Hey Fellow Amazon Sellers,
It’s time for another round of essential updates to keep your business ahead of the curve. From major shifts in competition to new policies impacting fulfillment and fees — here’s what you need to know this week:
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Amazon Is Less Competitive Than Four Years Ago
Amazon sellers now enjoy 31% more traffic per seller than in 2021, as the number of active sellers dropped from 2.4 million to under 1.9 million despite continued new signups. This shift has increased visibility and opportunity for those who can navigate Amazon’s rising fees, stricter policies, and growing competition from Chinese manufacturers.
Third-party sellers now account for 62% of units sold on Amazon, and top sellers tend to be long-established brands, showing the power of marketplace longevity. For Amazon sellers, this signals a maturing yet potentially more profitable landscape—if you can withstand the headwinds and stand out.
‘Wild!’: Amazon Is Refunding Some Customers for Purchases Made as Far Back as 2018
Amazon is issuing refunds to a small group of U.S. customers for unresolved return issues, some dating back as far as 2018, following an internal review and a class-action lawsuit. One seller, Steven Pope, reported receiving nearly $1,800 for a TV he returned seven years ago, highlighting the unusual scope of this move.
The company acknowledged the refunds stem from cases where payment failed to process or the return couldn’t be verified, and has since made process changes to avoid delays going forward. While Amazon sellers are not directly affected, this signals heightened scrutiny over Amazon’s return practices and the company’s willingness to settle long-standing consumer complaints.
Amazon: Independent Sellers Gain Sales and Adopt GenAI-Powered Tools
Independent sellers now make up 60% of Amazon’s total sales, with 2024 showing a 16% increase in average annual revenue per seller—reaching over $290,000—and more than 2 million people employed through these businesses. Over 55,000 sellers surpassed $1 million in sales last year, underscoring Amazon’s growing impact as a platform for small business success.
Sellers have embraced Amazon’s AI-driven tools, especially generative AI features for listing optimization, analytics, and customer support, with over 900,000 already using them. For Amazon sellers, this marks a major shift toward automation and scalability, giving early adopters of GenAI a competitive advantage.
US to Slash Tariff on Small China Parcels from 120% to 54%
The U.S. is reducing the tariff on small parcels from China and Hong Kong from 120% to 54%, reversing part of a recent crackdown on the de minimis loophole that had impacted low-value imports. This decision comes after a 90-day trade war pause with China and could benefit platforms like Temu and Shein that rely heavily on low-cost shipping.
For Amazon sellers, the tariff cut may mean more aggressive competition from Chinese sellers and fast-fashion imports, potentially increasing pricing pressure in key categories. However, the temporary nature of the truce creates uncertainty, and sellers should monitor how this affects both sourcing costs and consumer expectations.
Manage Shipments Easier With New Send to Amazon Features
Amazon has updated the “Send to Amazon” workflow with two new tools to simplify FBA shipment creation and cost management. Sellers can now see if their shipments qualify for Amazon-optimized splits and view estimated total costs—including FBA inbound placement fees and shipping estimates—before finalizing.
The system will automatically recommend the most cost-effective shipping method between small parcel and LTL for domestic shipments. For Amazon sellers, this update means faster decision-making, better cost visibility, and easier management of inbound inventory.
Amazon Puts Limits on Seller Fulfilled Prime
Starting June 29, 2025, Amazon will restrict daily Prime order volume for Seller Fulfilled Prime (SFP) sellers who don’t ship at least 100 SFP packages per month or consistently throughout the month. Sellers can stay in the program but will face caps to prevent order surges that could harm delivery performance.
Many sellers argue Amazon rarely grants them the Buy Box, limiting their ability to meet the 100-package threshold and putting smaller sellers at a disadvantage. Amazon says the rule is to ensure SFP sellers are prepared for peak events and also announced a reduced OTDR requirement (from 97% to 93.5%) and enhanced OTDR protections for those using Amazon’s automated shipping tools.
Amazon Adds AI Voiceovers to Product Listings—Is This the Future of E-Commerce Sales?
Amazon has introduced AI-generated voiceovers for product listings, turning written bullet points into audio summaries to enhance engagement. The new tool aims to boost conversions by making product pages more interactive and keeping shoppers on the page longer.
Sellers can’t customize the voice, but the tech focuses on clarity and simplicity, currently supporting only English listings with bullet-point highlights. Early feedback is positive, with sellers reporting increased customer interaction—though it’s still unclear if these robotic narrations can truly match a human sales pitch.
Amazon Reunites with FedEx to Handle Big & Bulky Residential Deliveries
Amazon has signed a multiyear deal with FedEx to manage last-mile delivery for large residential packages across the U.S., marking a significant shift after their split in 2019. This partnership adds FedEx to Amazon’s delivery network alongside UPS and USPS, allowing Amazon to better balance capacity for oversized items.
FedEx expects the agreement to boost profits, given the higher-than-average yields and weights associated with large package deliveries. For Amazon sellers in categories like furniture, appliances, or fitness equipment, this means improved logistics support for heavy and bulky SKUs.
Amazon Adds New Minimum Inventory Metric to Help Sellers Avoid Fees
Vanessa Hung reveals that Amazon has rolled out a new minimum inventory level metric to help sellers prevent the Low Inventory Level fee. This feature is different from recommended replenishment quantities and now provides a clear, weekly-updated threshold tailored to each seller’s demand, volatility, and restocking behavior.
Visible in the FBA dashboard, it’s already appearing in U.S. accounts and offers insight into how to stock efficiently to avoid hidden penalties. For Amazon sellers, this gives rare visibility into Amazon’s fee structure and helps improve delivery speed and inventory control.
Seller Tips & Tricks
Amazon Sellers: What the 90-Day U.S.-China Tariff Cut Means for Your Margins
A temporary 90-day tariff reduction between the U.S. and China is slashing import duties by over 50% on key product categories like electronics, machinery, and industrial materials. For Amazon sellers sourcing from China, this means immediate cost savings and higher profit margins through August 2025.
Sellers are advised to audit affected SKUs, expedite shipments, renegotiate supplier terms, and use the opportunity to improve ACoS targets and pricing strategies. However, this window is brief, and sellers should act fast without overcommitting, as tariffs could revert quickly.
The Psychology of Pricing: How to Set Prices That Attract Buyers
Effective pricing goes far beyond choosing a number—it involves understanding how customers perceive value, emotion, and trust. Visual elements like price color, font, placement, and even whitespace significantly influence buyer behavior, while psychological tactics such as charm pricing, anchoring, and bundling can increase conversions and perceived value.
Amazon sellers can leverage these strategies to enhance their listings, such as using $19.99 instead of $20, showing savings with strikethrough pricing, or bundling slow movers with top sellers. Importantly, testing different approaches on real customers is key to finding what works for your brand and audience.
How Brand Manufacturers Are Redefining Strategy in the Age of E-Commerce
Brand manufacturers are shifting strategies in 2025 to combat rising tariffs, increased marketplace competition, and changing consumer behavior. Amazon’s growing seller base, rising co-op fees, and tighter retailer negotiations are squeezing margins and pushing brands to diversify into platforms like Walmart and TikTok Shop while building stronger direct-to-consumer operations.
Retail media has evolved from conversion-focused to full-funnel strategy, but brands now demand better attribution and measurement to justify rising spend. AI is seen as transformative, yet most brands are unprepared for the scale of personalization it requires—emphasizing the need for smarter, not just bigger, investments.
Walmart WFS vs Amazon FBA: Which Fulfillment Giant Is Right for Your Business?
Amazon sellers weighing fulfillment options should consider how Walmart WFS and Amazon FBA differ in costs, support, branding, and reach. WFS offers lower fees, more flexible inventory policies, and neutral packaging, which is ideal for larger items or brand-conscious sellers expanding beyond Amazon.
Amazon FBA, however, leads in customer reach, shipping speed, and global infrastructure—making it ideal for sellers prioritizing Prime visibility and international growth. For many, using both platforms strategically can balance cost savings with exposure, strengthening omni-channel fulfillment and overall business resilience.
How FBA Sellers Can Stay Safe from Amazon’s Review Crackdown
Amazon is aggressively enforcing its review manipulation policies, with penalties ranging from listing suppression to account suspension—even for unintentional violations. As an FBA seller, you must avoid tactics like incentivized reviews, biased inserts, or email sequences that ask only for positive feedback.
Amazon’s AI systems track suspicious behavior, so sellers must regularly audit marketing practices and eliminate risky tools or language. If accused, respond quickly with a professional, well-documented appeal—and know how to report competitors who cross the line.
Webinar: Prep for Prime Day 2025 – Maximize Your Amazon Sales
Amazon sellers, don’t miss this free webinar designed to help you prepare for Prime Day 2025—the biggest shopping event of the year. You’ll learn key deadlines, sourcing tips, and deal optimization strategies to boost your visibility and conversion.
The session covers how to qualify for Prime Day deals, manage inventory timelines, and optimize your listings for maximum impact. A live Q&A is included, making it a valuable opportunity to get direct insights from Amazon.
Video of the Week
Amazon’s New Return Badges: Conversion Killer or Trust Builder for Sellers?
Top Upcoming Amazon Events
- THE PROVEN CONFERENCE 2025 – May 29-31, 2025, Orlando, FL, USA
- SELLER VELOCITY CONFERENCE 2025 FRANCE – June 4, 2025, Lyon, France
- AMBIZION 2025 – June 7, 2025, Tallin, Estonia
- DSP SUMMIT 2025 – June 26, 2025, Frankfurt, Germany
That’s it for this week’s power-packed rundown. Whether you’re optimizing listings or planning logistics, these updates keep you one step ahead.
God Bless,
Todd Welch
Amazon Seller School
