Home » Latest News » US E-commerce Weekly Update (Aug 21-27): Amazon Adjusts Logistics Fees, TikTok Shop Faces Losses

US E-commerce Weekly Update (Aug 21-27): Amazon Adjusts Logistics Fees, TikTok Shop Faces Losses

amazon adjusts logistics fees, tiktok shop faces losses

Amazon: Adjusting logistics and shipping policies

New logistics fee policy: Amazon has announced a reduction in logistics fees for all low-cost products in the USA. This is part of a move to eliminate the ‘Small and Light’ program, which sellers have been using for specific items. The new low-cost Fulfillment by Amazon (FBA) rates will go into effect on August 29, 2023, and the Small and Light program in the United States will be closed on the same day.

Testing new free shipping minimum: Amazon is testing a new minimum order amount of $35 for non-Prime members to qualify for free shipping, raising the amount from $25. This change does not affect Prime members, who pay $139 a year for a subscription that includes free shipping and other perks.

Shopify: Cutting costs by reducing merchant support

Major adjustments to Shopify Plus: Shopify is cutting dedicated merchant support for approximately 16,000 Shopify Plus merchants as the company continues cost-cutting in the wake of multiple layoffs. Shopify Plus is Shopify’s platform for larger, more established brands, with subscriptions starting at $2,000 a month.

TikTok: Enhancing ad capabilities and facing financial challenges

Introduction of Search Ads Toggle: TikTok has announced a new functionality for marketers, the Search Ad Toggle, which allows ads to appear as part of a user’s search results. The Search Ad Toggle will draw from a brand’s existing ad creative to display the ads alongside organic search results.

Significant losses for TikTok shop: TikTok Shop, the online shopping platform of TikTok, is expected to incur a loss of over $500 million this year in the US. The loss mainly reflects the costs associated with recruitment, establishing a distribution network, and subsidizing merchants.

US Halloween shopping trends in 2023: A recent survey by PowerReviews revealed the shopping trends of American consumers for Halloween 2023. The survey included 18,906 American consumers and showed trends divided by generation, gender, and product category. Overall, 87% of consumers planned to shop for Halloween, with 22% stating that it’s never too early to start shopping for the holiday.

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