This episode explores the challenges and strategies for Amazon sellers, particularly focusing on the dominance of Chinese sellers in utilizing Lightning Deals and Prime Exclusive Deals. Against the backdrop of data revealing that Chinese sellers account for nearly 80% of these promotions, the hosts and guests discuss the pricing strategies employed and the implications for US-based sellers. More significantly, the conversation delves into the complexities of maintaining "always-on" promotional strategies and the potential pitfalls of consistently discounted pricing. For instance, the panelists discuss how some Chinese sellers circumvent Amazon's rules by rotating through different deal types and using various promotional tactics. As the discussion pivoted to the role of first-party brands, the panelists highlighted the low percentage of promotions run by these brands, attributing this to factors such as co-op fees and a different business mindset. The episode concludes with an analysis of Amazon's seller support system, its shortcomings, and the pervasive fear of account suspension among sellers, regardless of their size or revenue. What this means for the future of Amazon selling is a continued need for sellers to adapt and innovate, focusing on brand building and product differentiation to compete effectively in a rapidly evolving marketplace.
