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This week brings major updates in e-commerce, from AI-driven shopping experiences to new government crackdowns on trade loopholes. Stay ahead with these top stories!
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News

​Amazon’s 99% Repeat Rate and Female Shopper Dominance Raise Growth Questions​

Numerator data reveals that 75% of Amazon shoppers are women, and the platform boasts an extraordinary 99% repeat purchase rate—far above the e-commerce average of 28–30%. Baby boomers make up the largest shopper group, but show below-average purchase likelihood, while male shoppers and several minority demographics remain under-engaged.

Amazon's growth potential now hinges on reaching these underrepresented groups, particularly as it faces rising competition from platforms like Temu and TikTok Shop. With new initiatives like Amazon Haul and Alexa+ underway, the retailer is working to stay ahead while continuing to trim costs and refine its strategy.

​Target Expands Marketplace and Invests in Tech to Drive $15B Growth by 2030​

Target is aiming to grow sales by $15 billion by 2030 through a major expansion of its third-party marketplace, investments in its Roundel ad network, and a focus on same-day delivery services. Unlike Amazon’s open model, Target will grow its marketplace through a curated, invite-only approach featuring well-known brands like Peloton and Daily Harvest.

The retailer is also investing $4–5 billion into store upgrades, AI-driven supply chain improvements, and faster delivery options to reduce stockouts and boost customer satisfaction. For Amazon sellers, this signals rising competition as legacy retailers like Target evolve their digital ecosystems to capture more online market share.

​U.S. Shoppers Spent an Average of $700 on TikTok Shop Last Year​

A new report reveals U.S. shoppers under 60 spent an average of $708 on TikTok Shop in 2024, with Gen Z leading the trend and spending roughly $59 per purchase. Nearly half of purchases were driven by influencer posts, showing the growing power of content creators in shaping buying decisions.

While TikTok Shop is booming—tripling Black Friday sales year-over-year—many buyers reported impulse purchases and regrets tied to low product quality. For Amazon sellers, this signals a shift in e-commerce behavior and highlights the growing opportunity (and competition) from influencer-driven platforms like TikTok.

​Walmart Enters Freight Brokerage—A New Challenge to Amazon FBA​

Walmart is expanding its logistics footprint by inviting select trucking carriers to join its new third-party brokerage program, offering access to steady freight and integrating with its vast distribution network. This move strengthens Walmart Fulfillment Services (WFS), making it a more robust competitor to Amazon’s Fulfillment by Amazon (FBA).

For Amazon sellers, Walmart’s growing end-to-end logistics—especially with its lower-cost WFS and store-based fulfillment model—could attract third-party sellers seeking simpler, more affordable options. As Walmart scales this brokerage service and adds capabilities like GoLocal last-mile delivery, it’s positioning itself as a serious logistics alternative to Amazon.

​Oracle May Run TikTok in U.S.—But Will It Be Enough to Address Security Concerns?​

The White House is in advanced talks with Oracle to take over TikTok’s U.S. operations in a deal known as “Project Texas 2.0,” but critics argue it may not resolve key national security concerns tied to Chinese control of the app's algorithm. The proposed deal would rely on Oracle to safeguard American user data, yet lawmakers worry this could be a superficial fix if TikTok's parent company ByteDance retains influence.

For Amazon sellers, the future of TikTok has major implications as the platform grows into a powerful sales channel, particularly for reaching Gen Z shoppers. Any disruption or ownership shift could impact TikTok Shop’s operations, affiliate programs, and influencer-driven marketing strategies sellers rely on.

​US to Crack Down on Ecommerce Trade and Recall Loopholes​

The U.S. Consumer Product Safety Commission (CPSC) plans to tighten regulations on ecommerce platforms, especially regarding recalls for third-party sellers and imports from China that have long been exempt under the de minimis rule. Acting Chairman Peter Feldman emphasized that enforcement at ports may be the only viable way to stop unsafe Chinese goods due to the difficulty of holding foreign manufacturers accountable.

Amazon is already pushing back, filing a lawsuit claiming the CPSC’s recall demands overstep legal bounds, following a January ruling that named Amazon as a responsible distributor. For Amazon sellers, this signals potential shifts in liability and compliance expectations—especially for imported goods or products flagged in recalls.

​Amazon Seized Over 15 Million Counterfeit Products in 2024​

In 2024, Amazon seized and disposed of more than 15 million counterfeit products, using AI tools that blocked over 99% of suspected infringements before brands even reported them. The number of infringement notices submitted by brands dropped 35% since 2020, despite the growing number of listings.

Amazon's Counterfeit Crimes Unit has taken action against more than 24,000 bad actors since 2020, and the use of programs like Project Zero and Transparency continues to expand. For Amazon sellers, this reinforces the importance of enrolling in brand protection programs to safeguard listings and maintain consumer trust.

​eBay IRS Glitch Freezes Payouts for Single-Member LLC Sellers​

Some eBay sellers are facing a serious cash flow crisis after the platform began holding payouts due to tax verification issues—particularly impacting single-member LLCs. Sellers report being unable to complete the required W-9 form because eBay’s system lacks the correct tax classification option, despite their tax information being accurate and verified with the IRS.

Many say they’ve uploaded proper documentation like IRS 147C letters, but eBay’s backlog means review could take up to 30 days, leaving sellers without access to funds for essential expenses. For Amazon sellers, this is a reminder of how critical smooth tax identity verification is across marketplaces, especially with enforcement of the INFORM Act and increased scrutiny from the IRS.

​Amazon Rolls Out AI Shopping and Health Chatbots — Here’s What Sellers Should Know​

Amazon is testing a new AI shopping tool called “Interests,” which lets shoppers use natural language prompts to discover products tailored to their preferences, like “coffee gadgets” or “home gym gear.” The tool scans the Amazon catalog and suggests new items based on these interest-based prompts, offering a fresh way for customers to explore beyond traditional keyword searches.

This feature is currently available to a limited group of U.S. users, with broader rollout planned—potentially impacting how shoppers discover third-party products. Amazon is also piloting a “Health AI” chatbot to guide customers through health-related purchases and services, further expanding its AI ecosystem across categories.

​Temu Poaches Amazon and Walmart Talent to Expand U.S. Marketplace​

Temu is aggressively hiring former Amazon and Walmart employees to fuel its U.S. expansion, aiming to grow its domestic seller network and improve delivery speeds. By bringing in e-commerce veterans, Temu hopes to attract more U.S.-based sellers and stock inventory in local warehouses, helping it sidestep tariffs on Chinese imports.

This move mirrors Shein’s strategy and signals growing competition for Amazon, especially as Temu targets value-driven shoppers and faster delivery. Amazon sellers should stay alert as Temu’s local fulfillment model evolves and potentially draws buyers away from traditional marketplaces.

​Walmart Launches Wally, a GenAI Assistant to Supercharge Merchandising Efficiency​

Walmart has unveiled “Wally,” a new AI-powered assistant that helps its merchants streamline data reporting, uncover insights, and make faster decisions by using plain-language prompts. Built on Walmart’s proprietary retail data, Wally handles everything from performance analysis to root cause diagnosis and sales trend predictions.

For Amazon sellers, this signals that Walmart is doubling down on automation and seller support tools to compete more aggressively in the marketplace space. As Walmart continues enhancing Wally’s capabilities, it could become an even more attractive platform for third-party sellers looking for a tech-forward alternative to Amazon.

​Amazon.ie Launches, Opening New Opportunities for Irish Sellers and Shoppers​

Amazon has officially launched Amazon.ie, offering Irish customers access to over 200 million products with pricing in Euros, one-day delivery, and no customs charges. The site includes a new ‘Brands of Ireland’ section that promotes local businesses like Barry’s Tea and Ella & Jo, in partnership with Enterprise Ireland.

For Amazon sellers, this expansion creates new opportunities to reach Irish customers directly without the friction of UK-based fulfillment. Irish-based sellers may also benefit from improved visibility, local trust, and faster logistics via Amazon’s Dublin fulfillment center.

Seller Tips & Tricks

​How ChatGPT Helped Automate USA Product Sourcing for Amazon FBA​

​Max Sigurdson-Scott shared how he streamlined the tedious process of sourcing U.S.-based products by using ChatGPT’s Operator to automate supplier searches on ThomasNet. By setting prompts to find and contact domestic suppliers of fluorescent light covers, he was able to collect lead information and submit inquiries—saving hours of manual effort.

For Amazon FBA sellers, this method offers a smarter, faster way to source U.S.-made products, which can help avoid tariff issues, reduce lead times, and strengthen supplier relationships. It’s especially useful for those wanting custom products or aiming to move away from overseas sourcing.

​New Amazon Guide Helps Sellers Navigate Business Type Classification Requirements​

Amazon has released a new guide to help sellers understand and comply with its Business Type Classification (BTC) requirements. This classification determines how sellers identify their business structure (like individual, corporation, etc.), which impacts tax reporting and regulatory compliance.

Sellers must correctly declare their business type in their account settings to avoid potential payment holds or verification issues. The guide offers step-by-step instructions and examples to ensure accurate classification for smooth selling operations.

Video of the Week

​Amazon’s New Solution Provider Portal: Major Changes for Sellers & Agencies!​

Strong Opinions

​Amazon Fee Hikes Spark Seller Backlash Over Broken Promises​

Amazon sellers are frustrated by a fresh round of fee increases, despite earlier assurances that there would be no hikes in 2025. New changes include higher costs for AWD, adjusted inbound placement fees, and revamped coupon and deals fees that now charge $5 upfront plus 2.5% of sales—even if the promotion fails.

While Amazon claims most products will see lower costs, sellers of higher-priced goods are getting hit the hardest. These changes come just ahead of Prime Day, leading many to believe it’s a strategic move to boost Amazon’s profits at sellers' expense.

​Amazon’s New Deal & Coupon Fees Spark Outrage Among Sellers​

​Jon Eldercalls out Amazon for breaking its promise not to raise seller fees in 2025, following the rollout of new, higher costs for Lightning Deals, Best Deals, Coupons, and Prime Discounts. These fee changes now include daily charges plus a percentage of sales, hitting U.S.-based and higher-priced product sellers the hardest.

Elder argues that the changes favor large brands and overseas sellers, squeezing out smaller businesses and reducing seller profitability just ahead of Prime Day. He sees the move as a tone-deaf money grab by Amazon leadership disconnected from the reality of everyday sellers.

​Tariff Changes Threaten Delays and Higher Costs for China-Based Packages​

Experts are warning that the removal of the de minimis rule—previously allowing duty-free entry for packages under $800—will lead to shipping delays and higher costs on goods from China, hitting platforms like Shein and Temu the hardest. With customs now responsible for inspecting millions of additional packages, low-cost shipments could take longer and cost more, with added tariffs potentially reaching $13 billion annually.

U.S. Amazon sellers may benefit as price-conscious consumers shift toward faster, domestic options to avoid delays and fees. Chinese sellers are attempting to adapt by opening U.S. warehouses, but the change could still shake up cross-border e-commerce and drive more traffic to Amazon listings.

​Amazon’s New Interests AI Could Transform Product Discovery​

​Kevin Kinghighlights how Amazon’s new "Interests AI" allows shoppers to use natural language to describe what they’re looking for, which then generates curated product feeds based on mood, context, and intent. This tool mimics discovery behaviors seen on platforms like TikTok and Pinterest, offering a new way for customers to browse beyond keyword searches.

For Amazon sellers, aligning listings with lifestyle-driven use cases and intent-based language is now more important than ever. King warns that early optimization could give brands a significant visibility advantage before this feature becomes mainstream.

​Warning: Genepro Accused of Scamming Amazon Sellers​

Scott Holmes warns Amazon sellers about a brand called Genepro, which is reportedly scamming sellers by accepting wire payments for bulk orders and then failing to ship the products. Multiple civil lawsuits have been filed against the company, with sellers reporting that Genepro's offers appeared legitimate due to low pricing and high minimum order quantities.

The company’s Amazon account has since been closed, but sellers are urged to remain cautious when dealing with unfamiliar suppliers requiring wire transfers. This is a critical reminder for Amazon sellers to verify suppliers and payment methods, especially when sourcing directly from brands.

​Amazon DSP’s “Free Ad Inventory” Backfires for Sellers​

​Brandon Fishman warns Amazon sellers about disappointing results from Amazon DSP’s new “free ad inventory” program, which offers bonus ad spend to brands increasing their 2025 budgets. Despite receiving $50K in free spend, his brand VitaCup saw extremely low engagement—13.7 million impressions led to only $3,237 in sales.

The campaign's click-through rate was just 0.01%, with placements appearing to be low-quality and untargeted inventory Amazon couldn't otherwise sell. Sellers are advised to invest in campaigns they can control rather than relying on these seemingly generous, yet ineffective, ad incentives.

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Top Upcoming Amazon Events

• ​MIAMI SELLERS CONFERENCE 2025 – May 1-3, 2025, Miami, FL, USA
• ​SELLER SUMMIT 2025 – May 6-8, 2025, Ft Lauderdale, FL, USA
• ​SELLER SESSIONS LIVE 2025– May 10, 2025, London, UK
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Stay informed, stay ahead, and keep optimizing your business for success.

God Bless,
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Todd Welch
Amazon Seller School