Hey Fellow Amazon Sellers,
Welcome to another edition of our weekly Amazon Seller School newsletter. This week, we’re diving into critical updates—from new fulfillment perks to Amazon’s AI-powered video ads and the latest regulatory developments. Whether you’re scaling up or streamlining, there’s something here that impacts your business. Let’s get into it:
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News
Amazon Gives Sellers a Deal for Using MCF to Fulfill Walmart Orders
Amazon is waiving its 5% surcharge for sellers who use Multi-Channel Fulfillment (MCF) to fulfill Walmart orders—now officially allowed by Walmart’s updated policy. This promotion runs through January 14, 2026, offering cost savings for Amazon sellers expanding to Walmart.
Amazon claims MCF users see a 19% drop in out-of-stock rates and a 12% improvement in inventory turnover. Sellers can connect accounts using supported order management apps or submit manual orders through Seller Central.
Amazon to Ban Fake Reviewers and Punish Sellers That Cheat System
Amazon is cracking down harder on fake reviews, pledging to ban users and sellers involved in manipulating ratings, especially after pressure from UK regulators. The company says it will block businesses from selling if they’re caught boosting stars through fraudulent methods, and is ramping up AI tools and human investigators to detect abuse.
Over 275 million fake reviews were blocked last year, and new UK laws now hold platforms legally responsible for removing them. For Amazon sellers, this means stricter enforcement—so avoiding review manipulation and monitoring merged listings is more critical than ever.
Amazon FBA Capacity Limits June-July: What Sellers Need to Do
Amazon has confirmed that FBA capacity limits will remain tight through July 2025, holding sellers to 5 months of inventory—down from 6—just as Prime Day approaches. Limits are based on IPI score, sales velocity, and catalog efficiency, meaning slow-moving inventory can block new shipments, even if overage fees no longer apply.
Sellers are urged to act fast: audit underperforming SKUs, clear excess stock, and submit Capacity Manager requests early to reserve additional space. Using AWD for overflow and refining shipping cadence can help free up capacity for Prime Day best sellers.
Amazon is About to Be Flooded with AI-Generated Video Ads
Amazon has launched its free AI-powered Video Generator tool in the U.S., allowing sellers to create realistic, motion-filled product ads in under five minutes. Sellers can choose from six auto-generated clips, featuring wearable products in action, human models, pets, music, and branded logos.
New features include multi-scene editing, image-to-video conversion, and auto-summarization from existing content like tutorials and social posts. For Amazon sellers, this tool makes ad creation faster, more engaging, and completely free—perfect for boosting conversions without hiring a video team.
Amazon Retreats from “Black Only” Business Program After Legal Pressure
Amazon has quietly removed references to its Black Business Accelerator (BBA) program following a civil rights complaint filed by the Wisconsin Institute for Law & Liberty (WILL), which called the initiative racially exclusive and in violation of federal law. The program has offered credits, advertising support, and grants exclusively to Black-owned businesses since 2021.
As a major federal contractor, Amazon is now under scrutiny for potentially violating nondiscrimination rules tied to federal funding and contracting. For Amazon sellers, this signals growing legal and political pressure on race-based seller support programs and could impact future Amazon initiatives.
Another Billion-Dollar Creator Brand
Hailey Bieber’s Rhode brand was acquired for $1 billion, proving that owning an audience can be more powerful than optimizing for Amazon search. Creator-led brands like Rhode, SKIMS, and Prime Hydration succeed by leveraging massive social media followings to drive demand before ever listing on a marketplace.
Unlike traditional Amazon sellers who rely on paid ads and algorithmic optimization, these brands treat marketplaces as distribution channels—not discovery engines. For Amazon sellers, the rise of content-first brands highlights the growing challenge of visibility and the value of building direct audience relationships.
Surcharge Waived for Using MCF to Fulfill Walmart Orders
Amazon is waiving the 5% surcharge for sellers who block Amazon Logistics when using Multi-Channel Fulfillment (MCF) to fulfill Walmart orders, now through January 14, 2026. This makes it easier and more cost-effective for FBA sellers to expand beyond Amazon while maintaining fast, reliable fulfillment.
Sellers can connect their Walmart account using supported order management apps or submit orders manually through Seller Central with alternative carrier settings. According to Amazon, using MCF helps reduce out-of-stock rates by 19% and improves inventory turnover by 12%.
Floor Loaded Shipping Now Available for Amazon Partnered Carrier Program
Amazon now allows floor loaded shipments for full-truckload and intermodal deliveries through its Partnered Carrier program, giving sellers greater flexibility. This option eliminates the need for pallets or forklifts, making it easier to ship oversized or irregularly shaped items.
Sellers can choose floor loading during the shipment creation process in “Send to Amazon” under the freight loading method. This update can streamline prep and reduce costs for sellers managing large or bulk inventory.
Amazon’s Pricing Controls May Be Anticompetitive, German Regulator Warns
Germany’s antitrust authority has warned that Amazon’s pricing algorithms, which can demote or block listings deemed “too high,” may violate competition laws. The concern is that these price caps limit third-party sellers’ ability to set their own prices and impact their visibility and buy box eligibility.
The Cartel Office argues that since Amazon competes directly with sellers on its platform, influencing pricing is a conflict of interest. For Amazon sellers, this raises ongoing concerns about marketplace control and highlights the importance of staying informed on evolving global regulatory scrutiny.
Seller Tips & Tricks
How to Improve Sales and Reduce Returns With Amazon FBA Return Reasons
FBA sellers face significant costs from returns, including fulfillment fees, refund deductions, and damaged inventory that can’t be resold. Excessive returns also hurt account health, reduce Buy Box eligibility, and damage a product’s ranking due to negative feedback.
However, Amazon provides valuable return reason data that sellers can use to improve listings, clarify product instructions, update content, and fix common issues before they hurt sales. By addressing customer concerns, optimizing A+ content, and adjusting pricing strategy, sellers can reduce return rates and boost conversions.
Blogging for eCommerce: How Content Marketing Drives Sales and Brand Loyalty
Blogging helps Amazon sellers attract new customers, improve conversions, and build brand loyalty by driving off-Amazon traffic to product listings. By creating helpful content like how-to guides, product reviews, and gift guides, sellers can target search keywords and educate shoppers outside the crowded Amazon marketplace.
Linking blog content to Amazon listings, using affiliate programs, and promoting posts via email, Pinterest, or Instagram strengthens visibility and drives traffic. For sellers focused on long-term brand growth, blogging adds a sustainable marketing edge that complements paid ads and boosts overall store performance.
11 Ways to Reduce Amazon Shipping Costs
Many Amazon sellers unknowingly overspend on shipping due to inefficient packaging, poor zone planning, and hidden fees. By optimizing packaging dimensions, consolidating shipments, using regional fulfillment, or working with 3PLs, sellers can cut shipping costs by 20–40% and improve delivery speed and customer satisfaction.
Tactics like leveraging FBA’s inventory placement, enrolling in Subscribe & Save, and switching to local fulfillment for international orders can drastically reduce logistics expenses. For sellers looking to scale profitably, improving shipping efficiency is one of the fastest ways to boost margins without increasing ad spend.
Amazon Seller Account Protection: How to Avoid Amazon Suspensions
Amazon sellers can face sudden account suspensions—even with strong sales—due to policy violations, poor performance metrics, linked accounts, or customer complaints. This guide explains how to proactively protect your account through habits like monitoring Account Health, organizing invoices, avoiding black-hat tactics, and staying compliant with Amazon’s strict rules.
If you’re flagged or suspended, a clear and well-documented Plan of Action (POA) backed by strong evidence is critical for reinstatement. Riverbend Consulting offers ongoing support to help sellers stay protected, respond to warnings, and recover quickly if issues arise.
Amazon Account Suspended? What Sellers Must Know to Get Reinstated
If your Amazon account is suspended, don’t panic or rush to send a generic appeal — Amazon expects a well-documented, fact-based Plan of Action that directly addresses the issue. Common suspension triggers include policy violations, IP complaints, linked accounts, and poor seller metrics.
The quality of your first response can determine whether you’re reinstated in days or remain suspended for months. For complex issues like intellectual property or legal threats, expert legal help may be the safest path to recovery.
Raising Prices Without Losing Sales: Tips for Navigating Elasticity on Amazon
Amazon sellers facing rising tariff costs must master price elasticity to protect margins without driving away customers. Start by analyzing total costs and running controlled price tests to find your product’s pricing sweet spot.
Third-party (3P) sellers have more flexibility than 1P sellers, allowing faster price adjustments and real-time elasticity testing during market shifts. Dynamic pricing tools like Feedvisor’s AI can help sellers adapt quickly, maintain profitability, and avoid price points that collapse demand.
Webinar Wednesdays: Amazon Offers Free Live Training to Help Sellers Grow
Amazon is hosting free live webinars covering everything from FBA strategies and Seller Fulfilled Prime to getting started with your first product listing. These sessions are designed to help sellers leverage Amazon tools, improve metrics, and drive more sales.
Each webinar includes a live Q&A so sellers can get direct answers from Amazon experts. Whether you’re a beginner or experienced seller, these events offer valuable insights to stay compliant and competitive.
Video of the Week
Amazon’s New Return Badges: Conversion Killer or Trust Builder for Sellers?
Todd’s Top Tip: Unlock Profitable Niches with Amazon’s Product Opportunity Explorer
Amazon’s Product Opportunity Explorer, a free tool in Seller Central, is your key to identifying high-demand, low-competition products in 2025. Access it under the Growth section, watch the introductory videos, and dive into niches by browsing categories, searching keywords, or exploring example niches. Use filters to analyze search volume, pricing, and competition, focusing on products with strong customer demand but fewer sellers to maximize profitability.
To stay competitive, revisit your research every 2-3 months to track evolving trends and customer preferences. This regular check-in ensures you’re always ahead of the curve, spotting new opportunities as they emerge. Pair the tool with Jungle Scout junglescout.com and Helium 10 helium10.com to validate your findings, leveraging their advanced analytics for deeper insights into sales estimates and keyword performance.
By consistently using Product Opportunity Explorer and integrating it with these tools, you can refine your product catalog and drive growth. Monitor performance with Amazon Brand Analytics sell.amazon.com/tools/brand-analytics to ensure your choices resonate with customers, keeping your Amazon business thriving in a dynamic market.
Top Upcoming Amazon Events
- DSP SUMMIT 2025 – June 26, 2025, Frankfurt, Germany
- BILLION DOLLAR SELLER SUMMIT ONLINE 2025 – August 19-21, 2025, Online Event
- AMAZON ACCELERATE 2025 – September 16-18, 2025, Seattle, WA, USA
Stay alert, stay optimized, and stay ahead. We’ll continue to bring you the latest each week—so you can focus on what matters: growing your business.
God Bless,
Todd Welch
Amazon Seller School
