3 Insights on the latest Amazon announcements: What brands need to know

By Guru Hariharan
CEO, CommerceIQ

Just off the heels of Prime Day and heading into Prime Big Deal Days, there’s been a lot of chatter about Amazon lately—including some big announcements and changes on the horizon that will affect the way brands strategize when it comes to selling on one of the world’s biggest marketplaces. 

Here’s a quick rundown of the latest Amazon news shaping the world of ecommerce:

1. Amazon announces return to office policy

Amazon made waves with its recent announcement of a mandatory five-day return-to-office policy. CEO Andy Jassy explained the reason for the post-pandemic change in a message to employees on September 16th: 

“ … we’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another. If anything, the last 15 months we’ve been back in the office at least three days a week has strengthened our conviction about the benefits.”

For those of you managing teams enjoying the flexibility of remote or hybrid work, this is significant news. And while the exact date of the full return to office is still tentative, Amazon is expected to fully enforce this change by the end of the year. As one of the biggest trendsetters in the ecommerce space, Amazon’s move will likely influence other companies reviewing their own return-to-office strategies.

2. Amazon’s new Saver private label

Amazon has launched a new private label grocery brand, Saver, expanding its footprint in the competitive grocery space. According to GeekWire: “The new private label brand, called Amazon Saver, is a “no-frills” brand with most items priced under $5. Prime members get an additional 10% off. Several products have already been rolled out and Amazon plans a selection of more than 100 items over time.”

Historically, Amazon has faced criticism for struggling to compete on price, especially with retailers like Walmart and Dollar General, which dominate the discount space with private label offerings. 

Saver could be a game changer in that regard. However, it’s worth noting that Amazon’s previous private label, Amazon Basics, has faced scrutiny and legal challenges over potentially unfair promotion practices. Saver’s success will be something for brands to watch closely as Amazon competes for price-sensitive consumers in the grocery market. 

3. Sponsored ads in Amazon’s AI-powered search

Amazon’s new AI-powered search platform, Rufus, now includes sponsored ad placements. Rufus uses generative AI to enhance search results, and while it launched without advertising options, the inevitable monetization strategy is now clear: sponsored placements will begin to appear within Rufus-generated text. 

According to eMarketer: “Because Rufus is trained on the retailer’s product catalog, customer reviews, community Q&As, and information from across the internet, it can respond to a broad array of questions tied to consumers’ specific needs or purposes, compare one product to another, or assist in product research.”

However, many questions remain: How will users bid for ad space? How will the AI incorporate sponsored content? And how will success be measured? Stay in close contact with your Amazon account reps to stay on top of these changes as Amazon continues to develop this new ad landscape.

 

For more hot takes on Amazon and beyond, watch the latest episode of CommerceIQ’s 3 Insights in 3 Minutes, and be sure to add me on LinkedIn for more industry updates and insights.