[LWN] šŸ’” The Day The Trust Died...

Lunch With Norm's Weekly Newsletter - Amazon News & Updates

šŸ’” The Day The Trust Died…

What you’ll find in this week’s newsletter:

  • šŸ’” The Day The Trust Died… [True Story]

  • šŸ‘Ž ChatGPT 5 is Here… And it’s Disappointing [Deep Dive]

  • 😮 Amazon Sellers Are Making The Move Abroad

  • āœ… Amazon PPC Hiring Checklist

  • šŸ”Ø Build Amazon Ads Inside Canva

šŸ”„ Have you signed up for BDSS 12? You won’t want to miss this event.

šŸ’” The Day The Trust Died… [TRUE STORY] 

Years ago, my partner and I teamed up with a company that wanted to do business together.

They needed sales, and we needed capital.

It was a perfect match.

Or so we thought…

We agreed all sales went through them, and in return, we'd learn the business.

We were on track to do about $2 million in sales, making them a nice profit while we got commissions.

To be clear, we were separate businesses but we had our own office next to them.

One day, my karate instructor asked for six jackets for us to work on.

I checked with one of the owners' wives of the company, who handled all the orders.

She gave me the green light to make them.

What I didn’t know at the time was that she didn’t want to bother the owner with the paperwork on such a small order.

Anyway, the owner's wife dropped off the jackets about a week later to our office.

Later that night, my business partner and I were coming back from dinner.

We saw the lights on in our office.

Were we being robbed?

As we got closer, we saw the owners were inside.

When we pulled up to the office, they were just as surprised as we were.

They had the six jackets.

The one owner said ā€œThe gigs up.ā€

He was accusing us of doing independent orders and cutting them out.

We started laughing at first, but it quickly turned into anger.

I told him, ā€œI guess you didn’t check with your wife.ā€

And he rebutted, ā€œWhat do you mean?ā€

I told him to call his wife and give us the jackets after the call.

After his call, he apologized but the damage was done.

Next day, we moved out, they lost millions in sales and our respect.

The lesson?

Communication and trust are everything in business partnerships.

Without it, a partnership has no foundation and will never last.

Once the trust is gone it never comes back.

Enjoy the rest of the newsletter.

— Norm

P.S. Have you heard the Amazon Seller Anthem from Intellirank?

They did a great job haha.

 

šŸ‘‡THE TOP MUST READ STORIES THIS WEEK šŸ‘‡

šŸ›‘ US agency approves OpenAI, Google, Anthropic for federal AI vendor list. This aims to loosen environmental rules and vastly expand AI exports to allies, in a bid to maintain the U.S. edge over China in the technology.

šŸ›’ Amazon announces second quarter results. Net sales increased 13% to $167.7 billion in the second quarter.

šŸ”„ Amazon sellers agree that succeeding in e-commerce in 2025 means looking to TikTok Shop. TikTok Shop is taking off, particularly the live selling feature.

šŸ§‘ā€āš–ļø US to ease long-range drone rules for Walmart, the move will help the US become a bigger player in the consumer drone market.

šŸš€Amazon continues to speed up fulfillment in Q2 as sales grow. Amazon looks to incorporate more generative AI tools into fulfillment, Alexa+ and more. 

šŸ›ļø Amazon secures largest-ever legal win against global fake review network. Amazon won a case against the operators of more than 75 fraudulent websites that marketed the sale of fake reviews and fake Amazon seller accounts.

šŸ“±Online video is dominating TV. Data indicates that people now spend more time watching online video content than they spend watching TV, even when that TV figure includes streaming.

 

😱 šŸ“‰ GPT-5: The Big Letdown

OpenAI’s long-awaited GPT-5 dropped this week with promises from Sam Altman of ā€œa legitimate PhD-level expert in anything.ā€

The reality…

Why did we have such high hopes?

This is what Sam Altman told us to expect:

ā€œWe think you will love using GPT-5 much more than any previous Al. It is useful it is smart it is fast [and[ intuitive. GPT-3 was sort of like talking to a high school student.

There were flashes of brilliance lots of annoyance but people started to use it and get some value out of it. GPT-4o maybe it was like talking to a college student…. With GPT-5 now it's like talking to an expert — a legitimate PhD level expert in anything any area you need on demand they can help you with whatever your goals are.ā€

But that’s not what people are experiencing…

Reasoning & Logic:

  • Chess failures: Still breaks basic rules mid-game, losing track of legal moves.

  • Math/Counting: Initially stumbled on simple tasks (e.g., counting letters in a word). Some were patched quickly, but the fragility remained.

Vision & Spatial Reasoning:

  • Image comprehension: Struggled with ā€œparts and wholesā€ challenges—problems as simple as identifying correct relationships in images.

  • Old models for images: Users claimed the vision system still relied on older architectures, undermining the ā€œfully multimodalā€ promise.

Routing Mechanism:

  • GPT-5’s new automatic ā€œroutingā€ (choosing the right sub-model for a task) often misfired, producing irrelevant or wrong outputs.

In Short:

  • OpenAI’s perceived lead shrank overnight. Polymarket odds of them having the top model in August plunged from 75% to 14% in an hour.

  • Competitors (Anthropic, Google, xAI) are closing the gap.

  • A lot of their top talent has walked out, with many going on to launch competing companies.

  • Rivals like Elon’s xAI, Anthropic, and Google are moving fast, and their partnership with Microsoft isn’t as solid as it used to be.

  • The business side isn’t looking much better. They’re still not profitable and are having to cut prices.

  • Public skepticism toward Altman’s AGI claims is growing.

GPT-5 is a moderate upgrade with the same old cracks and a few new ones.

What do you think?

Check out AZ Rank and get your complimentary quote!

😮 Amazon Sellers Are Making The Move

My takeaways from this episode! (Find the full episode on YouTube):

  1. The Biggest Growth Opportunity May Be Outside the U.S.
    The U.S. Amazon market is saturated, CPCs are climbing, and margins are shrinking. In many European countries, online competition is far lower, and sellers can scale faster with less ad spend.

  2. Compliance is Non-Negotiable
    VAT setup is just the first step. Sellers also need to be aware of:

    • EPR (Eco Taxes) for packaging, plastics, electronics, batteries.

    • CE/UKCA marks and other category-specific product regulations.

    • Country-specific labeling and language laws.

  3. Localize Listings for Cultural Preferences
    Each market responds differently:

    • Germany – Detailed facts, specs, and compliance info.

    • Spain – Lifestyle imagery and emotional appeal.

    • UK – Balanced mix of lifestyle and product details.

  4. Look for ā€œHiddenā€ Demand & Hijacked Listings
    Some sellers discover their products already being resold in Europe without their knowledge. By expanding directly, they reclaim control and capture sales already happening under their brand.

  5. Treat It Like Any Major Launch Research, Test, Scale

    • Start with one market (often UK), test sales, then expand to others.

    • Ensure logistics, compliance, and translations are in place before scaling Pan-EU.

šŸ”„ Amazon Launches It’s Very Own AI Assistant for Sellers!

Credit to Mansour Narouzi for the catch!

 āœ… Hiring Checklist For PPC Specialist

Past podcast guest and PPC expert, Neha Bucher from Atom 11 shared a fantastic checklist on her LinkedIn for finding your PPC specialist.

Why I care?

This is something I personally struggle with… Finding competent trustworthy Amazon specialists.

Every PPC specialist has their own strengths.

The key is finding the right fit for your brand or agency.

Here’s an 8-point checklist to help you hire smarter for Amazon Ads in no particular order.

1. Budget Experience
A PPC manager might handle accounts of all sizes, but KPIs and operations change with scale. Make sure they’ve worked at the budget level you’re hiring for.

2. KPI Ownership
Do they talk in terms of results (e.g., ā€œIncreased sales by X%,ā€ ā€œImproved ROAS by Y%ā€) or just tasks (e.g., ā€œManaged campaigns,ā€ ā€œControlled ROASā€)? Results-driven language is a green flag.

3. Metric Depth
Everyone knows ACOS and TACOS but can they go deeper? The more aggressive your sales goals, the more in-depth their understanding needs to be.

4. Bid Calculations
Whether they use software or not, they should understand the math behind bidding. If they can’t explain it, they’re likely running trial-and-error campaigns and that can cost you long term.

5. Situational Thinking
Can they diagnose and solve real problems? Give them scenarios (e.g., high CTR but low CVR) and see if they can identify the cause and outline a solution.

6. Automation & Tech Stack
Do they know how to use automation effectively and when to avoid it? Even if you want to run ads manually, understanding the tech is essential in 2025.

7. Strategic Levers
How wide is their toolkit? Can they quickly list…
→ How to control ACOS
→ Ways to drive traffic
→ How to increase conversions

8. Advanced Capabilities
Are they curious about new features and strategies? Do they explore advanced ad capabilities on their own? This shows how well they’ll scale with your ad spend.

What do you look for when hiring?

Check out Neha’s full post on Linkedin.

šŸŒŽ Where in the World is The Beard Guy?

Can you find Norm in the picture below? Scroll to the bottom of this newsletter to see the answer!

šŸš€ Build Amazon Ads Inside Canva

Credit to Ritu Java and her newsletter.

Ritu is one of the very best in the business and she did an excellent breakdown of this new app inside Canva.

There are two new Amazon apps inside Canva, and they make building creatives way smoother than I expected.

To get to them, go to the Apps section in Canva and search for ā€œAmazon.ā€ Two options pop up:

  • Amazon Ads App

  • Amazon Creatives App

Once you pick one, here’s what you do:

  1. Choose a template from the curated Amazon-ready designs

  2. Customize it with Canva’s drag-and-drop editor

  3. Run real-time compliance checks for Amazon as I build

  4. Connect my Amazon Ads account

  5. Publish straight to my creative asset library

The best part is you can change anything in the templates, fonts, layouts, colors, images so the final creative still looks and feels like my brand.

There’s also a second app for Amazon Creators that lets me post Canva designs directly to my Amazon Storefront.

Perfect for influencer content, collection updates, or promos.

Both are in Canva under Canva’s Apps > Amazon Ads or Amazon Creators.

If you’re already working in Canva, this cuts out so much back-and-forth.

You can design, check, and upload all in one place.

For more great tips I highly recommend the Ritu’s newsletter below.

The AI for E-Commerce NewsletterIn today's rapidly evolving landscape, staying ahead of the AI learning curve is crucial for relevance. More importantly, you need to start implementing AI in your business TODAY! The AI for E-Comm...

šŸ”„ The Dark Truth About the Amazon Supplement Industry

Here are my favorite tips from this episode!

  1. Build Differentiation Beyond the ā€œWhite Bottleā€
    Standing out in supplements now requires more than just label design. Successful brands differentiate through form factor (capsules, gummies, strips, patches), colors, sustainability, and unique packaging — not just ingredients.

  2. Vet Manufacturers Relentlessly
    Before signing, verify NSF certification, FDA compliance, and cGMP standards. Many brand owners skip this step and end up with unreliable partners, missed deadlines, or products that don’t match label claims.

  3. Use a Competitive Bidding Model for Manufacturing
    Turnkey Health & Beauty uses a LendingTree-style network: one dialed-in formulation is sent to 7–12 vetted manufacturers for bids, then the best two or three are shortlisted. This saves time, gets better pricing, and ensures higher quality.

  4. Focus on Symptom-Based Solutions, Not Generic Evergreen Products
    Instead of launching another turmeric or fish oil, create targeted formulas for specific problems (e.g., ā€œnon-melatonin sleep aidā€ for people who avoid melatonin). This allows niche marketing and community building.

  5. Compliance-Friendly Marketing
    You can’t claim to cure or treat diseases on Amazon or TikTok. Instead, talk around the symptom, share personal stories, and use visual metaphors (e.g., ā€œmelts like butterā€ instead of ā€œburns fatā€).

  6. Trends & Formats to Watch

    • Gummies are still dominant across health, beauty, and pet niches.

    • Alternative delivery systems (dissolving strips, patches) are emerging, though limited by dosage capacity.

    • Pet supplements remain lucrative due to emotional buying, high LTV, and fewer regulatory hurdles.

  7. Plan Realistic Budgets for Competitive Entry
    For a serious launch, expect $70K–$90K total:

    • ~$40K for 5,000 units (including influencer seeding & Vine reviews)

    • ~$30K–$50K for website, Amazon optimization, creative assets, and initial marketing
      Small 500–1,000 unit orders rarely compete without deep community engagement or outside traffic.

Find this episode of Marketing Misfits on YouTube and anywhere you listen to podcasts

šŸŒŽ MARK DOWN THESE EVENTS! šŸŒŽ

August 19 - Virtual - Starting at $697

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→ FULL CALENDAR ←

And that’s it, Beardos.

See you next Monday!

- Norm

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