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Amazon Launches Luxury Store on App

Kika Angelic

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This week, Amazon launched their luxury online boutique called “Luxury Stores” available on app, with just a single brand – Oscar de la Renta.

For years, designers steered clear, fearing counterfeiters on Amazon’s third-party marketplace and the company’s reputation for giving brands less control over how their wares are marketed than physical retailers. Amazon believes that more brands will follow to offer their collections on their newly launched platform.

The new shopping experience will be available on Amazon’s mobile application by invitation only to eligible Prime members. Customers can view products in 360-degree detail on different body types and skin tones. Invites will be extended to other shoppers over time, the company said.

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Updates to Prime eligibility and badge criteria and Featured Offer selection on Amazon

Kika Angelic

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Following a recent settlement reached between Amazon Services Europe S.A.R.l and the European Commission (which covers Amazon marketplaces in Germany, France, Spain, Netherlands, Poland, Sweden, and Belgium), Amazon will be updating the Prime eligibility and badge criteria, and Featured Offer (formerly known as the “Buy Box”) criteria in June 2023 across these stores.

This is because a regulator had expressed concerns with Amazon’s dual role as both a marketplace and a competitor to merchants selling on its platform. Amazon, for its part, says it is an enabler of small businesses in the region.

The company also agreed to display a second buy box when there is a second offer that is different from the first on price or delivery, and to let Prime sellers choose any carrier for their logistics or delivery services.

The changes apply only to the European Economic Area. In Italy, Amazon has agreed separate legal remedies with the country’s competition regulator relating to the buy box and Prime. Amazon will have until June 2023 to implement the changes, which will remain in place for five to seven years.

Here you can view a screenshot of Amazon’s e-mail sent to third party sellers on the European marketplace regarding the matter:

Here is a copy of the full wording in English:

Updates to Prime eligibility and badge criteria and Featured Offer selection

Hello,

Following the agreement reached recently with the European Commission (https://www.aboutamazon.eu/news/policy/amazons-statement-on-the-commitments-agreed-with-the-european-commission) which covers Amazon stores in Germany, France, Spain, Netherlands, Poland, Sweden, and Belgium, we’ll update the Prime eligibility and badge criteria, and Featured Offer (formerly known as the “Buy Box”) criteria in June 2023 across these stores.

Update on Prime eligibility and Prime badge criteria

Our objective Prime eligibility and Prime badge criteria will be applied equally to offers from all sellers across the various fulfillment channels (Fulfilled by Amazon or Merchant Fulfilled) and Amazon retail.

To qualify, offers will need to meet certain customer experience requirements. These requirements are derived from a Prime customer’s expectations around delivery speed and reliability, tracking, customer returns, and customer service.

Additionally, sellers who wish to enroll their Merchant fulfilled offers into the Prime program may use alternative logistics providers and negotiate their terms directly, as long as delivery tracking information is made available to Amazon through our tracking systems and the Prime requirements above are met.

We’ll provide detailed guidance on the new criteria in the coming months.

Further details are available on the FAQ here:
https://sellercentral-europe.amazon.com/help/hub/reference/GQHQGBTD7XB7EECN

Update on Featured Offer selection

As we strive to show our customers the best Featured Offer on the product detail page, we’ll continue to ensure that the criteria used to determine the Featured Offer are non-discriminatory and treat sellers and Amazon retail equally. Eligibility for Prime and the Prime badge won’t be a criterion when determining the Featured Offer. Prime will continue to offer free and fast delivery which are factors that customers value and therefore are relevant in determining the Featured Offer.

For more details on Amazon’s agreement with European Commission, go to About Amazon (https://www.aboutamazon.eu/news/policy/amazons-statement-on-the-commitments-agreed-with-the-european-commission) and Europa.eu (https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7777).

The Amazon Services Europe team

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Europe top court rules Amazon should not sell third party knock-off Louboutin shoes 

Kika Angelic

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Amazon could be held responsible when third-party sellers misuse trademarks on its site.

The European Court of Justice (ECJ) made the ruling on Thursday, after courts in Belgium and Luxembourg asked for its opinion on a case raised by French shoemaker Christian Louboutin in 2019.

Louboutin argued that Amazon was breaching trademark rights by capitalising on its trademark red sole and enabling third-party sellers to offer “identical” products without the brand’s consent.

“Amazon itself makes use of the sign registered by Louboutin where the user of its site has the impression that it is Amazon which is marketing, in its name and on its behalf, shoes of the trademark,” said an ECJ press statement.

The ruling could cause more brands to challenge Amazon.

While the ECJ has made its stance clear, it does not decide the final result of the case, which is being taken back to the courts in Luxembourg and Belgium.

The verdict does not decide the Louboutin case, which will revert back to the courts in Luxembourg and Belgium. But the opinion is binding in the EU from now on.

Despite still awaiting the final outcome, Louboutin chief Alexis Mourot seems to be taking it as a win anyway.

“This is a victory for all the brands that defend their expertise,” he said in a statement.

The result will likely have repercussions for how Amazon displays products from third parties on its site, in the wake of many major brands’ ongoing concerns about counterfeit products.

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Amazon obtained a $8 billion term loan

Kika Angelic

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Amazon said in an official press statement it had reached an agreement with certain lenders to provide their company an $8 billion unsecured loan.

The term loan will mature in 364 days, with an option to extend for another 364 days and the proceeds would be used for general corporate purposes.

“Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs,” an Amazon spokesperson told in a statement.

Amazon has been bracing for likely slower growth, as soaring inflation forces businesses and consumers to cut back spending. That, coupled with a strong greenback, dragged Amazon’s shares about 50% lower in 2022.

It had also flagged workforce reductions in early 2023, without specifying the number. A source informed in November that the company was targeting about 10,000 job cuts.

Amazon had about $35 billion in cash and cash equivalents and long-term debt of about $59 billion at the end of the third quarter ended Sept. 30.

Toronto Dominion was the administrative agent for the loan agreement in which DBS Bank and Mizuho Bank were among lenders, Amazon said.

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