Good morning, eCommerce leaders.

Ready or not, the holiday race is here. The question isn’t whether they’re buying, but if they’re buying from you.

Let’s make sure you’re in the fast lane.

– Josh Rawe

What’s Changed

_{Amazon Says “NO” to New Fees in 2025}

In a surprise move, Amazon announced it will maintain current US referral and FBA fees for 2025, while adding fee reductions and new seller incentives.

The big picture: Amazon is focusing on fee stability for 2025 despite ongoing inflation and increased operational costs. This marks a significant shift from previous years' fee increases, suggesting a strategic move toward seller retention and new selection growth.

Key changes effective January 15, 2025

• $0 increase to existing Referral or FBA fees

• Reduced inbound placement fees for large bulky items (avg. $0.58/unit savings)

• Fee waivers for new ASINs in FBA New Selection Program

What it means: This fee freeze signals a shifting marketplace dynamic. Amazon has historically implemented fee increases, but growing platforms like Temu, TikTok Shop, and Shein are forcing them to compete. These platforms are courting sellers with reduced fees and incentives while grabbing an increasing share of e-commerce growth. This pressure has created an advantage for brands. Amazon is prioritizing seller retention and new selection growth over margin expansion.

Access Amazon's 2025 fee schedule at amazon.com/selling-fee-changes

Q3 BY THE NUMBERS

Holiday E-commerce: Record Sales Expected

Q3 e-commerce sales hit $300.1B, up 7.5% from last year. This outpaces 2.4% YoY growth for total retail.

3 Key Insights

1. Customer’s Online Preference

   1. 44% start shopping journey on search engines

   2. 41% begin directly on retail sites

   3. 83% research online before visiting stores

   4. 76% of shoppers plan to do half or more holiday shopping online

2. Mobile-First Reality

   1. 73% of US shoppers now use smartphones for purchases

   2. Tablets show highest conversion at 3.1%

   3. Mobile optimization no longer optional

3. Demographics Driving Change

   1. 73% of 18-34 year olds shop via social media

   2. Only 25% of 65+ age group engage in social commerce

   3. Signals long-term shift in shopping behaviors to social

Bottom Line

Growth rates have normalized post-pandemic, but absolute dollar gains continue setting records. Ecommerce growth outpaces total retail growth and continues to capture customer share.

Online and mobile lead the way when it comes to product discovery and research. Adobe predicts $240.8B in online holiday sales this year (+8.4% YoY), with Cyber Week alone driving $40.6B in spending.

PROMOTION EVOLUTION

Amazon's Push for Personalized Discounts

Amazon upgraded Brand Tailored Promotions with more precise targeting capabilities that improve customer conversion.

Here is what's new and what's working:

Key Changes

• Added product-specific targeting (vs. entire catalog only)

• Added new "in-market" audience targeting (people who viewed similar products but didn't buy)

• You can nowrReach "complementary product" shoppers (your competitors' window shoppers)

• Zero redemption fees (not new, but still, FREE)

Real Results from A Client

• $49,196 in additional sales (45 days)

• $4,055 in discount cost

• 43% YoY growth

• 53% QoQ revenue increase

Quick Win

Target your top 3 products with a 25% discount to "in-market" customers. These are people who looked at similar products in the last 7 days but didn't buy. And it's exactly what I did in this video in less than 3 minutes.

https://www.loom.com/share/25b77adc67ad4678b3b5b61520bbcfd5?sid=a8424318-5e30-48f3-a33f-bf401ece94af

Bottom Line

Brand Tailored Promotions 2.0 represents a significant shift in promotional targeting. The combination of precision product targeting, new audience segments, and zero redemption fees makes this a powerful tool for driving incremental sales. Early adopters are seeing strong ROI with relatively modest discount investments.

ICYMI

My Favorite Finds

• Commerce Media - How Ad Spend is Shifting (LinkedIn - Report - Don Brett)

• Amazon Brand Stores Get an Upgrade (LinkedIn - Store Quality Ratings - Jeffrey Cohen)

• Amazon Tests Changes to the Search Results Page (LinkedIn - Key Features Added to Results - Jon Derkits)

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