Amazon News: Legal Battles, Marketplace Shifts & Seller Strategies You Need to Know
Hey Fellow Amazon Sellers,
This week’s newsletter is packed with critical updates on Amazon’s latest legal challenges, seller concerns, and marketplace shifts. Stay informed and ahead of the game!
News
Amazon Sued for Secretly Tracking Consumers Through Cellphones
A new lawsuit accuses Amazon of secretly collecting and selling consumer location data through its Ads SDK, embedded in thousands of apps. The suit claims Amazon gathers detailed personal information without user consent, including sensitive data about shopping habits, workplaces, and even religious affiliations.
If proven true, this could impact how Amazon sellers advertise, as consumer trust and regulatory scrutiny on data privacy increase. With growing legal action against companies for unauthorized tracking, sellers should stay informed on potential changes to advertising and data policies.
UPS to Cut Amazon Volume by Over 50%—What It Means for Sellers
UPS announced plans to reduce its Amazon package volume by more than 50% by late 2026, citing low profitability from the e-commerce giant. While Amazon remains UPS’ largest customer, the carrier is shifting focus to more profitable segments like healthcare and small businesses.
For Amazon sellers, this means potential shipping delays and increased reliance on Amazon’s own logistics network, which could impact delivery times and fulfillment costs. As Amazon continues to diversify its carrier mix, sellers should monitor changes in shipping rates and fulfillment efficiency.
Microsoft Eyes TikTok as U.S. Pushes for New Ownership
President Donald Trump confirmed that Microsoft is among the U.S. companies considering acquiring TikTok to prevent a potential ban. While several investors and companies have expressed interest, the details of ownership, including a possible 50% U.S. stake, remain unclear.
For Amazon sellers, any major shift in TikTok’s ownership could impact advertising opportunities and e-commerce trends, especially as TikTok Shop continues to grow. If Microsoft or another U.S. company takes control, sellers should watch for potential changes in TikTok’s ad platform and marketplace policies.
FTC Cracks Down on Fake Reviews—What Amazon Sellers Need to Know
The FTC has banned fake reviews, imposing strict penalties on businesses that pay for positive feedback, suppress negative reviews, or use AI-generated testimonials. Amazon sellers must ensure full compliance, as the marketplace is expected to tighten enforcement and crack down on fraudulent review practices.
Violating these new rules could lead to account suspensions, product removals, and hefty fines, making transparent review collection more critical than ever. Sellers should focus on organic strategies like verified purchase reviews, Amazon Vine, and proactive customer engagement to build trust and maintain compliance.
Amazon vs. Temu: What Sellers Need to Know About “Haul“
Amazon has launched “Haul,” a budget-focused section within its app aimed at competing with ultra-low-cost platforms like Temu and Shein. Haul offers rock-bottom prices, a gamified shopping experience, and direct sourcing from Chinese suppliers, which could impact existing Amazon sellers in low-price categories.
Sellers may face increased competition, pressure to lower prices, and reduced visibility as Amazon promotes Haul over standard marketplace listings. Additionally, potential changes to U.S.-China trade policies, including higher tariffs and restrictions on duty-free imports, could affect Haul’s success and the broader e-commerce landscape.
Online Holiday Sales in 2024 Hit Record Highs—What Amazon Sellers Should Know
U.S. online holiday sales grew 8.7% in 2024, reaching $241.4 billion, with mobile purchases making up a record 54.5% of transactions. Key categories driving sales included electronics, apparel, and home goods, while Buy Now, Pay Later (BNPL) spending increased to $18.2 billion.
For Amazon sellers, this shift emphasizes the importance of mobile-friendly listings, strategic discounting, and leveraging AI-powered shopping tools to stay competitive. However, rising return rates and potential policy changes around returns could impact profitability, making efficient inventory management and customer engagement more critical than ever.
OpenAI Unleashes AI Shopping Agent—What It Means for Amazon Sellers
OpenAI has introduced “Operator,” an AI-powered shopping assistant that automates purchases and directs users to marketplaces like eBay. This AI agent is designed to make shopping more efficient, but it also raises concerns about potential errors in transactions, leading to increased returns and claims.
For Amazon sellers, this shift could impact how shoppers find products, potentially favoring AI-optimized listings over traditional search results. As AI-driven shopping evolves, sellers should focus on optimizing their listings and adapting to how AI agents influence purchasing decisions.
Amazon Increases Ad Spending on X in Major Reversal
Amazon has resumed advertising on X (formerly Twitter) after previously pulling back due to content moderation concerns. Other major brands like Apple are also reconsidering their presence on the platform, though ad spending remains lower than before Elon Musk’s acquisition.
For Amazon sellers, this shift suggests X could become a more relevant advertising channel for e-commerce marketing. Sellers should watch for potential changes in Amazon’s ad strategy and consider whether X might offer new opportunities for customer engagement and brand visibility.
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Seller Tips & Tricks
The Hidden Risks of Buying Fake Amazon Verified Reviews
Buying fake Amazon-verified reviews may seem like a shortcut to boosting sales, but it comes with serious consequences. Sellers caught engaging in review fraud face account suspensions, permanent bans, and loss of customer trust, which can ultimately harm long-term business success.
Amazon’s algorithm prioritizes authentic reviews, so fraudulent activity can lead to lower organic rankings and review removals, making products less visible. Instead of taking risks, sellers should focus on legitimate strategies like Amazon Vine, promotions, and exceptional customer service to build a strong reputation.
How to Overcome the “We Don’t Work with Amazon Sellers” Objection
Many suppliers and brands refuse to work with Amazon sellers, but handling this objection correctly can open new doors. Corey Ganim shares strategies to counter this resistance by demonstrating value, building trust, and positioning yourself as a reliable partner.
For Amazon sellers, mastering objection handling is crucial for securing supplier relationships and maintaining a competitive inventory. Understanding how to navigate these conversations can help sellers access better products, pricing, and long-term partnerships.
Amazon Webinars: Improve Account Health & Maximize Bulk Sales
Amazon is offering free live webinars to help sellers manage account health and optimize bulk selling. A three-part series will guide sellers on maintaining a strong Account Health Rating, resolving violations, and effectively appealing decisions.
Another session focuses on Amazon Bulk Services, teaching sellers how to streamline large-quantity sales, improve inventory management, and reduce fees. These webinars provide valuable insights and live Q&As, making them essential for sellers looking to strengthen their business.
Amazon Webinar: Master Your New Product Launch Strategy
Amazon is offering a free live webinar to help sellers successfully launch new products and overcome common challenges. The session will cover key strategies, including listing optimization, marketing techniques, and leveraging Amazon’s tools to maximize visibility.
Sellers will also learn how to analyze performance metrics and develop long-term success plans to stay competitive. A live Q&A with an expert presenter provides an opportunity to get personalized insights and refine your launch approach.
Video of the Week
Tariffs Boost Chinese Sellers on Amazon and Walmart
Featured Software and Services
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Keepa: Historical Sales & Pricing Insights
I rely on Keepa, a valuable Chrome extension, to access historical sales ranking and pricing data of products before making wholesale purchases. By reviewing past sales performance and price trends, I can ensure the items have a solid sales history and maintain profitability in the future. To utilize Keepa, you’ll need to purchase a Data Package, which enables the extension to retrieve essential information from Amazon. At around $17 per month, this investment is undoubtedly worth it. Check out our video review for more insights.
Top Upcoming Amazon Events
Stay informed and keep adapting!
God Bless,
Todd Welch
Amazon Seller School