Amazon News: AI Ads Shake-Up, New Fees, TikTok Threats & Q4 Seller Wins


This Week's Top Amazon Seller News

Hey Reader,

This week’s briefing breaks down big ad tech moves, new return/resell services, AI shopping updates from competitors, and a few seller-thread alerts that could affect visibility and margins.

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We’ll discuss the latest Amazon news and how it impacts your business. Tune in for valuable insights to help you stay ahead. Catch the live stream on LinkedIn, YouTube, and Facebook. Let’s get into it!

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News

Amazon Unifies DSP and Sponsored Ads Under One AI-Powered Platform

Amazon has launched a unified Campaign Manager that merges DSP and Sponsored Ads into one AI-driven interface, giving advertisers a single dashboard for planning, reporting, and optimization across display, video, audio, and streaming. Amazon says the new system cuts campaign setup time by 60% and uses automation and AI recommendations to reduce daily workload.

For Amazon sellers, this shift means more transparency into how their ads perform across the full funnel — and new tools like Ads Agent and Creative Agent that can automatically build campaigns, generate creatives, and run AMC queries without technical expertise. As Amazon leans deeper into AI, sellers gain more automation while still retaining visibility into how budgets and placements are optimized.

Amazon Tests Allowing Multiple Child Variations to Rank on Page One

Bradley Sutton reports that Amazon is running an A/B test allowing multiple child variations from the same parent ASIN to rank organically on page one — a significant shift from past behavior where only one variation typically appeared. He notes that this is happening across multiple categories, including Project X products, suggesting Amazon may be rethinking how variation families surface in search.

For Amazon sellers, Sutton explains this could be a major win in low-competition niches where a single brand could dominate multiple positions. However, he also warns that in competitive categories, big brands might crowd out smaller sellers even more than before.

Amazon Introduces AI-Powered Prompts for Sponsored Products & Sponsored Brands

Mansour Norouzi explains that Amazon has launched new AI-powered prompts inside Sponsored Products and Sponsored Brands campaigns, automatically surfacing key product information while shoppers browse. These prompts pull exclusively from Amazon’s first-party data—your PDP, reviews, Brand Store, and campaign keywords—and Amazon provides reporting showing which prompts drove clicks and conversions.

For Amazon sellers, this feature offers a powerful new way to influence buying decisions, especially while it’s still free in open beta before switching to CPC. Norouzi emphasizes that cleaner PDPs and stronger brand content will matter more than ever, as AI-driven guidance becomes a bigger part of how shoppers evaluate products.

Seller Challenge Launches for Faster Account Health Issue Resolution

Amazon has introduced Seller Challenge, a new tool for sellers enrolled in Account Health Assurance that allows them to request additional reviews of listing-level enforcement decisions after standard appeal options are exhausted. Sellers can submit up to three challenges every 180 days, attach supporting documents, and receive a decision from trained teams within 48 hours.

For Amazon sellers, this provides a valuable second layer of protection—especially for wrongful takedowns or complex policy misunderstandings—and can speed up reinstatements that previously stalled for weeks. The feature is optional but can help maintain account stability during peak seasons where every lost listing hurts.

How Google’s AI Overviews Are Ranking Shopping Keywords

Google’s AI Overviews are now appearing more strategically, with Google keeping only 30% of AI Overview keywords—but focusing on higher-volume searches tied to research and comparison. AI appears heavily during early stages of the buyer journey (“best TV for gaming,” “Samsung vs LG”) and then pulls back when users show purchase intent (“price,” “buy,” “deal” queries).

For Amazon sellers, this means November is the prime window when AI can surface comparison-rich content, making optimized educational and competitive pages essential for visibility. Categories that rely on explanation or instruction—like electronics, grocery, and small appliances—benefit most, while visually driven categories like furniture see less AI presence.

Amazon Expands Grade & Resell Program with New Categories and Features

Amazon has expanded its Grade & Resell program, allowing FBA sellers to recover more value from unfulfillable customer returns by relisting them as used rather than paying for removals. The program now includes additional categories such as watches, jewelry, luggage, shoes, and apparel, making it more useful for a wider range of sellers.

Amazon also shifted from an automatic catalog-wide enrollment to an opt-in model, letting sellers handpick up to 2,000 ASINs they want included. For Amazon sellers, these updates offer a more controlled, cost-saving way to turn returns into revenue and reduce write-offs during peak season.

2026 US Referral and FBA Fee Changes: What Sellers Need to Know

Amazon has announced its 2026 fee updates, including an average FBA fee increase of $0.08 per unit—still under 0.5% of the average item price and lower than recent carrier increases. Amazon says the adjustments reflect rising operational costs and added investments in faster delivery, improved forecasting, automation, and reduced inventory defects.

The update adds more detailed pricing tiers, increases some inbound and aged-inventory fees, and introduces new packaging and bulky-item adjustments while lowering fees in certain bulky and extra-large categories. For Amazon sellers, these changes emphasize the importance of healthy inventory levels, optimized packaging, and proactive forecasting to keep costs down and maintain profitability.

TikTok Shop Becomes One of the Fastest-Growing Brands in the US

TikTok Shop has surged into the mainstream, ranking as one of the fastest-growing US brands according to Morning Consult, signaling that social commerce is now fully embraced by American consumers. The platform’s rapid rise shows shoppers increasingly view TikTok Shop as a legitimate alternative to Amazon, Shein, Temu, and other low-cost marketplaces.

For Amazon sellers, this growth highlights a major competitive shift as TikTok becomes a real contender for product discovery, impulse buys, and holiday demand—especially heading into Black Friday and Cyber Monday. The platform’s performance this season will determine how much market share it can pull from Amazon and other established e-commerce giants.

Google Rolls Out New AI Shopping Tools Ahead of the Holidays

Google has launched a major wave of AI-powered shopping features, including conversational search, agentic checkout, and even an AI tool that calls local stores to check product availability. These updates aim to make the shopping journey smoother by handling tedious tasks like comparisons, price tracking, and inventory checks.

For Amazon sellers, this signals rising competition as Google pushes deeper into AI-driven shopping—an area Amazon is also racing to dominate with its own agentic seller tools. As Google becomes more proactive in influencing buyer decisions, sellers should expect greater comparison-driven traffic and prepare for a more competitive search landscape across platforms.

Ford Teams Up with Amazon to Sell Certified Used Cars Online

Ford is partnering with Amazon to let customers shop for certified used vehicles directly on Amazon Autos, where buyers can browse local dealer inventory, arrange financing, and complete most of the purchase online. The program launches first in Los Angeles, Seattle, and Dallas, with more cities coming soon.

For Amazon sellers, this move highlights Amazon’s continued expansion into high-ticket categories and reinforces the platform’s influence on major buying decisions. As Amazon becomes a broader marketplace for everything—including cars—it may drive even more consumer traffic and trust across all product categories.

Amazon Paying Out Millions in Prime Subscription Settlement

Amazon has begun issuing refunds as part of a $2.5B FTC settlement after the company was accused of enrolling users into Prime through deceptive flows and making cancellations difficult. Eligible U.S. customers who signed up or attempted to cancel Prime between 2019–2025 and used fewer than three Prime benefits may receive up to $51 automatically.

For Amazon sellers, this settlement underscores the growing regulatory pressure on Amazon and how consumer trust—especially around subscriptions and checkout clarity—can influence the entire marketplace. As Amazon adjusts enrollment and cancellation flows, sellers may see shifts in customer sentiment toward Prime benefits and overall purchasing behavior.

Seller Tips & Tricks

Amazon IDR Portal: What Sellers Must Know

Amazon’s new IDR (Inventory and Defect Reimbursement) Portal centralizes lost inventory, damaged items, incorrect fees, and shipment discrepancy claims into one dashboard—giving sellers clearer visibility into money Amazon may owe them. While this tool streamlines claim tracking and reduces dependence on case logs, sellers still need to upload invoices, validate sourcing costs, and manually submit claims for most reimbursements.

For Amazon sellers, this means faster identification of discrepancies and fewer missed reimbursements, but also the responsibility to monitor accuracy since the portal can surface incomplete or incorrect data. The IDR Portal is helpful, but not automatic—making it essential to use it strategically or consider expert support to ensure no money is left on the table.

Amazon MAP Enforcement in 2025: What Brands Must Know to Stop Price Erosion

Many brands are losing the Buy Box and margin on Amazon because MAP (Minimum Advertised Price) policies are not enforceable without the proper legal structure. The article explains that Amazon does not enforce MAP—brands must build their own compliant system using reseller agreements, quality control programs, test buys, and documented material differences to legally remove unauthorized sellers.

For Amazon sellers and brand owners, MAP enforcement now requires proving that unauthorized sellers break your quality control standards or offer materially different products, not simply that they violate price rules. When done correctly, brands can remove rogue resellers, restore pricing power, and prevent long-term margin collapse across all sales channels.

7 Amazon Seller Hacks to Target Low-Hanging Fruit (Quick Wins)

This article outlines seven practical optimization hacks that help Amazon sellers win the Buy Box, boost conversions, and increase profitability with minimal effort. Key strategies include automated repricing, smarter category selection, foreign-language keyword targeting, better inventory management, bundling, overnight pricing tactics, and recovering lost money through FBA reimbursement audits.

For Amazon sellers, the biggest takeaway is that small, strategic adjustments—especially price automation and consistent FBA audits—can produce fast gains while protecting margins. These quick wins support long-term growth when paired with strong financial oversight, market analysis, and listing optimization.

Video of the Week

Walmart Launches AI Shopping Inside ChatGPT — A Game-Changer for E-Commerce!

Strong Opinions

If Sam Altman Was Running Amazon… Here’s What Would Change

Juozas Kaziukėnas highlights Sam Altman’s recent comments suggesting that if he were running Amazon, he wouldn’t join the ChatGPT agentic commerce marketplace—and instead would “fight back,” especially as Walmart has already partnered with OpenAI. Altman emphasized maintaining user trust by avoiding ad formats that manipulate rankings, signaling that OpenAI will not prioritize ads or shopping as major revenue drivers.

For Amazon sellers, this signals that OpenAI’s commerce ambitions may grow slowly, with limited resources and a focus on low-fee, high-trust shopping experiences—potentially disrupting high-take-rate marketplaces like Amazon. Altman also predicts dramatically lower margins across marketplaces, hinting at long-term pressure on Amazon’s fee structure and seller economics.

Todd’s Top Tip: Recover More from Returns with FBA Grade and Resell

Sellers, here’s a practical strategy for November 2025: opt into the expanded FBA Grade and Resell program to handle holiday returns effectively.

With the extended returns window through January 31, 2026, starting November 1, 2025, this program grades returned items as “Like New” or “Very Good” for resale, recovering 20-30% more value than liquidation—ideal for non-perishable categories like electronics or home goods during Christmas peak.

Not suitable for all products (e.g., hygiene items), but excellent for those you’re comfortable selling as used.

Your plan:

  • In Seller Central, go to “Inventory” > “Inventory Settings” and opt into “FBA Grade and Resell” for eligible ASINs.
  • Select categories expanded in November 2025, focusing on 5-10 high-return items like gadgets or kitchen tools.
  • Ensure listings support used conditions by enabling “Used” sales in “Manage Inventory.”
  • Monitor graded returns in the Returns Dashboard, pricing “Like New” items at 10-20% below new for quick turnover.
  • Use tools like Inventory Lab to track recovery rates and adjust Q4 stock to account for resellable returns.
  • Review performance monthly, aiming to offset 16-17% holiday return rates with faster restocking.

This approach minimizes losses and turns returns into revenue during the busy season.

That’s the weekly briefing — tactical, short, and designed so you can act fast before holiday traffic peaks.

God Bless,

Todd Welch
Amazon Seller School

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