will be an essential part of Amazon in 2023. Amazon may also adopt something like YT shorts and IG/FB stories. Or might develop something in the platform for more social interactions.
CPCs will continue to increase overall advertising types on Amazon.
Product quality is increasing, and premium A+ content is now free for all brands creatives are becoming much more attractive.
Cristian Ramniceanu – BellaVix Advertising Specialist
An increase in competitiveness resulting in higher CPC, but this will weed out smaller, less established brands with weaker customer bases and loyalty.
More opportunities for brands to build a social presence. Amazon could create its own social media program for buyers (and sellers/brands) or expand already-existing technologies on the platform, such as improvements and expansion of Amazon Posts into a more shoppable and interactive experience, etc.
Walmart will not gain territory on Amazon’s dominance in 2023, but Walmart will work through many kinks in its attempt to be “different” from Amazon.
Daniel Prince – BellaVix Marketing & Advertising Coordinator
My prediction for 2023 is a continuous increase in FBA Fees, the same as in 2022. I’m not expecting Amazon’s expansion on storage limits anymore, and maybe we could see additional decreases.
Prime Day and all the major events will have much better results than previous years. Due to inflation, events with discounts will perform better than ever before.
In 2023, I expect to see more brand-related features because that is something Amazon keeps adding all the time. Additionally, in 2023 we could see videos (shorts as the most popular video format) implemented more on Amazon, not only in advertising but also in the product page content.
I also think Walmart’s expansion will be significant. They will not reach out at the point to affect Amazon, but their increase will be a big one, whether we speak about the number of sellers/products/sales or all the features added to Walmart Seller Center or Walmart Connect.
Irnes Sisic – BellaVix Marketplace Specialist
Amazon will continue to push more ways to engage shoppers and try to make it a more immersive experience. TikTok and IG will be more intertwined with Amazon’s influencers. The live events will be more significant and be transmitted outside of the platform as well.
Amazon will continue to grow markets and take over new sectors, which will be more incorporated into our daily life. Pharmaceutical services are still unknown but will develop more, and it will help expand to other industries.
Ivonne Haire – BellaVix Co-Founder
If Q3 and Q4 2022 activities are some references for 2023, then eCommerce platforms and Social Media platforms will be more and more alike. Interactive, higher-quality ads and video ads will become the focal way of communicating and grabbing more attention.
Amazon posts, Amazon Live, and Amazon Influencers will be tools that will be used more often, not only for major events and holidays. Amazon’s latest collaboration with Shutterstock will ease the ad creation process for Amazon Sellers.
For businesses to effectively engage with the up-and-coming Generation Z population, it is essential to have an influential presence on social media. Partnering with influencers in the same industry will help them stand out from the competition and earn the confidence of the target market. Showing transparency and being genuine, motivating the production of user-generated content, and incorporating it into your marketing plan will noticeably enlarge your reach.
Generation Z is mostly attracted to platforms that are continually evolving and have a strong visual component. These platforms must be able to accommodate their ever-changing requirements through creative and revolutionary methods. By being where they have the most interest, Gen Z communicates their desired way of participating. In this sense, Amazon and eCommerce will try to catch up with allowing and adapting to their needs and likes, such as Video and Virtual and Augmented Reality AI tools.
Marina Malenko Damjanova – BellaVix Marketing and Advertising Specialist
The upcoming supply chain transformation:
In 2023, the use of technologies such as computer vision and deep learning will cause a surge in the supply chain sector. Autonomous fleets, self-running warehouse operations, and virtual reality will be major improvements that will lead to a new era of intelligent logistics and global supply chains.
We will have the same restock limitation in 2023, so It would be better to plan our shipments before any significant events. Moreover: Amazon will also introduce peak season fees for its fulfillment services.
No major UI changes will happen next year as Amazon changed/implemented the whole UI and UX this month (December 2023), But as far as reports are concerned, there’s a good chance that Amazon will make changes in our reports.
New features/updates are expected to be introduced in the brand stores because 2023 is a new era of the digital world and advanced technology.
There is the possibility that Amazon will introduce imaging services in 2023 for FBA sellers Or provide an update related to imaging services.
Muhammad Ikram Ellahi – BellaVix Marketplace Specialist
In 2023 significant part of ad budgets will be spent on off-Amazon advertising, reaching new customers outside of Amazon (i.e. DSP) and influencer marketing.
With increased competition, advertising has reached a new level. In 2023 having a good-quality video ad will be a must for every advertiser.
Olena Korzh – BellaVix Advertising Manager
More Sustainable Growth
Each eCommerce platform saw exponential growth during Covid-19, and people are back to normal shopping habits now that the bubble is bursting. So there will be slow but sustainable growth in 2023
Virtual Reality and eCommerce
Virtual Reality has been a hot topic for years, but in 2023, we predict it will break into eCommerce in a big way. In 2022, Walmart invested in AI-powered “try it on” technology to allow shoppers to swap clothing items on virtual models based on their bodies. Regarding customer experience, this is a massive step for eCommerce, and Amazon is not far behind. We expect to see a dramatic increase in innovation related to ‘trying it on virtually’ in 2023
Voice Search Strategy
2023 is the best time to boost your voice search strategy. A recent consumer survey shows that 44 percent of shoppers use voice assistants to purchase on Amazon. If you’ve yet to include voice search in your sales and marketing strategy, now is the perfect time to do so. This will give you an edge in the years ahead and make you a trendsetter, not a trend follower.
Rana Khawar Saeed – BellaVix Marketplace Specialist
Personalization:
eCommerce will continue to grow at a rapid pace. With the rise of Virtual Reality and Augmented Reality, shopping will become even more convenient.
The eCommerce sector has never before offered customers the opportunity to have a comparable level of involvement with an online purchase as is possible with AR and VR. Innovative, tech-savvy organizations can utilize these technologies to bring the in-person shopping experience to customers at home in various ways.
Social Media:
Product marketing and shoppable ads have been seamlessly integrated into most social media platforms, including Facebook, Twitter, TikTok, and Instagram. People use social media to shop nearly all the time, and they plan to do so in the near future. It’s critical to build an effective social media presence for your organization and effectively market your items on these platforms to reach these consumers and increase your sales potential.
Brand Awareness:
Marketing is far more effective when coupled with a strong brand. Building out a strong brand and a message is going to be more and more crucial as the digital space becomes more crowded. Sellers will no longer be able to afford to focus only on the uniqueness of their products, but they will also have to consider the uniqueness of their brand and its message and mission. In the long term, building out brand recognition and awareness will attract more organic customers, increase new to the brand and loyal customers, and will ensure scalability and sustainable growth.
Stefania Pilindavic – BellaVix Director of Client Services
Virtual Reality is going to be one big thing in 2023. People will be getting a more realistic experience while checking products online, Walmart already provided one similar option, but this year this will change the shopping experience.
People will look for Fulfillment by Merchant (FBM) options or 3PL in 2033. Amazon will increase storage fees to an extent where people will rethink Fulfillment by Amazon (FBA). Amazon will also decrease the storage limits, which will cause more issues, especially for small sellers who tend to send their units directly from the manufacturer to FBA.
Amazon will primarily work on their advertisements, where they would be building something like their own social media, and will try to bring in influencers and other video promotions. Videos on detail pages will also be focused on, and they will introduce more automated bidding options on their ads.
Syed Muqaddam – BellaVix Marketplace Specialist
Influencers and Amazon will find more ways to integrate shopping into their user experience. On top of the already existing programs for influencers, Amazon is finding ways to work with platforms like TikTok to introduce integrated shopping experiences. In 2022, we saw Amazon introduce betas connecting influencers with brands, like the Content Creator program. Amazon has also rolled out incentive programs like the Brand Referral Bonus Program, providing fee breaks to sellers who refer traffic from other sources to Amazon. Expect the technology to improve and the ability to leverage advertising to further brand experiences to enhance.
A hybrid fulfillment model will be a must for any brand that hopes to keep up with seasonal fluctuations in demand. The hybrid fulfillment model refers to leveraging Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) to fulfill orders. Relying only on Amazon FBA or their fulfillment centers to warehouse inventory is a risky bet. In a recent announcement to sellers, Amazon will update its fee structure. Effective January 17, 2023, the fee structure provides breaks for products/categories with sufficient demand. Brands that succeed on Amazon will be able to manage their operating fees while minimizing downtime on products efficiently.
Amazon will increase its commitment to small businesses by providing resources, badges, and funding. Its Corporate Social Responsibility (CSR) Policy focuses on environmental sustainability, supply chain transparency, employee rights, and community. A brand’s ability to align with Amazon’s social goals will open up opportunities that sellers of lesser standard won’t be able to access. We can see this through grant programs promoting a focus on black-owned businesses, not-for-profits, and education and providing incubation services like the Launchpad program for startup brands. They are connecting with more regulatory bodies to offer more niche badges as part of their badge programs, like the Climate Friendly Badge. Expect to see further diversity in listings as well as that impact on small businesses across the world.
Will Haire – BellaVix Co-Founder
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