Amazon VAT Verification Turmoil: Impact on Sellers and Urgent Call for Action
- Amazon’s VAT verification process has severely impacted UK sellers, freezing funds and limiting account access, causing financial distress and potential bankruptcy. Despite providing documentation, sellers face repetitive requests and blocked stock access. Amazon has pledged to expedite the process but criticism from sellers and government officials persists. The situation highlights the importance of compliance, preparedness for policy changes, and diversifying sales channels to mitigate platform dependency. Our team must guide brands on navigating marketplace challenges and emphasize the significance of diverse revenue streams.
Walmart’s Potential Acquisition of Vizio: A New Era in Connected-TV Advertising
- Walmart is reportedly negotiating to acquire Vizio for over $2 billion, a move that could transform it into a major player in the connected-TV advertising market, directly competing with Roku, Amazon, and Google/YouTube. This deal highlights Walmart’s ambition to dominate the low-end connected TV market and could shift the competitive landscape, especially for Roku, which significantly relies on Walmart for device sales. For our team, this underscores the importance of staying informed on market consolidations and the potential impact on advertising strategies and partnerships. It’s crucial to advise brands on adapting to these shifts and exploring diverse advertising platforms to stay ahead.
Amazon’s Strategic Move into Luxury Resale: Implications for Brands
- Amazon is expanding into the luxury resale market, partnering with platforms like Hardly Ever Worn It (HEWI) and What Goes Around Comes Around (WGACA) to offer pre-owned luxury goods. This strategy allows Amazon to engage with luxury brands indirectly, offering products from brands that might not directly list on Amazon, such as Chanel and Gucci. The move into resale not only diversifies Amazon’s product offerings but also provides insights into customer demand for luxury items, potentially paving the way for future partnerships with luxury brands. This development is a crucial reminder for our team to monitor evolving marketplace trends and advise brands on leveraging new sales channels. Brands should be prepared to navigate these shifts, considering both direct sales and resale opportunities to reach broader audiences.
Beyond ROAS: Embracing New Metrics for Retail Media Success
- The shift away from ROAS (Return On Ad Spend) towards more nuanced metrics reflects the evolving landscape of retail media. Brands are advised to consider Marketing Efficiency Ratio (MER) for a holistic view of marketing performance, Detail Page View Rate (DPVR) for creative effectiveness, Incremental Profitability to measure true return considering profit margins, and New To Brand (NTB) for gauging new customer acquisition. These metrics offer a comprehensive understanding of campaign effectiveness beyond just profitability, focusing on growth, awareness, and market share. Our team should guide brands towards these alternative metrics to better align their retail media strategies with broader business objectives, ensuring a more strategic approach to campaign measurement and optimization
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