[ BDSN ] 🤖 Olympus to upend Amazon listing optimization

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🤖  OLYMPUS AI to UPEND LISTING OPTIMIZATION

Amazon is expected to announce its Olympus AI this week at its annual AWS re:Invent conference in Las Vegas. It’s been in development for more than a year, as first reported last April here in BDSN.

Despite investing over $8 billion in Anthropic’s Claude chatbot and related technologies, Amazon is developing Olympus to bolster its independence in the competitive AI market.

Olympus reduces reliance on Anthropic for multimodal capabilities while allowing Amazon to directly compete with AI leaders like Google, Microsoft, and OpenAI.

As Google and Microsoft integrate generative AI into their ecosystems, Olympus positions Amazon as a leader in AI-enhanced search, particularly within its vast e-commerce and AWS ecosystems.

Olympus is a multimodal AI model that integrates and interprets text, image, and video data. Its standout feature is enabling users to search for specific moments within videos using natural language prompts.

For example, someone could type, “Show me the game-winning basketball shot,” and Olympus would find and display that exact moment. While initially targeted for video search and archiving, its potential applications in e-commerce, media, and retail are enormous.

Olympus’s capabilities are poised to transform the way products are discovered, searched, and marketed on Amazon. H

1. Enhanced Product Discoverability

   • Impact: Olympus enables search by visual attributes. A customer might search for “red jacket with silver zippers” and Olympus could analyze images and videos to deliver precise matches.
     

2. Video Content Optimization

   • Impact: Olympus processes and indexes video content, making scenes searchable. Videos showcasing product features or how-to demonstrations will likely become critical for ranking in search.
     

3. Listing and Metadata Adjustments

   • Impact: Olympus uses visual and textual data to interpret product relevance. Sellers with incomplete or generic listings may lose visibility.
     

4. Search Ranking Shifts

   • Impact: The integration of multimodal indexing could significantly alter Amazon’s A9 algorithm. Products with optimized multimedia content may rank higher.
     

5. New Advertising Formats

   • Impact: Advanced visual AI could enable scene-based advertising. Imagine ads that target users searching for specific moments like “someone unboxing a blender.”

🇨🇳 CHINESE IMMIGRANTS RUNNING HOME-BASED TEMU 3PLs

To speed up delivery and dodge a crackdown on shipments from China, e-commerce companies are turning to so-called “family warehouses.”

Chinese immigrants in the U.S. are playing a crucial role in the logistics of Temu's operations by running shipping centers from their homes, as Chinese e-commerce companies expand their presence in the American market.

Despite strained U.S.-China relations, Temu achieved $14.2 billion in gross merchandise value in Q3 2024, with the U.S. accounting for 45% of sales.

The "de minimis" rule allows duty-free entry of parcels under $800, enabling small sellers to avoid high storage costs by shipping directly from China.

However, an upcoming crackdown on these shipments is pressuring sellers to store inventory domestically, fueling demand for local fulfillment solutions.

Immigrant-run home-based warehouses have become a creative stopgap. Lin, a Chinese immigrant in Brooklyn, manages small-scale operations from his living room, handling goods like wallpaper and adult toys.

While his current earnings are minimal, he plans to scale up to a 2,000 to 4,000-square-foot warehouse to accommodate larger clients selling auto parts and furniture. These micro-operations exemplify how immigrants are bridging logistical gaps while larger companies like ShipSage and Shein establish broader fulfillment networks.

🇺🇸 US GOVERNMENT EVALUATING DE MINIMIS CHANGES

The US-China Economic and Security Review Commission is urging lawmakers to eliminate the de minimis trade provision, which allows duty-free imports under $800 in value, for goods sold through online Chinese marketplaces.

The recommendation is part of the Commission’s annual report highlighting concerns over China's impact on US markets.

Key proposals include:

• Eliminating the de minimis provision for Chinese e-commerce goods due to the rapid rise in such imports.

• Revoking China's Permanent Normal Trade Relations (PNTR) status, enabling annual reviews of trade practices and potential tariffs.

• Investigating the US-Mexico-Canada Agreement for its role in facilitating Chinese goods' entry via intermediary countries.

Commissioner Jacob Helberg emphasized the detrimental impact on industries like fashion, accusing platforms like Shein and Temu of design theft and exploiting tax loopholes. Helberg argued that maintaining the de minimis provision threatens the survival of Western fashion industries.

The US processes over 4 million de minimis packages daily, most originating from China. Ending these provisions could reshape trade relationships and reinforce protections for domestic industries.

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🪜 TWO FRAMEWORKS for CRUSHING SOCIAL MEDIA

There are two type of frameworks that can really help you in your social media and seo strategy if you use them to create content.

Implement the BRAVE framework to create a diverse content strategy that keeps your audience engaged and helps your content perform well in algorithms.

Use the ELSA framework to transform your content into compelling stories that not only engage your audience but also drive them to take action.

The BRAVE framework is a strategy for creating consistently inconsistent content to game social media algorithms.

It consists of five categories: Broad spectrum content, Relationship content, Advertising, Varied opinion, and Everything that scares you.

This approach helps to keep the audience engaged and prevents content from becoming predictable or repetitive.

• Broad spectrum content: Top of funnel content that may not be directly related to your niche but appeals to a mass market.

• Relationship content: More personal content to nurture the relationship with your audience.

• Advertising: Calls to action and direct promotion of products or services.

• Varied opinion: Potentially controversial content that can generate engagement through differing viewpoints.

• Everything that scares you: Content that pushes your comfort zone and may feel risky to post.

The ELSA framework is a method for creating story-based content that sells. It consists of four elements: Epiphany, Lesson, Story, and Application.

This approach helps content creators to structure their posts in a way that engages the audience emotionally and leads to action.

• Epiphany: Determine the realization or insight you want your audience to have.

• Lesson: The core message or teaching you want to convey.

• Story: Wrap the lesson in a narrative to make it more engaging and relatable.

• Application: Provide a clear next step or call to action for the audience.

✍🏽 GPT CHECKS for RESTRICTED KEYWORDS

Use this GPT to check your listing for prohibited keywords. Just provide a list of keywords to review, and it will explain in detail why it should be OK or why it could cause problems.

You can then ask it for alternate words to consider. For example, instead of using the words “acne” use general terms that describe the product's features without making medical claims, such as “pore-cleansing” or “oil-control.”

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✌🏼 See you again on Thursday …

The answer to today’s STUMP BEZOS is
Shopify has done $270 billion of e-com top line in last 12 months