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Welcome to the August edition of the Retail Roundup, your go-to recap of the biggest developments in retail media and marketplace news.
The past month brought a wave of updates across Amazon, Walmart, TikTok, and beyond, ranging from AI-driven shopping changes to operational policy shifts and major retail media partnerships. Some developments are clear signals of where commerce is headed, while others create more questions than answers. In this roundup, we break down the most important updates, their implications for brands, and practical tips for how to navigate them.
Let’s get into it.
Amazon’s Rufus Gains Memory
Amazon’s AI shopping assistant, Rufus, now has the ability to “remember” past consumer behavior. This includes browsing and purchase history, which allows Rufus to surface highly personalized product recommendations. Instead of shoppers scanning multiple pages of results, they are increasingly being presented with a narrow set of options tailored to their profile.
Pros
- Higher-quality traffic: Personalized results mean shoppers are more likely to see products they genuinely want, improving the likelihood of conversion.
- More focused journeys: Reduced browsing means less distraction from competitors if a brand makes it onto the shortlist.
- Alignment with AMC insights: Brands already using Amazon Marketing Cloud to analyze shopper behavior will find a natural extension into optimizing for Rufus-driven interactions.
Cons
- With fewer products shown per query, brands missing out on the shortlist could mean being invisible to the shopper.
- Traditional keyword-based search data doesn’t map neatly to conversational AI queries, making performance tracking more difficult.
- Brands are limited in how much visibility they’ll get into Rufus-specific engagement, since Amazon is likely to keep audience sizing and adoption metrics tightly controlled.
- It’s still unclear exactly where Rufus fits relative to ads, search, and other touchpoints in the shopper journey.
💡Tips
- Double down on fundamentals: High-quality content, strong reviews, and reliable product performance remain the primary levers for relevance in Rufus-driven search.
- Leverage AMC: Use shopper-level insights to understand which behaviors drive action and refine product and content strategies accordingly.
- Stay adaptive: Expect new measurement proxies, such as survey data or aggregated behavioral signals, to play a larger role in understanding Rufus adoption and impact.
- Prepare for a shifting landscape: Expect an “arms race” in AI shopping. If Amazon controls the bulk of shopper data, it strengthens their lead. But if consumers adopt alternatives like ChatGPT as a shopping entry point, competitive dynamics could change.
Key Amazon Operational Updates Sellers Need to Watch
- Seller Feedback Moves to Star Ratings Only
Seller feedback has shifted to a ratings-only model. Customers can now leave a simple star rating without needing to write comments.
Pros
- Likely to increase overall feedback volume since it’s easier and faster for customers.
- Simplifies the customer experience, reducing friction.
Cons
- Star-only ratings cannot be appealed through the usual Feedback Manager tool.
- Negative one-star ratings without context are harder to challenge or remove.
- Poor ratings may impact Buy Box eligibility and promotional opportunities (e.g., events requiring a 3.5+ rating).
💡Tips
- Monitor feedback closely; while you can’t appeal star-only ratings, you can still report violations.
- Proactively maintain high operational standards to minimize the risk of unexplained low ratings.
- Amazon Discontinuing FBA Prep and Labeling Services
Starting January 1st, Amazon will no longer provide prep and labeling services for FBA shipments in the U.S. All inventory must arrive fully prepped and labeled before reaching Amazon. Unprepared shipments won’t be eligible for reimbursements if damaged or lost.
Pros
- Forces stronger operational discipline and consistency across sellers.
- Amazon can focus more on fulfillment speed and efficiency, potentially improving logistics overall.
Cons
- Sellers who relied on Amazon’s prep services must now handle all prep and labeling themselves.
- Those without in-house or third-party prep processes face increased operational complexity and higher costs.
- Vendors are not explicitly mentioned, creating some uncertainty for hybrid models.
Tips
- Audit current FBA prep workflows and confirm if you rely on Amazon’s services.
- Line up third-party prep providers or internal processes before the January cutoff.
- Treat this as an opportunity to gain tighter control over packaging standards and compliance.
- Overhaul of FBA Damaged Goods Policy
Previously, when FBA inventory was damaged due to Amazon’s fault, sellers were automatically reimbursed, and Amazon assumed ownership to resell the products often through Warehouse Deals or liquidation channels. Now, sellers can choose whether to accept reimbursement or retain ownership of the damaged goods.
Pros
- Sellers gain more control, deciding whether to recover, remove, or resell damaged items themselves.
- This prevents undercutting by Amazon’s resale of damaged units, protecting pricing and brand perception.
- Flexible options allow tailoring policies by product or category.
- Controlling damaged units helps prevent Buy Box erosion and poor customer reviews.
Cons
- The default setting allows Amazon to keep ownership and resell, meaning many brands may inadvertently lose control unless they adjust settings.
- Opting out of reimbursement means absorbing the cost of damaged goods.
- This requires active management to avoid negative reviews tied to resold damaged products.
Tips
- Immediately review and update default settings, and disable automatic Amazon ownership if protecting brand integrity outweighs reimbursements.
- Consider selective category-level settings for more nuanced control.
Amazon Deprecates Certain Variation Themes
Amazon announced that it would begin deprecating a wide range of variation themes across product listing templates between September and November.
Initially, the announcement suggested that listings using these deprecated themes would break when updated, requiring sellers to rebuild variations from scratch.
Two days later, Amazon clarified that only themes with no sales in the last 12 months would be removed. Existing variations will remain editable, but new product creation will need to follow the updated format.
Pros
- Cleaner catalog structures: Reduces clutter from irrelevant or rarely used variation themes.
- Consistency moving forward: New product listings will follow more standardized formats.
Cons
- Uncertainty and confusion: The initial announcement caused panic, highlighting how Amazon’s communication can sometimes be unclear.
- Potential hidden impact: Historically, updates Amazon says “won’t affect” certain products sometimes still cause disruptions.
- Future catalog management risk: If variations do get affected despite assurances, sellers with large catalogs could face time-consuming fixes.
💡Tips
- Audit current variation themes: Ensure your catalog isn’t relying on outdated or rarely used variation structures.
- Prepare contingency plans: Especially for large catalogs, be ready with a process to reassign or restructure variations if issues arise.
Walmart and Macy’s Announce Retail Media Platform Shifts
1. Walmart Moves Away from Trade Desk Exclusivity
Walmart is no longer exclusively partnered with The Trade Desk to power its demand-side platform (DSP). This opens the door for Walmart to integrate with other DSPs and potentially build its own proprietary platform, similar to Amazon. Reports suggest high Trade Desk fees were a key factor in the decision.
Pros
- Potential for lower costs: Reduced dependency on Trade Desk could eliminate fee-related inefficiencies.
- Greater accessibility: A Walmart-built or alternative DSP could lead to more self-serve options, expanding off-site inventory access.
- Strategic flexibility: Brands may gain more control and targeting options if Walmart diversifies its DSP partnerships.
Cons
- Uncertainty during transition: As Walmart retools its DSP strategy, there may be short-term disruption or changes in performance reporting.
- Fragmentation risk: Multiple DSP options could complicate campaign management and measurement.
Tips
- Monitor Walmart’s DSP evolution closely, particularly announcements around self-serve models.
- Be prepared for near-term volatility in costs or reporting while Walmart shifts infrastructure.
2. Macy’s Partners with Amazon Retail Ad Services
Macy’s has joined Amazon’s Retail Ad Services platform to power its retail media network. This makes Macy’s the third retailer in recent months to sign on, signaling interest in Amazon’s “network-of-networks” model.
Pros
- Broader reach through Amazon’s infrastructure: Brands can leverage Amazon’s scale and ad tech when advertising on Macy’s retail media.
- Standardization potential: If more retailers join, Amazon’s platform could streamline buying across multiple retail media networks.
Cons
- Limited scale: Macy’s is not a major retail player compared to giants like Walmart or Amazon itself.
- Unproven effectiveness: It’s unclear how CPCs, reach, and performance will compare to Macy’s prior partnership with Criteo.
- Slow adoption: Retailers are not yet “piling in,” suggesting Amazon’s offering has yet to hit critical momentum.
Tips
- Treat Macy’s adoption as an early signal and watch for additional retailers joining before committing significant spend.
- Compare campaign performance carefully against prior benchmarks (e.g., Criteo campaigns) to judge effectiveness.
TikTok Expands Commerce and Measurement Capabilities
1. Integration of Buy with Prime
TikTok now allows shoppers to use Buy with Prime directly within the platform, enabling checkout via Amazon and fulfillment through Amazon’s network.
Pros
- Streamlined purchase journey: Reduces friction from content discovery to checkout by keeping users inside TikTok while leveraging Amazon’s trusted payment and fulfillment.
- Broader adoption potential: Brands already using Buy with Prime can easily extend it to TikTok, reducing the need for new infrastructure.
- Leverages Amazon trust: Shoppers may feel more comfortable buying through Amazon versus TikTok’s still-developing e-commerce ecosystem.
Cons
- Reliance on Amazon: Brands must accept Amazon as the backend for order fulfillment, limiting flexibility.
- Possible conflict with TikTok Shop: May create mixed incentives between TikTok’s own commerce initiatives and its Amazon integration.
Tips
- Use TikTok content to drive high-intent discovery, with Amazon handling the trust and logistics piece.
2. Pixel-Free Cross-Channel Conversion Tracking
TikTok introduced a new measurement technology that tracks conversions across channels without relying on pixels or cookies.
Pros
- Moves beyond cookies: Future-proofs tracking in a privacy-first environment.
- Simple engagement signals: Helps differentiate low-quality clicks from more meaningful traffic.
Cons
- Limited detail available: Current explanations are vague, making it unclear how robust the system is.
- Basic metrics only: Early indications suggest it stops at “engaged traffic,” which doesn’t necessarily prove purchase intent.
- Unclear methodology: Without transparency, brands may hesitate to trust or optimize against the new metrics.
Tips
- Treat this as an early-stage tool: useful for directional signals, but not a substitute for deeper attribution.
- Compare TikTok’s engaged-session data against your own site analytics to validate accuracy.
Looking Ahead
August was a busy month. From Amazon’s AI-driven shopping evolution to Walmart’s DSP pivot and TikTok’s deepening role in commerce, the past month highlighted how quickly retail media and marketplace dynamics are shifting.
Some updates, like FBA damaged goods control or Buy with Prime on TikTok, offer immediate opportunities, while others, like variation theme changes or pixel-free tracking, require watchful patience.
For brands, the takeaway is clear: stay agile, double down on operational readiness, and keep testing new tools as they emerge.
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