This episode explores the impact of tariffs on Amazon sellers, the implications of Amazon's new return badges, and the performance of Etsy and eBay. Against the backdrop of rising trade costs, many Amazon sellers are reconsidering participation in Prime Day due to tariffs on Chinese imports, which makes discounting products financially unviable. More significantly, Amazon's introduction of return badges, indicating products that are "Frequently Returned," could negatively impact conversions, while the "Customers Usually Keep This Item" badge may offer a slight boost, but concerns arise about potential manipulation of the return system by competitors. As the discussion pivoted to Etsy and eBay, Etsy reported a drop in marketplace sales despite increased ad spending by sellers, while eBay experienced flat sales growth but saw a rise in ad revenue. The hosts discuss the long-term viability of Etsy and eBay, with opinions divided on Etsy's future due to its shift away from handmade goods. The episode concludes with insights on the increasing importance of advertising for sellers on major e-commerce platforms and the potential challenges and opportunities that lie ahead.
