Overcoming HFSS in Q4 2025 & Beyond
James Northcott and Megan Krasnici explain the HFSS ad restrictions hitting Amazon in Q4 2025 and which ad types and creative tactics still deliver results.
What it covers
This session breaks down exactly what HFSS means for brands selling food and drink on Amazon, and how the UK's restrictions tighten through Q4 2025 and into the new legal start date of 5 January 2026. Toucan CEO James Northcott and client director Megan Krasnici trace the rules back to their 2018 origins, explain why product-led creative is now restricted across Sponsored Products and Sponsored Brands, and set out what is still allowed, including brand-led creative through the brand store, Prime Video and audio ads.
The webinar gets tactical fast. Viewers learn how to rebuild a Q4 advertising strategy around Sponsored Brand ads, Sponsored Brand video, Sponsored Display and DSP with AMC audiences, backed by a real case study where a brand-led approach helped a client become the number one selling ASIN in grocery on Black Friday. There is also a clear breakdown of which promotions still work under the new rules, such as discount promotions and multipacks, and which don't, such as three for the price of one, buy one get one free and 50% extra free, plus practical advice on brand store setup, listing content and SEO to pick up the slack left by paid ads.
Beyond Amazon, the pair cover what HFSS means for TikTok and eBay, where the same restrictions apply and organic content becomes the priority. The webinar closes with a live Q&A covering the risk of reclassifying products, the small business exemption, subscribe and save, and range diversification, with one message running throughout: brands have had plenty of notice, so now is the time to invest in content and testing ahead of January 2026.
Full transcript
Hi, everyone. We're happy that these are all here today for our webinar. We're going to give it around 1:00 to 2:00 minutes here and let some people get joined in and then we'll get everything started. How are you and Megan and James, how are you doing today?
Oh, for sure. I just saw the post on LinkedIn about the Toucan Sports Day and I want to say I'm gutted I missed it, but the reality it's a little bit better.
OK, right. We'll get started now. We'll kick off. So hello everyone, and welcome to another one of our Toucan Talks webinars. I'm Curtis Ritchie, our Marketing Manager here at Toucan, if you don't know, and we're really excited that you've all joined us today, and we're really looking forward to running the session for you. So if you want to learn how your brand can overcome the HFSS restrictions in Q4 2025 and beyond, then you're in the right place. We have James Northcott, Toucan CEO, and Megan Krasnici, one of Toucan's client directors, who are experts here at Toucan on the topic.
So the session today is going to run for around 45 minutes. Could you flick through to the agenda, please, Megan? We're going to cover what actually is HFSS and have a quick look at the HFSS timeline. We're going to discuss the impact that it has on Amazon advertising, then take a quick look at what it means for other platforms such as TikTok and eBay as well. We're going to look at what actually the content restrictions are. And then finally, we're going to jump into a live Q&A.
Q&A at the end. So if you have any questions, please feel free to submit them by typing them into the Q&A section at any point during the webinar. I will collect all of these while James and Megan are presenting and we will then do our best to answer as many as we can. So I will now hand you over to James and Megan to take you through today's session.
Amazing. Thank you, Curtis, thanks for the intros. It's very nice of you to call me an expert on HFSS. But I think the reality is, Megan, that you've become quite quickly the unofficial spokesperson slash expert for HFSS in the Amazon world, at the very least our business. Maybe not a title that you wanted, but you've been brought into a lot of conversations with the brands that we work with about how to really navigate this new era under these HFSS restrictions, which don't seem to always be super clear and seem to be changing quite regularly. And I know that, you're always my first port of call for any HFSS questions that I come across. And I think it's one of those areas where if your brand is largely unaffected by it, then maybe that term HFSS doesn't mean that much to you, but it's changing the landscape on Amazon in the grocery category overall. So whether you're affected or not, brands need to know what it is and what it means for them. So maybe a good place to start would be why don't you tell us what HFSS actually is and then you and I can are some of the most common and some complex questions that we get on HFSS.
Thank you for that very kind introduction, James, I think, yeah, like you mentioned, it's not a title that I've fallen into gracefully, but it's one that I have taken hold of. So looking forward to chatting through with everyone today in terms of what is HFSS.
So HFSS rules aim to restrict the promotion of less healthy food and drink products as part of the Government's pledge to reduce obesity and improve overall health of citizens. HFSS, a tongue twister that I will wrap my tongue around a couple of times today, stands for high fat, sugar and salt and it refers to food and drink products that are classified as less healthy with components based on the Department for Health's new nutrient profiling score. These restrictions are subject to promotion and advertising and important in today's session on Amazon, there are restrictions put in place on the advertising and promotional activity that you can do on site. In scope are products like chocolate, sponge cake, popcorn and crisps.
In terms of a quick timeline before we get going, the restrictions on HFSS actually date all the way back to 2018 when then Prime Minister Theresa May launched a consultation on restricting the promotion of less healthy food and drink. Fast forward to April 2022 and this is where the Healthcare Act actually came into place. Within this, restrictions on advertising and promotions were meant to come into place straight away, but the timeline was pushed back several times as retailers and food producers said that details remained unclear. And I think we can all who work in the category attested sometimes.
These are still a little bit unclear today, but also pushed back due to the cost of living crisis as well. The ban on complete HFSS promotion and advertising was due to come into place in October 2024 and has been pushed back several times. In October 2024 some regulations came into effect on Amazon. So an example of this is products couldn't be promoted on the homepage and search engine pages and ads couldn't direct to product detail pages. We'll dive into more detail of this in a couple of questions time.
But the big ban that looked like it was going to come into place in January this year has been delayed in terms of tighter restrictions to now the beginning of 2026 with this brand advertising had been confirmed by the government that it would be exempt from the rules. But we'll touch on the fact that actually it's the Advertising Standards Agency that holds all the cards here when it comes to what actually the ad restrictions look like in terms of this year so far. So in October, advertising broadcasters have been encouraged to voluntarily align with new rules from this point, but that doesn't mean that HFSS is going to restrict all of what you can do in Q4 this year. And then the new legal start date for the other restrictions is now the January of January, the 5th of 2026.
So in terms of what this then looks like, what does HFSS compliant advertising look like on Amazon despite the government allowing for brand-led ads like I mentioned, the final say is down to the Advertising Standards Agency and they have yet to formally announce what January 2026 onwards will look like. However, for Q4 this year for definite, what we know is that product-led creatives are entirely restricted across sponsored ads. This is different from current restrictions as at the moment we can use product-led creatives across DSP ads. So what will be continued though is that there will be a complete restriction across product-led ads on sponsored product ads and sponsored brand ads and sponsor display must drive to the brand store and are only allowed if you have a brand-led creative that doesn't feature the product and has no featured product in its actual creatives in Q4 this year, however, can be brand-led.
So think bold when it comes to your creative. A great example of this to date is an ad that I'm sure we've all seen on TV at the moment. It's the Cadbury's ads which actually make me really emotional every time that we see them because they're very much bringing in human connection into the ad and then feature the Cadbury's logo at the end. So bringing in their brand strategy of human connection and then finishing with their logo to round it all off and draw customers in, in terms of on Amazon, what the restrictions actually look like.
This is a quick chart that pulls together what is available to you this Q4. As you can see, product-led creatives are almost entirely restricted apart from across the brand store, through Prime TV ads and also through audio ads later on. In a couple of questions time, I'll touch on how best to use these as part of your strategy in Q4 this year. However, if you look on the brand-led creative side, this really leaves the door open for you as a brand to grow your visibility through sponsored ads and the DSP ads are available.
I think I very often at the moment are having conversations where brands are really, really concerned that they're not going to be able to advertise at all. And this is absolutely not the case. There are very much ads available that we can use across Q4 and ads that can be tailored to fit the strategies that you want to use across the period and the KPIs that you want to fit and the holistic strategy of your brand.
So in terms of what this means for your advertising strategy, we want to look at it in terms of the advertising funnel. So if we think about awareness, consideration, conversion and loyalty, when you think about the advertising funnel, traditionally at the top we have awareness. And this is where we would think about using aspirational storytelling and high impact visuals to ensure that we're creating an emotional connection with your customers at the earliest stage of their purchase journey. So actually brand-led creatives are really well suited here.
As you move down the funnel, this is where it gets a little bit more tricky as we come to the consideration, conversion and loyalty stages. At the lower stages of the funnel, advertising creatives that we would traditionally use and that in strategies often are seen as working the best are the ones that feature products and feature reviews. On Amazon, we talk about this all the time. Reviews are the only real element of social proof that your customers have that help enforce brand reliability and enable them to have a connection with other customers who have purchased the product. And this is where HFSS becomes a bit tricky, as strategies that would work well for conversion traditionally aren't available to us. A great example of this is the one that we can't use at all, which is sponsored product ads. They work because it features a product in the search engine page with reviews and the price.
However, again, all is not lost. There are lots of different ways we can move this around and I'll come on to what this looks like in Q4 and how you can best win across these. It comes down to the fact that as brands, and as your agency, we have to get more creative with what we do in terms of your strategy, getting creative with the creatives and also at what parts of the funnel we're then using different ad types. We become a lot more reliant on upper funnel activity to impact conversion. And this is where the importance of different creatives come into play. We need to focus on being much more targeted. And I'll touch on how best to do this later on as we come into Q4.
Before we get there, I also think it's really important that we dive back towards where most Amazon journeys begin on the vendor side, the joyful AVNs. And a question that we often get asked is what is the impact that HFSS will have on your AVNs, James.
Yeah. So before we talk about AVNs, I think the slide that you presented of what is and isn't allowed, if anyone wants that, reach out to myself, Megan or Curtis, would be happy to share it. So I think it really serves as a good cheat sheet for what you can and can't do both now and in the future.
But yeah, when it comes to AVNs and we all love an annual vendor negotiation and we know that Amazon like to turn the screws in these conversations and they get trickier every single year. Obviously, we can't predict how future AVNs are going to be impacted. We can make our best guesses and we do know a few things. I think first and foremost all brands are in the same boat here. So there is very much a level playing field. So in these AVNs, we know that Amazon will always try and find some leverage when they're having these conversations with brands. But ultimately because of HFSS, they can't do that. They can't say, well your competitor is investing in X, Y and Z when you aren't. Because the reality is all brands are in the same boat and we know that net PPM or and or contribution margin that doesn't factor in ad spend. So those metrics are going to remain unaffected.
Now we do know that in AVNs, Amazon will pick out whichever P&L best suits their argument. So sometimes they'll talk about our well, your advertising spend has gone backwards whereas your competitors are investing more. And the advice here would be like plan and prepare to show Amazon what you're doing with that ad spend that maybe you had reserved for these ad types or ad slots that you can now no longer invest in. And show them that maybe you're putting that investment into developing your content, your imagery, your A+, your brand stores. And I think it's going to force brands to be a bit more strategic about that content, but also about the selection they have on Amazon and the pack formats they have as well.
So AVNs I think overall will remain largely unaffected. But walk into those conversations with an understanding of where you've planned to reinvest your ad spend into things that are going to make Amazon listen. And I think content and selection are the two key ones there.
Thank you so much, James. So then in terms of setting your brand store up for success, if we go back to the cheat sheet that James just mentioned with what ad types we can use across Q4, I think one of the areas that is most stand out is the fact that post October and into 2026, brand stores will be staying as they are. You can still use them. This means that you can use product-led creatives and video across your page.
In terms of setting up the video for success here, it will be really important that you use videos at the top of your brand store that are product-led and feature USPs that really set you apart from your competitors. It's also really important when setting up your brand store for success post restrictions that we reduce the number of clicks to purchase for your customers.
There are two sides of brand stores. When we look at this post, post October the 1st is when we're setting up to send your ads there, as ads can't run to product detail pages, they have to run to the brand store. And also in terms of bringing in organic customers through your product detail pages, it's going to be super, super important that in terms of your advertising side that we have dedicated pages for the products you want to sell through your ads. So, for example, if you're running a gifting campaign through your sponsored ads and through your DSP, it's really important that we have a dedicated product page on your brand store of the products that you're selling through this campaign. This means that we can send customers directly towards these products with the ads that we want to feature them within, that we can't have the actual product in anymore. By doing this, we're reducing the number of clicks that customers would have to take if we sent them to the main page of the brand store and then they had to click through to the different pages to find the products. This way we can create a clear customer experience from ad interaction to purchase, reducing the ability for customers to be distracted or move off the page before they have the chance to purchase.
In terms of organic content and organic customers into the brand store, it's really important that we have a clear flow for customers that when they come into the brand store, it's really easy for them to navigate between the different pages to make their product selection. Make sure that your brand store leads with your best sellers and NPD, as we don't have the ability to advertise NPD so easily within HFSS. Featuring the product for customers and highlighting what's new within your brand. Having these NPD at the top of the page will enable your customers to see them as they come into the main page and highlight that there is something new that you have available.
Brand stores also now feature a great metric. One of these is dwell time, that you can measure your success of your brand store versus your competitors. And I think through Q4 this year, this is going to be super important. Testing is one of the things that I'll come on to you later, but you can test on your brand store too. Look at your metrics and see what's working, see how many views you're getting on the different pages and then move things around, continuously learn with the data in order to make sure you're driving as much traffic to your store as possible.
In terms of other questions that we regularly get asked, one is around promotions and if promotional activity will stay the same post October. It's a really great question as Q4 is ripe with promotional periods. We have Amazon Prime Day in October, we have Black Friday, Cyber Monday and gifting ultimately in December.
So in terms of regulations that come into place with HFSS, there are regulations on volume based promotion. So things like 3 for the price of 1, you won't be able to do, buy one get one you won't be able to do. And 50% extra free promotions that are adding volume are no longer available. However, what's out of scope and still available over promotional periods is discount promotions. So 50% off, 25% off. The traditional promotions that you would use as top deals and best deals remain still allowed. Multi packs, if they're considered one single item and have no value promotion on the packaging, are also allowed, so you can still sell your multi packs on site as well.
In terms of how you use this to grow over promotional and key selling periods, you absolutely should still be investing in top deals and best deals for Black Friday and Cyber Monday. These are your real opportunity to stand out across pages and you'll still be able to be featured on best deal and top deal pages. It gives you even more visibility as well with the actual product featured and it will help you continuously drive conversion and visibility without ads and without the product-led ads available.
It's really important within this and a mistake that I've seen a brand make is to audit listing imagery to remove any mention of value based promotion. And I've seen listings pulled down for this with HFSS ads. So one to keep an eye on. Make sure that you speak to your account manager and we go through your listings ahead of these to make sure that there isn't anything that could create a flag for you.
So back to the big one, how can your brand still thrive through Q4 and what ad types should we be focusing on? Despite the regulations, there is still a wide open availability of ads to you and that can help you win across Amazon.
We worked with a brand in Q4 last year where the primary focus, with sponsored ads, we use DSP as well, but we were able to use product-led in DSP last year. So I'm just going to touch on the sponsored ad strategies that would remain the same this year. Within that, we had to use brand-led creatives as we weren't able to use product-led ones. And our strategy enabled the brand to become the number one selling ASIN across grocery on Black Friday. So you can still win with brand-led creatives.
It's important with these to prioritise creatives that customers can still resonate with despite the restrictions and despite product not being featured. Something to remember here is that your customers will recognise your brand from colours that you use, from icons that you use that aren't actually the product. And here you can really easily then draw customers in and play on the emotional connections that they already have with your brand and feature these in your ad creatives in order to resonate with them and draw them in.
In terms of what ad types specifically that we should be using, like I mentioned, you have to move around your strategy slightly, starting with sponsored brand ads. These are going to become one of your primary conversion drivers and whilst in a traditional funnel seem slightly further up in the consideration phase, that doesn't mean they can't be used for conversion. We just have to be slightly more targeted in our approach.
Really important here will be that you're using data and analysing what's previously worked for your brand. What we did last year for the brand that we worked with was to ensure that we looked at the keywords that they'd won with historically and also used data from keyword tools to look at where the highest volume was in Q4 and really reduce our targeting list from what you would traditionally have. This enabled us to make a really targeted list of the keywords that we knew would work in terms of conversion and where we knew the brand would, would, and has won before, which enabled us to use sponsored brand ads at a higher volume, with the extra cost that's incurred from the ad type. It's also really important to look at AMC, Amazon Marketing Cloud audiences, and build these into your sponsored ad strategy. These will allow you to become even more targeted with your sponsored ad strategy and push your ads towards customers that are looking for products in your category.
Sponsored brand video is going to become an ad type that is incredibly important for increasing visibility for HFSS products. Not many brands will have video available to them this Q4 that is brand-led. And so it's really important that you get ahead of your competitors and have brand-led video available that you can use in your sponsored ad strategy within the search engine page on Amazon. You are still able to use your video, there's still slots available. They're just not often used in HFSS categories because brands don't have them. So if you had that, it would give you an ability to stand out and draw customers into the brand, draw them into your brand store. And as we spoke about, you'd have a product-led video at the top where they can then see the continuation of your brand, the USPs that you have, and what they should be purchasing.
Sponsor display ads will be a primary conversion tool as well over Q4. These are excellent for drawing customers in from competitor pages. You can use AMC data here as well to look at remarketing audience times and where you should be doing this too. Making sure that you're using the different ad types at different stages of funnel will enable you to drive conversion still. And making sure that you're using headlines and ad creatives across your sponsor display will help to draw in your customers without being reliant on social proof and your product-led creative because they've already got the emotional connection to your brand.
DSP is going to be super important. We want to be using AMC to refine your targeting. DSP is often thought of as a tool that you have to spend loads and loads of money on and this is absolutely not the case. We worked with a lot of brands and tested using DSP to target loyalty audiences and this often works at a greater level than your sponsored ads loyalty audience. Loyalty targeting works because we can go more granular, so in Q4 using this to do your remarketing with the extra data on demographics we have available will be vital for helping you to increase your customer loyalty within the category and not let them be lost to your competitors.
Prime Video is one of the only options you have available where you can feature your product. This will give you the opportunity to have videos that will be product-led and you can do this after 9:00 PM with day parting. This is not something that is unusual within grocery. Alcohol has been regulated in a similar way for years and years now, and alcohol is still a category that wins and wins over Q4. So with day parting, you can still have the ability to reach customers with product-led ads through Prime Video with investment and you can talk to your account manager individually about this or we can jump on a call to discuss it further. You can have different investment levels. You can do things like brand lift studies, which gives you the ability to look at how many more customers are purchasing from your brand and what the different recollection of your brand is after using these ads as well in terms of the ads we have available.
Then to sum up, sponsored brand ads, sponsored brand video and sponsor display ads to reach customers on site. And then building DSP with AMC for granularity and helping ensure a stable ROI. When you're building in loyalty audiences aim to reach all elements of the funnel. Still, we absolutely still can, despite this looking slightly different from a traditional strategy. So over to you, James.
Cool. Thank you, Megan. HFSS is making Amazon ads clearly a bit of a minefield and to an extent the promotional side of things as well. But the short answer to does it affect PDPs is no, they're not paid placements, so they remain unaffected. And I think this is where brands are really going to need to redirect their efforts. The problem is all of your competitors will be doing the same thing. HFSS is limiting the amount of things you can do to get ahead of your competitors. And everyone's going to be looking at PDP. So both text content and imagery are obviously still going to be critical for success. But I would say now more than ever.
So from a text point of view, I mean it's Amazon 101, but it's optimised your titles, your bullet points, your description, your back end keywords. But do it based on in depth, thorough keyword research and don't just do it and think you're done. You need to be going back and checking those keywords. I would say on a monthly basis, search volumes change, search trends change, especially over Q4. So you need to be constantly looking for those little micro gains to get ahead of your competitors. Do you have the right search terms in the right places, the right number of times?
And then you've got imagery as well. And something I say to pretty much every brand I speak to is you need to be totally obsessed with two metrics, click through rate and conversion rate. Now ultimately when Amazon are deciding or it's algorithm is deciding which products to surface, top of search, middle of search, rest of search, it's ultimately comparing your brand and your products to your competitors. And the ones that have the higher click through rate and the higher conversion rate are generally the ones that win. So AB test, AB test your titles, AB test your main image, make micro changes to your main image, make your the size of your product pop out that little bit more and constantly, constantly be going back and checking it.
And I think to add another layer of complexity to all of this and the SEO conversation on Amazon is that Rufus, Amazon's AI shopping tool, is now scanning imagery for text as well. So it's more important than ever that you have text content and USPs within your imagery. It's going to get very, very competitive and brands who aren't able to advertise are going to be turning to other areas to win. And the obvious one is content, both text and imagery.
Great, thank you. Very important points around imagery and copy for Q4. In terms of some creative strategies that we can use without relying on promotions, I think there's a couple of different ones.
When I talk to brands on areas they can win with HFSS, James has just touched on a really important one, which is testing and learning across content. You really need to be ahead of the competition and any way you can make micro gains with your content, your conversion rate, your click through rate is vital. So make sure that you're running tests on your titles, your copy, your description, your main image to ensure that the images and the copy that you have is the highest converting content.
The next one is range diversification. So a little bit more costly, but you will have seen this. So Mars have launched a protein range. An interesting one I've seen recently is Monty Bojangles are now selling a teddy on Amazon to bring customers into their brand store. So really creative uses of range diversification. And this is there's one area where you can really expand your range and step away from the HFSS restrictions. Categories like hot chocolate aren't subject to restrictions. So introducing products that are outside will help you still be able to use the product-led creatives. And if you're a smaller brand, introduce customers to your brand still with product.
You want to be telling compelling stories with your ad. As we've touched on, I think one of the areas that are one of the brands we worked with one last year was by still using the emotional connection that they have with customers. They sell products that are shaped like different animals and they created videos that had cartoons of similar looking animals and but they were cartoon versions. So they were exempt from the restrictions and this drew in customers emotional connections and enabled them to resonate with the ad and tell a compelling story about Christmas without actually featuring the product, but still focusing on brand recall and bringing in the brand to the ad.
James touched on a really important one, SEO. We want to be constantly updating with seasonal trends. I think one of the big events over Q4 is Halloween. And actually if you look at the search volume trends, the search volume peaks only a week before the actual event. So you need to be updating your keywords regularly. I would absolutely agree with James that monthly is the right amount of time specifically for HFSS categories to be making sure that you have the keywords that are delivering the most volume in your SEO. But also in your ads, making sure that you are focusing on where customers are will help you win and not induce really high costs. And then your brand store, ensuring that your whole range is there separated and created into a really easy flow for customers to ensure that they can reach your products with the products that they're looking for and then the impact on other platforms.
Yeah. So we have lots of conversations with what I would call mature Amazon brands who are looking really to other platforms to diversify. And obviously TikTok is hot topic right now and has been for the last few months. And honestly, I wish I had like a more positive take on this slide. But the reality is that for brands constrained by HFSS, the rules are consistent across all digital platforms. And it probably makes things a little bit trickier on TikTok than it does on platforms like Amazon and eBay. eBay, really, you've got the same restrictions as Amazon.
So focus on your organic content when it comes to TikTok. Again, brands aren't going to be able to advertise on TikTok, and this rules out all of your paid placements. So that's the obvious things like your in feed ads, your Spark ads, which is where a brand puts spend behind an affiliate's organic post, but actually also rules out affiliates, which is a massive part of any brands TikTok strategy because since they're paid a commission, it falls under the constraints. So ultimately, if you have any non-HFSS items in your catalogue, you have to prioritise those. If you don't, once again, the message is focus on organic content. It is a little bit of a grey area, but you really just need to be aiming for virality with your organic content. So really prioritising highly engaging hooks, making sure you've got the right on screen text, the right hashtags, the right captions. Again, it's just searching for those micro gains to get ahead of your competitors and it comes down to organic content. That is where brands that are constrained by HFSS really need to shift their attention.
And then implement all of those creative strategies, Megan, that you've spoken about across sponsored ads, DSP, utilising AMC and promotions. But again, every brand is in the same boat and the rules apply across all digital platforms. So really brands need to get creative and they need to start doing it quite soon because the Q4 peak is big and we'll be there before we know it. And now is the time to be looking at your content, looking at your advertising, looking at your promotions and making sure that you are prepared because we've been given enough notice of these restrictions.
That's absolutely great. Yeah, thanks, both James and Megan. Thanks for sharing. That was super insightful and what brands really should be considering when trying to overcome these HFSS restrictions. I guess we'll jump into our Q&A section now. We've got a few questions here that we can go through.
And first, to start us off, James, let's start with you on this one. Is there an impact or risk of changing in scope HFSS products to out of scope to avoid the advertising restrictions?
I would say there's no risk currently, now that could change. Amazon might decide to not look kindly on that. I think right now what they're saying is like nice try, but no, like they are just reclassifying it so you can give it a go. I hope this isn't recorded or I think it is so maybe I shouldn't be saying that, but you could try it at your own risk. Of course, what we've seen so far is that Amazon will just reclassify it. But it's worth noting that Amazon are checking products off site as well. So whatever you're telling Amazon, they are going to check that elsewhere. So be cautious. And in all seriousness, it probably is best to play it safe and try and stick to the rules because if Amazon don't call you out, maybe your competitors will.
Yeah, definitely. I think play it safe. On to the next question, Megan, maybe this one for you. HFSS has a small business exemption. How does this work on Amazon?
Yeah, absolutely. So within the official restrictions, the small business exemption applies for brands that have less than 50 employees on Amazon. This comes into practice. With that, you can apply for the small business badge and speak to your account manager, speak to James and I afterwards. We can give you all the information as to what you need to do to apply for this and it will be information that you already have readily available if you do fall into that category.
However, Amazon as we know has various different departments and the small business badge is relevant to the seller central side and the retail team and the ads restrictions are policed by the Amazon Ads team. So whilst we can get you the small business badge and in theory, and it has worked for brands of ours for a period of time, that should allow you to have access to all the ads that you would have within the category that you should be able to use sponsored product ads, sponsored brand ads, you should have the full suite available. However, because they are very separate and Amazon has a tendency to not speak to each other across the different teams, it can fall into the fact that your ads get pulled down by the Amazon advertising team who are regulating it. And actually then you can't get them back live because they don't then recognise what's going on in the seller side. So it becomes a bit tricky.
I'm always really hesitant to promise that that will be a fix for brands that are small businesses. And I actually think it's really important to build your strategy out with the element of looking at both sides of the scenario. So look at best case, look at worst case and have opportunities within both to ensure that you can still win.
That's great. Thanks, Megan. We have a question here from Stephen. He says that volume restrictions are also part of the new HFSS legislation. Do we know what this means for subscribe and save on Amazon?
Yeah, so from from where I've spoken to various AV, SS and vendor managers, subscribe and save shouldn't be effective because it's on one product. So cost incentive is shouldn't be affected by HFSS. Amazon are considering subscribe and save off of the single purchase each time, so it shouldn't then be affected is what I've heard so far.
OK, nice. We hope that answers your question there, Stephen. We have another one here. You did touch on it earlier, Megan, with range diversification. What will this impact be on an overall advertising strategy?
Yeah, absolutely. So I think range diversification is great. If you have products that are then out of scope, it means that you can use the full advertising suite on those specific products. It means you can use product-led ads to send to your brand store as well, which will enable customers to see what products you have available and then send them to your brand store. However, this doesn't mean that you can use HFSS products alongside your non-HFSS products within your ad. So it doesn't mean that just because you have an out of scope product, you can then put an in scope product in and have the full range available to you. Range diversification allows you to create more brand visibility as an extra opportunity to win. But unfortunately it doesn't mean that we suddenly then have access to the ads that we wouldn't have available for HFSS products. You can still send your ads to the brand store with your out of scope products, which would mean your HFSS products could then be seen, but it doesn't really change what ads you can use with HFSS products.
OK, thank you. And then let's look at one last question. How can brands then get ahead of the January change and the further exemptions? Content wise, invest now, is as simple as that. Don't sleep on this. Brands know this is coming, and ultimately content creation takes time, but so does AB testing. It's going to take a good few weeks if not a couple of months to really understand whether the changes you are making to content is having a significant impact or not and you need to be well prepared. So we're nearly in August now. Q4 really is around the corner. So invest now and yeah, don't waste any time.
Yeah, it's definitely super important to get ahead and Q4 will be here in no time at all. Folks, I want to say thank you all for coming. We'll wrap up the Q&A there today, but thanks for coming to our webinar. If you would still like to get in touch with us, if you would like any more information regarding HFSS, please do get in touch with James via e-mail at james@toucanecommerce.com or Megan via e-mail at megan@toucanecommerce.com. If you want the cheat sheet, if you need to know more information, just get in touch. And we hope to see at another Toucan Talks event, whether that is online or in person in the future. So thanks and we hope you have a great rest of your day. And thanks, Megan and James.
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