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💰  AMAZON CHANGES REIMBURSEMENT POLICY - AGAIN

Amazon has announced an update to its FBA inventory reimbursement policy, effective March 10, 2025, introducing significant changes that impact how sellers are compensated for lost or damaged inventory.

Below is a concise summary of the policy and its implications:

Key Policy Changes:

1. Reimbursement Based on Manufacturing Cost:

   • Reimbursements will no longer be based on the sales price but rather on the product manufacturing cost for items lost or damaged.

   • Sellers have two options to determine manufacturing cost:

     • Amazon Estimate: Based on similar products sold by Amazon, other sellers, and wholesale data.

     • Seller-Provided Cost: Sellers can proof their own manufacturing costs. If no cost is provided, Amazon's estimate will apply, but it can be updated later.

2. New Tools:

   • A Manage Your Manufacturing Cost page will be available in late January within the Inventory Defect and Reimbursement portal, allowing sellers to manage and update their cost information.

3. Automatic Reimbursements:

   • For items lost within fulfillment centers, Amazon will now issue automatic reimbursements, eliminating the need for sellers to submit claims.

4. Post-Customer Order Reimbursements:

   • For items lost or damaged after a customer order, reimbursement will continue to be based on the sales price, minus applicable fees.

Implications for Sellers:

1. Reduced Reimbursement Payouts:

   • Moving to cost-based reimbursement means sellers will likely receive lower compensation, as manufacturing costs exclude other expenses like shipping, tariffs, duties, in-bound logistics, and prep costs.

2. Increased Administrative Burden:

   • Sellers will need to track and document accurate manufacturing costs to ensure fair reimbursement, potentially increasing workload and operational costs.

3. Risk of Losses:

   • Sellers may face situations where the reimbursement amount doesn’t cover the full investment in lost or damaged inventory, eroding margins.

4. Transparency Concerns:

   • Some sellers worry about Amazon’s potential conflict of interest, as the company controls inventory handling and could theoretically "lose" items, reimburse at cost, and resell them.

This update marks a shift towards cost-focused compensation, emphasizing the importance of proactive inventory and financial management for FBA sellers.

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🔭 YOU GOTTA SEE THIS - DREAM 100 SECRETS

The greatest secrets to scaling your e-commerce business aren’t shared in the boardrooms, stages, or panels of the most elite mastermind events.

The real gold is hidden … in the basement!

This is no exaggeration. At the last Market Masters Think Tank, 18 of the brightest minds in e-commerce, including many Dream 100 legends, stepped away from the think tank sessions and networking to secretly film their most powerful, never-before-shared tactics.

This collection of 10-minute power-packed videos—“Market Masters Secrets from the Basement”—is your exclusive backstage pass to the ultimate playbook for e-commerce domination.

🎄🎁  And for the first 100, I'm running an amazing Holiday Gift deal just for you (normally $1,497, now just $47 for first 100) 🎅

🎙️ MY 12 FAVORITE E-COM PODCASTS 

I use AI to summarize 56+ Amazon and e-com podcasts, because most are not worth the time to listen to cover to cover, but from time-to-time they do have a good nugget the AI catches.

However, there are some podcasts that I listen to every word of - they are that good.

In no particular order, these are the 12 that I personally listen to:

• Marketing Misfits

• AM/PM Podcast

• Serious Sellers

• Ad Badger

• My First Million

• Lunch with Norm

• PPC Den

• Seller Sessions

• Better Advertising with BTR

• The Ecom Crew

• The Jason & Scot Show

• Ecomm Breakthrough

📸 HOW to GENERATE UGC VIDEO ADS with AI

Arcads AI can help you create ads that look like they were created by real people, without having to hire a professional.

Here's how:

1. Go to Arcads' website and log in.

2. Now login to your Claude or ChatGPT account and generate a script for your ad.

3. Copy and paste the script into Arcads.

4. Choose a suitable actor for your ad.

5. Click "Generate Videos".

6. Download your video and share it on social media.

⏲️ TIK, TOK GOES the CLOCK and BILLIONS of DOLLARS

The potential ban of TikTok in the United States next month poses significant implications for e-commerce businesses, content creators, and the broader digital economy.

Financial Impact on Creators and Sellers:

TikTok estimates that U.S. small businesses and creators will collectively lose $1.3 billion in the first month alone. This figure underscores the platform's role in driving sales and brand awareness for numerous entrepreneurs and influencers.

TikTok's Legal Countermeasures:

In response to the impending ban, TikTok has initiated several legal actions:

• Supreme Court Appeal: TikTok has petitioned the U.S. Supreme Court to block the enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which mandates the sale or shutdown of the app by January 19, 2025. The company argues that this law infringes upon First Amendment rights by suppressing speech without sufficient evidence of harm.

• Request for Injunction: TikTok seeks an injunction to delay the ban's implementation, allowing time for judicial review and potential policy shifts with the incoming administration. The Supreme Court has agreed to hear arguments on January 10, 2025, indicating the case's significance.

Potential Scenarios:

• Ban Enforcement: If the Supreme Court upholds the ban and no sale occurs, TikTok would be removed from app stores, preventing new downloads and updates.

• Divestiture: Alternatively, ByteDance, TikTok's parent company, might be compelled to sell its U.S. operations to an American entity. This scenario could allow the platform to continue operating, though the transition could introduce operational uncertainties and an algorithm that will work differently.

• Policy Reversal: The incoming administration has expressed varying views on TikTok's presence in the U.S. President-elect Trump has indicated a willingness to reassess the ban, suggesting a possible policy reversal that could permit TikTok to operate without significant changes.

Ripple effect on ads will be significant:

TikTok is projected to draw $12.34 billion in U.S. ad spending this year. Should the ban take effect, this massive pool of ad dollars will likely be redirected to competitors such as Meta and Google, whose platforms are well-positioned to absorb demand for short-form video ads.

However, this shift will likely drive up CPMs (cost per thousand impressions) across social media platforms, especially on Reels and Shorts, as competition for limited ad space intensifies.

Social media CPMs are forecasted to rise across the board in Q1 2025, amplifying challenges for advertisers. Brands should prepare for increased competition in the short-form video ad space and closely monitor evolving user behavior.

🏅  BDSS SPEAKER’S BOOK NAMED ONE OF YEAR’S BEST 

BDSS X Level Up Hawaii speaker and serial entrepreneur Colin Campbell has made waves across multiple industries, founding, scaling, and exiting over a dozen companies valued at nearly $1 billion.

Notable successes include Tucows, .CLUB Domains (sold to GoDaddy in 2021), Hostopia, and Paw.com—his personal favorite due to his love for dogs.

Colin authored Start. Scale. Exit. Repeat., a best-selling book from Forbes Books designed for entrepreneurs. The book, which took 10 years to craft and features over 200 interviews, earned a coveted Kirkus Star and was named one of the 100 Best Books of the Year across all genres.

Colin will be attending BDSS XI in Iceland, and more speakers like him will be speaking at BDSS Elevate 360, including several world-class business all-stars!

✌🏼 Have a great weekend.

See you again Monday.

The answer to today’s STUMP BEZOS is
Amazon hired 250,000 extra temp workers to help