Amazon News: Scams, UK Fee Changes, and 2024 E-Commerce Insights
Hey Fellow Amazon Sellers,
Welcome to this week’s Amazon seller newsletter! From a daring holiday heist to fee updates and 2024 insights, here’s what you need to know to stay ahead in the Amazon game.
News
Holiday Heist Diverts $1M in Toys Using Sophisticated Scam
A $1 million shipment of Flycatcher’s Smart Sketcher toys was stolen in an elaborate freight scam where thieves impersonated legitimate trucking companies. The stolen goods were rerouted and began appearing on Amazon from third-party sellers at deep discounts, forcing Flycatcher to lower its own prices and lose revenue during peak holiday sales.
Flycatcher has filed a federal lawsuit against 14 online sellers allegedly offering the stolen toys, while organized “strategic theft” incidents have surged, posing growing risks for businesses relying on logistics brokers. This case highlights the need for Amazon sellers to monitor third-party marketplaces and take precautions to prevent losses from fraudulent supply chain activities.
Amazon Sellers, This Isn’t “Greater Transparency”—It’s Theft in Disguise
Amazon’s new policy to reimburse sellers for lost or damaged inventory based on manufacturing cost rather than the sales price is a direct blow to seller profits. Sellers are now forced to input their Cost of Goods Sold (COGS), opening the door for lowball reimbursements while ignoring additional costs like shipping, labor, and lost sales opportunities.
Todd Welch highlights that this move unfairly penalizes sellers for Amazon’s warehouse mistakes and disguises a fee increase under the pretense of “greater transparency.” Sellers are urged to speak out against this policy, which threatens fair compensation and sets a troubling precedent for the future.
No Black Friday Windfall for Chinese Sellers Amid Rising Competition
Chinese sellers on platforms like Temu, Shein, and Amazon faced tighter margins and lower profits this Black Friday, despite rising sales volumes. Fierce competition, increased advertising costs, and cut-to-the-bone pricing—sometimes set by platforms themselves—left many sellers struggling to turn a profit.
While Temu and Shein continue to push aggressive discounts, Amazon launched its budget-friendly Haul section to compete for price-sensitive shoppers, further intensifying market pressure. Sellers must now navigate these challenges while adapting to rising costs and evolving platform strategies.
Marketplace Pulse Year in Review 2024
In 2024, disruptors like Shein, Temu, and TikTok Shop reshaped e-commerce, pressuring Amazon to respond with budget-focused offerings like Amazon Haul. Post-pandemic e-commerce growth remained slow, while the low-priced, brandless goods market gained momentum, challenging traditional brands.
Retailers increasingly turned to advertising to boost margins, and advancements in AI introduced new opportunities for personalized and efficient shopping experiences. For Amazon sellers, adapting to shifting consumer behavior and rising competition remains key to staying ahead.
Return Rate and Star Rating Features Added to Voice of the Customer Dashboard
Amazon has enhanced the Voice of the Customer dashboard with two new metrics: Return Rate and Star Rating. Return Rate highlights the percentage of returns over the past 12 months, helping sellers quickly identify products with high return volumes.
The Star Rating feature consolidates product ratings from detail pages, enabling sellers to efficiently monitor and improve customer satisfaction. These tools empower sellers to proactively address product issues and enhance their listings.
Create A+ Content Easily with Generative AI Tools
Amazon has introduced generative AI tools in the A+ Content Manager, now available to all Brand-registered sellers in the US. These tools allow sellers to create high-quality product detail content, including videos, images, and brand messaging, in minutes instead of weeks, potentially increasing sales by up to 20%.
The AI capabilities simplify content creation, helping brands of all sizes streamline workflows without needing professional designers or copywriters. This new feature is free for select English-language modules and can be accessed directly in the A+ Content Manager.
Retailers Take Note: Consumers Say There Are Too Many Deals
U.S. consumers are expressing deal fatigue, with 41% feeling promotions are less special due to overwhelming frequency, and one-third saying they feel bombarded. Many shoppers have already stocked up during early promotions, leaving less spending power for the remaining holiday weeks.
The PYMNTS report shows that 59% of consumers plan to spend the same or less than last year, with a significant number adopting a “one-and-done” approach to big sales events. For Amazon sellers, this signals the importance of balancing promotions while avoiding consumer burnout and ensuring strategic timing to capture remaining holiday demand.
Amazon 2025 UK and EU FBA Fee Updates: What Sellers Need to Know
Vanessa Hung highlights Amazon’s 2025 FBA fee updates for UK and EU sellers, revealing rising operational costs despite claims of no referral fee increases. Monthly storage fees will increase by up to 15% for categories like Clothing, Eyewear, and Shoes, while Q4 storage costs will spike across all products.
Additionally, aged inventory surcharges will apply to items aged 181–210 days, and removal and returns processing fees are set to rise, especially for Clothing and Footwear. Sellers are encouraged to optimize inventory management, while Amazon offers incentives like reduced fulfillment fees and expanded FBA New Selection programs to support new sellers and products.
Seller Tips & Tricks
Amazon Sellers: Can You Contact Reviewers? Here’s What You Need to Know
Amazon prohibits direct contact with reviewers to maintain unbiased feedback, but sellers can still engage indirectly through compliant strategies. Use Amazon’s Early Reviewer Program, include package inserts requesting feedback, and provide exceptional customer service to encourage organic reviews.
Violating Amazon’s rules by directly contacting reviewers or offering incentives can result in account suspension and harm your brand’s reputation. Focus on delivering value, responding professionally to feedback, and leveraging Amazon-compliant methods to build trust and long-term success.
How Google SEO Helps Amazon Sellers Double Their Profit Margin
Leveraging Google SEO allows Amazon sellers to drive targeted external traffic to their listings, helping them reduce reliance on expensive Amazon PPC ads and boost profit margins. By optimizing for Google search with strategies like long-tail keywords, high-quality content, and backlinks, sellers can attract more organic traffic while increasing brand awareness.
Sellers who implement effective SEO often save on ad costs and see their net margins double or even triple, reducing dependence on Amazon’s competitive ecosystem. Diversifying traffic sources through Google SEO not only enhances profitability but also builds resilience against changes in Amazon’s algorithm or policies.
Video of the Week
Boost Sales with Amazon Coupons
Strong Opinions
Amazon Supplier Verification Process Under Scrutiny
Chris McCabe highlights ongoing issues where Amazon rejects supplier invoices, claiming they couldn’t verify suppliers without clarifying their process. Sellers report that Amazon investigators often skip contacting suppliers directly, relying on incomplete online searches or marking tasks as “done” without proper verification.
Suppliers frequently confirm they were never contacted, frustrating sellers and questioning Amazon’s accountability. McCabe urges sellers to escalate these cases carefully and proactively navigate this broken verification system.
Breaking News: Amazon’s 2025 Fee Changes – Discounts, Distance Costs, and Double-Talk
Amazon’s 2025 updates bring significant changes to Warehousing and Distribution (AWD), Multi-Channel Fulfillment (MCF), and Managed Services, impacting sellers’ costs and strategies. The AWD Smart Storage discount now requires maintaining consistent inventory levels, complicating cash flow management for smaller sellers.
Additionally, MCF outbound fees will be distance-based starting in April 2025, increasing costs for shipments from distant AWD warehouses, while Supply Chain Managed Services offers convenience but comes with added costs. Despite claims of “no fee increases,” MCF fees will rise by 3.5% on average, adding pressure to sellers already managing tight margins.
The FBA Machine Can Shatter Your Products If You’re Not Careful
Steven Pope shares a cautionary tale about relying on Amazon FBA for prep work, where his 5 lb glass hot sauce bottles were shipped in padded envelopes, leading to broken products and failed deliveries. This highlights the risks of trusting FBA’s standard processes for fragile items, especially without direct consumer-ready packaging.
The takeaway for Amazon sellers: ensure items are prepped for consumer shipping before sending them to FBA, even if it increases fees, to avoid damaged products and disappointed customers.
Is TikTok Really Going to Be Banned in the United States?
The future of TikTok in the U.S. remains uncertain as legal and political challenges escalate, with a federal court ruling enabling a potential ban unless ByteDance sells the platform. E-commerce sellers reliant on TikTok Shop for marketing and sales are encouraged to diversify their strategies to other platforms like Instagram, YouTube, Facebook, and Pinterest.
Emerging platforms like Lemon8, Bluesky, and Clapper offer additional opportunities for brands to reach new audiences, while tools like email marketing, loyalty programs, and live shopping events can boost customer engagement. By preparing for a potential ban now, Amazon sellers can strengthen their resilience and maintain growth across multiple channels.
Featured Services and Software
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I hope these insights empower you to stay ahead and thrive in the dynamic world of e-commerce.
God Bless,
Todd Welch
Amazon Seller School