[ BDSN ] 🏀 Mark Cuban weighs in on Amazon fakes

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🤖 KEVIN’S AI in E-COMMERCE PREDICTIONS for 2025

In 2025 I believe the e-commerce game will shift in ways Amazon sellers can’t afford to ignore. Here’s what I think is coming, and how you can ride the wave:

A Solo Seller’s Revolution
Imagine running a multi-million-dollar business ... alone. Thanks to AI agents, this won’t just be possible—it’ll be common. From product research to marketing and logistics, AI agents will handle the heavy lifting. Sellers who learn to orchestrate these “digital employees” will become the new norm.

AI-Native Brands Are Born
The first brands designed entirely by AI will emerge. These aren’t just about AI-driven marketing; they’re built with supply chains and products designed by predictive consumer behavior. Real-time insights will craft what’s needed, where it’s needed, and when.

The AI Copycat Economy
Think competition is tough now? Soon products will be cloned instantly using AI. But here’s the twist: being copied will add value. The original creators—the "product DJs"—will win by remixing ideas and launching them at the perfect moment. Timing and distribution will be your superpowers.

AI-Free: The New Organic
“AI-free” products will be the next “organic” label, catering to consumers craving authenticity. Sellers who build trust and prove genuine human involvement will have an edge.

Execution Barriers Crumble
Execution has always been the bottleneck for big ideas. AI fixes a lot of that. From streamlining supply chains to optimizing marketing strategies, sellers will focus more on what to build than how to execute.

The Fall of Fake Influencers
Authenticity will dominate. AI-generated content will flood social media, making it harder for influencers to stand out. The winners? Real humans with genuine proof of their product’s value. Sellers should focus on building strong, relatable communities.

Browser Extensions: The New App Store
Your everyday tools—browsers, AI-driven extensions—will turn into powerful e-commerce hubs, reshaping how you engage with customers. Adapt early to these platforms for a competitive edge.

AI in the Workplace
Sales teams? Customer service reps. Social media and PPC ad managers. Product development teams? They’ll all shrink. AI will handle much of the work, leaving humans to oversee and strategize. Sellers will need to think like 80% product managers, 20% engineers—focused on building valuable solutions.

Timing + Content + Community = Your New Playbook
The keys to success in this AI-driven economy are clear:

• Distribution: Be everywhere your customers are, instantly.

• Timing: Launch at the right moment, every time.

• Content: Authentic, engaging, and AI-enhanced.

• Community: Build relationships that stand above AI clones.

2025 will be a year of disruption, but also a year of opportunity. Sellers who embrace these AI-driven changes will not just survive—they’ll thrive. Are you ready to become a "product DJ" and orchestrate the future of e-commerce?

⚖️ MARK CUBAN joins X THREAD on FAKES on AMAZON

Scott Adams, the creator of the Dilbert comic strip, has raised significant concerns about counterfeit Dilbert calendars being sold on Amazon.

Last Thursday, Adams posted on X that all 2025 Dilbert calendars available on Amazon are fake, emphasizing that he is not selling any calendars through the platform. He is only selling them on his own website.

It appears the 240,000+ views on the thread caught the attention of Amazon, as many of the counterfeits are now removed from Amazon.

Adams' subsequent posts expanded on the issue, revealing a more extensive problem with counterfeit products on Amazon:

1. Scale of the problem: Adams stated that the "Amazon counterfeit product scandal is way worse than I thought," indicating that the issue extends beyond just Dilbert calendars.

2. Impact on American businesses: He expressed frustration with Amazon's practices, claiming they are "destroying American small business and assisting Chinese companies.”

3. Long-standing relationship: Adams mentioned being an Amazon seller for over a decade, suggesting this is not a new seller's misunderstanding but a problem affecting even established partners.

4. China is the leader in knockoffs: A report by the Office of the United States Intellectual Property Enforcement Coordinator estimates that knockoffs cost U.S. businesses more than $200 billion annually and contribute to the loss of approximately 750,000 jobs. In February 2022, the U.S. identified China as the leading country of origin for counterfeit goods seized by customs.

5. Project Zero only partially works: In response to growing concerns, Amazon launched "Project Zero" in 2019, a program that allows brands to proactively remove counterfeit listings from the platform using automated tools and unique product codes. Despite these efforts, challenges persist in effectively policing the vast number of listings and ensuring the authenticity of products sold.

The issue has garnered attention and support from various quarters:

1. Meb Faber: Investment researcher Meb Faber commented on the situation, noting that he had written about this problem six years ago, implying that Amazon has not adequately addressed the counterfeit issue over time.

2. Rep. Thomas Massie: The U.S. Representative shared Adams' post, adding that "U.S. Inventors get ripped off on Amazon too," suggesting that the problem affects a wide range of creators and businesses.

3. "Shark Tank" star Mark Cuban also chimed in, describing knockoffs as a "plague on small businesses" that drain resources and threaten their survival. He criticized current marketplace platforms for merely engaging in a "whack-a-mole" approach to counterfeits, which he deems insufficient. Cuban proposed that marketplace platforms should be required to vet all foreign manufacturers selling to U.S. consumers.

Cuban also expressed concern about the impact on Amazon's stock, suggesting he "wouldn't hold the stock until it gets sorted out.“

Cuban has been actively combating false claims of "Shark Tank" endorsements. He explicitly stated that he has never backed any keto-based products, despite widespread advertisements claiming otherwise. Cuban and fellow "Shark" Lori Greiner have warned consumers about fake weight loss product endorsements using the show's name.

💍  CARBON 6 ACQUIRED for $210 MILLION - MORE COMING

SPS Commerce, a leader in retail supply chain cloud services, is acquiring Carbon6 Technologies for $210 million. This deal strengthens SPS's offerings for Amazon sellers with tools focused on revenue recovery.

The acquisition, which was announced sooner than many insiders at the company expected, builds on SPS Commerce's capabilities in invoice deduction management and revenue recovery, supporting sellers on Amazon and Walmart. By integrating Carbon6's tools, SPS aims to streamline operations and reduce revenue loss for suppliers.

The deal is expected to add $40 million in revenue in 2025 with an anticipated improved adjusted EBITDA of $5.5 million in 2025.

Based in Toronto, Canada, Carbon 6 came out of “stealth mode” at The Prosper Show in 2019 and has quickly grown into one of the largest Amazon software and services aggregators. They also have an army of “evangelists” who remain independent but get support from Carbon 6 and are paid anywhere from $5K and up per month to represent the company at events, speak highly of the company on social. and so on.

Carbon 6 has acquired close to 20 companies. Some of them have been “sunset” or “deprioritized”, with the company’s focus recently primarily on the top 4 money makers with the biggest long-term potential: Seller Investigators (3P reimbursements), ChargeGuard (1P reimbursements), SoStocked (inventory management and forecasting) and PixelMe (tracking and ranking).

Carbon 6 previously raised money in private from a number of sources, including members of MDS (Million Dollar Sellers) and others.

Most of the founders of the companies who sold to Carbon 6 were required to stay on for a period of time, with some still working for Carbon 6 today while vesting for equity and hopes of a bigger pay day if an event like this happened.

Chelsea Cohen, one of the co-founders of So-Stocked, who still works for Carbon 6 after being acquired, says she is “very happy and excited at this next phase! Eleven years ago when I started this Amazon journey, I had no idea it would lead here. Hell of a ride!”

Agency roll-ups in the Amazon and general e-com space are the next hot thing - you will see a lot more of them this year. There is even a conference devoted to it founded by Tom Shipley: Dealcon.

At $210 million, the Carbon 6 deal is one of the largest so far in the Amazon SAAS and service space. Jungle Scout raised $110 million in “growth funding” a few years ago, Getida’s co-founders had a large undisclosed deal with cost reduction service company SIB in 2022, and Helium 10’s co-founders exited in 2019 for an unpublished amount rumored to be between $50 and $100 million to Assembly in its first deal in the space.

Assembly then bought several other companies, most notably PacVue (which handles $150 billion in ad sales GMV for brands) in a 9-figure deal in October 2021. Then Assembly rebranded to take on the PacVue name in 2023, creating another nice liquidity event for those involved (including Helium 10’s co-founders).

Three Colts is another aggregator in the space that buys both Amazon and non-Amazon focused SAAS and support businesses. Some of their Amazon-related roll-ups include Feedback Whiz, Inventory Lab and ScoutIQ.

Look for a lot more roll-ups and acquisitions in 2025 in this space.

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🇲🇽 MEXICO CLOSES TARIFF LOOPHOLE on SOME ITEMS

Mexico has implemented strict measures to close loopholes allowing duty-free apparel imports, primarily targeting U.S. e-commerce businesses that have been leveraging Mexico's trade policies to bypass tariffs on goods from China.

The move, enacted by President Claudia Sheinbaum and Economy Secretary Marcelo Ebrard through a decree on December 19, introduces significant changes that disrupt cross-border logistics operations.

Key Changes:

1. Increased Tariffs:

   • Import duties on 121 apparel products and 17 made-up textiles have been raised from 20-25% to 35%.

   • 17 additional textile categories now face a 15% duty, up from 10%.

2. IMMEX Program Restrictions:

   • Apparel and textiles classified under certain tariff headings are excluded from Mexico’s IMMEX program.

   • This program, designed for duty-free imports of intermediary goods used in manufacturing, was reportedly misused to ship finished products for resale, bypassing tariffs.

3. Immediate Effect:

   • The changes apply immediately, including to goods currently in transit, leaving companies no adjustment period.

Impact:

• Disruption to E-Commerce and 3PLs:

  • U.S. e-commerce businesses and third-party logistics providers (3PLs) that relied on Mexico as a low-cost hub face a "nightmare scenario."

  • Brands using Mexico to import goods duty-free from China and ship to the U.S. under de minimis provisions (under $800) now face prohibitive costs, nullifying the advantage.

• Shift in Logistics Strategies:

  • Many companies are exploring alternatives, including using Canadian 3PLs, which can still leverage the U.S. Section 321 de minimis provision, or reverting to U.S.-based 3PLs and absorbing U.S. tariffs for faster shipping.

🖼️ YOUR IMAGES MATTER in RUFUS SUGGESTIONS

Andrew Bell recently highlighted on LinkedIn a crucial aspect of Amazon's AI-driven recommendations:

Rufus isn’t just text-based—it’s multi-modal, analyzing images alongside text. This makes visual content optimization essential for standing out in search results.

Why Visual Optimization is Critical

• Visuals simplify information processing for shoppers.

• They create immediate clarity about your product's value.

• Rufus integrates both text and visuals, making your images a key part of dynamic recommendations.

🚨 What you DON’T show visually could leave your product in the shadows.

Misstep to Avoid:

❌ Assuming “Images alone are enough.”

• This approach signals that you’re not optimizing visuals for relevance.

• You risk missing opportunities to engage and convert shoppers.

✅ What to Do Instead: Pair Visuals with Contextual Text

Images work best when paired with meaningful text that Rufus can interpret.

Tips to Optimize Visuals for Rufus:

1️⃣ Add Text Overlays

• Highlight product features directly on your images.

  • Example: “Portable massage therapy for relief anytime, anywhere.”

2️⃣ Label Product Benefits

• Use concise phrases that resonate with customer needs.

  • Example: “Compact size,” “Lightweight design,” or “Ease of use.”

3️⃣ Include Rich Alt Text

• Describe your product thoroughly for enhanced accessibility and search performance.

  • Example: “Portable massage gun with travel-friendly design and long-lasting battery.”
    

Other good image news!

A lot of the guessing will be gone when your listing is suppressed for image violations. Amazon has announced you will now get more details on image issues and can fix them faster.

• You'll receive notifications for previously unannounced image issues.

• For each issue, Amazon will provide guidance that explains how to fix it.

Amazon is implementing this change in phases, with more issues to be announced later this year. Our image guidelines remain unchanged.

To view these updates in Seller Central, go to Menu > Catalog > Upload Images > Submission Status > click the Content compliance issues.

✌🏼 See you again Thursday …

The answer to today’s STUMP BEZOS is
About one third think it will be banned. Check it out here