Client Letters: Have No Fear, Q4 Is Here (Amazon and Walmart)

Accelerate 2023: Amazon's annual seller conference is Sept. 13-14 in which they clearly have identified themselves as the toll booth of eCommerce.

Q2 2023 grew 11% this quarter and is projecting to grow 9%-13% next quarter. This guidance implies no further acceleration in product sales from the +4% posted this quarter.

A number of retailers have provided earnings this week. There were some notable comments giving us a bit of insight on the consumer and impact of inflation.

Q1 2023 guidance was +4-8% in revenue growth which implies continued weakness in product sales and a further slowing in AWS.

Cost increases are difficult to swallow but Amazon still remains quite competitive relative to other 3PLs when accounting for pick, pack, ship, storage and freight. Amazon is clearly flexing its muscle and realize they provide the most compelled customer and have very little marketplace competition. We recommend building these into your pricing in 2023.

The return to double-digit growth is encouraging. However, the continued weakness in international, overstocked position and weak forecast leads us to remain cautious in Q4. We do believe Amazon will position for a “clean” Q1 in inventory through aggressive markdowns as they prepare for further slowing in AWS.

A group of third-party sellers for our first-ever summit dedicated to Walmart Marketplace, our endless aisle where sellers of all sizes can offer customers the items they need and love.

We are pleased to announce one new feature for your Amazon Vendor Central business and additional services for your 3PL needs

As Q1 earnings reports wrap up from the major eCommerce players and economic data is released, we are seeing several key trends across our nearly 200 accounts