Latest Amazon Updates: The Week in Review – October 22-29

The month of October has been quite the whirlwind for Amazon and its sellers. October 3rd, Amazon released a ToS update that banned incentivized reviews, kickstarting a season full of updates and policy changes.

To recap the latest Amazon updates:

  • August 28: Amazon enacts massive restrictions on certain brands, preventing 3rd party sellers from selling without approval.
  • September 1: Amazon announces in an email to sellers that, effective November 1st, US Seller fulfilled returns will be automatically authorized, and Amazon will provide prepaid return label on the seller’s behalf. Read more here.
  • October 3: The new Terms of Service prohibits providing a free or discounted product in exchange for a review unless it’s through the Vine program. Read more here.
  • October 10: Amazon closes the door to Fulfillment by Amazon for new sellers during the Q4, 2016 period. See here under the orange button at the bottom of the page.
  • October 21: Amazon clarifies Promotional Content in Customer Reviews and Questions and Answers in wake of the new review policy. Read more here.

This past week continued this month’s trend with Amazon’s mass seller email regarding reviews and the introduction to Amazon’s Early Reviewer Program..

 

Amazon’s Incentivized Review Mass Email

Many sellers reported receiving an email on October 24th from Amazon with a strict warning about moving forward with incentivized reviews:

“We recently updated our policies to prohibit incentivize reviews, including those posted in exchange for a free or discounted copy of the product. You are receiving this email because products you sell have received incentivize reviews in the past. If you attempt to acquire incentivize reviews going forward, your Amazon privileges will be suspended or terminated.

We consider a review to be incentivized if you have influenced or can influence the review directly or indirectly, including by monitoring whether a review is written and providing or withholding any benefit based on whether a review is written or the content of the review. Below are a few examples where a review is considered incentivize and is not permitted:

  • You provide a free or discounted product, gift card, rebate, cash payment, or other compensation in exchange for the review.
  • You provide or withhold free or discounted products or other benefits in the future based on whether the customer writes a review.
  • You use a review service where reviewers’ continued membership depends on writing reviews.
  • You use a review service where you can rate customers based on their reviews.
  • You use a review service where customers register their Amazon public profile so that you can monitor their reviews of your products.

Incentivizing customer reviews violates our policies and may violate the Federal Trade Commission Act.

The following actions are generally allowed, provided you comply with the above restrictions:

  • You might offer discounts that are generally available to all Amazon customers, such as Lightning Deals.
  • You may give out free products at tradeshows, conventions, or other similar venues where you are unable to monitor whether the recipients write a review or provide or withhold any benefits based on whether a review is written or the content of the review.

The above changes apply only to product categories other than books. We continue to allow the age-old practice of providing advanced review copies of books.”

The initial seller response was shock and a bit of fear. After all, getting called out by the Giant itself is a bit intimidating. However, through this email, Amazon is really just confirming what our CEO, Casey Gauss, mentioned in our initial blog post about the ToS change and our follow up blog post clarifying the policy. Casey posed two large takeaways on October 14th:

  1. “It is okay for 3rd party websites to distribute discounted claim codes on behalf of Amazon merchants.”
  2. “It is okay for merchants to follow-up with the discounted buyers asking for a review, so long as they abide by all other review policies and stipulations (ex. Don’t ask for only a positive review, do not force the customer to leave a review, do not monitor whether or not they were able to leave a review, etc.)”

These statements still hold true, even through this email. Yes, in the past you may have used a review service to receive a review in exchange for a discounted product. But, you weren’t in the wrong. In fact, you were in line with Amazon’s policy at the time. The policy isn’t retroactive, meaning your Amazon privileges should not be suspended or revoked because of those past reviews. *However, we have witnessed that Amazon is retroactively removing thousands of reviews left with a disclaimer.*

This mass email was sent to many sellers who have run promotions in the past, and it serves as a method to make sure that all sellers are well-informed on the new policy. The carefully-worded email instructs sellers on the new do’s and dont’s of offering discounts and receiving reviews, which actually gives some insightful clarification to the update.

So sellers, don’t interpret the email as, “I’m getting kicked off of Amazon, and I’ll never ever be able to sell anything again.” Read it as, “Amazon has notified me that past actions are now against policy. I now have to abide by the new policy, which they’ve just informed me of.” Moving forward, it’s important to abide by these policies. And yes, product promotions are still compliant with these policies. As we mentioned in a blog addressing the review disclaimer a couple of weeks back, “Viral Launch is not giving products in exchange for a review. We are not providing compensation to buyers to leave reviews, nor do our buyers have connections with you as a seller/marketer.” Product giveaways through Viral Launch are still permissible, as we are not providing a product or any compensation for a review, we are not providing products in the future based on whether or not a customer leaves a review, we are not using reviews as a membership requirement on our buyer site, we are not allowing you to rate customers on our buyer site, and we are not registering our buyers’ Amazon public profiles in order to monitor reviews.

All that to say, rest easy, friend. We’ve worked tirelessly to ensure that we are in line with the new policy change. This email may have appeared to be intimidating at first, but as long as you continue to move forward within the Terms of Service, you will be in good shape.

 

Amazon’s Early Reviewer Program

Yesterday, on October 27th, Amazon announced the introduction of its new Early Reviewer Program. After banning sellers from incentivizing reviews, Amazon itself will start rewarding and incentivizing reviews. It is believed that the program is currently in beta testing and will likely be enacted at the start of November. Amazon describes the program on its Site Features:

The Early Reviewer Program encourages customers who have already purchased a product to share their authentic experience about that product, regardless of whether it is a 1-star or 5-star review. Amazon shoppers depend on reviews to learn more about products, and this program helps to acquire early reviews on products that have few or no reviews, helping shoppers make smarter buying decisions. Customers who have purchased a product participating in the Early Reviewer Program may be asked to write a review and those customers who submit a review within the offer period will receive a small reward (e.g. a $1-$3 Amazon.com Gift Card) for helping future shoppers.

This new program should (hopefully) help sellers who are bringing a brand new product to market. Doing so over the past month has been a bit like the chicken and the egg scenario; you need reviews to get sales and you need sales to get reviews. Where the heck do you start? One of our main recommendations has been implementing a stellar email follow-up sequence to capitalize on all sales, trying to get as many of those oh-so-important initial reviews from the get-go. But with this move, Amazon may be trying to smother follow-up review sequences. Think about it from a consumer standpoint…if you are bombarded with emails every time you make a purchase on Amazon, you might end up with a bad taste in your mouth about Amazon as a whole. It may seem like a bunch of review hungry sellers who only want you for your review. But, if Amazon can be in control of who reviews, and if they can make email follow-up sequences seem pointless when they’re bringing in higher review rates, Amazon wins and the customer wins. And for Amazon, that’s a win-win.

As we get more information on the Early Reviewer Program, we’ll be sure to share it. For now, we’ll say that it should hopefully be good news for sellers looking for initial reviews on new products. It does seem a little ironic though, doesn’t it? Amazon bans incentivized reviews and then incentivizes reviews…Well, when you live in Amazon’s world, you’ve got to live by Amazon’s rules.

More information from Amazon concerning the Early Reviewer Program can be found here.

 

Conclusion

The latest Amazon updates have caused quite the buzz within the Amazon seller community. While it may seem hard to keep up, we’re here to comb through the changes and guide you through the wonderful, hard, rewarding, and sometimes stressful process of selling on Amazon. We’ve been busier than ever this month, and I’m sure you have been too. But isn’t that part of the fun?

Continue to stay informed and make decisions that are in line with Amazon’s (ever-changing) policies, and you’ll be okay. While selling on Amazon may be confusing and messy at times, it can surely be rewarding. Although it may be a bit tougher to bring a product to market, it definitely isn’t impossible. In fact, we believe that with the right strategy, you can definitely still be incredibly successful as a private-label seller. Amazon makes the rules, and everyone has to live by them. If you can figure out how to do it best, you’ll be in great shape. And as always, Viral Launch will be here to help inform and clarify along the way.

We would love to hear your thoughts and questions on the latest Amazon updates. Feel free to post in the comments below!

An Update on the Update – Clarification on the Amazon TOS Update 2016

In my original post, I posed a lot of questions around how exactly Amazon would interpret and enforce their latest TOS update moving forward. As is too common in this space, we’ve heard an insane amount of rumors. Be careful what you believe and guard who you trust. Thanks to a friend of mine with direct contact to Amazon’s legal department, we have some much appreciated clarification. I’ll update this post in the next couple of days with a link to a post by this friend where he will give exacts from the conversations he has had directly with Amazon’s legal department.

To many, the clarification mentioned below was already common assumption. Personally, I prefer to speak on the facts and make decisions based on data, which we simply did not have just 24 hours after the TOS change was posted.

So what is the clarification? What is the information directly from Amazon’s legal department? 

 

The two largest takeaways are:

 

  1. It is okay for 3rd party websites to distribute discounted claim codes on behalf of Amazon merchants.
  2. It is okay for merchants to follow-up with the discounted buyers asking for a review, so long as they abide by all other review policies and stipulations (ex. Don’t ask for only a positive review, do not force the customer to leave a review, do not monitor whether or not they were able to leave a review, etc.)

 

What does this mean? Well, for Viral Launch specifically, we will continue to operate as we have for the last year or so. Fortunately, we had the foresight to position ourselves away from the review group model, which has had incredible benefits for our customers. Largely the only change we had to make post TOS Update is the removal of all language from the site around “reviews”.

What does this mean for you as a seller? Hopefully this helps to ease concerns and increase confidence in the fact that Amazon allows you to run promotions and to ask customers for reviews after purchasing your products at a discount. Hopefully this helps to convince you that the private label world is not dead. That there is still plenty of hope in a bright future moving forward!

As history has shown and as time progressed, we have come to find out that another TOS update did not have such severe an impact as we initially expected. With that said, the landscape has definitely changed, and depending on your previous launch strategy, launching a product has become quite a bit more difficult. As we’ve always preached, you need to do all things GREAT in order to outsell your competition (and sometimes even survive), now more than ever! If you find yourself having a difficult time getting ahead of the competition, launching a product, or even maintaining sales, look around to see just how well you are executing every aspect of your private label business.

So all in all, the dust seems to have settled for the most part and we are all free to go on our merry way, building scaleable private label businesses on the world’s largest commerce platform! Sounds like a great time to be an entrepreneur to me! 🙂

Side Note: With all of this, I feel like this news has definitely confirmed the suspicions I posed in our initial blog post regarding what net affect this would actually have on the market and what Amazon’s true intentions are (you can read them in here).
As always, we will keep you updated as new word comes out and we wish you and your business the best!!

Ultimate Amazon Private Label Guide to Success – Post Amazon TOS Update 2016

The Amazon space has changed and while we are still waiting for the dust to settle, there are some basic truths we do know like the fact that we CANNOT give products away at a discount. No more 80%+ review rates from discounted product sales. It’s going to change the fundamentals of how sellers can quickly get products up and selling. So the Viral Launch team is putting together a comprehensive Amazon private label guide to successfully launching products on Amazon with the new rules brought about by Amazon’s latest Terms of Service update. It’s epic and incredibly beneficial to all levels of experience on Amazon.

Spoiler Alert! Selling on Amazon Is NOT Over! It’s Not “Too Hard” Now. If That’s Your Mindset, Change It! Life As An Entrepreneur Has Its Challenges. It’s The Strong That Survive, And Together, We’ll Help You Thrive!

Each day we will feature a new step in the process of selling private label products on Amazon with specifics on how each step has been affected by the TOS change. We are super excited to help you navigate the process based on our extensive knowledge and experience in the space of running over 11,000 product launches and working with high level sellers selling between $50-$100 million per year on Amazon.

You can find our Ultimate Amazon Private Label Guide to Success landing page here. Each day we will add a new section and topic! Our first day we discuss product sourcing and how to make intelligent decisions when souring especially with the new market conditions following the TOS update. The page can be found here!

Are you excited about our guide? What topics would you like us to cover?

Always Moving Forward – Amazon TOS Change 2016

We all saw the writing on the wall didn’t we? Today marks yet another Amazon TOS change that set the private label world on fire and sent everyone into chaos. 24 hours later and it looks like things have largely subsided. While many of the industry’s leading review services have posted their interpretation of the rules and how they wish to proceed, I am still not completely convinced of their conclusion and I’ll explain it all.

So what does it mean for you as a seller? What does it mean for Viral Launch and its platform? What does it mean for the Amazon market in general? 

In this post we’ll cover the facts we know around the Terms of Service change, what this policy update means for you as a seller, what it means for the Viral Launch community, and what it means for the private label world as a whole. 

While we are not 100% sure, nor do I think we will ever be (Amazon can be pretty ambiguous with their terminology and can lack uniformity in how they enforce and interpret their rules), I do think we have a pretty good grasp on the impact this TOS change will have moving forward. We will continue to update this blog post with new information and case studies as they come up, but at the very least I wanted to comfort some nerves and hopefully add some peace to the frenzy that has ensued. 

Facts Around the TOS Change

So let’s begin with the actual content posted on Amazon. Firstly, the post that has caused the chaos. Thanks to our friend Chee Chew, VP of Customer Experience at Amazon, we have this “blog post”/“featured post” from mid-day EDT on Oct. 3rd: 

Customer reviews are one of the most valuable tools we offer customers for making informed purchase decisions, and we work hard to make sure they are doing their job. In just the past year, we’ve improved review ratings by introducing a machine learned algorithm that gives more weight to newer, more helpful reviews; applying stricter criteria to qualify for the Amazon verified purchase badge; and suspending, banning or suing thousands of individuals for attempting to manipulate reviews.

Our community guidelines have always prohibited compensation for reviews, with an exception – reviewers could post a review in exchange for a free or discounted product as long as they disclosed that fact. These so-called ‘incentivized reviews’ make up only a tiny fraction of the tens of millions of reviews on Amazon, and when done carefully, they can be helpful to customers by providing a foundation of reviews for new or less well-known products.

Today, we updated the community guidelines to prohibit incentivized reviews unless they are facilitated through the Amazon Vine program. We launched Vine several years ago to carefully facilitate these kinds of reviews and have been happy with feedback from customers and vendors. Here’s how Vine works: Amazon – not the vendor or seller – identifies and invites trusted and helpful reviewers on Amazon to post opinions about new and pre-release products; we do not incentivize positive star ratings, attempt to influence the content of reviews, or even require a review to be written; and we limit the total number of Vine reviews that we display for each product. Vine has important controls in place and has proven to be especially valuable for getting early reviews on new products that have not yet been able to generate enough sales to have significant numbers of organic reviews. We also have ideas for how to continue to make Vine an even more useful program going forward. Details on that as we have them.

The above changes will apply to product categories other than books. We will continue to allow the age-old practice of providing advance review copies of books.

Thank you.

– Chee Chew, VP, Customer Experience

The post can be found here

If you follow the link to the Community Guidelines as referred to by Mr. Chew, you’ll see some updated language. Previously, Amazon had very specific language regarding giving discounted or free products in exchange for a review and the stipulations around it such as making sure the product was offered before the review was left, etc. 

If you read the customer guidelines for yourself, you will now see the updated language which attempts to dispel any kind of hope that products can still be given away at a discount in exchange for a review with language such as: 

Promotions and Commercial Solicitations

In order to preserve the integrity of Community content, content and activities consisting of advertising, promotion, or solicitation (whether direct or indirect) is not allowed, including:

  • Creating, modifying, or posting content regarding your (or your relative’s, close friend’s, business associate’s, or employer’s) products or services.
  • Creating, modifying, or posting content regarding your competitors’ products or services.
  • Creating, modifying, or posting content in exchange for compensation of any kind (including free or discounted products) or on behalf of anyone else.
  • Offering compensation or requesting compensation (including free or discounted products) in exchange for creating, modifying, or posting content.

To answer all questions more definitively (well for the most part), we also have in the FAQ section of Seller Central these relevant FAQ’s. 

FAQ

Why are we making this change?

Please see our recent announcement.

Can I use third-party services to provide free or discounted products to reviewers? 

No. The policy applies regardless of whether you provide compensation to reviewers directly or through a third party.

When and how will this policy be enforced? 

The policy is effective immediately. If you continue to offer free or discounted products in exchange for a review, your Amazon privileges may be suspended or revoked.  

Can I continue to offer discounts and promotions to customers? 

Yes. You may continue to offer discounts and promotions as long as they are not offered in exchange for reviews. 

What constitutes a review “in exchange” for a free or discounted product?

We do not allow any benefit to be offered, requested, or provided in exchange for a review.

 

Looks pretty black and white, right? 

So according to this: As sellers you CANNOT give free or discounted products away to reviewers in exchange for compensation, BUT you CAN offer discounts and promotions to customers as long as they are, again, not offered in exchange for reviews.

The only way to know exactly how Amazon will choose to enforce these rules is time. Time enough to understand just how they distinguish promotional giveaways from a product awareness standpoint versus giveaways in exchange for reviews.

Mr. Chew mentions that all ‘incentivized’ reviews are prohibited unless they are run through their Amazon Vine Program. The Vine program is expensive, open only to Vendors, limits the number of products a brand can enter, and has a ceiling of around 100 units to give for a review depending on your product’s category. This is obviously a significant difference from what some sellers are used to, especially in competitive markets.  

He also mentions that there will be updates to the Vine program coming soon, but is not very specific as to what it will entail. Will they remove the Vendor requirement to join the program? 

TechCrunch also published an article giving a statement from an Amazon Spokesperson saying, “reviews that were received prior to the policy change are only being retroactively removed if they are excessive, and don’t comply with prior policy.” As well as, “if it [Amazon] finds anyone is attempting to manipulate reviews by tying reviews to discounted products, it will take action against them, starting today.”

What does “tying reviews to discounted products” mean exactly? To me it sounds like you better make sure that customers receiving a discount do not leave a review. Again what does “excessive” mean? 100? 1000? A function of the percentage of monthly organic sales? We’re left to chance to find out only once the line has been crossed.

Why I Have A Hard Time Trusting The Current Industry’s Interpretation of the Amazon Policy Update

My biggest apprehensions are two-fold: 

  1. How does Amazon know the intent of the seller handing out coupons? 
  2. And, just because now reviews won’t have the disclosure “I purchased at a discount in exchange…” in them, doesn’t mean that the reviews are now legitimately unbiased. If you pay $1 for something, you are going to be inevitably biased in how you review the product. So that would mean Amazon’s new TOS update served no purpose but to remove the disclosure from reviews essentially. Seems sneaky by Amazon to hide the fact from their buyers.

I am in no way advocating the behavior mentioned in this paragraph, but for example’s sake let’s say I run a promotion giving discounted products to customers without asking for reviews and 30% of them choose to leave a review of their own choice. That seems completely legitimate according to both Amazon’s terms and how review services are interpreting Amazon’s policy change. But, how does Amazon know whether or not you told the customer they were receiving the product in exchange for a review? If that is the case, then theoretically, a seller could still give thousands of products away at a discount in exchange for a review without getting in trouble just so long as the reviewers do not state in the review that they received the product at a discount in exchange for a review. 

Amazon cannot be in on every conversation on the internet to know whether a product was given in exchange for a review or not. To Amazon, a review left on a discounted product looks the same whether it was offered in exchange for a review or not (so long as the customer does not state the fact of course). So how are they able to enforce this rule if a seller coaches their own VIP list not to leave the disclosure in the review? They can’t!

This leaves two possibilities. 

  1. Amazon released this statement as a show of good faith to their large consumer audience. The holidays are coming up, so it is an important time for them to reassure buyers that reviews are still priority when making informed purchasing decisions. However, as I mentioned before, reviews from discounted purchases are likely still biased even under the new regulations. Although they may not be able to enforce it to the standards they speak of, they still want to publicly display their position.
  2. Amazon is not interpreting the terms the same as our industry leaders (and Viral Launch) and may start to enforce these new updates in ways that are likely unfavorable (suspensions, etc.). 

Why Amazon Will Not Suspend You For Getting Reviews From Promotional Sales

Again, this is all my interpretation and logical thought process on the information I’ve received. We are currently running 200+ launches a day and will have enough data to talk in definitives here soon.  

I have a hard time seeing Amazon punishing sellers who are running promotions that just so happen to also generate reviews. If that were the case, the door would be flung wide-open for competitors to use  “ghost-accounts” (accounts that have been well seasoned by sellers to appear legitimate to outside eyes) to post reviews to their competitor’s listings after purchasing. This would be hard to detect whether it was a legitimate customer or not and could be devastating. 

Another example: let’s say you run a 30% off holiday discount and a percentage of those buyers leave a review because they love your product. Is Amazon going to punish you? Seems unlikely.

What History Tells US About Amazon TOS Changes

For those who don’t recall Amazon’s, “the sky is falling announcement” back in August of 2015 we recap it here. There was just about as much chaos and concern caused by their latest TOS announcement, but how did affect us? What devastating impact did it have on us and our clients? LITERALLY NONE!! Sure it had an impact in terms of fear, etc. But it did not actually affect any of us. We saw not one complaint to our clients running white-hat honest businesses. 

So for better or worse, it eases my concerns as to the impact this change will have. From what we’ve covered already, I don’t see this as having too much of a real impact on the Viral Launch platform and our clients directly, but we’ll get into that more further along in this blog.

How This Affects You As A Seller

Are Review Services Dead?

So does this mean that review services with 80%+ review rates that were requiring their user bases to leave a review in order to get access to more products are dead? Yes. After reading Amazon’s TOS, I’m not sure how you can interpret it any differently. A few times they mention ‘incentivized reviews’ as being prohibited while explaining that ‘incentivized reviews’ are reviews posted in exchange for a free or discounted product. In Amazon’s FAQs (listed above), they very explicitly state that you cannot give products away at a discount in exchange for reviews.

The majority of review groups that have announced their interpretation of the policy change and how they will proceed will continue running promotions but are removing the requirement to leave a review post purchase. They will no longer hand out coupons with the agreement that the product is being given in exchange for a review. The services are now focusing on leveraging promotional sales to focus on “sales velocity”. 

If you sell in markets where a competitive number of reviews on page one is around 100 reviews, or even under 500 reviews, then this update doesn’t seem like it will have much of an impact on you. Sure it may slightly decrease the speed at which you can get a product up and selling at a high level organically, but with a little extra time, strategy, and work, you’ll get there just the same. 

If you sell in markets where a competitive number of reviews is in the thousands…it looks like you have your work cut out for you. Impossible? Not at all. More expensive and time consuming? I am afraid so. Making intelligent decisions on which products to source is now more crucial than ever! We have a new tool dropping by the end of the month to help you do just that! (Don’t worry we’re not trying to replace any current tool you’re using like Jungle Scout!)

The days of giving away thousands of products through review groups (Viral Launch is not a review service) to compete with page one sellers in a matter of a month or two are likely over. 

Adjustments To Make..

  • Make sure you do not have any “drip” campaigns running on review services (not Viral Launch) still giving products away in exchange for a review which you are currently subscribed to and cancel any campaigns that are supposed to kick off soon. 
  • Keep your eyes out for new information! Facebook groups are incredible news aggregators for Amazon news. I will also be updating this post with new information and case studies as they become available.
  • Be weary of rumors!! Oh goodness how rumors spread in this space. We actually have a whole blog series planned on busting common myths in this space so watch for those! But check your facts and even feel free to check with our free-of-cost Account Executives if you have a question regarding a rumor. Unfortunately we see a lot of sellers misled by “authorities” in the space that are sometimes misinformed themselves.
  • OPTIMIZE YOUR FEEDBACK SERVICE’S EMAIL FOLLOW-UP SEQUENCES!!! – I cannot stress enough how important having a highly optimized feedback service is! If the only way to generate reviews now is through organic sales, you better put everything you have into converting those organic sales into customer reviews!

Is The Gold Rush Of Amazon Private Label Over?

So overall what does this mean? Are we/sellers going to pack our bags and go home? Is the Amazon gold rush over? Are your chances of a self-sustaining Amazon lifestyle business over?

NOT AT ALL! And I really hope I don’t hear that from any of you. As entrepreneurs it’s our nature to overcome the obstacles we find before us! We can’t give up because the rules of the game we’re playing change. If that’s your mentality in life, you’ll never survive. You’ll never achieve your dreams of running a successful business no matter if you’re selling on Amazon or working in another industry. We have to fight for our success!

When changes arise in the market, we have to look at it as opportunity. Yeah, things are shaken up and may seem to be more difficult for you, but they are shaken up for everyone and just as difficult for your competitors as well. That means you have to figure out the new rules of the game, adjust with tact and move forward full steam ahead. If you hang on to the past, you’ll be left behind. 

I’m extremely confident that we’ll be able to successfully navigate the market after Amazon’s new policy update to launch products to success! We always will! And that, ladies and gentlemen, is the mindset of true entrepreneurs. I hope that you’ll ascribe to that way of thinking with me!

How This Affects the Viral Launch Platform

Short Answer: This has a very minimal affect on us and the effectiveness of our platform. For starters, we are so much more than a promotional giveaway platform now. We have also never been a review service. We have never required our users to leave reviews. Our focus in promotional giveaways has always been on providing a platform for sellers to help drive promotional sales targeted at improving keyword ranking, and we will continue to operate almost exactly the same! (Read below to see what change will be made)

Looking at Amazon’s FAQ…

Can I continue to offer discounts and promotions to customers? 

Yes. You may continue to offer discounts and promotions as long as they are not offered in exchange for reviews. 

It looks like everything is good to go for promotions to drive traffic and promotional sales which we all know help improve a product’s keyword ranking in search results.

We have completely removed all language around reviews on the Viral Launch buyer’s side. We never required or incentivized reviews as many of the review services did. We did however offer a kind reminder for coupon grabbers to leave a review on the products they purchased, but that has now been removed. Therefore, based on Amazon’s direct language, the Viral Launch platform should be compliant with Amazon’s new TOS update.

I have to say “should be”, because with any rule made by Amazon, they are ambiguous, or at the least, leave unanswered questions. 

Two of those unanswered questions: 

  1. By “…promotions to customers” are they referring to a specific set of people? 
    1. By “customers” are they referring to your past customers? 
    2. Amazon “customers” only? Meaning lightning deals, etc. 

I think I may be thinking too hard about it, but at the same time with how vague Amazon can be, I’d rather be safe than sorry. 

  1. How will Amazon determine whether or not the discount was offered in exchange for reviews? How do they know the intent of the coupon distributor?

My honest inclination is that they do not care so long as the reviewer is not posting in the review that they got the product at a discount in exchange for a review AND so long as you are not actually offering products in exchange for a review.

Questions I continue to ask:

  1. Are they looking at the buyer account of product’s purchased at a discount? Meaning if it is a buyer that frequently leaves a review on a discounted product, Amazon assumes it was given at a discount in exchange for a review? Seems grossly inaccurate and unlikely. 
  2. Are they looking at products that have reviews posted saying, “…purchased this product at a discount in exchange for my unbiased review”? Again seems grossly inaccurate, but more likely. If this is the case it’s likely just one method of identification. The largest issue here is if sellers coached reviewers not to leave the disclaimer, they could potentially rack up thousands of reviews very quickly still.
  3. Are they monitoring referrer traffic? Meaning, “did this purchase just come from reviewsite.com? Okay it must have been in exchange for a review.” This would be the worst case of the above mentioned because it would be incredibly inaccurate and would be devastating for a lot of sellers and service providers.

 

What If You Lower The Price Of A Product For A Couple Hours Then Run Traffic To The Product So Reviewers Can Buy For Low And Still Leave A Review?

We will absolutely not being doing this! This seems like review manipulation and we are not that type of company. This is the type of activity that seems to have a high probability of you ending up being sued, suspended, or banned from Amazon. Viral Launch will stay far away from this. 

Moving Forward

If all of the hype is exactly as it seems to be (no reviews left in exchange for a discount), we are going to be coaching our clients on a completely new launch strategy designed to help you succeed with a new set of parameters. For seasoned sellers with a solid review foundation, the launch strategy is unlikely to change. For sellers just bringing a product to market, depending on what that market looks like, we will put together an updated launch strategy which we will be covering later this week. Getting off the ground successfully without the ability to gain traction with initial reviews is going to change the name of the game, but it will be your ability to adapt that will help you beat out competitors trying to do the same thing. 

This is an opportunity for those of you who are focused on building a well rounded business to overcome those sellers who were spending money to take the shortcut. The Viral Launch arsenal is now more valuable than ever, allowing you to build an incredible private label business from the ground up. If you were looking to take shortcuts, you were already in trouble. Its time to double down and get ahead by doing everything better than your competitors.

We are working harder than ever to help optimize email follow-up campaigns to help increase the review rate driven by feedback services. We’ll keep you updated as we see advances. In the meantime, we highly suggest finding a feedback service that works well for you and optimizing it to drive as many reviews as possible from organic sales. 

To Summarize

I know this was about 10X longer than most posts, but I’m more of a skeptic and with the limited amount of data we’ve been able to gather over the last 24 hours, I want to make sure we do not mislead anyone. I also think it’s important to question and discuss the market we all work and thrive in to constantly increase our perspectives of it. It is only going to help to make you a better seller and entrepreneur in the space.

  • Viral Launch will continue to give coupons without incentivizing reviews as before, but will be coaching reviewers on Amazon’s new review policy guidelines.
  • We will continue to monitor the space to help enhance our perspective and hopefully reinforce our confidence in our interpretation by providing definitive data or cases. 
  • Optimize your feedback sequence! We’ve always pushed email follow-up sequences, but now is the time to leverage a feedback service with a killer email sequence to maximize the number of organic reviews you are able to drive.
  • Should go without saying, but don’t give products away for free or at a discount in exchange for a review.
  • Now more than ever, the key to success on Amazon is not a silver bullet. You need an arsenal to effectively attack every aspect of private label selling on Amazon. You need to focus on each element of your business to outsell your competitors.

At the end of the day, it’s our mission to help our clients achieve success. You can guarantee we will be vigilant in staying on top of this situation, but if history repeats itself (which it often does), then we are all pretty safe and know exactly what is going to happen moving forward. 

Our focus at Viral Launch is to be your launchpad to success, whether that entails promotional giveaways or simply coaching. We’re are an incredibly dynamic team of 15 with a large breadth of skills, experience, and knowledge in the Amazon space. This is our focus and we are here to help in anyway possible.

We would love to hear your thoughts, your perspective, and your interpretation of the update and our position on it in the comments! I’ll be open to talk as always!