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Amazon News: FBA Prep Ending, Google Ads Opportunity, and AI-Selling Strategies Unleashed

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Hey Fellow Amazon Sellers,

I’m back with another jam-packed edition of your weekly dose of e-commerce news and updates. This week brings big changes from Amazon, industry shake-ups with AI, and even a $1.3 billion class action lawsuit. Stay sharp—these stories could impact your next move!

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News

Amazon Pulls Back from Google Shopping Ads, Creating Rare Opportunity for Sellers

Amazon has suddenly stopped bidding on Google Shopping ads as of July 23, 2025—marking its first full retreat from the platform since 2020. This has opened the door for other advertisers like Walmart, Target, and smaller Amazon sellers to capture more impressions and enjoy lower CPCs.

Experts report cost-per-clicks have already dropped 1–4% on average, with some product categories seeing reductions as high as 40%. For Amazon sellers running off-Amazon campaigns, now may be the perfect time to test Google Shopping ads at a lower cost.

Sellers Protest a Major Change to Amazon Feedback Coming August 4th

Starting August 4, Amazon will allow buyers to leave “star-only” seller feedback with optional text, a move it says will increase submissions. But sellers are pushing back hard, warning this change strips away vital context that helps them address issues and appeal unfair ratings.

Many fear it will lead to more confusion between product reviews and seller feedback—especially for FBA-related complaints the seller didn’t cause. Without written comments, sellers lose their ability to defend against misleading ratings, which could impact metrics like Order Defect Rate and Buy Box eligibility.

Shopify & Amazon Block Agentic AI Bots and Begin the War

Shopify and Amazon are drawing a line against agentic AI bots that automate the checkout process without human review, signaling a growing resistance to third-party automation in e-commerce. Shopify updated its robots.txt with a message to developers, warning against scraping and automated buying flows and directing them to use official tools.

Amazon recently blocked Google’s shopping agent, reflecting a broader battle over who gets to control the AI-driven shopping experience. For Amazon sellers, this signals that while AI will continue shaping e-commerce, platforms are tightening control to keep automation—and data—within their walls.

Morning Bid: Tariff Day Hits as Amazon Stumbles

Amazon’s stock dropped 7% after an underwhelming earnings outlook, standing out negatively among other megacaps and raising concerns for sellers reliant on the platform’s momentum. At the same time, steep new U.S. tariffs on goods from major trading partners—including Canada, Brazil, and India—have created fresh uncertainty in global trade.

This new wave of tariffs may raise costs for Amazon sellers sourcing internationally, especially if importing from affected countries. The broader economic signals, including strong U.S. jobs data and rising inflation, suggest fewer chances of a Fed rate cut, which could further tighten consumer spending.

eBay Revenue and Sales Grow 6% in Second Quarter 2025

eBay reported 6% revenue and GMV growth in Q2 2025, reaching $2.7 billion and $19.5 billion respectively, marking its best quarter in over a year. The number of active buyers also grew to 134 million, up 1% from last year.

The strongest growth came from categories like Collectibles and Motors, which Amazon sellers should monitor as these niches remain competitive across marketplaces. While eBay’s execs highlight “strategic execution,” sellers on the platform continue raising concerns over policy changes like forced returns.

Etsy Sales Decline, Revenue Grows in Second Quarter

Etsy’s Gross Merchandise Sales dropped 5.4% year-over-year in Q2 2025, with major categories like Home & Living, Jewelry, and Apparel all seeing declines. However, revenue still grew due to higher ad spend and payment processing fees, pushing Etsy’s take rate to a strong 24%.

The number of active buyers fell 4.6%, but Etsy reactivated 6.5 million buyers and gained 4.8 million new ones, showing some signs of buyer interest recovery. For Amazon sellers, Etsy’s softness in consumer spending and reliance on on-site ads may signal opportunities to gain ground in overlapping handmade or niche categories.

Amazon Class Action Lawsuit Certified: £1.3 Billion Buy Box Case Moves Forward

A UK class action lawsuit against Amazon has been certified, allowing a £1.3 billion case to proceed over claims that Amazon’s Buy Box algorithm inflated prices for nearly 50 million consumers. The case argues Amazon prioritized its own listings and FBA sellers over better-value alternatives, limiting competition and raising costs for shoppers.

For Amazon sellers, especially those using FBM, this legal challenge highlights ongoing scrutiny over marketplace fairness and algorithm bias. If successful, the case could impact how Amazon structures the Buy Box and influence global regulatory reforms affecting seller visibility and competitiveness.

Amazon FBA to End Prep Services Starting January 2026

Amazon will officially discontinue all FBA prep and labeling services beginning January 1, 2026, impacting sellers who rely on Amazon to prepare inventory before it reaches fulfillment centers. This change applies to all inbound inventory, including shipments from AWD, AGL, and third-party logistics services.

Amazon cited improvements in seller packaging and a shift toward third-party prep providers as reasons for the policy shift. Amazon sellers, particularly those without their own warehouse or logistics teams, will now need to manage prep themselves or hire external providers to avoid costly errors and inventory rejections.

Amazon Launches Premium Shipping Option for Faster Regional Delivery

Amazon now offers sellers the ability to provide 1- and 2-day regional delivery through the new Premium Shipping program. This can increase sales by giving customers faster delivery options and the flexibility of competitive or free shipping rates.

To qualify, sellers must be active for at least 90 days and maintain strong performance metrics, including a 93.5% on-time delivery rate and 99% valid tracking rate. Sellers who enable Shipping Settings Automation and use Amazon-approved shipping labels may also be protected from late shipment penalties.

Former Amazon Staff Expose Seller Verification Loopholes

Former Amazon employees revealed major flaws in how overseas sellers are verified, highlighting how some can easily change U.S. return addresses after account approval. One U.S. consumer became the target of hundreds of unwanted returns from a Chinese seller exploiting this loophole.

The issue points to weak follow-up verification and limited enforcement, especially when overseas sellers register as individuals rather than businesses. For Amazon sellers, this story shows how bad actors can harm trust in the platform, increasing scrutiny and potentially impacting all legitimate sellers.

Seller Tips & Tricks

Why Your Amazon Conversion Rate Matters More Than You Think

Amazon listings convert at a much higher rate (10–15%) than most ecommerce sites, but even that isn’t enough if you’re not turning traffic into sales. This comprehensive guide by Brij Purohit breaks down how to measure, interpret, and improve your conversion rate through better listings, optimized pricing, targeted ads, and smarter fulfillment choices.

For sellers, your conversion rate isn’t just a vanity metric—it impacts search rank, ad efficiency, and profitability. The article also emphasizes category-specific benchmarks and outlines practical strategies to avoid costly missteps in listing design and PPC campaigns.

Amazon Q4 2025 Prep Timeline: Monthly Checklist for Black Friday and Holiday Sales

Savvy Amazon sellers should begin Q4 prep in August—not October—to stay ahead of the competition and avoid costly bottlenecks. This month-by-month checklist covers forecasting inventory, optimizing listings, scheduling deals, and scaling ad campaigns for Black Friday, Cyber Monday, and holiday sales.

October is the time to go on offense with strategic keyword targeting and conversion-boosting tweaks. In November and December, it’s all about defending the Buy Box, staying stocked, and responding to rapid market changes.

Amazon SEO Is a Numbers Game—Here Are the Benchmarks That Drive Rankings

Steven Pope highlights the key metrics Amazon sellers must hit to boost SEO and visibility. Optimized listings should include 500+ words in A+ Content, 100-character alt text per image, full 250-byte backend keyword fields, and 150–200 character titles for maximum keyword coverage.

Even your Brand Store meta description should hit 160 characters to boost Google search relevance. If you’re not maximizing these fields, you’re leaving traffic—and sales—on the table.

7 Powerful Ways to Handle an Amazon Intellectual Property Complaint Without Delisting

Amazon Intellectual Property Complaints can cause immediate listing removals, lost revenue, and even account suspensions—especially if they involve copyright, trademark, or patent disputes. Sellers must act fast, gather proof, and submit a clear Plan of Action to resolve claims and prevent further damage.

False or malicious complaints are not uncommon, and contacting the complainant directly can often lead to retractions. Preventative strategies like using original content, sourcing from authorized suppliers, and enrolling in Brand Registry help minimize future risks.

The AI Advantage: How Sellers Using AI Will Dominate Amazon by 2026

Amazon is rapidly evolving into an AI-first marketplace, and sellers who integrate AI into their listings, advertising, and content creation are gaining a major edge. Tools like Rufus, Interests AI, and generative image models are already reshaping how products are discovered and presented.

Success now requires harmonizing traditional SEO with newer strategies like GEO (Generative Engine Optimization) and AEO (Answer Engine Optimization). Using AI not only boosts ranking and conversions but also empowers sellers—especially non-native speakers and small brands—to tell compelling, high-converting product stories at scale.

Webinars: Master Amazon Business Reports and Get an FBA Overview

Amazon sellers can boost their skills with two upcoming live webinar series designed to enhance business reporting and FBA operations. One session focuses on mastering Amazon Business Reports to analyze sales, track key metrics, and drive growth using actionable insights.

Another is a three-part series covering Fulfillment by Amazon fundamentals, including inventory prep, shipping, and the Send to Amazon workflow—ideal for both new and experienced FBA users. All webinars include live Q&A and are hosted by Amazon directly.

Webinar: Explore Amazon Advertising Essentials

Amazon sellers can join a free live webinar on July 30 to learn how to grow their business using Amazon’s advertising tools. The session will cover ad types, placements, and strategies for achieving marketing goals.

Attendees will gain practical tips for targeting customers and improving ad performance across Amazon’s ecosystem. A live Q&A is included to address real-time questions from sellers of all levels.

Video of the Week

How to Remove Inventory from Amazon AWD FAST!


Strong Opinions

Temu Blocked from Undercutting Amazon

Temu’s days of being the bargain disruptor may be numbered as U.S. brands are now forcing the platform to match or exceed Amazon’s prices. This strategy is designed to protect price parity and prevent Amazon listings from appearing overpriced.

At the same time, Temu’s U.S. user base dropped by 58% in May after the end of the “de minimis” tariff loophole, which once allowed it to ship cheap products tariff-free. For Amazon sellers, this could ease some pricing pressure and level the playing field heading into Q4.

Todd’s Top Tip: Niche Branding to Skyrocket Your Amazon Sales!

Hey there, Amazon Seller School crew! It’s Todd Welch, back with a killer tip to level up your Amazon game. Today, we’re diving into niche branding and passion products—the secret to making your listings stand out in a crowded marketplace and building a loyal customer base. Let’s break it down and get you rolling!

Forget chasing generic products; that’s a fast track to price wars. Instead, focus on a niche you’re genuinely excited about—think eco-friendly pet supplies, retro gaming accessories, or fitness gear for seniors. When you’re passionate, it shines through, and customers connect with that authenticity. Your listings? They’ll scream “add to cart!”

Here’s your playbook to dominate your niche:

  1. Find your sweet spot: Pick a niche that fires you up, like yoga gear for busy parents. That enthusiasm fuels your brand.
  2. Do your homework: Check Amazon Best Sellers, Google Trends, or social media to spot what’s hot. No guesswork needed!
  3. Make it unforgettable: Craft a unique brand with a sharp logo, a story that tugs heartstrings, and a vibe that’s all you.
  4. Leverage Amazon’s tools: Use A+ Content and Sponsored Brands ads to showcase your brand’s personality and grab attention.
  5. Test for success: Launch a minimum viable product, gather buyer feedback, and tweak to ensure it’s a profit machine.

This isn’t just selling—it’s about creating a brand customers love and keep coming back to. So, carve out your niche, pour in your passion, and watch your sales soar! 🚀

Top Upcoming Amazon Events

That’s it for this week—major changes are unfolding across platforms, and staying informed is your best defense in the fast-moving world of e-commerce.

God Bless,

Todd Welch
Amazon Seller School

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