As the peak season approaches, even minor adjustments to Amazon operation strategies can significantly impact final results. The e-commerce giant recently announced important updates to its advertising features and inventory management policies that sellers should understand to mitigate risks and capitalize on new opportunities.
New Traffic Channel: SBV Video Ads Now Link to Brand Stores
Amazon has traditionally prioritized product-focused over store-focused strategies, but its recent upgrade to Sponsored Brands Video (SBV) ads signals a shift toward supporting brand value accumulation and store traffic growth. Previously, video ads could only direct users to individual product pages, limiting their marketing potential. Now, sellers can link SBV ads directly to their brand storefronts, offering customers richer browsing experiences and enhancing brand recognition.
The updated feature allows sellers to select their brand store as the landing page when creating SBV ads. This change breaks through the limitations of single-product promotion and provides more diversified marketing options.
How to Maximize the New SBV Video Ad Feature
- Product Line Integration: For sellers with multiple related products (like different headphone models), consolidating them in a brand store page allows a single video ad to showcase the entire product line, increasing conversion rates.
- Scenario-Based Marketing: Furniture sellers can create themed pages (like a living room set featuring sofas with matching tables and chairs). Video ads for primary products can then drive traffic to these curated collections, meeting customers' needs for complete solutions and boosting average order value.
- Seasonal Campaigns: Create special holiday-themed pages (for Halloween, Christmas etc.) containing all relevant products and promote them through video ads to capitalize on seasonal traffic spikes.
While currently available only to select sellers, this feature is expected to roll out more widely soon. Eligible sellers should test it immediately to gain first-mover advantage.
Inventory Alert: Automatic Removal of Aged Stock in Four European Markets
While optimizing traffic is crucial, inventory management demands equal attention. Amazon announced that starting October 22, it will automatically remove certain stagnant inventory from fulfillment centers in France, Germany, Italy, and Spain.
Which Inventory Faces Automatic Removal?
- Aged Stock: Inventory stored in fulfillment centers for over 365 days that incurs long-term storage fees.
- Inactive Inventory: ASINs with no sales for six consecutive months that have been stored for over 180 days.
This policy specifically targets "sellable inventory," meaning even products in good condition will be removed if they meet these criteria. Importantly, if sellers take no action in Seller Central (neither opting in nor out), eligible inventory will be automatically removed. Essentially, inaction constitutes consent to Amazon's automatic removal process.
How to Prevent Automatic Inventory Removal
Sellers must proactively configure their preferences in Seller Central:
- Return Option: Provide a return address to have aged/inactive inventory periodically shipped back.
- Liquidation: Authorize Amazon to liquidate eligible inventory.
- Disable Automatic Removal: Opt out completely to block Amazon from removing any inventory.
The Strategy Behind Amazon's Inventory Policy Changes
These adjustments reflect multiple operational considerations:
- Warehouse Optimization: Removing stagnant inventory frees up space for faster-moving products, improving overall fulfillment efficiency.
- Cost Reduction: Long-term storage fees represent significant seller expenses. This policy encourages better inventory planning to minimize these costs.
- Customer Experience: Eliminating outdated or poor-performing products ensures shoppers encounter only fresh, high-quality merchandise.
Data-Driven Inventory Management Tactics
To adapt, sellers should transition from reactive to proactive inventory strategies:
- Develop precise forecasting models using historical sales data, seasonal patterns, and promotion calendars to prevent overstocking.
- Monitor inventory turnover rates vigilantly to identify and address slow-moving products early.
- Conduct A/B testing on underperisting listings to improve visibility and conversions.
- Leverage Amazon's various fulfillment options (FBA/FBM) strategically based on product characteristics.
- Perform regular physical inventory audits to maintain data accuracy.
Strategic Implications for Sellers
Amazon's dual updates present both opportunities and challenges. Success during peak season requires sellers to:
- Capitalize on enhanced video advertising to amplify brand presence and store traffic.
- Implement rigorous inventory controls to avoid costly automatic removals.
By staying informed about platform changes and continuously refining operations, sellers can position themselves for optimal performance during this critical sales period.