Hey Fellow Amazon Sellers,
We’re back with another weekly roundup to keep you sharp, informed, and ahead of the curve. This edition covers major updates from Amazon, Walmart, and the AI world—along with actionable tips to navigate Prime Day and beyond. Let’s dive in!
News
Study Shows LLM Conversion Rate Is 9x Better — AEO Is Coming
LLM traffic, such as from ChatGPT, is converting nearly 9x better than traditional search, marking a massive shift in how shoppers discover and act on product recommendations. Instead of scanning websites, users are asking LLMs direct questions—and converting at higher rates because the experience feels like trusted advice.
This behavior has given rise to Answer Engine Optimization (AEO), where being cited by LLMs is the new visibility battle for brands. For Amazon sellers, the message is clear: if you’re not part of these AI-generated answers, you’re invisible to the highest-intent traffic online.
Amazon to Mess with Sellers’ Transit Times
Amazon will begin automatically adjusting sellers’ standard transit times based on actual delivery performance, aiming to better align with customer expectations. This change could override seller-padded timelines, potentially increasing customer service inquiries and order pressure.
Amazon says sellers are still “responsible” for accurate transit times—even though Amazon is the one modifying them. For Amazon sellers relying on buffer periods to avoid A-to-Z claims or buyer complaints, this update demands close monitoring of shipping templates going forward.
Walmart Explores “Dark Stores” for Faster Deliveries
Walmart is testing “dark stores” in Texas and Arkansas—warehouse-style facilities designed to speed up delivery, with no customer access. This shift aims to meet growing demand for faster shipping and improve fulfillment efficiency.
The retailer also renewed its partnership with Scandit to enhance employee apps with Smart Data Capture, improving tasks like order picking and inventory tracking. For Amazon sellers, this signals that Walmart is aggressively investing in tech and logistics—raising the bar for e-commerce competition.
Amazon’s Longest Prime Day and Biggest AI Test
Amazon is doubling Prime Day to four days in 2025 and betting big on AI tools like Rufus, Interests, and Shopping Guides to fix its long-standing discovery problem. These tools aim to personalize the shopping experience and help customers find relevant deals faster—something social platforms like TikTok have excelled at.
However, early tests show Rufus still struggles with accuracy and meaningful recommendations, casting doubt on its ability to outperform human curation. For Amazon sellers, this AI experiment could reshape product visibility and customer discovery during the year’s most competitive sales week.
AI Avatars Outsell Humans in Livestream E-Commerce Test
Kevin King reports that Chinese influencers Luo Yonghao and Xiao Mu recently hosted a $7.6M livestream—without ever going live. Instead, AI-generated avatars, powered by Baidu, ran the entire show, mimicking the hosts’ voices, gestures, and personalities using years of past footage.
The avatars introduced 133 products to over 13 million viewers, delivering higher engagement and cutting production costs by 80%. For Amazon sellers, King says this breakthrough signals a future where AI UGC can scale 24/7 product promotion—making now the time to explore your own digital avatars.
Millions Will Be Scammed on Prime Day. Don’t Be One of Them
Prime Day brings a surge in online shopping—and with it, a surge in scams targeting both buyers and Amazon sellers. From phishing emails and fake delivery notices to scammy third-party sellers and inflated “discounts,” the threats are everywhere.
AI is also making scams more convincing, including fake voices, cloned websites, and deepfake messages. Sellers should be extra vigilant for fraudulent orders, fake returns, and account breaches.
Amazon Nearing Equal Number of Human and Robot Warehouse Workers
Amazon is on the verge of having as many robots as human workers in its warehouses, with over 1 million robots now assisting in fulfillment operations. These machines handle tasks like sorting, picking, and transporting products, and Amazon’s newest robot, Vulcan, can even sense touch.
Roughly 75% of Amazon deliveries now involve robotics, boosting productivity and reducing reliance on high-turnover human roles. While Amazon says the tech is meant to support workers, some fear a long-term reduction in jobs, especially in large-scale fulfillment centers.
Amazon Prices on Chinese Products Reportedly Exceeding Inflation
Prices of Chinese-made goods on Amazon are rising faster than U.S. inflation, with a 2.6% increase from January to mid-June, according to DataWeave. Categories most affected include electronics, home goods, and office supplies — key areas for many Amazon sellers.
This suggests U.S. tariffs are now hitting consumer prices, especially for sellers relying on low-margin, fast-replenishment products. While Amazon disputes the data’s representativeness, sellers should be aware of tightening margins and consider adjusting pricing or sourcing strategies.
Amazon Projected to Surpass USPS in Parcel Volume by 2028
Amazon is on track to overtake the U.S. Postal Service in parcel volume by 2028, with projections estimating 8.4 billion domestic shipments through Amazon Logistics. This follows years of rapid growth, already putting Amazon ahead of FedEx and UPS in U.S. volume.
As UPS reduces its reliance on Amazon, the e-commerce giant is expanding its own delivery capabilities and pushing deeper into the logistics space. For Amazon sellers, this means faster, more self-reliant fulfillment — but also signals rising competition in last-mile delivery that could affect shipping rates and speed.
FBA Maximum Box Length Increased to 36 Inches
Starting June 20, 2025, Amazon has increased the maximum box length for FBA shipments in the U.S. from 25 inches to 36 inches. This aligns with broader industry standards and gives sellers more flexibility, especially for longer products or consolidated packaging.
The new max dimensions are 36″ (L) x 25″ (W) x 25″ (H) and up to 50 lbs. Sellers already using these sizes won’t face any defects or additional fees.
Seller Tips & Tricks
Amazon Seller Fees in 2025: Complete Cost Breakdown and Estimation Guide
Amazon sellers face three main types of fees in 2025—account, sale-related, and fulfillment/storage fees. The good news is that Amazon has not added new fees this year and even introduced reductions like waived inbound fees for new ASINs and incentives for high-demand items.
Referral fees still range from 8%–15%, while fulfillment costs depend on size and weight—with dimensional weight now playing a bigger role. Sellers are encouraged to use Amazon’s built-in tools to estimate costs and avoid aged inventory surcharges, which can quietly eat away at profit.
How to Detect Fake Amazon Emails and Avoid Impersonation Scams
Scammers are sending convincing fake emails pretending to be from Amazon, aiming to steal login credentials and payment info. These messages often mimic real Amazon emails with familiar formatting and urgent language, but lead to phishing sites.
Amazon sellers should regularly check their official Message Center in Seller Central or the Amazon app to verify communications. Look for red flags like suspicious sender addresses, generic greetings, and unusual links, and report anything sketchy to stop-spoofing@amazon.com.
7 Ways to Lower Amazon PPC Costs
Amazon sellers are paying more than ever for clicks, with the average CPC reaching $0.98 in 2025 — up 23% year-over-year. This guide lays out seven proven tactics to reduce ad waste, including removing bad keywords, refining bid timing, and shifting budget to high-performing campaigns.
Organizing campaigns by product type and using Amazon’s built-in tools like automated bidding and budget rules can significantly boost ROAS. Regular tracking and using a hybrid of manual and automated strategies ensures long-term cost control and growth.
Why Amazon UGC Is the Game-Changer Sellers Can’t Ignore
User-Generated Content (UGC) is quickly becoming one of the most powerful conversion tools for Amazon sellers in 2025. Authentic customer-created videos, photos, and testimonials help listings stand out, build trust fast, and drive more clicks without needing polished ads.
Sellers are leveraging UGC across PDPs, A+ content, Storefronts, Sponsored Video Ads, and even off-Amazon platforms like TikTok and Instagram. Partnering with Amazon-native creators or platforms like Insense, Billo, or Trend.io allows you to scale high-performing, relatable content that actually sells.
How to Earn Amazon Badges in 2025: Best Seller, Amazon’s Choice, and More
Amazon badges like Best Seller and Amazon’s Choice are proven to boost click-through and conversion rates, making them powerful tools for sellers in 2025. These badges are algorithmically awarded based on factors like sales velocity, customer reviews, and listing optimization—not something you can apply for directly.
To improve your chances, focus on ad performance, strong launches, high fulfillment standards, and relevant SEO. Sellers who optimize strategically ahead of events like Prime Day are far more likely to earn badges and outsell their competitors.
Webinar Wednesday: Free Amazon Training for Sellers at Every Level
Amazon is offering a series of live, free webinars designed to help sellers build, manage, and grow their businesses using Amazon’s tools, programs, and advertising. Topics include Selling on Amazon 101 for beginners, reseller best practices for improving offer visibility, and advanced sessions on brand-building with Amazon Brand Registry tools like A+ Content and Vine.
Each webinar includes a live Q&A to help sellers get personalized answers. These are especially useful for sellers looking to optimize listings, stay compliant, or scale with brand protection and ads.
Avoid Delays: Amazon Shares Shipping Tips Amid West Coast Port Congestion
Amazon warns sellers that West Coast port congestion, especially at the Port of Los Angeles, could delay inbound inventory and affect FBA timelines. To stay ahead, sellers are encouraged to build in longer lead times, store safety stock in Amazon Warehousing and Distribution (AWD), and diversify ports of entry.
Alternative shipping strategies include using East Coast or non-West Coast Amazon facilities and selecting air freight for time-sensitive items. These steps are especially important as sellers prepare for peak seasons and aim to avoid disruptions in inventory flow.
FDA Finalizes Ban on Red Dye No. 3 in Food and Supplements
The FDA has issued a final rule banning Red Dye No. 3 (FD&C Red No. 3) from use in foods, dietary supplements, and oral drugs due to cancer concerns. The ban will take effect November 2024, giving manufacturers 12 months to reformulate affected products.
Amazon sellers in grocery, supplements, and OTC categories should audit their listings and ingredients to avoid future non-compliance. Products containing Red Dye No. 3 will no longer be considered FDA compliant once the grace period ends.
Video of the Week
Amazon Sellers: Identifying Private Label, Brand or Exclusive Products
Strong Opinions
What’s Worse than Lost FBA Inventory? When Amazon Finds It
Amazon sellers are reporting major frustrations with FBA reimbursements—especially when lost inventory is suddenly found months later in unsellable condition. Sellers are not only seeing reimbursements reversed but are also being charged removal or disposal fees for expired or seasonal goods.
This issue has become more painful since Amazon changed its reimbursement policy to refund sellers based on manufacturing cost, not the retail value. For products like perishables or holiday inventory, this delay can result in complete losses with no recourse.
Top Upcoming Amazon Events
- BILLION DOLLAR SELLER SUMMIT ONLINE 2025 – August 19-21, 2025, Online Event
- AMAZON ACCELERATE 2025 – September 16-18, 2025, Seattle, WA, USA
- SELLERS UNITED 2025 – October 16, 2025, Newark, NJ, USA
Stay alert, stay informed, and keep optimizing. The game is shifting—and Amazon sellers who adapt will thrive.
God Bless,
Todd Welch
Amazon Seller School
