In 2023, many brands came to sell on the Amazon marketplace. Consumer demands continued to increase despite concerns about inflation and recession.
However, in the United States, Amazon retains its position as a top choice for consumers with around 51% of online shoppers beginning their shopping journey on Amazon.
Amazon continues to dominate the ecommerce and online marketplace with growing competition and consumer demands.
As an Amazon seller, staying on top of key trends for Amazon FBA will help you stay ahead of the curve
In this article, we will look into the future to find out some trends that will shape Amazon FBA in 2024.
Before we look at some trends we expect in 2024, let’s take a look at 2023.
Amazon FBA or fulfillment by Amazon is a service that allows sellers to store their products at Amazon fulfillment centers while Amazon takes care of the packing, shipping, and customer service.
In 2023, Amazon FBA was popular among sellers thanks to its fast and reliable shipping, increased visibility, and great customer service.
As of 2023, Amazon’s customer base increased to over 300 million customers. The platform also moved to new markets like Saudi Arabia, giving sellers the opportunity to reach new customers worldwide. Amazon also has over 25,000 sub-categories, giving sellers the opportunity to sell profitable products with less competition.
While Amazon experienced massive growth in 2023, the competition continues to jump with millions of new sellers going into the Amazon marketplace.
Amazon also increased its fulfillment fees and made updates to its policies which made it quite difficult for Amazon sellers to keep up.
Overall, 2023 was a massive year for Amazon, remaining undisputedly a leader in the ecommerce space.
Now let’s take a look at some Amazon FBA trends and predictions you should keep in mind in 2024:
With the release of ChatGPT and OpenAI, artificial intelligence has become a major part of our social consciousness. Today, we have many AI-powered tools for various Amazon FBA tasks, streamlining ecommerce business activities and giving sellers more time to focus on other aspects of their business.
In 2024 and beyond, we expect to see artificial intelligence play a larger role in helping Amazon sellers achieve greater efficiency.
For customer service, we anticipate AI chatbots handling customer service issues at a larger capacity. Many ecommerce companies will continue to incorporate AI chatbots as a first point of contact for consumers.
AI will help sellers analyze market trends, carry out market research, set competitive prices, and optimize product listings.
AI will also be useful in managing inventory, tracking inventory, forecasting product demand, and optimizing order fulfillment processes.
With these tremendous benefits of artificial intelligence, we can say that Amazon sellers and ecommerce brands that are unable to adopt AI into their business will significantly be at a disadvantage.
Apart from artificial intelligence, augmented and virtual reality (AR/VR) technology is also making waves in the ecommerce industry.
According to reports from Jungle Scout, consumers find AR to be helpful when shopping online.
In 2024, we believe that augmented and virtual reality will become more prevalent allowing consumers to try on various products before buying them.
Sellers in product categories like apparel, furniture, and home and garden will use AR and VR to sell their products and provide a stronger shopping experience for consumers.
With this technology, Amazon sellers can provide a more personalized shopping experience while increasing conversion rates and sales.
Social media participation continues to increase and this is no exception in 2024.
Social media will remain an effective channel for Amazon sellers to introduce new products and educate their audience about various products and how to use them. Sellers will increasingly target specific audiences on various social media platforms and run more social media promotions to engage with them.
But beyond being a sales channel, we expect to see the integration of social media and ecommerce features. We expect to see the expansion of ecommerce on social media with various social media platforms providing channels through which consumers can search for their favorite products.
With platforms like TikTok Shop and Facebook Marketplace on the rise, consumers will be able to discover and purchase products directly from their feeds.
Thanks to AI, consumers can get more personalized product suggestions right on their social media feeds.
In 2023, we saw brands like Chanel and Gucci set up their Amazon stores. With Amazon’s undisputed position as a leading online shopping platform, we expect to see a surge of emerging and established brand stores on Amazon in 2024.
With the surge of both emerging and established brands on the Amazon marketplace, we expect intensified competition which will push the smaller brands to increase their efforts on this dynamic platform.
Video content has become one of the most consumed types of content in recent years. In 2024, we expect video content to become increasingly popular among Amazon sellers.
Amazon sellers will incorporate product videos to show consumers how to use their products and provide product demos. Sellers will also use video content to feature customer testimonials and tell engaging brand stories.
Also, with live shopping becoming popular, many sellers will interact with consumers in real-time and respond to questions about their products.
With voice assistants like Alexa and Siri, voice search will become increasingly important in 2024. Voice search tools are more convenient and provide more accurate search results than the traditional typing method.
So, Amazon sellers will need to optimize their product listings and stores for voice search using long-tail keywords in their product titles and descriptions.
Amazon is one platform that prioritizes personalized marketing, making product recommendations based on a consumer’s browsing history and previous purchases.
In 2024, we expect to see Amazon sellers focus more on personalization, using data analytics to study consumer behavior and preferences. Sellers will offer more personalized discounts, product offers, and customer service.
Some product categories on Amazon have become popular for various reasons. These categories have high competition with thousands of sellers offering diverse products. For example, product categories like apparel and electronics are a part of people’s everyday lives, making it a trending product category every year. Here are some trending categories on Amazon:
Other product categories you can sell on Amazon include:
Amazon has guidelines dictating what types of products you can’t sell on Amazon. These products are illegal and dangerous and have been restricted on Amazon. Here’s a list of products you can’t sell on Amazon:
Amazon FBA is a powerful ecommerce solution that can help Amazon sellers streamline their business operations, save time, and increase conversion rate.
In 2024, Amazon FBA will continue to be profitable. However, as an Amazon seller, you want to be mindful of the products you sell to minimize costs effectively. To find profitable products, you want to analyze consumer demands and market trends and identify products that have high demand and low competition. You can use tools like Jungle Scout to carry out product research. You can also go through Amazon's Best Sellers list and keep an eye on your competitors to find out what products will be most profitable.
If you’re ready to invest time and effort into building a successful business, Amazon FBA can be very profitable even in the long term.
Are you excited to sell on the Amazon marketplace in 2024? While we don’t have a magic globe, we have looked at some trends and predictions we hope to see in 2024.
As an Amazon seller, it is crucial to be aware of the trends and predictions to come. This will help you make the most out of your resources and stay ahead of the curve.