This Week's Top Amazon Seller News

Hey Reader,

The e-commerce landscape never slows down—and this week brings huge updates impacting how we sell, advertise, and prepare for Q4. Here’s what you need to know:
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News

​E-Commerce Finally Returns to Its COVID Peak​

E-commerce has finally reclaimed its 16.3% share of total U.S. retail sales, a peak first hit during the pandemic in Q2 2020. This steady recovery highlights that the explosive COVID-era growth was temporary and not the permanent acceleration many predicted.

For Amazon sellers, this confirms the market’s return to natural, sustainable growth rather than crisis-fueled spikes. With total retail also growing 40% since 2018, sellers have a larger overall market to tap into—even as offline retail continues to thrive.

​Dollar General Builds a Rural Delivery Edge Over Walmart and Amazon​

Dollar General is gaining ground in rural America by rapidly expanding same-day delivery through partnerships with DoorDash and Uber Eats, reaching over 17,000 stores. Over 75% of orders are delivered within an hour, even in remote areas—something Amazon and Walmart have struggled to match.

These delivery efforts are not only improving convenience but also attracting wealthier shoppers seeking value and spending more per order. With a growing retail media network and digital strategy, Dollar General is building a loyal customer base that could pull traffic and share away from traditional e-commerce players.

​Amazon Must Face Nationwide Class Action Over Third-Party Sales​

A federal judge has certified a massive class action lawsuit against Amazon, involving 288 million U.S. consumers who purchased five or more new items from third-party sellers since 2017. The suit claims Amazon’s policies prevented sellers from offering lower prices on other platforms, leading to artificially inflated fees and higher prices for buyers.

For Amazon sellers, this case puts renewed focus on pricing parity rules and Amazon’s influence over external pricing strategies. If successful, the lawsuit could drive major policy shifts that impact how third-party sellers set prices across channels.

​The Single-Product Millionaire​

Over 800 Amazon sellers have crossed $1 million in annual revenue with only one product—showing that extreme focus, combined with Amazon’s vast scale, can yield outsized success. However, just 1.6% of million-dollar sellers operate with a single SKU, making this a rare but noteworthy achievement.

While the operational simplicity of one hero product is appealing, it also creates significant business risk if that product fails or Amazon’s algorithm shifts. Some sellers hedge by also selling first-party (1P) to Amazon or expanding retail partnerships, like Hero Cosmetics did on its path to a $630 million exit.

​Create Deals Now for Prime Big Deal Days​

Amazon sellers can now submit Best Deals and Lightning Deals to capitalize on Prime Big Deal Days, with submission deadlines set for September 12, 2025.

Best Deals require a 15% discount and a $1,000 fee, while Lightning Deals need a 20% discount and cost $500 per deal.

To be eligible for Prime-badge visibility, inventory must arrive at Amazon’s fulfillment centers by September 10 (minimal splits) or September 19 (Amazon-optimized splits).

This is a key sales-driving opportunity for FBA sellers who want placement during Amazon’s major fall event.

​Prime Day Push Misses Target for U.S. Sign-ups​

Despite extending Prime Day to four days and heavily promoting record sales, Amazon saw a decline in new U.S. Prime memberships during the promotional period. Internal data showed 5.4 million sign-ups—116,000 fewer than last year and 106,000 short of Amazon’s goal.

While Amazon exceeded expectations during the event itself, the lead-up period underperformed significantly. This signals a potential weakening in Prime’s growth momentum and a warning for sellers relying on the event to attract long-term loyal buyers.

​Amazon to Restrict Prime Sharing Benefits Starting October 1​

Amazon is ending its 15-year-old “Prime Invitee Program,” which let members share free shipping with non-household contacts. Starting October 1, only household members will be eligible to share Prime benefits, limiting flexibility for those who previously shared with business partners or extended family.

This change may impact Amazon sellers who used the Invitee program for team operations, shared logistics, or marketing testing. Sellers should adjust any workflows that depended on shared Prime access outside the household.

​Walmart Expands Global Marketplace by Recruiting European Sellers​

Walmart is actively recruiting marketplace sellers from the UK and continental Europe, encouraging them to sell in the U.S., Canada, Mexico, and Chile through a centralized platform. The move includes access to advertising tools and fulfillment services like two-day shipping via Walmart Fulfillment Services (WFS).

For Amazon sellers looking to diversify, Walmart’s international push could offer a lucrative multi-channel opportunity, especially with the support of a new London-based seller office and local onboarding teams. This mirrors Amazon’s own global expansion strategy and reflects broader trends in ecommerce globalization.

​Amazon Launches Optimized Targeting for Sponsored Display Conversion Campaigns​

Amazon has introduced “optimized targeting” for Sponsored Display campaigns with the Conversion optimization strategy. This new feature allows sellers to dynamically target shoppers who are more likely to engage, using Amazon’s own data and bid recommendations.

Sellers still have full control, with the option to add manual targeting alongside optimized targeting. This update simplifies setup, boosts campaign efficiency, and could help sellers better reach high-converting audiences across multiple regions.

​Amazon Adds Holiday FBA Surcharge in UK and Germany​

Amazon will introduce a seasonal FBA fee in the UK and Germany from mid-October to mid-January, citing increased fulfillment and delivery costs during the holiday rush. The surcharge averages 10p per parcel in the UK and €0.19 in Germany, though low-price and oversized items are excluded.

Amazon says this fee is necessary to maintain fast shipping, high service levels, and fulfillment capacity during peak season. Sellers using FBA in Europe should factor these added costs into their Q4 pricing and inventory strategies.

Seller Tips & Tricks

​Why Pattern Succeeded Where Other Amazon Giants Fell​

​Scott Needham explains why Pattern thrived while other once-dominant Amazon sellers like Thrasio and Kaspien collapsed. He credits Pattern’s ability to secure brand control by eliminating unauthorized resellers and maintaining over 90% brand share for its partners.

Needham highlights Pattern’s strict criteria—turning away brands under $5M in Amazon revenue—which allowed them to scale more efficiently than competitors. Additionally, their focus on high-margin, low-competition categories like Health & Household protected them from the intense price pressure many sellers face.

​Amazon’s “30 Days to New Product Success” Guide​

Amazon has released a free downloadable guide designed to help sellers maximize success within the first 30 days of launching a new product. The guide covers essential tactics like fine-tuning listing content, running targeted ad campaigns, building early sales velocity, and collecting authentic reviews.

For Amazon sellers, this is a practical roadmap to accelerate visibility and conversions during the critical launch window, helping you avoid the common pitfalls of slow starts. Integrating these steps into your rollout plan can significantly boost your long-term growth trajectory.

​10 Best Platforms to Sell Crafts Online​

Etsy remains the top platform for handmade goods, offering strong SEO tools and a massive built-in audience. Amazon Handmade follows closely, with access to over 250 million customers—though it requires approval and charges higher fees.

Shopify gives Amazon sellers more control over branding and integrates well with social and ad platforms, though you’ll need to drive your own traffic. Other niche options like Faire (for wholesale), Folksy (UK market), and Facebook Marketplace (local sales) give sellers a range of specialized opportunities to grow beyond Etsy.

​Google’s Nano Banana Could Revolutionize UGC for Amazon Sellers​

​Jon Elder highlights Google’s new tool “Nano Banana,” which uses AI to turn product images into ultra-realistic lifestyle content. While not built exclusively for Amazon sellers, it offers a powerful shortcut for creating influencer-style UGC without needing a team or budget.

For sellers looking to scale on Amazon, this could mean faster, cheaper content creation to improve listing visuals, boost conversions, and feed social media. Tools like this could reduce the need for Canva, Midjourney, and even ChatGPT for visual asset generation.

Video of the Week

​Mastering Amazon Brand Partnerships with Eric Castellano​

Strong Opinions

​Amazon Accelerate Rumor: 15-Minute Suspensions Reversed In-Person?​

A Reddit user claims some Amazon seller accounts were reinstated in just 15 minutes during the Amazon Accelerate event by speaking directly to someone in Seattle. Scott Needham highlights this story to question Amazon’s lack of consistent standards around suspensions and reinstatements.

For sellers, it’s a frustrating reminder that navigating account suspensions often feels arbitrary, and in-person events may provide access that isn’t available through normal channels.

Scott emphasizes the need for more human, consistent support—without sellers needing to fly across the country.

Top Upcoming Amazon Events

• ​AMAZON ACCELERATE 2025 – September 16-18, 2025, Seattle, WA, USA
• ​AMAZON MASTERS SUMMIT 2025 – October 2-3, 2025, London, UK
• ​WHITE LABEL WORLD EXPO LAS VEGAS 2025 – October 15-16, 2025, Las Vegas, NV, USA
• ​SELLERS UNITED 2025 – October 16, 2025, Newark, NJ, USA

That’s a wrap for this week—stay sharp, test often, and keep your margin math close.

God Bless,
​
Todd Welch
Amazon Seller School

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