Hey Fellow Amazon Sellers,
I’m back with another value-packed edition of our weekly Amazon Seller School newsletter. From Prime Day deadlines to the latest in global trade tensions, a lot is happening in the e-commerce world right now—and I’ve got all the must-know updates to help you stay ahead.
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News
Shopify Builds Checkout Into ChatGPT—What It Means for Amazon Sellers
Shopify has integrated a full checkout experience directly into ChatGPT, allowing customers to discover, engage, and purchase products in one seamless conversation—no redirects, no new tabs. This marks a major shift toward “agentic commerce,” where AI doesn’t just recommend products, it completes the sale.
For Amazon sellers, Vanessa Hung emphasizes this isn’t a reason to panic, but it is a wake-up call to evolve. As AI-driven shopping experiences become more streamlined, sellers must adapt by reducing friction, creating contextual content, and optimizing smarter, data-backed funnels.
Temu Pulls U.S. Google Shopping Ads, Revealing Fragile Growth Strategy
Temu abruptly stopped all U.S. Google Shopping ads on April 9, causing its App Store rank to crash from top 5 to 58 in just three days. This move highlights how heavily the company relied on paid acquisition and subsidies to grow market share, despite operating at a loss.
The pullback coincides with a steep 125% tariff hike on Chinese imports and looming enforcement of the de minimis crackdown—both of which threaten Temu’s direct-from-China model. For Amazon sellers, this signals a shift in competitive dynamics and may lead to lower CPCs as Temu’s aggressive ad spend disappears from the auction landscape.
Amazon Bans $20M Brand for Review Manipulation—A Cautionary Tale for Sellers
A TikTok-fueled brand called Evil Goods exploded to over $20 million in annual Amazon revenue but was permanently banned for manipulating reviews. The company allegedly pinned favorable reviews comparing competitors to their product, triggering action from top Amazon executives.
Scott Needham highlights this as a high-profile example of Amazon’s zero-tolerance policy toward review fraud. For Amazon sellers, the message is clear: success through viral traffic is great—but playing dirty with reviews can end your business overnight.
Amazon Prime Day Inventory Deadlines Announced—Prep Now or Miss Out
Amazon has confirmed that Prime Day 2025 will span four days, and sellers must submit deals and inventory on strict deadlines to participate. FBA sellers must have shipments arrive by June 9 or June 18, depending on the shipment split option, while AWD users needed to deliver by May 15 for upstream advantages.
Deal scheduling closes May 23, and Prime-Exclusive Price Discount submissions open May 5. Amazon hasn’t announced the exact Prime Day dates, frustrating FBM sellers who need time to plan for shipping capacity.
Etsy Sells Reverb to Refocus on Core Marketplace Growth
Etsy has sold its musical instrument marketplace Reverb to focus more sharply on its core platform and Depop, aligning with its long-term strategy of streamlining operations. The sale is part of a broader push to prioritize high-performing business segments and improve profitability.
Amazon sellers should take note—platforms are doubling down on their strengths, and staying niche-focused may offer greater stability and growth. Etsy’s leaner model may signal future changes in competitive positioning and marketplace dynamics.
Is eBay Following Amazon’s Lead with Seller Insurance Requirements?
eBay is surveying sellers about a potential business insurance program, raising speculation that it might eventually require liability insurance—similar to Amazon’s longstanding policy. Amazon already mandates product liability coverage and offers vetted providers through its Insurance Accelerator.
For Amazon sellers, this could signal a broader industry shift where marketplaces push more responsibility and compliance onto sellers. If eBay adopts similar rules, sellers operating across platforms should be prepared for evolving insurance expectations.
DHL Suspends High-Value B2C Shipments to U.S. Amid Customs Bottlenecks
DHL has temporarily suspended business-to-consumer (B2C) shipments to the U.S. with declared values over $800, due to major delays tied to formal customs clearance requirements. Business-to-business (B2B) shipments over $800 are still allowed but may also face transit delays.
This move follows recent U.S. policy changes requiring formal entry processing and import duties for shipments exceeding the $800 threshold. Amazon sellers relying on DHL to ship higher-value goods to U.S. consumers should seek alternative carriers or adjust shipment values and fulfillment strategies immediately.
Amazon Seller Account Hacked Through Sophisticated Phishing Scam
Bassem Erian shared how his Amazon seller account was nearly stolen after falling for a highly convincing phishing email that mimicked Amazon’s Seller Central. The email appeared professional, passed Gmail security checks, and led to a fake login page that harvested credentials.
The hacker added their own phone number to receive security codes, but Bassem caught it in time, changed his password, and used a clever workaround to log the hacker out. This is a major warning to all Amazon sellers: verify sender domains, never trust display names, and always check email headers for authenticity.
Amazon Takes Drastic Steps to Mitigate China Tariff Blow
In response to Trump’s 145% tariff hike on Chinese imports, Amazon is reportedly canceling orders from Chinese and Asian suppliers while offering to help key vendors offset costs by paying more—if they agree to profit guarantees. This move is meant to maintain product availability and minimize price hikes for customers.
However, it puts pressure on vendors, as they risk having to repay Amazon if profit margins fall short, especially when Amazon discounts products. Third-party sellers, who account for over 60% of Amazon’s sales, may still have to pass tariff costs to consumers, leading to potential price increases across the marketplace.
Walmart Expands Same-Day Delivery to Compete Head-On with Amazon
Walmart has launched a major nationwide delivery upgrade, unlocking same-day delivery for 12 million additional U.S. households and allowing orders to be fulfilled from multiple store locations. The new system covers 93% of Americans and promises faster, smarter deliveries of groceries, tech, clothing, and garden supplies.
This move positions Walmart to compete more directly with Amazon by turning its physical stores into fulfillment hubs and optimizing delivery routes with real-time data. For Amazon sellers, it signals growing competition in logistics and customer expectations around speed and convenience.
Seller Tips & Tricks
10 Sourcing Alternatives to China Every Amazon Seller Should Know in 2025
With tariffs on Chinese imports reaching up to 125%, Amazon sellers are rapidly shifting their sourcing strategies to protect margins and supply chain stability. This article outlines 10 viable alternatives to China, including Mexico for nearshoring, India for cost-effective production, and Vietnam for scalable manufacturing.
Other top picks include Turkey, Colombia, and Bangladesh for apparel and home goods, while the U.S. offers fast, tariff-free production with “Made in USA” appeal. Each country recommendation comes with sourcing tips and Seller Labs tools to help sellers optimize inventory, ads, and profitability.
Amazon Tariffs Update: What Sellers Must Do Now to Stay Profitable
Massive tariff hikes—up to 245% on Chinese imports—combined with the end of the de minimis rule for China, are forcing Amazon sellers to completely rethink sourcing and pricing strategies in 2025. Even small, low-value shipments from China now face steep tariffs, customs delays, and higher paperwork burdens.
To adapt, sellers should use tools like Carbon6’s free Tariff Calculator, explore alternative sourcing countries (e.g. Mexico, India, Vietnam), and implement strategies such as duty drawbacks and bonded warehouses. Amazon is actively collecting seller feedback, signaling more platform-level changes ahead—so taking action in Q2 2025 is critical to staying competitive and protecting margins.
Amazon Webinars Focus on Visibility and Brand Growth
Amazon is hosting free live webinars designed to help sellers improve product visibility and build stronger brands. Upcoming sessions will teach sellers how to access free marketing opportunities through Amazon Collections, optimize social media, and leverage high-traffic events.
Another webinar focuses on Amazon Brand Registry, guiding sellers through enrollment, IP protection via the IP Accelerator, and the use of tools like A+ Content, Vine, and Amazon Stores. These sessions include live Q&A and are open to all experience levels, making them ideal for sellers aiming to scale efficiently in Q2.
Amazon Webinars Spotlight Inventory Tools, FBA Opportunities, and Reseller Tips
Amazon is offering free live webinars to help sellers optimize inventory and expand their FBA catalog using tools like AWD (Amazon Warehousing and Distribution) and the FBA Enrollment Opportunities tool. Sellers can learn how to streamline storage and replenishment, especially during peak seasons.
Additional sessions will teach strategies for identifying high-potential ASINs, enhancing listing quality, and improving pricing automation. A special webinar for resellers will also cover best practices for category approvals and detail page edits.
Video of the Week
Trump’s 125% Tariff Shakes Amazon Sellers – Will Chinese Brands Exit the U.S.?
Strong Opinions
Can Amazon Haul Leapfrog Temu and SHEIN as Tariffs Rise?
With the end of the de minimis exemption and steep tariffs on Chinese imports taking effect May 2, platforms like Temu and SHEIN face serious cost increases that could undermine their ultra-low-cost model. Amazon Haul, however, may have a built-in advantage thanks to Amazon’s vast U.S. warehouse and fulfillment network.
Because Amazon already stores inventory stateside, Haul can avoid the massive per-package customs tariffs that Temu and SHEIN incur via direct-to-consumer shipping. If tariffs remain in place, this logistical edge could allow Amazon Haul to capture price-conscious customers looking for low-cost products with faster delivery.
Which Marketplace Wins in a Recession?
Amazon, eBay, and Walmart are positioning themselves differently to weather a potential economic downturn, with each leveraging unique strengths. eBay may benefit from increased demand for used goods and repair parts, while Amazon is expanding its refurbished product offerings and using AWD to manage tariff disruptions.
Amazon and Walmart are also pressuring suppliers to absorb tariff costs and signaling they may cut margins to maintain competitive pricing. For Amazon sellers, this environment favors those with flexible pricing strategies, strong supply chain visibility, and potentially a foothold in refurbished or high-end products.
Trump’s Tariffs Won’t Save American E-commerce
Despite steep new tariffs aimed at curbing Chinese imports, Chinese sellers continue to dominate U.S. marketplaces like Amazon and Walmart, with little sign of market share shifting to American businesses. Historical data shows these tariffs mostly raise costs for U.S. consumers and sellers, rather than disrupting Chinese supply chains.
Chinese sellers maintain strong structural advantages, including direct access to manufacturing, government subsidies, and operational expertise. For Amazon sellers, the new tariffs are creating sudden financial strain—especially for small brands facing higher landed costs, canceled shipments, or forced price hikes that threaten their survival.
Why Resellers Are Suspended More Frequently
Amazon is tightening enforcement on third-party resellers, frequently suspending accounts that fail supply chain verification—even if invoices and suppliers were previously accepted. Sellers are now expected to source directly from brands or authorized distributors, often needing a Letter of Authorization (LOA) to validate inventory authenticity.
Generic wholesalers, retail arbitrage, and online liquidators are increasingly rejected, and resellers relying on these channels risk losing their accounts and funds. For Amazon sellers, especially resellers, the message is clear: without bulletproof supply chain documentation, your account is vulnerable.
Can Sellers Trust Amazon as It Probes Sellers?
Amazon has recently ramped up direct outreach to sellers, asking for free-form responses on how tariffs are affecting sourcing, pricing, and fulfillment strategies—sparking mixed reactions. Some sellers are openly sharing their tactics, while others question Amazon’s motives and the lack of reciprocal guidance.
In addition, a formal survey was sent to Fulfilled by Merchant (FBM) sellers asking about communication preferences and even requesting names of consultants they work with, raising concerns over competitive intelligence gathering. For Amazon sellers, this signals a deeper data-mining effort that could inform future tools—or potentially compete with third-party services.
The End of De Minimis Means Higher Prices and Big Shifts for Amazon Sellers
The de minimis exemption allowing duty-free imports under $800 will officially end on May 2, disrupting e-commerce pricing models—especially for China-based platforms like Temu and Shein. These platforms have already announced price hikes, and many sellers dependent on cheap direct imports are now scrambling to adapt.
Amazon sellers could benefit from a more level playing field, but should expect rising fulfillment costs and be prepared for broader tariff impacts. In the long term, the change may accelerate a shift toward domestic manufacturing and nearshoring, especially for brands aiming to reduce dependency on China.
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Top Upcoming Amazon Events
- MIAMI SELLERS CONFERENCE 2025 – May 1-3, 2025, Miami, FL, USA
- SELLER SUMMIT 2025 – May 6-8, 2025, Ft Lauderdale, FL, USA
- SELLER SESSIONS LIVE 2025 – May 10, 2025, London, UK
- THE PROVEN CONFERENCE 2025 – May 29-31, 2025, Orlando, FL, USA
That’s all for this week! Make sure you’re staying ahead of inventory deadlines, compliance changes, and global trade trends. As always, I’ll continue to bring you the most relevant news, tips, and opportunities in the Amazon space.
God Bless,
Todd Welch
Amazon Seller School
