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We’ve got another packed newsletter for you, covering the latest e-commerce trends, legal battles, and strategies to boost your business.
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News

​Etsy Loses 1.4 Million Sellers as Marketplace Momentum Slows​

Etsy’s active seller base has dropped from 7 million to 5.6 million, marking its third straight quarter of decline. The platform also saw a dip in buyers and overall sales, signaling broader challenges beyond just seller attrition.

While some of this decline may be due to Etsy cleaning up counterfeit sellers, data shows new seller signups have sharply fallen since the pandemic peak. For Amazon sellers, this highlights a key contrast: Amazon and Walmart marketplaces continue to expand, while Etsy appears to be losing momentum in the handmade space.

​Amazon’s Meltable Product Deadline Returns — What Sellers Need to Know​

Amazon FBA will not accept meltable products like chocolate, gummies, and wax-based goods between April 15 and October 15, 2025. Sellers must remove these items by April 15 or Amazon will dispose of them after May 1, with associated fees.

​Vanessa Hung reminds sellers to review Amazon’s Meltable ASIN list—even if they don’t sell perishable items—as non-meltable products can be mistakenly flagged. If your ASIN is incorrectly listed, submit a review request with proof that it can withstand 155°F to avoid disruptions.

​Amazon FBA in 2025: Rising Costs, AI Tools & Competitive Shifts Ahead​

Amazon sellers can expect stricter compliance rules, higher FBA fees, and evolving storage costs in 2025, making strategic planning more essential than ever. AI will play a bigger role in advertising, fulfillment, and customer service, allowing sellers to automate more and improve decision-making.

Driving external traffic through social media and influencer marketing will become critical, while AR/VR tools will enhance customer experience and reduce returns. Sellers who embrace these changes and adopt smarter pricing, product research, and fulfillment strategies will stay competitive in Amazon’s rapidly shifting landscape.

​Amazon Challenges CPSC Recall Order in Federal Lawsuit​

Amazon has filed a lawsuit against the U.S. Consumer Product Safety Commission (CPSC) after being deemed legally responsible for recalling over 400,000 hazardous products sold by third-party sellers through its fulfillment services. The CPSC argues that Amazon qualifies as a “distributor,” requiring it to notify customers and issue refunds for recalled items like flammable pajamas and faulty carbon monoxide detectors.

Amazon contends it is a “third-party logistics provider,” not liable for products it didn’t manufacture or sell, and claims the CPSC overstepped its authority. For Amazon sellers, this case could impact future recall responsibilities and legal exposure for FBA (Fulfillment by Amazon) listings.

​Elon Musk’s DOGE to Tackle USPS—What It Could Mean for Shipping Costs​

Postmaster General Louis DeJoy has signed an agreement with DOGE (Department of Government Efficiency), a Trump-created agency now led by Elon Musk, to help address USPS challenges. The agency claims to have already saved billions through aggressive cuts and asset sales, sparking concern that USPS privatization may be next.

Critics—including the Postal Regulatory Commission (PRC) and members of Congress—warn that rural service could suffer, and postal rate hikes may follow. For Amazon sellers relying on USPS for low-cost delivery, these changes could impact shipping costs, timelines, and long-term fulfillment strategies.

​Amazon Beats Shareholder Lawsuit Over Third-Party Sellers and Fulfillment Expansion​

A judge dismissed a shareholder lawsuit accusing Amazon of hiding its favoring of private-label products and overexpansion of its fulfillment network. The court found no evidence that executives intentionally misled investors, stating the company’s actions were more likely aggressive business strategies aimed at boosting profits.

For Amazon sellers, this decision means no immediate legal changes to Amazon’s fulfillment operations or treatment of third-party listings, though the broader FTC antitrust case—still ongoing—could eventually impact how Amazon manages seller competition. The FTC trial is scheduled for October 2026.

​Amazon Urges Sellers to Use AWD Ahead of Prime Day​

Amazon is encouraging FBA sellers to send inventory to its Amazon Warehousing & Distribution (AWD) network by May 15 to ensure Prime badge eligibility for Prime Day 2025. AWD allows sellers to store bulk inventory upstream, helping bypass FBA capacity limits and avoid last-minute fulfillment issues.

This strategy can help sellers stay in stock and ready for Amazon’s biggest sales event, especially with Prime Day inventory restrictions tightening each year. Sellers who prepare early by using AWD may gain a competitive edge with faster replenishment and broader reach during the event.

​Amazon Launches Prepaid Carrier List to Improve FBA Inbound Shipping​

Amazon has introduced a Prepaid carrier list to help sellers choose the most reliable carriers for FBA shipments. The list includes key performance data such as on-time delivery rates and no-show percentages, updated weekly.

By reviewing this resource, sellers can make smarter logistics decisions, reduce delivery issues, and improve inventory flow into Amazon’s fulfillment centers. It’s a valuable tool for optimizing shipping performance and avoiding costly delays.

​Spring Sales Season Heats Up: Amazon, Walmart, and eBay Launch Major Events​

Amazon’s Big Spring Sale will run from March 25–31, offering week-long deals across various categories, including an extra 50% off Amazon Haul items via the Shopping app.

Walmart’s Super Savings Week starts March 24 and runs through April 1, focusing on spring essentials like home, patio, fashion, and cleaning supplies.

eBay’s “Spend More, Save More” promotion began March 17 and continues through March 31, offering savings on orders over $50 with a capped discount.

Amazon sellers should watch buyer behavior closely during this high-traffic period and consider aligning their own promotions to stay competitive.

​Amazon Makes Deals & Coupons More Flexible and Affordable for Sellers​

Starting June 2, 2025, Amazon is giving sellers more flexibility and control by allowing Best Deals to run on any day for up to 14 days, except during Peak Events like Prime Day. Additionally, Amazon is shifting deal and coupon fees to a performance-based model, reducing upfront costs and aligning fees with sales and merchandising visibility.

Best Deals and Lightning Deals will now cost $70/day plus 1% of sales (capped at $2,000), while coupon fees shift to $5 plus 2.5% of sales—potentially lowering costs for many products. These changes make it easier for Amazon sellers to test different promotional strategies and drive more traffic and conversions without the heavy upfront risk.

​Will Amazon Handmade’s Restructuring Boost Seller Visibility?​

Amazon has restructured its Handmade marketplace by reclassifying products into standard product types with a “Handmade Classification” attribute, aiming to boost visibility in search and improve listing quality. This change allows handmade listings to show up in broader category searches while retaining sales history, ratings, and reviews.

Sellers gain access to enhanced detail pages and listing tools, but must avoid relisting manually to keep ASIN history intact. Some sellers are concerned about potential listing hijacking now that Handmade products are treated more like standard listings, raising questions about brand protection for truly unique, artisan-made goods.

​New Restock Tool Helps Sellers Stay Ahead of Demand​

Amazon has launched a new Restock recommendation feature for Fulfilled by Merchant (FBM) sellers, using AI-driven demand forecasting to suggest when and how much inventory to replenish. It provides restock quantities, restock-by dates, and projected demand trends based on recent sales and low inventory thresholds.

Currently available to about 50% of U.S. FBM sellers, the tool will roll out to all by April 18, 2025. This feature can help Amazon sellers reduce stockouts, improve fulfillment speed, and plan inventory more effectively.

Seller Tips & Tricks

​12 Hidden Reasons Your Best Employees Leave (And How to Keep Them)​

​Nathan Hirsch shares 12 often-overlooked reasons top-performing employees quietly leave, many of which boil down to culture, leadership, and personal growth—not perks. From needing flexible schedules and mental health boundaries to craving recognition and meaningful work, the post highlights what leaders must fix before it’s too late.

For Amazon sellers building teams—whether in-house or remote—these lessons are essential to scale successfully without constant turnover. Investing in systems that promote autonomy, growth, and respect can help you retain your most valuable talent long-term.

​Understanding CPC: A Key Metric for Amazon Advertising Success​

Cost-per-click (CPC) is the price advertisers pay each time someone clicks on their ad, making it essential for Amazon sellers running Sponsored Products and other ad types. This guide explains how CPC compares to CPM, how it’s calculated, and how bidding strategies like manual and enhanced CPC work.

Sellers can reduce CPC by optimizing listings, selecting high-converting keywords, and improving ad quality to maximize return on investment. Understanding CPC is critical for building profitable ad campaigns and driving sales effectively on Amazon.

​The Evolution of Performance Marketing: How Brands Win in the Digital Age​

Performance marketing has shifted advertising from brand awareness to results-driven strategies, where brands only pay for actions like clicks or sales. This model integrates Amazon PPC, SEO, and paid ads to optimize conversions and track ROI across platforms.

For Amazon sellers, this means leveraging tools like Sponsored Ads and optimized listings to reach high-intent buyers already in shopping mode. Working with an Amazon agency can maximize these efforts through expert campaign management, advanced targeting, and data-backed strategies.

​What 80K TikTok Shop Orders Taught Us About Cross-Channel Sales​

​Bryan Porter of Simple Modern shared key lessons after fulfilling 80,000 orders on TikTok Shop. Only 7% of sales came from affiliate samples, while most revenue was driven by product cards and affiliate videos—often sparking even greater sales on Amazon and DTC due to strong halo effects.

Surprisingly, TikTok Shop sales didn’t grow the brand’s follower count much, and best-selling Amazon products didn’t always succeed on TikTok. Porter also warned brands to be cautious with affiliate sampling, noting that 13% of samples went to creators who never generated a sale.

​Live Q&A Events in March: Connect Directly with Amazon Teams​

Amazon is hosting live “Ask Amazon” events on March 20 and March 25, giving sellers a chance to ask questions directly to product teams and policy makers. The March 20 session focuses on Amazon Business, offering tips to reach bulk-buying customers, while the March 25 session covers the Report a Violation (RAV) tool and how to combat counterfeits using Project Zero.

These sessions run from 8 a.m. to 5 p.m. PT and are a valuable opportunity for sellers to get real-time insights from the source. Sellers are encouraged to visit the Ask Amazon event page to submit questions and check for any schedule changes.

​Webinar: Prepare for Seasonal Shopping Events on Amazon​

Amazon is offering a free live webinar to help sellers optimize for high-traffic shopping seasons. The session will cover listing optimization, using FBA for peak demand, and building effective promotional campaigns.

Sellers will also learn how to craft a cohesive marketing strategy to stand out during key events. The webinar includes a live Q&A and is available on March 25, 26, or 27 at 10 a.m. PT.

​Amazon Adds 6 Powerful Visual Search Tools to Help Shoppers Find Products Faster​

Amazon has rolled out six new visual search features to improve product discovery, including image-based suggestions, a “More Like This” option, and the ability to draw a circle around a product in an image to search for similar items. Shoppers can now also add text to image searches for better specificity and launch Amazon Lens directly from their iPhone lock screen.

Videos now appear directly in search results for select categories, and the entire experience is built to speed up the path from interest to purchase. For Amazon sellers, these tools mean increased exposure for visually appealing listings and a stronger incentive to optimize images and videos.

Video of the Week

​How Tariffs Are Changing Amazon Sellers’ Strategies in 2025​

Strong Opinions

​Tariffs Hit Hard: Why China’s Feeling the Pressure—and What It Means for Amazon Sellers​

​Abe Chomali explains how recent U.S. tariffs are impacting Chinese manufacturers more than expected, as export volumes decline and income shrinks due to price pressure from large U.S. retailers like Walmart. This could lead to long-term shifts in global sourcing as brands seek alternatives to China.

For Amazon sellers, this shift may accelerate the “anywhere but China” strategy, creating both supply chain challenges and new sourcing opportunities. Staying informed on global trade dynamics will be critical for maintaining profit margins and adapting to marketplace changes.

​Amazon’s New FBA Reimbursement Policy Raises Concerns for Handmade Sellers​

Amazon’s updated FBA reimbursement policy, set to take effect March 31, will reimburse lost or damaged inventory based on manufacturing cost—not retail price—which poses challenges for Handmade sellers who create unique, labor-intensive products. Many in the Handmade community worry that Amazon’s default cost estimates are too low and don’t reflect the time and effort put into each item.

During a recent “Ask Amazon” event, moderators acknowledged the issue and said they’re still developing clear guidelines tailored for Handmade sellers. Until then, sellers are left in limbo, concerned about low reimbursements or having to submit sensitive production cost details.

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Top Upcoming Amazon Events

• ​MDS INSPIRE 2025– March 24-25, 2025, Las Vegas, Nevada, USA
• ​PROSPER SHOW 202​5 – March 25-27, 2025, Las Vegas, Nevada, USA
• ​MIAMI SELLERS CONFERENCE 2025 – May 1-3, 2025, Miami, FL, USA
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Stay ahead of the competition by keeping up with these updates! Wishing you continued success in your Amazon journey.

God Bless,
​
Todd Welch
Amazon Seller School