Hey Fellow Amazon Sellers,
Welcome to another edition of our weekly newsletter. This week, we’re diving into significant developments affecting Amazon sellers—from new tariffs and policy changes to strategic market shifts. Let’s get you up to speed:
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News
Amazon Reverses Penalties on Sellers Raising Prices Due to Tariffs
Amazon appears to have eased up on suppressing the Buy Box for sellers who raised prices in response to steep U.S.-China tariffs. Several top sellers, who previously lost the Buy Box after 20–25% price hikes, report the penalties have now been lifted—despite the higher prices remaining in place.
This shift comes shortly after CEO Andy Jassy said he understood sellers may need to raise prices, and just days after Fortune reported on the issue. For Amazon sellers sourcing from China, this change could provide crucial pricing flexibility to stay profitable amid rising import costs.
Some Amazon Sellers Skip Prime Day Due to Trump Tariffs
Many Amazon sellers are pulling back from Prime Day this year, citing 145% tariffs on Chinese imports that make discounting products financially unviable. The costs to participate—such as Amazon’s fees plus slimmer profit margins—are leading even long-time sellers to opt out entirely.
This shift highlights how rising trade costs and supply chain realities are reshaping Amazon marketplace dynamics, especially for U.S.-based sellers less able to absorb increases than Chinese competitors. For Amazon sellers, this is a clear signal to reassess pricing, sourcing, and promotional strategies heading into major sales events.
New Amazon Return Badges Could Boost or Break Your Sales
Amazon expert Vanessa Hung reports that new badges like “Frequently Returned” (🟥) and “Customers Usually Keep This Item” (🟩) are now appearing on product listings and influencing buyer decisions. The red badge warns of high return rates and could hurt conversions, while the green badge builds trust and may boost sales.
Vanessa emphasizes that sellers must proactively improve product accuracy, quality, and review management to avoid penalties and benefit from the changes. As Amazon rolls this out quietly, those who adapt quickly will likely see an edge in visibility and customer trust.
Amazon Dominates the U.S. 3PL Market Again in 2025
Amazon has once again taken the top spot on Transport Topics’ annual list of the Top 10 U.S. logistics providers, driven by over $156 billion in revenue from its third-party seller services in 2024. This includes FBA storage, fulfillment, and shipping—making Amazon a logistics powerhouse in addition to its retail dominance.
For Amazon sellers, this reinforces the strategic value of using FBA to leverage Amazon’s massive logistics infrastructure. Competing with Amazon’s fulfillment speed and network scale will be increasingly difficult for other 3PLs and marketplaces alike.
Etsy Marketplace Sales Fall 8.9% in Q1 2025 Amid Seller Fee Increases
Etsy reported an 8.9% drop in marketplace sales for Q1 2025, with habitual buyers also down 11% year-over-year. Despite this, overall revenue grew slightly (0.8%) due to increased ad spending by sellers and a hike in seller set-up fees—from $15 to $29.
For Amazon sellers, this highlights a common trend: marketplaces shifting more costs onto sellers to sustain revenue. As Etsy leans on ads and fees, sellers across platforms may need to carefully assess ROI on marketplace spend.
Amazon Commits $4 Billion to Speed Up Rural Delivery Network
Amazon is investing over $4 billion to expand its rural delivery network, adding 200+ delivery stations and over 100,000 jobs to serve more than 13,000 ZIP codes. This initiative aims to cut rural delivery times in half by the end of 2026 and boost delivery capacity to over a billion packages annually.
For Amazon sellers, this expansion opens access to underserved rural markets with faster Prime delivery speeds, potentially increasing sales reach and customer satisfaction. As UPS pulls back from low-margin Amazon volume, Amazon’s control over its logistics network continues to grow—further tightening its fulfillment ecosystem.
eBay Sales Flat as CFO Departs, Ad Revenue Rises
eBay reported just 1% growth in both GMV and revenue for Q1 2025, while also announcing the replacement of its Chief Financial Officer and Chief Product Officer. Despite sluggish sales, first-party ad revenue on the platform rose 13% year-over-year, generating $418 million.
For Amazon sellers watching competitor marketplaces, this signals eBay’s growing reliance on ad revenue and the importance of paid visibility. eBay’s push to leverage AI and focus on core categories suggests a continued shift toward optimized seller tools and marketplace curation.
Amazon CEO Jassy: Tariffs Could Strengthen Amazon’s Market Position
Amazon CEO Andy Jassy told investors he’s “optimistic” Amazon could come out stronger from the current tariff environment, much like it did during the pandemic. While tariff uncertainty led the company to issue a wider Q2 forecast, Jassy emphasized Amazon’s broad product selection and low prices as key advantages.
He also noted that not all sellers will raise prices in response to rising import costs, which could help Amazon retain customer loyalty. For Amazon sellers, this means competitive pricing strategies and inventory timing will be critical as tariff-related volatility continues.
UPS Slashes 20,000 Jobs as Amazon Cuts Shipping Volume
UPS will lay off 20,000 employees and close 73 facilities as it restructures in response to a sharp decline in Amazon shipments and global trade uncertainty tied to rising tariffs. Amazon recently agreed to cut its shipping volume with UPS by 50% by mid-2026, after accounting for nearly 12% of UPS revenue in 2024.
For Amazon sellers, this signals potential disruptions in parcel delivery reliability and pricing, especially for those relying on UPS as a fulfillment partner. Sellers may need to reassess logistics strategies amid broader shifts in trade and fulfillment networks.
Seller Tips & Tricks
How to Beat Competitors on Amazon: 7 Proven Pricing Strategies
This article by Savannah A outlines seven effective pricing strategies that help Amazon sellers win the Buy Box, protect profit margins, and stand out from the competition. Key tactics include using AI repricers with guardrails, bundling products to escape price wars, pricing like a premium brand when justified, and leveraging coupons to boost conversions.
It also emphasizes the importance of understanding true SKU profitability and using ad dayparting to stretch ad budgets further. For Amazon sellers, the takeaway is clear: smart, data-driven pricing beats being the cheapest.
7 Red Flags Amazon Sellers Should Watch for in Fake Reviews
Danan Coleman highlights seven key warning signs of fake reviews that can damage trust and hinder sales—ranging from unverified bulk reviews to suspicious rating spikes with no sales. Even though Amazon claims to have blocked over 250 million fake reviews last year, many still slip through.
For Amazon sellers, monitoring ASIN review quality is now as important as managing inventory or PPC. If your product’s rating looks great but conversions are stalling, hidden review issues might be the cause.
Amazon DSP Bid Adjustments Offer Custom Control for Smarter Ad Campaigns
Amazon has launched DSP bid adjustments, allowing sellers to apply custom logic to influence ad bidding based on business goals—all within a single line item. This gives sellers the flexibility to fine-tune campaigns using proprietary data while still leveraging Amazon’s automated optimization.
The update reduces the need for multiple line items, speeding up setup and improving campaign efficiency. A case study from Coty showed a 28% boost in ROAS using this feature, making it a valuable tool for sellers aiming to scale profitably.
Boost Amazon Sales Up to 20% Using A+ Content
Amazon reminds brand-registered sellers that A+ Content can increase conversion rates by up to 8% for Basic A+ and up to 20% for Premium. These tools allow you to showcase your brand story, highlight product features with images, videos, and Q&A modules, and build trust with shoppers.
A+ Content also helps reduce returns and negative feedback by answering customer questions before purchase. For Amazon sellers, this is a simple but powerful way to stand out and boost sales with rich, branded content.
New Selection Success Guide Helps You Sell First 10 Units Faster
Amazon’s New Selection Success guide offers a step-by-step strategy to help sellers quickly sell the first 10 units of newly launched products. It covers how to increase visibility, create engaging content, and drive early conversions using tools and incentives.
The guide also provides insights on earning quality reviews and which Amazon programs best support new product launches. For Amazon sellers, this resource is key to building momentum and maximizing early sales performance
Amazon Webinars: Prime Day Prep, FBA Mastery, and Bulk Services Unlocked
Amazon is offering a new round of free live webinars to help sellers optimize for Prime Day, master FBA operations, and take advantage of Amazon Bulk Services (ABS). These sessions include live Q&As and hands-on demos, covering everything from inventory prep and deal strategies to case-pack fulfillment and fee-saving opportunities.
The Prime Day session on May 1 will teach how to qualify for deals and boost visibility during the event. The FBA and ABS webinars, running May 6–8, provide step-by-step guidance for inventory success and scaling large-volume sales more efficiently.
New Feature: Link Multiple Carrier Accounts in Amazon Buy Shipping
Amazon now allows sellers to link one or more accounts for each shipping carrier—like FedEx and UPS—within Amazon Buy Shipping. This lets you use your own negotiated rates while maintaining access to Amazon’s tracking, claims protection, and fulfillment benefits.
Sellers can streamline operations by assigning carrier accounts to specific warehouses and managing shipments through Seller Central, API, or multichannel tools. This update helps reduce shipping costs and boosts efficiency, especially for Seller Fulfilled Prime and non-Prime orders.
Video of the Week
Why Veteran Sellers Still Dominate Amazon — And How Newcomers Can Break In
Strong Opinions
Amazon Sellers Frustrated by Surprise Brand Re-Gating After Approval
A long-time Amazon seller shared their experience of being approved to sell a gated brand—only to be re-gated just 10 days later without notice. Initially approved using an invoice for 10 units, Amazon later demanded proof of 100 units with no communication or explanation.
The seller expressed deep frustration over the lack of transparency and shifting requirements, especially after following all guidelines with verified brand invoices. For Amazon sellers, this situation highlights the increasing unpredictability of ungating processes and the risks of investing in inventory prematurely.
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Top Upcoming Amazon Events
- 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! Stay informed and adapt to these changes to keep your business thriving.
God Bless,
Todd Welch
Amazon Seller School
