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The 10 Most Relevant Social Media Trends in 2023

Meet customers where they spend their time: On social media.

The shopping experience is being revolutionized by the merging of e-commerce, marketing and social media. Gen Z in particular is sharing products on platforms such as TikTok and Instagram and buying them directly in the app based on influencer recommendations.

In order for a company to benefit optimally from this social media trend, store systems should provide integration options to social networks. For example, Shopify offers no-code integrations with Facebook, Instagram, and other social networks.

Large companies are already using this new digital horizon as an innovative way to present their products in the virtual community.

The merging of online and offline shopping offers a completely new shopping world in the process. Fast fashion giant H&M has already enhanced its customer experience by expanding into the Metaverse. There, users can dress their avatars in clothes they have put together themselves and share them with friends.

Global sporting goods leader Nike is also at the forefront of the virtual universe with "Nikeland." Customers can store for digital sneakers and clothing items in Nikeland.

Content marketing is no longer limited to the traditional formats of text, image, (short) video, and podcast. Instead, social media is increasingly focusing on VR and AR. For example, companies, such as Apple and Microsoft, are focusing on developing new AR-based apps that can be used on phones, tablets and other devices. Social media platforms, such as Snapchat and Instagram, also already have augmented reality filters that allow users to customize their content. Therefore, VR/AR is definitely one of the topics of the future.

From smartphone assistants to self-service checkouts in stores, artificial intelligence is already an integral part of our everyday lives.

One program in particular is causing a stir right now: ChatGPT from OpenAI was developed to interact with people in a conversational way.

The chatbot is used in various areas of marketing to automate and speed up workflows. In social media marketing, ChatGPT can be used to generate captions for posts or analyze hashtags, among other things.

Video content will continue to be an integral part of online marketing in 2023. While TikTok has taken the internet by storm, don't forget to include Instagram reels and YouTube shorts in marketing campaigns. Short videos continue to be very popular and increase the chance of a large reach. Companies should make sure to create video content that fits their target audience and offers added value.

Social media is changing the way people search for products and brands. More and more users, especially Gen Z, prefer to find out about products on social networks, which is where they ultimately make their purchasing decisions. To attract the attention of the target audience, it is important to include research of relevant keywords. Instead of just including a few hashtags in a post, create content that people are already searching for to find out which topics are relevant to users.

TikTok's rise on the social media scene has been nothing short of meteoric in recent years.

On TikTok, influencers can engage their audiences directly through creative and entertaining content, while brands get a platform to reach target audiences. User-generated content (UGC) and collaboration with influencers have proven to be effective tools to drive users to purchase on TikTok. This makes TikTok a trustworthy platform that is not just for entertainment and still has some potential.

LinkedIn is evolving into more than just a networking platform.

Users share their successes and career goals, but also topics such as mental health, burnout, or feelings of defeat. It's no longer just about maintaining a flawless facade, but rather about being approachable and honest.

Digital relationships and regular exchange with the community are more relevant than ever.

Consumers are adapting to change ever more quickly, are changeable, and are difficult to map into personas.

By communicating regularly and being accessible via social media channels, companies can better understand their customer base and their needs.

In addition, a strong online presence makes it easier to identify emerging trends early and stay ahead in an ever-changing landscape.

Sustainable positioning and the "green image" are becoming increasingly important in the marketing world.

Consumers expect companies to prioritize the needs of people and the environment over making a profit.

Misleading "greenwashing" strategies in social media, i.e. promoting sustainability without being authentic, should be avoided.

Instead, transparent reporting, e.g., through corporate social responsibility (CSR) proof, can build trust and credibility with its users.

In view of the extremely fast-changing social media world, it is important to include current trends in the social media strategy. This allows new topics that offer great growth potential for one's own company to be implemented quickly and become a critical success factor.

Amazon Inspire - Ecommerce meets Social Media

The boundaries between social media and commerce platforms have been blurring for some time. While platforms such as Instagram and Tiktok are increasingly penetrating the commerce sector, Amazon will in future offer video and image content based on personal interests. Customers will discover products and trends tailored to them directly in the Amazon app. This is also where the final purchase is made.

Amazon's latest feature is designed to attract the attention of a young target group. Generations Z and Alpha move intuitively and naturally on platforms such as TikTok and Instagram. Purchase decisions are made there based on recommendations from influencers and content creators. However, the focus is not on the purchase itself, but on entertainment. Through Inspire, Amazon is trying to reach this target group and at the same time retain existing customers in the app and on Amazon.

The Inspire feed is accessed via a lightbulb icon within the Amazon Shopping app. Customers enter their interests within the 20 existing product categories. The look and feel is very reminiscent of Pinterest's interface. Everything else is tried and true: Users can like posts and, similar to TikTok, swipe up from the bottom of the vertical feed to see the next post.

Brands and authorized retailers can post their content and products on Inspire. They can access content from brand ambassadors or develop their own content, among other options.

The prerequisite for participating in the Inspire feature is an existing Amazon Brand Registry and an existing Brand Store. The clicks are ultimately directed to this store and the customers make the purchase.

Amazon has been testing the new shopping function for selected customers and influencers in the U.S. since mid-2022. From December 2022 or in the following months, the offer is to be extended to all customers in the USA.

Whether and when Amazon Inspire will also be available in the EU is not yet known. The first provisions are already visible in the Amazon back end. If the test phase is successful, a launch in Europe is likely.

With its image and video content and user experience, the new format is strongly reminiscent of the internationally known social media platforms such as Tiktok, Instagram and Pinterest. Amazon wants to tap into new and especially younger target groups and retain them in the long term. The aim is to make the shopping experience of its customers more entertaining and encourage them to buy. Whether the marketplace can compete with the leading social media champions remains to be seen at this stage.

Fulfillment for Shopify Stores

In e-commerce, order fulfillment refers to the complete physical logistics process that is triggered when an order is placed. Shopify Fulfillment covers the entire order fulfillment process, from warehousing, picking, and packing, to delivery and shipping of orders placed through Shopify stores. Additionally, fulfillment includes returns management.

Over the past few years, logistics for Shopify shops has evolved from a pure cost factor to a real differentiator. Not least due to extremely competitive services from Amazon, both, short shipping times and low-cost shipping are perceived as a given for many online shoppers.

In addition to environmentally friendly shipping, speed and price of deliveries are the most important factors for a positive buying experience. In this regard, 2 out of 3 shoppers expect free shipping, and 60% would like to wait a maximum of 2 days for their order. Moreover, according to a Shopify survey, 77% of respondents state that the environmental impact is relevant to their purchase decision.

For many Shopify sellers, offering shipping that is both fast and cost-effective, and in the best case, environmentally friendly at the same time, is a major challenge. Consequently, to keep up with the performance of large e-commerce players such as Amazon, large investments are necessary.

Alternatively, an increasing number of online retailers are looking for other solutions for their logistics setup. In July 2021, 2 out of 3 retailers have already outsourced their warehousing. To ensure a smooth fulfillment process, in many, but by no means all, cases, outsourcing to so-called 3PLs (Third Party Logistics companies) or fulfillment companies is a popular option. This involves integrating your Shopify store with a WMS (Warehouse Management System), which allows orders to be processed automatically. Tech-supported fulfillment companies can set this connection up in only a few minutes.

You might now ask; what are the benefits of outsourcing fulfillment?

While online retailers who fulfill orders themselves often store their products in premises not designed for this purpose, fulfillment companies have the optimal conditions for a safe, accurate and fast fulfillment process. Professional racking systems and specialized warehouse management software are an important piece of the puzzle for efficient logistics. In addition, picking and packing routes are also optimized and simplified with technical aids such as scanners. All this is also possible with in-house logistics, but is associated with high investment and maintenance costs.

Experience and expertise of fulfillment service providers

Just as important as a suitable infrastructure is the experience that professional logistics companies have gained - in some cases over decades. The resulting expertise helps to reduce errors and ensure efficient processes. 

One of the main reasons for outsourcing fulfillment in many cases is rapid growth. Working with fulfillment service providers allows your company to scale flexibly. The costs in such a setup are usually dependent on the sales volume and there are no additional fixed costs. This relieves the pressure on cash flow, which is one of the most pressing challenges for scaling companies. The money can therefore continue to be invested in the production of your goods and the marketing of your brand. In addition, some logistics companies have strong fulfillment networks, making it easier to expand into new regions and countries.

Location-based benefits (costs, environment, speed)

It's precisely this flexibility in choosing a fulfillment location that can benefit your business. While most companies look for warehousing solutions in the geographic vicinity, it is usually the better strategic decision to use warehouses close to the target markets. This shortens delivery routes, which reduces delivery times. The reduced shipping distance also has a positive impact on the delivery costs as well as the environmental impact, due to lower CO2 emissions. 

At what shipping volume should you outsource your fulfillment?

As an e-commerce merchant, you've probably already asked yourself at what shipping volume outsourcing of logistics is an economic decision. This depends on many factors and must be decided on a case-by-case basis. Above all, the ratio between SKUs (Stock Keeping Units) and shipping volume is decisive. A small number of SKUs simplifies outsourcing logistics enormously. 

In addition, the nature of the products plays an important role. So, as is so often the case, there is no one-fits-all rule that applies to all e-commerce retailers. As a rule of thumb, however, experts often speak of a shipping volume of about 100-200 shipments per month to make outsourcing of warehousing and shipping reasonable.

The fulfillment market has developed considerably in recent years and months, in parallel with the development of online retailing in general. There are now numerous providers on the market. As an e-tailer or supply chain manager, you naturally want to find the optimal solution for your company. The following factors are crucial.

To allow collaboration, a fulfillment company needs to be able to integrate your online store. Hence, the connection of the fulfillment service provider to the Shopify e-commerce system is a basic requirement to benefit from automated and scalable processes.

In addition, however, there are significant differences in the technical solutions offered by warehousing and shipping service providers in some cases. This includes, for example, a dashboard that shows live data and thus simplifies planning and daily operations.

Moreover, the technical setup for LoT tracking, for example, is crucial. This allows you to track batches, keep track of expiration dates, store and ship organic products properly, and perform recalls if necessary.

LoT tracking, which was mentioned above, is one of the specifications for the handling of organic products. In addition, there are other factors that need to be taken into account. For instance, is it possible to store your organic products separately from non-organic products and do the warehouses have appropriate certifications (e.g. HACCP/IFS)? The possibility of controlled cooling of the products is another criterion that must be taken into account in many cases.

In addition to the characteristics of the warehouses, the location is also of utmost relevance. As already explained in the section on location advantages, location-based fulfillment offers numerous benefits. These include faster delivery times, cost savings in shipping, and less environmentally damaging deliveries. 

Another decisive factor for the shipping time is the process that takes place in the warehouse prior to loading parcels onto the trucks of parcel delivery services. A modern WMS can ensure that the logistics processes are handled efficiently and with a minimum error rate. Hence, an efficient pick and pack process of your fulfillment partner is indispensable if you want to focus on customer satisfaction.

In e-commerce, the packaging is literally the first touchpoint. To differentiate from big e-commerce players like Amazon, branded packaging is a strong differentiator. Thus, the ability to use your own packaging or branded options could be a relevant factor in deciding for or against a particular fulfillment partner.

The partner network of a fulfillment company includes, among others, parcel delivery services. A variety of long-term partnerships with logistics service providers is a big advantage. On the one hand, this strengthens resilience in the event of supply chain bottlenecks, and on the other, the choice of popular regional and international parcel services is a well-known conversion rate driver.

Accepting returns is a standard service provided by logistics companies. However, there are major differences in this area. One example is that some fulfillment service providers offer returns portals. These simplify the process for end customers and retailers. This means that online shoppers can initiate a return digitally and independently, and your company can save valuable resources.

Let's face it: e-commerce doesn't have a good reputation when it comes to environmental friendliness. As an online retailer, the increasing environmental awareness of your customers is a challenge, but it's an even bigger opportunity. Work with fulfillment companies that implement green operations, whether that's in warehouses or, say, partnering with shipping service providers that offer carbon-neutral shipping. Your customers will thank you, and your business will benefit, too.

Price can't be missing from any list of factors for the comparison of a service. On the contrary, it is often the primary decision-making facto. Nevertheless, informed decisions must be made here as well. After all, it's important to know that apples are often compared to oranges when it comes to a complex issue like fulfillment. Here's an example; some companies offer lower prices for storage, while these are then compensated with more expensive shipping costs, additional expenses for further services, or the like. For this reason, make sure that you calculate the total cost of your average order, and translate that to your overall logistics in a further step. This way you make sure that you get the best value for your money.

One of these warehouse and shipping logistics providers is byrd. Founded in Austria, it is now one of the leading fulfillment companies in Europe. With a growing network of more than 20 warehouses (as of Q1 2022) in 7 countries (Germany, France, UK, Italy, Netherlands, Austria, Spain), byrd is a reliable partner for Shopify merchants of almost any size. Existing customers like Durex, Rituals or Your Super, sell products ranging from cosmetics to nutritional supplements and pet supplies as well as sports equipment. With or without byrd, we wish you nothing but the best and are always happy to offer consulting for Shopify merchants.

How Content and AI Complement Each Other

The importance of content marketing is constantly increasing. As early as 2017, 91% of companies stated that they rely on content marketing (Content Marketing Institute 2017, Content Management & Strategy Survey). Since then, the topic has experienced another major push.

It is interesting to see where investments are made. Although there is now a wide range of software tools on the market for creating, planning and analyzing content (which can also be cost-intensive), 52% of planned spending on storytelling is focused on the craft of storytelling. After all, good stories appeal to everyone. But what actually makes a story, a good story? Technology and software are helpful, but they alone are not saviors (see: LEAD Digital "Content Marketing - Beware of too much faith in technology"). It's still the "craft" elements of content creation that matter. And these have an ancient history.

Did you know that, developmentally speaking, we are "wired for stories"? You know this, too: a vividly described character to whom you feel a connection, a conflict that comes to a head and - when things can't get any worse - is surprisingly resolved. When we encounter content in this form, we not only remember it particularly well. We also find it hard to escape the pull and are really eager to find out more. Why is that?

​​After food, shelter and companionship, stories are what we need most in this world.

In fact, fairy tales and storytelling (just like children's learning through role-playing) have endured for thousands of years, and not just out of cherished tradition. They have been an evolutionary advantage. Narrated experience enabled people in prehistoric times to learn effectively from danger without putting themselves in threatening situations. Rules and strategies of hunting and living together could be discussed, difficult challenges could be planned, important knowledge (sometimes essential for survival) could be passed on.

All great storytelling adhered to this recipe for success on experience. It was not until the 1990s that the discovery of mirror neurons also physiologically substantiated that learning by observation and imitation is so typical for humans (primates) and why it works.

Because content is understood particularly well and easily if it is told according to certain patterns, and corresponds to our inherited thought patterns but also individually over the years culturally and individually acquired motives. So today we also need storytelling that adheres to these narrative patterns.

When we evaluate texts, images, and video content, we all too often look primarily at correctness of content, readable or catchy language, and authentic presentation. All of this is important, but alone it is not sufficient for good content marketing. Not all well-made content is 'good' in the sense that it suits the customer. It is only good if it is relevant to the reader and thus stands out from the big noise we are exposed to every day, because it is precisely relevant to the reader/viewer/customer. Only then can content really reach people.

Content is relevant when it is targeted to a sometimes very pointed sub-segment of the target group (In content marketing we speak of 'persona'.). This means that the content must not only be "on topic" but must be designed "for a whole specific readership".

However, the right time is also decisive for relevance. The question "For whom exactly?" is joined by the question "When exactly? Because the accessibility of certain topics depends very much on the mood, the communication phase, and the context in which the customer is interested. Even content that is suitable for a specific person can become a problem if it reaches the person at the wrong time.

This becomes particularly clear in the example of customer communication and content marketing in online retail. The entire process of interaction is mapped in the so-called "customer journey". It's no wonder that content marketing has long since ceased to be a trend here, but a real perennial favorite. It goes without saying: depending on the phase in the customer lifecycle, the customer must be addressed differently; a first contact expects a different approach and different content than an existing customer. 

Now, of course, a shopping situation is different from a storytelling session around a campfire, and on a website you have less freedom and space to build stories. Still, those who experience it are the same. People like you and me who respond particularly well to certain triggers. And each channel has its merits: in the store or on social channels, page-long essays are unsuitable. On the other hand, images and videos are an excellent way to tell a story. But this only works if you really know the other person well.

Interdisciplinary consciousness studies deal with basic mechanisms of perception and decision-making that apply to all human beings. Interesting impulses can be derived from this, which is also useful for the marketer's craft. These findings often go by the buzzword "neuro-marketing" and explain recurring patterns such as why decision paralysis occurs when there is an oversupply, why online reviews give us the security of the herd instinct, and much more.

If the trend forecasts are to be believed, there is enormous potential in the persona- and individual-related playout of content and real-time personalization. However, accurate knowledge of the readership, their inclination and current mood is crucial. Without data collection and continuous, comprehensive analysis, it remains pure guesswork. As well as you think you know your customers, the truth of their actual behavior often still holds many surprises. (Example: Walmart's User Experience Mistake, Alex Gilev, "What people say they need is not what they actually need.")

The CMI report mentioned at the beginning also talks about these challenges. A particularly important question for companies is therefore whether the content is also delivered at the right moment. Here, only 49% state that they are already satisfied with the results. But how can you determine the right moment in advance? Once again, the special nature of the digital channel comes into play here. Ubiquitous web tracking, supplemented by well-maintained user profiles and algorithms, means that the right content can also be played out automatically. Instead of hoping that customers will find what interests them themselves, it is now suggested to them in a targeted manner.

Now, in recent months, more and more scenarios in media use and also in digital commerce have been enriched with artificial intelligence. Self-learning systems no longer rely on all possible variants having been thought up and programmed in advance. Systems can respond to user behavior in real time, not only seizing the right moment but also gathering valuable information. The content offering is individualized to the very specific situation and learning is, in principle, never complete.

In addition to the neurophysiological aspects of storytelling that suit everyone, content marketing will thus be supplemented by another component. With the possibilities of personalization, we can now additionally take into account very individual customer interests in communication in addition to the generally valid ones.

Starting with the customizing of shopping environments, through the personalization of content and offers, to assisted shopping services, this new content-oriented understanding of marketing takes on yet another dimension.

And those who feel understood are even more likely to shop. In our experience, personalization can increase conversion rates by up to 25%. Since digital content via the ubiquitous smartphone and increasingly in-store touch screens is also playing an ever greater role in brick-and-mortar retail, personalized content is a multichannel topic and not limited to pure online retail.

Amazon Transparency - With Transparency Against Counterfeiting

The basic principle of how Amazon bundles this abundance of offered products on the platform is simple. In contrast to eBay, where each offer has its own eBay item number, Amazon assigns each product an individual identification number - the Amazon Standard Identification Number (ASIN for short). Every merchant who wants to sell this product on the Amazon Marketplace must necessarily offer it under the same identification number. However, there are a large number of competitors on the Amazon Marketplace who sell the same products. Thus, a product is usually offered by several retailers and ultimately the price war decides on the sale. Since Amazon wants to counteract monopolization through this bundling, this approach is completely unproblematic in the first place.

It becomes problematic for both retailers and customers when product counterfeiters use the same ASIN to sell inferior knock-offs. In addition to negative customer reviews, this can even result in warning procedures. The company itself states that it does not tolerate counterfeit products. According to the terms of participation, their offer on the Amazon Marketplace is prohibited. However, it has not yet been possible to completely prevent counterfeits on the platform. According to Amazon, however, "it is the responsibility of the seller and supplier to obtain, sell and ship only authentic products." Amazon has already been criticized several times for the fact that the principle of personal responsibility applies on Amazon Marketplace and that brand owners must independently monitor the use of their own brand by third parties.

A prominent case occurred at the end of 2017: The traditional German manufacturer Birkenstock left the German Amazon Marketplace at the turn of 2018. The company had already withdrawn from the US marketplace in 2016 due to repeated product counterfeiting. The manufacturer justified its withdrawal with a disturbed relationship of trust with Amazon. The US company was said not to have done enough to prevent legal violations on the marketplace. Birkenstock had expected Amazon to eliminate and prevent legal violations independently and without being asked to do so. However, the online giant had "not prevented on its own initiative " counterfeit products from being sold through the marketplace. Finally, the management duo Bensberg and Reichert decided to discontinue all business relations with Amazon. Since then, the company no longer supplies the online store worldwide.

However, even though Amazon has so far only eliminated infringements as soon as a rights holder reports this, Amazon supports merchants with various tools for monitoring their own brand and prosecuting possible infringements. Amazon Trademark Registration has already offered owners of a word mark and/or word/figurative mark protection on several levels since May 2017. You can thus protect your "intellectual property on the online trading platform and create a correct and trustworthy experience for your customers on Amazon". Registration is definitely worthwhile, because in addition, brand owners receive exclusive writing rights in relation to all product descriptions and images sold under the brand. This way, the image of the brand can be protected as well.

Amazon is continuously working on new technology-driven solutions to increase transparency and protect brands and customers from counterfeiting. With Transparency, Amazon recently made available its new item-level authentication service: Using uniquely generated codes, Amazon, brand owners, customers as well as other supply chain stakeholders can authenticate each product unit. According to Amazon, uniquely authenticating each product unit is "the most effective way to combat and prevent counterfeiting across the supply chain."

It is crucial for the authentication process that the Amazon Transparency Code is unique per product: To ensure that the product is not a counterfeit, Amazon scans the codes as soon as products participating in the Transparency Program are delivered to a fulfillment center. If a duplicate code is discovered, Amazon immediately withdraws the counterfeit goods from circulation and destroys them. Transparency also allows customers to verify authenticity. Regardless of whether the product was purchased from Amazon, another online store or a brick-and-mortar retailer. Customers can use the free Transparency app to check the code on the product. The app checks the product for authenticity and, in the event of positive authentication, also displays the stored information at item level.

The program has already been tested promisingly in the USA. With over 4,000 brands participating and over 300 million codes generated, Amazon was able to proactively remove 250,000 counterfeits from circulation. Now Transparency has been extended to Amazon marketplaces in Germany, France, Italy, Spain, the UK, India and Canada. To register with Transparency, brand owners must have a Global Trade Item Number (GTIN for short), such as an EAN or UPC barcode, affixed to their products. Amazon then generates the unique Transparency codes for each item, which must be affixed to the respective product unit in addition to the GTIN. For each item, the 26-character encrypted identification number is unique. In addition to the date and place of manufacture, it contains additional product information such as the materials and ingredients used.

Product Liability in Ecommerce

In the case of warranty, liability primarily relates to the purchased item itself. However, if a defect in the product causes bodily injury, for example, the warranty is of little help to the injured party - in this case, there is no obligation to compensate for any medical treatment costs, which the injured party would be left with. In this respect, there are other legal bases that ensure that liability must be assumed for an injury. These include the Product Liability Act. It has a number of special features that deviate from the usual conditions. Reason enough to take a closer look at it.

The obligations of the product liability law can affect several groups of persons, from the manufacturer to the seller. The standard case concerns the manufacturer. If a defect in a product kills someone, injures their body or health, or damages (another) object, the manufacturer must compensate the injured party for the damage caused by the defect. According to the law, the manufacturer is the person who produced "the final product, a basic material or a partial product" - in simple words, the producer. This also includes persons who assemble a product from several parts, so there is also liability with regard to purchased parts. Up to this point, only some of the online retailers are affected. However, other groups of people are also considered to be manufacturers. This includes, for example, anyone who claims to be the manufacturer - i.e. who attaches his name, trademark or "other distinctive mark" to the goods (quasi-manufacturer), or who imports the product.

If you as an online retailer have not been affected up to this point, one last point remains: If the manufacturer of a product cannot be identified, the liability must be borne by each supplier. Online retailers should take preventive action here and document the supply chain of their products well. Here, it is possible to name the manufacturer or upstream supplier within one month and thus free oneself from liability. However, there is an exception to this exemption from liability in international situations. If both the importer and the manufacturer are located in a third country, but only the manufacturer can be named, full liability remains. It is quite possible that several persons in the supply chain are responsible for product safety according to the law. In that case, the injured party can hold each of these persons liable, and to the full extent of the law. The responsible parties are then obligated to compensate each other for any damages - depending on who is responsible for the defect. The liability is therefore not based on the contract with a buyer, but on the legal responsibility. Moreover, it may not be excluded or limited vis-à-vis the injured party before the damage occurs.

The linchpin of product liability is the defect of the product - i.e. a movable object. This means that virtually every consumer good is affected, as well as packaging materials, foodstuffs and various other things. On the other hand, essentially only land, buildings and pharmaceuticals are excluded. Even if the product was not intended for sale or was not otherwise manufactured for distribution with an economic purpose, liability does not apply. The defect must have existed when the product was placed on the market, i.e. in any case when the product was offered for sale. A defect exists if the product does not offer the safety that can be expected by an average, reasonable consumer from an objective point of view - the opinion of the general public is thus decisive. It is expressly not a defect if an improved product is offered later. In order to assess the safety of the product, the law looks in particular at the presentation, the use and the time of marketing. For those who must be liable for the safety of a product, this fact provides a starting point for avoiding liability that gets out of hand.

Sources of danger should not be swept under the carpet, but rather appropriate, clear safety instructions should be included in the instructions for use to prevent misuse, for example. In principle, the manufacturer must base this on the expectations of the general public at the time the product is placed on the market, not on future safety requirements. However, this must not obscure the fact that there is an obligation to monitor the product. For example, production may have to be adjusted over time, and reactions may also be necessary with regard to older products - such as notices or even recalls. However, there is no liability for misuse. Incidentally, it is not a question of fault on the part of the person responsible; liability exists in principle irrespective of this. It does not help to refer to the proper monitoring of employees or the production process. Instead, the decisive factor is the fact that a hazard has been created.

On the side of the injured party, however, fault can play a role - in favor of the responsible party. If the latter has contributed to the damage, this can lead to a reduction in liability. Here, for example, warning notices can pay off: If one is ignored, this can lead to contributory negligence on the part of the injured party. Something similar applies in the result if the damage was caused simultaneously by a product defect and the action of a third party. However, in this case the person responsible for the product or the manufacturer must initially be fully liable.

But who actually has to prove what? This is an extremely relevant question in practice. In principle, the injured party bears the burden of proof on the one hand for the existence of the defect itself, and on the other hand must prove that this defect is actually the cause of the damage, and it must also be possible to prove the damage. However, this is also only the basic principle. For example, the injured party does not have to prove that the defect was also present at the time the product was placed on the market, but only that it was present at the time the damage occurred. In addition, the so-called "prima facie evidence" comes into play here: according to this, typical sequences of events do not have to be proven by the injured party, but it can be assumed on the basis of general life experience that they are true. However, a manufacturer has the option of proving otherwise.

Ultimately, the question arises as to the extent to which liability can arise here. Here it depends on the type of damage that has occurred. First of all, there may be damage to an object. However, liability does not apply to damage to the object from which the damage originated, but only to damage to other objects. Here is an example: A hotplate has a fault, the temperature limiter is defective. This causes the hotplate to overheat. Fire damage occurs to the table on which it is placed by the user, and the plate itself is also destroyed. In this case, compensation under product liability is only possible for the table, not for the hotplate itself. The amount of liability for property damage is unlimited. However, the injured party must pay an amount of 500 euros himself.

In the event of bodily injury, the maximum amount is limited to 85 million euros. In this case, the costs of treatment and any financial losses resulting from the fact that the injured party can no longer work as before must be borne. For example, costs may be incurred for hospital treatment, physiotherapy or even a pension. Instead of a pension, a settlement can also be agreed. In the event of the death of a human being, the liability to pay compensation is also limited to a maximum of 85 million euros. In itself, the Product Liability Act only gives rise to claims on the part of the injured party. In this respect, similar principles apply as in the case of bodily injury. In addition, there may be costs for burial and maintenance for any dependents, such as the injured party's children. The law also provides for appropriate compensation for the suffering of surviving dependents.

As it turns out, a defect in a product can have profound consequences. However, this does not apply indefinitely; a claim under the Product Liability Act can become time-barred or even expire. The limitation period here is three years. It does not begin to run until the party entitled to compensation has become aware of the damage and the defect and also knows who must pay compensation. It is also sufficient that he should have had knowledge in each case - i.e. that he was at least negligent in not knowing about it. If the injured party ignores an obvious defect after the damage has occurred, he cannot later claim that he was unaware of it. The time limit still runs.

Apart from the statute of limitations, liability expires 10 years after the product has been placed on the market. In order to record this point in time and, if necessary, to be able to exempt oneself in the event of a liability claim being asserted, the placing on the market should be documented accordingly, for example by means of batch numbers. In summary, it can be stated that the Product Liability Act gives rise to a considerable liability risk. Primarily affected by this are the manufacturers of the products. However, online retailers can also be held liable if they do not properly record their supply chain. Finally, an appropriate product liability insurance can be urgently recommended. If liability arises, it will be covered by the insurance to the contractually agreed extent.

Amazon Strategy - Change as an Opportunity

In most cases, these are perceived as a risk or even a danger. Guiding principles such as "never change a running system" or "if it ain't broken, don't fix it" have crept into the decision-making processes of companies. And not infrequently, these are then used as the decisive justification against something new - against the implementation of an Amazon corporate strategy. 

Experience has shown that when fundamental decisions are made, the question of why a company, a strategy or a process should change, when it is apparently "running", comes up again and again. Although it is already perfectly clear to many to no longer regard Amazon as a competitor and rather to use the online giant's reach for the company, some employees keep asking the same question when implementing the Amazon corporate strategy. Why? But it's time to rethink and take a different perspective: Why not?

So why not try something new? The phrase "never change a running system" has its origins in sports. It is derived from the saying "never change a winning team". This is also a misconception in sports, because in competition with other teams, the task of a good team leader is not only to lead his team. Rather, it is to promote and develop the team in order to get the best out of it. To do this, moves are analyzed tactically and strategically, results are evaluated and the strategy is adjusted based on this. And that, in turn, means change.

Transferred to the business world, it is not uncommon for external drivers to cause a company to change. In addition to increasingly dynamic competition, changes in technology in particular have taken their toll in recent years and presented many companies with new challenges. There's no question about it - digitization has fundamentally changed retail. However, digitization offers a number of opportunities for change-minded companies. For example, Amazon's integrated sales platform, Marketplace, allows companies to take advantage of Amazon's prominent position. With an Amazon corporate strategy, e-commerce activities can be established and expanded. Nowadays, it can be observed that companies that are particularly adaptable to change are able to survive on the market because they are able to harness the potential offered by change. These companies follow the guiding principle of being open to change and not closing themselves off to it. They see change as an opportunity.

Experience shows that change always meets with resistance. In the context of organizational theory, the psychologist and social scientist Kurt Lewin dealt with the phases of change. Lewin explains the emerging resistance based on the so-called field theory with the fact that in every organization two fundamental force fields interact. On the one hand, these are forces that want to maintain the status quo out of habit or fear, among other reasons. On the other hand, there are force fields that bring about change. These are mostly the management, which recognizes the potential of a change and wants to make it usable for the company. Managers and decision-makers must therefore usually reckon with counterforces when introducing an Amazon corporate strategy. They should therefore not make the fundamental decision dependent on the full support of the team and, above all, they should not shy away from acting innovatively. In total, Lewin identified three phases of change, which he summarized in his famous 3-phase model.

Unfreezing: The so-called thawing phase describes the initial situation of the organization. The previous strategy is questioned and the awareness of the driving force fields is penetrated by the necessity of change. In the first step, it is all the more important to pick up those affected and involve them in the change process, especially if there is great resistance. If a change is to be introduced successfully, the balance must be shifted in favor of the driving force fields in the first phase. The existing equilibrium or the achieved current state of the organization must therefore "thaw out". A shift in favor of the change drivers must be enabled. The goal of this phase is to convince all those affected of the benefits of the change. 


Moving/Change: In the second phase, the actual change process takes place. The goal of this phase is to implement the changes in the organization and to find a new balance.


Refreezing: Once the desired changes have been implemented in the organization, they in turn require stabilization. For permanent integration into the organization, the implemented changes must be "frozen" again and consolidated.

Every change - including the implementation of an Amazon corporate strategy - requires good change management. This plans, supervises and organizes interdepartmental and far-reaching change processes from the initial state to the target state. In order to support people in accepting change and implementing it more effectively, the management consultancy Strasser & Strasser developed the effective methodology of the Eight Levers of Change®:


Goals and positive expectation of the future: Set clear goals and talk about expectations - always being optimistic.


Conviction: Accepting change and leaving the victim role. As long as people speak from conviction, powerful and credible messages can work.


Involvement: Identify key partners and actively engage them in solutions.


Role models: Be aware of your own role models and be one yourself.


Adaptation: Shape the environment where possible and adapt where necessary. Align knowledge with the new requirements.


Rewarding success: Create a sense of achievement and celebrate with others.


Consistency in the face of failure: Deal constructively with one's own failures and with the failures of others. Openly address mistakes and demand consequences.


Project management: Develop a common thread for implementation.

Just as a corporate strategy does not develop overnight, it should not be suddenly and unexpectedly discarded. In any case, repositioning requires a solid foundation, and far-reaching changes should be strategically planned and managed. However, managers and decision-makers should not make change dependent on how much headwind they will encounter. It is much more important to convince all those affected and to implement the planned project together with their involvement.

While in the past so-called change agents used to support and supervise change processes in a company on a more regular basis, in times of continuously increasing market dynamics the skills of a change agent are expected more than ever from executives. From our own experience, it has been shown and proven that external consultants in particular can assess the situation with the necessary distance and provide professional recommendations for action. In particular, the development of a new sales channel involves many unknowns and often lacks not only the necessary resources but also the required expertise. With years of experience and the certain know-how we support strategically as well as operationally worldwide companies in the implementation of an individual Amazon strategy.

Seller vs. Vendor - Amazon Consulting

Sellers who want to use Amazon Marketplace as a sales channel must register with a professional seller account in Amazon Seller Central (ASC) at the beginning. While Seller Central is available to all sellers, the vendor program can only be participated in with an exclusive invitation from Amazon. The so-called third-party seller marketplace model has so far been aimed more at small to medium-sized merchants. On the other hand, brand manufacturers, larger manufacturers and wholesalers were invited to cooperate directly and act as vendors on the marketplace.

One of the most fundamental differences between the programs is whether the goods are ultimately sold on Amazon directly to the end customer or to Amazon: Sellers sell their products on the platform directly to the end customer (B2C) and are therefore responsible in every respect for the sales process as well as marketing and logistics. They have full control over pricing, product listing, selling the goods, and customer support. In contrast, Vendors supply Amazon with their products (B2B) and act more like pure suppliers. Vendors are thus only responsible for the product selection and also relinquish full control to Amazon. While attractive conditions, advantages in the battle for the shopping cart field, and a lack of capacity in the company itself used to be decisive arguments for participating in the vendor program, increasingly frustrated manufacturers are questioning the cooperation with Amazon. Not least because of inflexible contract conditions, the trend can be observed that more and more vendors are switching to the seller program. Since manufacturers are still responsible for maintaining content and marketing activities in the vendor program, the switch to the seller program brings decisive advantages with a comparable effort. The question of whether it is worth accepting an invitation as a vendor or switching to the seller program is often raised during an Amazon Consulting session. Accordingly, the respective advantages and disadvantages of the two variants should be weighed up with regard to the company's own strategy.

While no negotiations with Amazon are necessary for the seller program, vendors usually have to agree to non-transparent and sometimes unfavorable conditions. Accordingly, vendors become extremely dependent on Amazon, which leaves little room for their own decisions. For example, with a standard 7-20 percent, sellers not only have significantly lower levies on Amazon. While sellers can set the sales prices independently and control them accordingly, vendors also transfer all rights to Amazon with regard to pricing and lose the associated influence on sales margins. Since it can be observed time and again that Amazon exerts pressure on market prices in the battle for the shopping cart field with other merchants, high price erosion is generally possible. In some cases, Amazon offers products below the respective RRP, so that sellers in the vendor program have to be prepared for comparatively lower margins. The note "Sold by ..." shows the customer on the product detail page below the shopping cart field with whom a deal has been concluded and under what conditions the goods are shipped. Since the Amazon brand is usually trusted more than a possibly unknown third-party vendor, there is an assumption that customers prefer to buy directly from Amazon and that vendors can expect higher sales accordingly. However, it is questionable to what extent customers actually make their final purchase decision dependent on this indication and whether this compensates for the lower margins. Ultimately, vendors must also be prepared for sometimes long payment terms of up to 90 days, while sellers can look forward to receiving money after just 14 days.

Sellers have full control over listings, the products offered and thus product availabilities. Accordingly, proactive inventory management is necessary. Since vendors supply Amazon with their products, the listing and availability are ultimately in Amazon's hands. It is not uncommon for Amazon to place small orders to different warehouses several times a week. In addition, Amazon provides for penalties should vendors fail to deliver the products properly and promptly to the desired warehouse. In the case of vendors, Amazon handles all logistics and offers the end customer the Amazon Prime service at no additional cost to vendors. In addition to its own shipping (Fulfillment by Merchant - FBM), however, Amazon also offers all sellers the opportunity to participate in the Fulfillment by Amazon (FBA) program for a corresponding fee. Similar to a consignment warehouse, the goods are stored in Germany within one of the 12 Amazon Fulfillment Centers (AFC), but continue to belong to the seller until the sale and only the shipping and returns management are handled by Amazon. Through FBA, Amazon Prime shipping benefits can be enjoyed, so joining the FBA program is always recommended. Since Amazon Prime customers are more likely to order from participating sellers thanks to the free and fast shipping, FBA also brings decisive advantages in the competition for the shopping cart space, so that sales can be increased significantly.

In order to be able to present the products in the best possible way, sellers and vendors have similar presentation options at their disposal. Sellers with a brand registered on Amazon, for example, have the same option as vendors to use A+ content, i.e. extended content for the product description, and to create their own Amazon Brand Store. While Amazon Advertising Services were previously only available through Vendor Central, sellers now also have the ability to use Sponsored Products, Sponsored Brands and Demand-Side-Platform Display ad campaigns to increase visibility and drive sales. Both Sellers and Vendors are responsible for displaying products and, if applicable, the Brand Store, as well as creating and managing ad campaigns. Accordingly, Sellers must pay advertising expenses to Amazon in both programs. While Amazon thus receives advertising revenue from vendors on the one hand and the revenue generated by the advertising campaigns is additionally generated on Amazon's side, sellers can book the direct revenue on their own company's side.

Since sellers manage sales independently, they have much more information at their disposal via Seller Central than via Vendor Central. With shopping cart statistics, customer and transaction data, and shopping cart field quotas, they thus receive relevant information that can also provide important target group insights beyond the sales channel. However, sellers must be prepared to regularly check the relevant quality indicators. This also includes the fact that sellers are responsible for customer service and must answer customer inquiries within 24 hours. In addition, returns should be handled promptly for in-house shipments. While Amazon takes care of this service in the Vendor program, a greater effort is required from Sellers. However, sellers thus have the opportunity to receive direct feedback on the products and, if applicable, the brand through contact with the end customer.

Selling on Amazon - Worldwide

Jeff Bezos founded Amazon in 1994 and led the then online bookstore out of the garage to become one of the world's currently most successful online mail order companies. On the German Amazon Marketplace alone, more than 300 million different products were offered in 2018. In view of this abundance, it is therefore not surprising that for more and more people the Amazon Marketplace has become the first port of call for product and information searches and that roughly every second order in the e-commerce sector is processed via Amazon. In Germany, for example, over 44 million customers click on "Buy now" several times a year. According to statistics from the IFH Cologne, a rising trend is emerging: while in 2004 a German Amazon customer ordered around eight times from Amazon, in 2017 they already clicked on "Buy now" an average of 41 times. Thus, Amazon's German trading platform generated a trading volume of more than 20 billion euros in the 2018 financial year. The more than 300,000 third-party retailers on the German market generated around 45% of this trading revenue.

A look at Amazon's global sales shows that it is not only the German market that offers enormous potential for retailers. Amazon generated around 232.89 billion US dollars on its 16 online marketplaces worldwide in 2018. While the marketplaces in China (amazon.cn) as well as in India (amazon.in) are currently only accessible to sellers based within these countries, Amazon offers merchants the opportunity to sell worldwide on the 14 other marketplaces regardless of their place of business. Selling globally on Amazon can expand sales activities and reach millions of new customers through the international Marketplaces. The following table provides an overview of the Amazon Marketplaces in Asia (6), Europe (5), Oceania (1), and North and South America (4) and when the platforms launched.

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