Greetings from Amazon Accelerate, the largest annual event Amazon hosts for its sellers, now in its fifth year. The reason for such a massive conference? Amazon sellers – individuals or businesses that sell directly to consumers using Amazon’s platform – now account for 60% of their total business.
Rather than bombard you with all the curated buzzwords and talking points Amazon released today, I’m here to break down the key insights that matter most to our clients that do Amazon marketing. The conference spans two days, but today was packed with the most relevant announcements.
Key Takeaways
- Amazon sellers now account for 60% of Amazon’s total business.
- Amazon unveiled the MK30 drone for deliveries, to be rolled out in Arizona by the end of the year, with expansion to Italy. This is capable of making deliveries in under an hour, sometimes as quick as 13 minutes.
- Aims to deliver 10 million products via drone by the end of the decade.
- Google and Amazon partnered to display “Buy with Prime” fast delivery promises in Google Shopping ads.
- PayPal partnered with Amazon to integrate “Buy with Prime” delivery with PayPal checkout.
- TikTok introduced “Buy with Prime” badging for TikTok ads.
- Amazon is unifying the supply chain management experience for sellers with new services to help manage inventory and comply with marketplace-specific requirements.
- Amazon introduced the Veeqo Profit Analyzer tool to help sellers compare costs and margins across all sales channels.
Amazon Everywhere: A Concept That Mirrors Our Own Strategy
We’ve been advising our clients for some time now about the concept of “Search Everywhere.” It’s the idea that customers aren’t just searching on familiar platforms like Google anymore – they’re everywhere. Your strategy needs to meet them on every platform they use. It almost feels like Amazon has been listening in on our strategy sessions! The unofficial theme at Amazon Accelerate this year? Amazon Everywhere.
Now, I know what you’re thinking: “Isn’t Amazon already everywhere?” Yes, but Amazon’s core philosophy has always been to put the consumer first and work backwards. By doing so, they’ve built the largest global marketplace for sellers and vendors alike. They’ve supplemented this through products like Amazon Prime and AWS, creating new revenue streams that feed into their “flywheel” – a strategy that delivers faster, cheaper, and better services, keeping customers loyal.
However, Amazon isn’t content with maintaining the status quo. They’re always searching for ways to expand their flywheel, delivering both improved customer experiences and boosting their bottom line. Today’s announcements reinforced this with a focus on extending Amazon’s reach even further.
Drones Are Real – And They’re Here to Stay
For years, we’ve heard about Amazon’s plans to use drones for delivery, and today, they unveiled the MK30 drone. (Makes you wonder – what happened to MK1 through MK29?) By the end of this year, Amazon will roll out drone deliveries in Arizona, with international expansion to Italy shortly after.
These drones are fast – incredibly fast. In trials, they’ve consistently made deliveries in under an hour, sometimes as quick as 13 minutes. The drones can navigate around buildings and moving objects like other drones or helicopters. And they’ll be delivering over 10,000 products, setting the stage for Amazon to achieve their ambitious goal of delivering 10 million products via drone by the end of the decade.
While some cynics may argue that drones are a way to reduce reliance on human delivery workers, the reality is that Amazon is once again prioritizing the customer. Faster deliveries mean higher conversion rates, which is good for both the customer and Amazon’s bottom line.
Google and Amazon Partnering – Yes, You Read That Right
A surprising announcement today was the partnership between Google and Amazon, specifically tied to Amazon’s “Buy with Prime” service. For those unfamiliar, Buy with Prime allows third-party websites to offer Prime delivery as part of their checkout process. This means that for Prime-eligible products, customers enjoy benefits like fast, free shipping and the reassurance of Amazon-style reviews.
Websites that have implemented Buy with Prime have seen a 16% increase in revenue per customer. Now, thanks to a new partnership, the fast delivery promise (less than three days) will be displayed in Google Shopping ads. This benefits Google with ad revenue, while Amazon expands its Prime service to more sellers, even beyond their own marketplace.
For those running Shopify stores, there’s good news too – the Buy with Prime integration has been working seamlessly on Shopify for over a year now.
PayPal and TikTok Join the Party
Not to be outdone, PayPal also announced a new partnership with Amazon, integrating Buy with Prime delivery with PayPal checkout. This means that Prime members checking out with PayPal will now have the option to get their items delivered with Buy with Prime.
TikTok also made its move, introducing a new feature that adds buy with prime badging to TikTok ads. This partnership further blurs the lines between shopping and social media, allowing sellers to leverage TikTok’s massive audience while still offering Amazon’s renowned delivery speeds.
Amazon’s Universal Supply Chain – A Game-Changer for Sellers
Beyond consumer-facing updates, Amazon is pushing hard to unify the supply chain management experience for sellers. After all, Amazon has spent years perfecting a fast, cost-effective delivery system, and now they want to offer that infrastructure to sellers, whether they exclusively sell on Amazon or across other platforms.
A slew of new services was announced, designed to help sellers manage inventory, avoid stock-outs, and even comply with marketplace-specific requirements (like Walmart’s unique labeling standards). Essentially, Amazon is positioning itself as the go-to solution for all your supply chain needs.
Martha Stewart even made an appearance during a fireside chat to emphasize Amazon’s cutting-edge solutions, urging sellers to test and embrace what the future holds. But she didn’t shy away from acknowledging a harsh truth that Amazon can’t say aloud: these services come with a price. And for many sellers, the big question is – how will this affect my bottom line?
Enter Veeqo Profit Analyzer: Your New Secret Weapon
To address that concern, Amazon has rolled out a new tool called Veeqo Profit Analyzer. This tool allows sellers to compare costs and margins across all their sales channels, providing a clearer picture of profitability. Ultimately, Amazon believes that by offering an “everywhere solution” for sellers, they can help you build your own flywheel, driving economies of scale that enable you to sell more while spending less.
With Amazon constantly innovating, it’s clear they’re not just a marketplace anymore – they’re becoming the infrastructure behind a universal shopping experience. The question for sellers is no longer whether you should sell on Amazon, but rather how you can leverage Amazon’s tools to maximize your business growth everywhere.
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