A year ago, we predicted what would happen to Amazon sellers in 2022—especially those using Fulfillment by Amazon, or FBA. We're back again, this time in 2023.

Let's look ahead and make new predictions for how the FBA business will operate in 2023. Then we'll see how Jungle Scout's 2022 predictions line up with what happened this year.

Amazon FBA Forecast 2022

1. More consumers will buy products from social media platforms

Social media platforms are constantly evolving to allow consumers to purchase products they see in social media posts, videos and advertisements. With news of TikTok's plans to open a U.S. warehouse and consumers' growing interest in social buying , certain social media giants appear to be in a competitive position to challenge Amazon's dominance in the e-commerce space. Our experts agree. "The term 'social commerce' seems to grow in popularity every year, as younger generations trust people's opinions about what to buy more than big brands," observes expert seller Jake Zaratsian.

Lenny Smith agrees, and goes a step further: " Social media will be an even bigger driver of e-commerce in 2023. Giants like TikTok and Meta will continue to tweak their offerings, but I doubt we'll see new social media as well. " The emergence of the platform will also try to enter the e-commerce field.”

Of course, that doesn't mean existing Amazon sellers are being left behind. Jon Elder , an Amazon expert, seller and influencer, believes influencer marketing on Amazon is booming; "'Amazon Influencer' will become a job title," he predicts. Zaratsian agrees, and sees another benefit: “ With the rise of influencer marketing, I think Amazon attribution and video campaigns will take off on Amazon. I think Amazon will find new placements for sellers to More opportunities to win bids and expand spend on branded video campaigns they sponsor."

2. Virtual reality will play a bigger role in e-commerce

Virtual reality has been a hot topic for years, but we expect it to enter e-commerce in a big way by 2023. In 2022, Walmart invested in AI-driven "try-on" technology that allows their shoppers to change clothes on virtual models based on their bodies. It's a huge step forward for e-commerce in terms of customer experience, and Amazon isn't far behind.

"Innovations related to 'virtual try-ons' are expected to increase substantially through 2023," Elder said.

3. Off-Amazon advertising is more important than ever for Amazon sellers

Advertising is already one of the best ways to drive traffic to your Amazon listings, but by 2023, having diverse, far-reaching ads to stay ahead of your competitors — including other sellers on Amazon and other retailers — will be more important than ever It's more important than ever to be platform complete. We predict e-commerce on social media will rise, and advertising will have to follow suit; Zaratsian predicts that more advertising dollars will shift to influencer marketing on social media to help sellers stay ahead of new trends.

Smith doesn't think it will be that difficult. " I think 2023 will bring more advertising platforms for e-commerce sellers, and I think we'll also see existing platforms mature and offer more features to help sellers."

Of course, if every seller improves their advertising strategy, it will become more difficult to stand out from the competition. Elder has a solution: “ Brands can’t survive without banner ads and video ads,” he said. "They're going to be the norm going forward."

Mike Scheschuk, Amazon expert seller and Jungle Scout executive, noted that a key way for sellers to adapt to more competitive advertising in 2023 is to place ads outside the platform. “ One of the biggest advertising trends is marketing outside of Amazon and pointing content to your specific listings on Amazon.”

4. “Customers ask Alexa” will be an invaluable tool for sellers

In September 2022, Amazon launched a " Customers ask Alexa " feature that allows select brands to provide helpful answers to questions consumers typically ask Alexa devices, including references and links to products that solve the problem. By 2023, this feature will no doubt expand, eventually opening up to all registered brands on Amazon .

Amazon sellers are already excited about the potential of this feature. " I'm excited to see the 'Customers ask Alexa' feature evolve," Smith said. “I think seeing these common questions customers ask will be invaluable data for sellers – not just getting your voice and answers in front of them, but applying those insights to your listings and Other product marketing."

Summary of our 2022 forecasts and results

Now that we've made our 2023 predictions, let's see which of our 2022 predictions come true.

In 2021, we predict:

We haven't seen much hard evidence that this is happening, but we're still confident enough to predict that these changes will continue — especially after another year that includes supply disruptions due to the ongoing pandemic chain problem.

Amazon will start focusing on used and refurbished products to take on rivals like Facebook and eBay

Amazon isn't putting more emphasis on used products, but it has revamped its AmazonRenewed page to make it easier and more comfortable for buyers to find used and refurbished products.

We will see more tools and programs for brand owners such as A+ content and virtual bundles

The P&L dashboard we predicted isn't coming in 2022, but new features, such as opening up Amazon A+ Premium content to all brand owners, suggest Amazon is looking to expand the tools available.It's now easier to find data on branded keywords, purchases, and more

Amazon will create more social media-like features like the AmazonLive program

Amazon focuses on influencer marketing to sell more products. As the year has progressed, we've seen Amazon Live's increased visibility, and these are the changes we can expect to accommodate in 2023.

Cheers to success in 2023!

I don't know exactly what will happen in 2023, but I'm confident in the predictions that I and my fellow Amazon experts make. All of us are excited to see what the new year — and Amazon — has in store for us, and we hope you are too!

What are your predictions for selling on Amazon in 2023? Let us know in the comments below! Also, if you haven’t already done so, make sure to join our exclusive Amazon FBA Competitive Advantage Facebook group, where Amazon sellers can get advice from other entrepreneurs, including the experts at Jungle Scout.