Amazon News: Revenue Milestone, Tariff Updates & Game-Changing Ad Insights
Hey Fellow Amazon Sellers,
This week’s newsletter is packed with essential updates, from Amazon surpassing Walmart in revenue to key insights on tariffs and ad revenue. Let’s dive in!
News
Amazon Set to Surpass Walmart in Revenue for the First Time
Amazon is on track to report $187 billion in quarterly revenue, surpassing Walmart’s projected $180 billion for the first time in history. While Walmart still leads in annual revenue, Amazon’s rapid growth—driven by its cloud business, AWS, and the rise of e-commerce—has helped it close the gap.
For Amazon sellers, this shift highlights the platform’s dominance in online retail and reinforces the importance of leveraging its vast marketplace to scale their businesses. As Amazon continues expanding its ecosystem, sellers should stay ahead by optimizing their strategies to capitalize on its growing customer base.
Amazon Sales Grew 10% in Fourth Quarter 2024
Amazon reported a 10% year-over-year sales increase in Q4 2024, with North America sales up 10%, international sales up 8%, and AWS revenue growing 19%. For the full year, Amazon’s net sales rose 11% to $638 billion, while net income nearly doubled to $59.2 billion.
Third-party sellers played a significant role, accounting for 62% of worldwide paid units, highlighting the continued importance of third-party marketplace sales. As Amazon expands its AI and cloud services, sellers should stay informed on emerging tools and technologies that may impact their business strategies.
The Mystery Inside Amazon’s Record Profits: How Much Are Higher Seller Fees Boosting the Bottom Line?
Amazon reported record profits in 2024, with operating income rising 86% year-over-year, but much of this growth may be tied to increasing seller fees. Over the past six years, revenue from seller fees has grown significantly, now accounting for over 29% of Amazon’s non-AWS revenue, up from 22% in 2019.
Jason Del Rey highlights concerns from sellers that these fees may be more of a “tax” than necessary costs, especially as Amazon faces an ongoing FTC antitrust lawsuit over its marketplace practices. With rising fees and increased profitability, Amazon sellers should closely watch how future fee structures impact their bottom line.
Amazon Tariffs: What the New De Minimis Rules Mean for Sellers
Recent tariff changes and the suspension of the de minimis rule are set to increase costs for Amazon sellers who import from China, Canada, and Mexico. The removal of duty-free exemptions means sellers relying on small, frequent shipments will face higher tariffs, impacting margins and pricing strategies.
Many sellers are now considering alternative sourcing locations like Vietnam or India, shifting to bulk shipments, or using Amazon Warehousing & Distribution (AWD) to optimize fulfillment. As trade policies evolve, sellers must adapt their sourcing, compliance, and pricing strategies to maintain profitability.
Amazon to Automatically Set Minimum Order Handling Capacity for Sellers
Starting February 24, 2025, Amazon will automatically set a minimum order handling capacity for sellers based on their average daily orders from the past 30 days. This threshold will be recalculated weekly, ensuring sellers are not overwhelmed by sudden surges in orders.
Sellers can still manually set higher limits, but if they fall below the system-calculated minimum, Amazon will adjust it accordingly. This change aims to improve delivery accuracy, reduce late shipments, and ensure a smoother fulfillment process for sellers using Standard and Free Economy shipping.
Amazon’s New Conversion Path Report Gives Sellers Game-Changing Ad Insights
Jonathan Tilley highlights Amazon’s new Conversion Path Report (currently in beta), which breaks down how customers interact with different ad formats before making a purchase. This tool helps sellers track the percentage of sales from specific ad paths and measure new-to-brand conversions, revealing which campaigns drive first-time buyers.
By analyzing this data, sellers can identify weak links in their ad strategy, shift resources to the most effective campaign types, and refine customer lifetime value (LTV) strategies. While the report still lacks some key metrics, it’s a powerful tool for sellers looking to optimize their Amazon advertising for better ROI.
US Temporarily Reinstates De Minimis Rule Amid Import Chaos
The US government has temporarily reinstated the de minimis exemption for packages from China after attempting to eliminate it earlier in the week. The sudden change led to massive shipment backlogs, with over one million packages piling up at JFK Airport when USPS briefly stopped accepting deliveries from China.
While the exemption remains in place for now, it will be removed once Customs and Border Protection (CBP) establishes a system to collect tariffs on these shipments. For Amazon sellers, this means ongoing uncertainty in shipping costs and fulfillment strategies, especially for those relying on low-cost imports from China.
Massive Data Leak Exposes 14 Million Shipping Records, Posing Risks for Amazon Sellers
Hipshipper, a shipping platform used by Amazon, eBay, and Shopify sellers, accidentally exposed over 14 million shipping records, including customer names, addresses, phone numbers, and order details. The unprotected data could have been accessed by cybercriminals, increasing the risk of phishing scams and fraud targeting both sellers and buyers.
Although Hipshipper has since closed the exposed AWS bucket, sellers should remain vigilant for potential fraud attempts involving shipping details. This incident highlights the importance of securing customer data and implementing strong cybersecurity measures to prevent similar breaches.
Amazon Vine Now Allows Upgrades to Higher Enrollment Tiers
Amazon sellers using the Vine program can now upgrade to a higher enrollment tier within the first 30 days by adding more units for the same ASIN. This update provides greater flexibility in boosting reviews for new or slow-moving products, helping increase visibility and customer trust.
However, once an enrollment tier is selected, sellers cannot downgrade, and enrollment lasts for 90 days or until all units are reviewed. Sellers should take advantage of this change to maximize review potential early in the enrollment period.
Seller Tips & Tricks
Starting an Amazon Store: Essential Steps for Success
Launching an Amazon store presents a major opportunity for sellers to reach a global audience, but success requires strategic planning. This guide walks sellers through key steps, including competitor research, setting up an Amazon Seller account, optimizing product listings, and choosing between FBA and FBM fulfillment.
It also covers pricing strategies, marketing techniques, and how to navigate challenges like inventory management and policy compliance. Sellers looking to scale their business on Amazon can use these insights to establish a strong foundation and drive consistent sales.
Enroll in Seller Wallet for Lower Cross-Currency Transfer Fees
Amazon Seller Wallet now allows sellers to hold and transfer US store proceeds in over 20 currencies with competitive exchange rates. Sellers who enroll by March 21, 2025, will receive reduced cross-currency transfer fees of 0.6% for one year, potentially saving up to $900 on transfers of $100,000.
For those exceeding $100,000 in annual cross-currency net proceeds, even lower rates may be available. This tool provides flexibility by allowing sellers to transfer funds to local bank accounts or pay US and Hong Kong suppliers directly in USD.
How $3,000 Turned a Small Brand Into a Snack Empire
Pipcorn, a small heirloom popcorn brand, skyrocketed to success after securing a spot on Oprah’s Favorite Things list, driving massive demand and retail expansion. Despite early wins, the brand faced financial hurdles, including a failed $5 million investment deal, but ultimately secured a $6 million funding round by staying resilient and finding the right investor.
Beyond funding, Pipcorn’s growth was fueled by strong supplier relationships, built on trust, transparency, and strategic networking, helping them scale production. For Amazon sellers, this story highlights the power of branding, persistence, and supplier partnerships in growing a profitable business.
Video of the Week
Strong Opinions
Investors Heavily Search Interactive Brokers: What It Means for Amazon Sellers
Interactive Brokers (IBKR) has seen a surge in investor interest, with its stock up 21.3% in the past month and earnings estimates rising. Analysts project a 12.8% increase in quarterly earnings and steady revenue growth, positioning IBKR as a strong buy.
For Amazon sellers, this highlights the broader market trend of increasing investment in e-commerce financial services, which could impact lending options, payment processing, and cross-border transactions. With IBKR’s strong financial outlook, sellers should monitor how financial institutions are adapting to support online businesses.
Amazon’s New FBM Order Handling Limits—Helpful or Restrictive?
Vanessa Hung reports that starting February 24, 2025, Amazon will automatically cap the number of FBM orders sellers can handle daily based on past performance, updating the limit weekly. While sellers can manually increase their thresholds, a drop in recent sales could result in lower capacity, and exceeding limits may push estimated delivery dates out by a day.
This update could protect sellers from late shipments and account health risks, but it also means Amazon is taking more control over fulfillment operations. Sellers should proactively adjust their handling limits to avoid restrictions, especially during peak sales periods.
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Top Upcoming Amazon Events
I hope these updates help you navigate the ever-changing e-commerce world with confidence.
God Bless,
Todd Welch
Amazon Seller School
Founder @ Envision Ecom | We Help Amazon & Walmart Sellers Scale Beyond 1 Platform to Achieve $10K+ Monthly Growth with Tailored E-commerce Strategies
2 周Impressive numbers, but solely relying on Amazon is risky. Diversification protects against algorithm updates and policy changes.