Amazon’s Big Moves: Ad Expansion & New Seller Fees – What You Need to Know

Amazon just shook up the e-commerce world with two major updates: ? Retail ad tools are now available outside Amazon’s platform. ? New FBA fees & Seller Fulfilled Prime (SFP) changes are coming in 2025. These changes will impact ad strategies, fulfillment costs, and profit margins for sellers. Let’s break it all down.

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?? Amazon Expands Retail Advertising Beyond Its Platform

Amazon is now letting external retailers use its ad technology to run sponsored ads on their own websites. This marks a huge shift in e-commerce advertising, putting Amazon in direct competition with Google and Meta.

?? What’s Changing?

• Amazon DSP (Demand-Side Platform) will now power ads on non-Amazon sites.
• Retailers can use Amazon’s first-party shopping data to target customers beyond the marketplace.
• Shoppers who engage with Amazon ads on external sites can be directed to brand-owned stores or even back to Amazon.

?? What This Means for Sellers

? More Ad Reach – Amazon sellers may be able to target shoppers across the web, not just on Amazon.

? Better Data for Targeting – Amazon’s deep shopper insights can make off-Amazon ads more effective.

? Potential Higher Ad Costs – Increased competition for Amazon’s ad inventory could drive CPCs up.

?? Strategic Tip: Brands should monitor how Amazon’s off-site ads perform compared to Google Ads and Meta Ads. If Amazon’s audience targeting proves more profitable, it could shift where sellers allocate their ad budgets.

?? Amazon’s 2025 FBA Fee Hikes & SFP Policy Changes

Amazon is raising FBA fees and tightening Seller Fulfilled Prime (SFP) rules in early 2025. These changes will impact fulfillment costs, margins, and shipping strategies.

?? Key Updates

?? Higher FBA Fees – Fulfillment and storage costs are increasing for most standard-size products.

?? Stricter SFP Requirements – Sellers must meet faster delivery speeds and higher performance metrics to remain eligible.

?? Multi-Channel Fulfillment (MCF) Price Adjustments – Using Amazon’s fulfillment for non-Amazon orders will cost more.

?? Impact on Sellers

? Lower Margins – Increased fees mean sellers must adjust pricing or find cost savings elsewhere.

? FBA vs. 3PL Dilemma – Some brands may start moving inventory to third-party logistics (3PL) providers.

? More SFP Access (With Stricter Rules) – Amazon is allowing more sellers into SFP, but maintaining eligibility will be tougher.

?? Strategic Tip: Sellers should reevaluate their fulfillment strategy in 2025. For some, a mix of FBA + 3PL may be the best way to stay Prime-eligible while keeping costs in check.

Amazon is making bold moves that will reshape how sellers advertise and fulfill orders. With ads expanding beyond Amazon’s platform, brands may gain more reach but could face rising CPCs. At the same time, FBA fee hikes and stricter SFP rules in 2025 will force sellers to rethink their fulfillment strategies to protect margins. Staying ahead means adapting fast—evaluating ad performance, optimizing logistics, and balancing costs.        

?? What’s Next? Stay Ahead with aNavigator

Amazon’s landscape is evolving fast. If you need expert guidance on:

? Optimizing your Amazon ad strategy in light of these changes

? Navigating the new FBA & SFP fees without losing margins

? Scaling profitably on Amazon in 2025

?? Reach out to aNavigator today. Let’s build a customized growth strategy that keeps your brand competitive.

?? Let’s talk → Contact us here

Stay Winning! The aNavigator Team ??