You are currently viewing Whoops! Amazon served costly ads for products people couldn’t actually buy

Whoops! Amazon served costly ads for products people couldn’t actually buy

Hey, fellow Amazon Sellers!

Welcome to another edition of our weekly newsletter, where I bring you the hottest news and tips to revolutionize your Amazon game:

1. Whoops! Amazon served costly ads for products people couldn’t actually buy

Small business owners, particularly one Virginia-based custom computer assembler, faced significant financial burdens after Amazon displayed their ads to consumers in regions where the products could not be legally sold, such as California, due to specific state regulations. The seller, who halted shipments to California to comply with personal computer power consumption regulations, was charged $200,000 to $300,000 for these futile advertisements. Despite acknowledging the problem and promising a $15,000 refund to the affected seller, Amazon’s advertising system’s inability to geo-target or comply with state-specific regulations has resulted in substantial losses for sellers and questions about the effectiveness and fairness of Amazon’s ad platform.

Read More:

2. Amazon Gating Sellers from Valuable Brands for Suspended ASINs

Lesley Hensell of Riverbend Consulting highlights a worrying trend where Amazon has started gating sellers, including those with their own private label brands, from selling certain brands after years of association. This gating often follows a seller’s failure to appeal suspended ASINs due to alleged product defects, leading Amazon to doubt the seller’s reliability. Additionally, despite the Account Health Rating (AHR) system indicating a green status, sellers find themselves unexpectedly gated or suspended, revealing the AHR’s unreliability. Sellers finding themselves gated from brands are advised to reapply for ungating, ensuring their invoices meet Amazon’s criteria and appealing any suspended ASINs related to the brand. Private label owners are encouraged to provide proof of ownership and brand registration.

Read More:

3. Temu’s First US Sellers Are All Chinese

Temu has initiated the inclusion of US sellers with local fulfillment, aimed at reducing environmental impacts, but according to Marketplace Pulse, all of these “US sellers” are actually Chinese with US-based inventory. This sets up two types of sellers on Temu: those using Temu’s Chinese fulfillment services and those fulfilling orders locally in the US. While approximately 150,000 sellers use Temu’s fulfillment, about 1,000 are self-fulfilling in the US, many of whom were already selling on Amazon. This move marks Temu’s transition to a Western-style marketplace, combining the benefits of local fulfillment with potential challenges in delivery time guarantees. The evolution of Temu will depend on whether US brands and retailers decide to join, following the initial wave of Chinese sellers with US inventory.

Read More:

4. Why Amazon Attribution Is an Essential Tool for Amazon Sellers

Amazon Attribution allows sellers to track the performance of their off-Amazon marketing efforts directly within their Amazon campaigns, offering insights into sales, purchases, and other important metrics. Introduced as part of Amazon’s broader Search Engine Advertising tools, Amazon Attribution helps sellers identify effective advertising channels and strategies, understand customer behaviors, and optimize their digital marketing campaigns for better ROI. The service, available to brand-registered sellers in supported marketplaces, is free to use and integrates with the Amazon Advertising Console, offering a valuable resource for improving measurement, optimizing marketing spends, and increasing conversion rates based on data-driven insights.

Read More:

5. Analysis: Amazon Sellers Say Their Businesses Are Facing an Extinction Event—They Might Not Be Wrong

Many long-time U.S.-based Amazon sellers are expressing unprecedented concerns, stating that recent fee increases by Amazon could mark an unsustainable shift in their business models. With Amazon already claiming a significant portion of sales through fees, the addition of new charges like the “inbound placement fee” and a “low inventory” fee has sellers alarmed. These changes could disproportionately impact less experienced or less adaptable sellers, potentially leading to a significant shake-up in the Amazon seller community. Critics argue that Amazon’s new fees are too complex and could force sellers to either incur higher costs or opt for Amazon’s Warehousing and Distribution (AWD) service, essentially tightening Amazon’s grip on the supply chain. As frustrations mount, sellers foresee a potential “extinction event” where only a select few can thrive under the new fee structures, posing existential threats to many current sellers on the platform.

Read More:

6. How Amazon’s Return Policy Affects Sellers in 2024

Amazon’s return policy for 2024 presents both challenges and strategic considerations for sellers on the platform. Key updates include an extended holiday return period and a new returns processing fee for high-return rate products, excluding apparel and shoes, effective from June 1, 2024. For Amazon FBA sellers, Amazon manages customer returns, determining eligibility without seller input, and evaluates returned products for resale. Sellers face deductions from their account when returns are initiated and must manage unsellable returned items. For FBM sellers, Amazon mandates adherence to its return policies, impacting sellers’ direct interactions with customers.

Read More:

7. Request to Remove Meltable FBA Inventory by April 15

Amazon has issued a notice to sellers about its policy for meltable inventory. From April 15 to October 15, 2024, Amazon fulfillment centers will not accept products prone to melting, such as chocolates and gummies. Items in this category remaining post-April 14 will be disposed of at a fee. Sellers are urged to either submit removal orders or liquidate their susceptible inventory before the deadline to avoid disposal costs. Steps for removal or exemption requests can be found under the Meltable FBA inventory section in Seller Central.

Read More:

8. Improve Customer Satisfaction with New Voice of the Customer Features

Amazon has introduced two innovative features to its Voice of the Customer dashboard, aimed at enhancing seller-customer interaction and product quality. The features, Recommended Actions and Key Phrases, are designed to help sellers identify and rectify issues in their listings, particularly for products rated as “Poor” or “Very Poor”. These include educational content on product conditions, guidelines on product preparation, tools for updating size information, and support for the product lifecycle. The Key Phrases feature now extends beyond reviews to include insights from various customer interactions. These updates aim to assist sellers in improving listings and reducing customer complaints and returns.

Read More:

9. Amazon Auto-enrol Remote Fulfilment with FBA

Amazon is automatically enrolling some US brands in its Remote Fulfilment with FBA program, previously optional, to expand their sales internationally without additional inventory requirements. Brands will now have offers automatically created on,, and based on their US listings. The program adjusts prices based on fees and currency differences and designates buyers as the importers of record, responsible for all import duties and taxes. Sellers need to check their enrollment status and opt out if their products face specific restrictions or they lack authorization for international sales. UK brands have a similar program for expanding sales across the EU and UK without VAT registration complexities.

Read More:

10. Amazon Adds Security Measure to Seller Central Sign-in

Starting March 28, 2024, Amazon is enhancing the security of Seller Central accounts by implementing mandatory two-factor authentication. Sellers will need to verify their identity using a mobile number or an authenticator app each time they sign in, aiming to protect accounts from unauthorized access. While this measure strengthens security, it has raised concerns among sellers, especially regarding access issues in the absence of cell service. The update has been met with mixed reactions, with some recognizing it as an improvement, while others worry about potential challenges in accessing their accounts.

Read More:

11. Fiverr – Your One-Stop Freelance Marketplace

Fiverr has become my go-to platform for all my smaller business needs. Whether I need a creative and professional logo, eye-catching graphics, or quick one-off projects, Fiverr has a vast array of talented freelancers ready to assist. With its user-friendly interface and diverse pool of sellers, I can easily find the perfect match for my specific requirements. From logo designers to social media managers, Fiverr offers a wide range of services, and I can always count on finding quality work within my budget. It’s a reliable and efficient resource that has saved me time and effort in sourcing various services for my business needs.

Join here:

Don’t miss out on these game-changing updates! Stay ahead of the curve and elevate your Amazon selling experience!

Happy Selling,

Todd Welch
Amazon Seller School