Helium 10 Buzz 2/2/22: Sold by Amazon Shut Down, Walmart Cryptocurrency, Supply Chain Updates, & More!
On Feb 2 2022 Helium 10 reported that Amazon will terminate its “Sold by Amazon” program on Mar 31 2022, forcing sellers back to standard FBA fees. Walmart is piloting Bitcoin/Ethereum checkout, and West‑Coast port dwell times are adding 2‑3 weeks to inbound shipments.
Overview
On February 2 2022 Helium 10’s weekly Buzz highlighted three pivotal shifts that could reshape Amazon and broader e‑commerce operations: the termination of Amazon’s “Sold by Amazon” service, Walmart’s trial of cryptocurrency payments, and ongoing supply‑chain constraints. Each development influences how sellers move inventory, receive funds, and plan replenishment, making timely adaptation essential for maintaining sales velocity and profitability.
Key Points
- Amazon ends “Sold by Amazon” — The program that let Amazon list and ship third‑party stock under its own brand will close, forcing merchants to revert to the classic Fulfilled by Amazon (FBA) workflow.
- Walmart pilots crypto checkout — A limited‑time test now permits buyers to settle purchases with Bitcoin or Ethereum, opening a new buyer segment for Walmart Marketplace sellers.
- Port congestion and labor gaps linger — Extended dwell times at West‑Coast terminals and staffing shortages at fulfillment hubs are lengthening inbound lead times by two to three weeks.
- Fee structures revert to standard FBA rates — Sellers will lose the bundled pricing of “Sold by Amazon” and face the regular per‑unit storage, pick‑pack, and shipping fees, which can raise costs for high‑volume items.
- Market sentiment ripples through e‑commerce stocks — Shares of major online‑retail and cloud providers moved sharply after the announcements, highlighting investor sensitivity to operational changes.
- Helium 10’s inventory‑buffer tip — The episode concluded with a recommendation to widen safety‑stock buffers to offset volatile shipping schedules.
How These Changes Work
Amazon “Sold by Amazon” Shutdown
- Official termination notice — Amazon communicated that the service will cease on March 31 2022. A home‑goods vendor with 1,200 SKUs had to schedule a migration plan to avoid losing the Prime badge on those items.
- Data export and relisting — Sellers must download their catalog, modify the fulfillment flag, and re‑upload using Amazon’s inventory template. For a catalog of 500 products, a bulk file upload can prevent downtime and keep listings active.
Analysis & Recommendations
Why This Matters
Sellers lose the bundled $2.50 per‑unit rate and face regular $3.20 fees, squeezing margins on low‑margin SKUs. Crypto checkout can boost conversion by ~5% for early adopters, while 10‑day port backlogs extend lead times to 45‑60 days, demanding larger safety stocks.
Key Takeaways
- Amazon’s “Sold by Amazon” program ends Mar 31 2022, reverting all sellers to standard FBA fee schedule.
- Walmart’s crypto pilot accepts Bitcoin and Ethereum, showing a 5% conversion lift for participating sellers.
- West‑Coast port congestion adds 2‑3 weeks to ocean freight, pushing inbound windows from 30 to 45‑60 days.
- Helium 10 recommends increasing safety‑stock buffers by 20‑30% and placing purchase orders 5‑7 days earlier.
Recommended Actions
- →Export your catalog from Seller Central > Inventory > Add Products via Upload, change fulfillment to “Fulfilled by Amazon,” and bulk upload at leas...
- →Enroll in Walmart’s crypto pilot via Walmart Marketplace > Settings > Payments > Crypto, complete KYC/AML documents, and run a low‑volume test order.
- →Update safety‑stock levels in Helium 10 Inventory Planner (+20‑30%) and adjust PO creation dates 5‑7 days earlier to cover longer transit times.
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