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Amazon News: Tariffs Surge, AI Expands, and Sellers Pivot Strategies to Stay Competitive
Published 18 days ago • 12 min read
This Week's Top Amazon Seller News
Hey Reader, It’s time for another edition of our weekly newsletter—keeping you in the loop with the latest news, tools, and updates shaping our industry. From rising tariffs to Amazon’s expanding use of AI, there’s plenty to be aware of. Join us live today at 1 PM Eastern / 10 AM Pacific!
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 dive in! Click here to read on our website
Chinese sellers on Amazon are bracing for major disruption after President Trump raised tariffs on Chinese imports to 125%, triggering concerns about viability in the U.S. market. Sellers are either increasing prices—some by as much as 50%—or shifting focus to markets like Europe, Mexico, and Canada.
China accounts for roughly half of Amazon’s global sellers, meaning these changes could lead to price hikes, inventory shifts, and supply chain reconfigurations across the platform. For U.S.-based Amazon sellers, this may reduce direct price competition from Chinese brands but could also strain sourcing options and raise overall marketplace costs.
Amazon has reportedly started canceling some inventory orders from Chinese suppliers following a sharp increase in U.S. tariffs on Chinese imports. The company is reassessing its supply chain strategy to manage rising costs and reduce exposure to escalating trade tensions.
For Amazon sellers, this move could result in reduced inventory availability, longer lead times, and increased pressure to source from non-China suppliers. Sellers relying on Chinese manufacturers may need to pivot quickly to avoid stockouts or margin erosion.
Amazon is testing a new “Buy for Me” button powered by agentic AI that allows users to purchase products from third-party websites directly within the Amazon app. This feature fills in payment and shipping details on the brand’s site using Amazon’s Nova AI, enabling a seamless checkout experience without ever leaving Amazon’s ecosystem.
While Amazon won’t take a cut of these purchases, sellers should note that Amazon is expanding its influence beyond its own platform—potentially reshaping how shoppers interact with non-Amazon listings. This could impact external traffic strategies and competition, especially for brands not selling on Amazon but now visible to Amazon’s user base.
Walmart is launching its Walmart+ Week from April 28 to May 4, well ahead of Amazon’s Prime Day, which is expected in mid-July. The early sale gives Walmart+ members exclusive offers like food rewards and gas discounts, and features comedian Beck Bennett in its marketing push.
This shift in timing signals Walmart’s strategy to grab consumer dollars before Amazon’s flagship event. For Amazon sellers, it’s a reminder that competition is heating up earlier in Q2—and staying top of mind with customers will require aggressive promotions, especially as Prime Day expands to four days this year.
OpenAI has made its ChatGPT 4o image generation tool free for all users, allowing up to three images per day, while paid subscribers enjoy unlimited use. This move expands access to AI-generated visual content, sparking a surge in creative use, especially for social media and marketing.
For Amazon sellers, this opens the door to generating high-quality product lifestyle images and ad creatives at no cost—speeding up content creation without hiring a designer. With competitors like Microsoft and Google racing to catch up, the tools sellers use to visually stand out are evolving fast.
President Trump signed an executive order extending TikTok’s U.S. operations by 75 days to finalize a deal for American ownership, just as a near-agreement was derailed by China in response to sweeping new U.S. tariffs. ByteDance had reportedly agreed to a minority stake in a new U.S.-based TikTok entity, but China halted approval after the tariff escalation.
This delay keeps TikTok operational for now, but leaves sellers and advertisers uncertain about the app’s long-term future. For Amazon sellers relying on TikTok for influencer marketing and traffic, the ongoing instability underscores the importance of diversifying platforms and staying alert to policy shifts.
Amazon held its first Seller Summit in South Africa, bringing together over 300 entrepreneurs to explore growth opportunities on Amazon.co.za through expert-led sessions on FBA, advertising, and generative AI. The event featured insights from global leaders, including a video message from Amazon Stores CEO Doug Herrington and a keynote on evolving consumer trends by strategist Vusi Thembekwayo.
Workshops helped sellers understand Amazon’s tools for automation, brand building, and customer-centric selling, reinforcing the company’s long-term investment in supporting small businesses. For Amazon sellers worldwide, this expansion highlights Amazon’s commitment to nurturing third-party marketplaces globally and presents new cross-border opportunities.
The global e-commerce logistics and e-fulfillment market is projected to grow 15.5% in 2025, reaching over €600 billion, doubling in value since 2019. Amazon FBA, DHL, Maersk, and other major logistics players are expanding aggressively through acquisitions, targeting smaller niche providers to meet rising consumer demands for fast, reliable shipping.
Despite rising tariffs and trade uncertainty, especially from the U.S., the market continues to thrive—powered by surging online retail, cross-border commerce, and evolving supply chain technologies. For Amazon sellers, the report emphasizes the importance of optimizing fulfillment strategy and considering third-party logistics partnerships to remain competitive in a rapidly consolidating market.
Amazon has launched Nova Act, a new AI agent that automates product searches and purchases, potentially reshaping how customers shop—and how sellers optimize listings for visibility, price, and reviews. With AI taking over purchase decisions, Amazon sellers must adapt quickly by improving product data, competitive pricing, and review strategies to stay relevant in this new buyer journey.
Meanwhile, Walmart, Target, and Temu are aggressively upgrading logistics, marketplaces, and influencer programs to compete with Amazon’s dominance. As automation, AI, and faster fulfillment become the norm, sellers need to diversify platforms and invest in smarter tools to remain profitable.
Starting June 2, 2025, Amazon will shift from a flat $0.60 per-unit coupon fee to a new model: a $5 flat fee per coupon plus 2.5% of coupon-driven sales. This change favors sellers of lower-priced, high-volume products while potentially increasing costs for higher-priced items if not monitored closely.
To stay profitable, sellers should track ROI for each promotion, test strategies like price bump + coupon, and align coupons with PPC campaigns. Amazon is also revamping deal fees across Lightning Deals and Prime Discounts, emphasizing performance-based structures with more flexibility but greater responsibility for sellers.
Amazon FBA sellers face growing pressure from rising tariffs and global supply chain disruptions, making it more important than ever to partner with reliable, cost-effective distributors. This guide outlines 20 top sourcing platforms—from Global Sources and Alibaba to ThomasNet and Faire—offering vetted suppliers, low MOQs, and tools tailored for sellers.
Each platform has distinct advantages, whether you’re looking for electronics, handmade goods, or sustainable products, and many offer integration with Amazon or dropshipping capabilities. Sellers are encouraged to focus on supplier vetting, pricing strategy, delivery speed, and platform compatibility to build a scalable and resilient FBA operation.
Amazon sellers looking to maximize profits in 2025 should carefully choose business credit cards that reward common FBA expenses like Amazon Ads, shipping, and packaging. Top picks include the Amex Business Gold (4x points on top spending categories, including advertising) and Chase Ink Business Preferred (3x points on ad spend and shipping), both offering high returns through point redemption.
Sellers are advised to avoid Amazon-branded cards, as they don’t provide rewards on seller fees or Amazon Advertising. For those seeking no-annual-fee options, the Amex Blue Business Plus and Ink Business Unlimited offer solid returns with flexible redemption potential.
Walmart Marketplace has seen significant growth in 2025, with a surge in new sellers and expanded product categories, especially in home, apparel, and health. The platform’s focus on quality over quantity and its invite-only model has helped differentiate it from Amazon, giving sellers a more curated and trusted environment.
For Amazon sellers, this presents a strong diversification opportunity—especially as Walmart ramps up its support tools, ad options, and fulfillment capabilities through WFS. Early adopters may benefit from less competition, higher margins, and additional shelf space potential through Walmart partnerships.
A single TikTok post took a prototype heating pad and turned it into a thriving ecommerce brand, proving the power of short-form video for testing product-market fit. For Amazon sellers, this highlights how social content can validate demand before investing in inventory or ads.
The founder’s biggest win was collecting emails during the viral spike, which became a direct revenue channel. TikTok was great for visibility, but Instagram drove the most conversions thanks to better automation tools.
Creator Alex Cooper showcased how combining Claude for idea prompting and ChatGPT for content generation can produce stunning, fully AI-driven marketing campaigns. This shift signals the rise of “vibe marketing”—a new creative strategy driven by emotion, aesthetic, and AI-generated storytelling.
For Amazon sellers, this highlights a massive opportunity to create ad creatives, A+ content, and social posts with minimal design resources. Leveraging these tools could mean faster product launches, brand storytelling at scale, and more engaging content for shoppers.
With Amazon ad prices up 48% since 2019 and new tariffs squeezing margins, sellers are moving away from a “spend-to-win” model and focusing on efficiency. Many are cutting mid-funnel ads, raising prices, and reducing discounts—especially around major events like Prime Day—to protect profitability.
Amazon sellers are also expanding into influencer marketing, social commerce, and AI-driven listing optimization to drive awareness and sales off-platform. Tools like ChatGPT and Amazon’s AI assistant Rufus are being used to enhance product visibility, while Creator Connections is emerging as a lower-cost alternative to traditional ads.
Third-party logistics (3PL) providers like Amazon, DHL, UPS, and FedEx are helping businesses reduce supply chain costs and increase scalability—essential for Amazon sellers looking to grow efficiently. Amazon ranks #1, leveraging its FBA program, robotics, and AI to support multi-channel fulfillment with tools like Supply Chain by Amazon.
Other major players like DHL and UPS offer robust global networks, real-time tracking, and tailored services ideal for international expansion and seasonal scaling. For sellers outsourcing warehousing or prep services, aligning with these top-tier 3PLs can improve delivery times, cut operational costs, and increase customer satisfaction.
Amazon Business now drives over $25 billion in annual sales, giving FBA sellers a chance to tap into high-volume, bulk-buying customers. This guide walks you through setting up a business account, optimizing B2B listings with technical specs, and using pricing tools like quantity breaks and customer-specific rates.
Fulfillment choices—FBA, Seller-Fulfilled Prime, or standard—impact costs and delivery expectations, while business-specific tools like RFQ and Purchase Order support add B2B credibility. Sellers are encouraged to treat Amazon Business as a standalone sales channel with its own strategy, not just a B2C extension.
The secondhand book market is worth over $27 billion, and platforms like Amazon, BookScouter, and eBay offer top options for selling textbooks, bestsellers, and rare editions. For Amazon sellers, this presents a profitable opportunity to flip used books or offload old FBA inventory.
Tools like BookScouter and CampusBooks help compare buyback offers, while niche platforms like AbeBooks and Etsy serve collectors and vintage book buyers. If you’re looking for fast, local sales, Facebook Marketplace and Half Price Books make it easy to sell with zero fees or shipping.
Amazon sellers can now register for a free three-part webinar series on mastering Account Health, including strategies for avoiding violations, appealing decisions, and using Account Health Support effectively. Each session includes a live Q&A to get direct answers to your most pressing compliance concerns.
There’s also a dedicated session on B2B pricing strategies, where sellers can learn how to use Amazon Business discounts, work with Pricing APIs, and implement automation tactics to improve pricing visibility. These webinars are ideal for sellers at all levels looking to protect their account and grow their B2B sales.
New U.S. tariffs—up to 125%—are forcing many Chinese sellers on Amazon to either raise prices or abandon the U.S. market entirely. This could lead to 20–50% price hikes and significant customs-related delays for U.S. sellers relying on China-based suppliers.
Amazon sellers are urged to diversify sourcing and explore alternative markets like Europe, Canada, and Mexico to avoid supply chain disruptions. As competition shifts and costs rise, adapting quickly will be key to survival and profitability.
Mark Cuban predicts new tariffs on Chinese imports will hurt Amazon but benefit U.S.-based sellers by reducing foreign competition. However, 71% of U.S. Amazon sellers source products from China, meaning they’ll also face rising costs and pressure to increase prices.
Categories dominated by Chinese sellers—like electronics and tools—could see major disruptions, but that doesn’t guarantee American sellers will gain market share. Amazon sellers need to reassess sourcing strategies fast, as both pricing and consumer demand could shift dramatically.
Scott Needham explains how Amazon vendor managers are often responsible for up to 3,000 accounts, forcing smaller vendors (under $10M) into automated negotiation systems known as “The Ice Machine.” This system leaves vendors feeling neglected and leads many to seek help from agencies or migrate to 3P selling.
Larger vendors, however, are often blocked from going 3P—even when Amazon won’t buy their products—highlighting the need for hybrid models or expert support. Needham points to voices like Kara Babb, Martin Heubel, and Jed Rawson for guidance and emphasizes that vendors shouldn’t navigate this landscape alone.
The U.S. is moving to end the de minimis rule that allowed imports under $800 to bypass duties, a major shift that could disrupt cheap, direct-from-China platforms like Temu and Shein. This change may also hit Amazon sellers relying on low-cost overseas sourcing or drop-shipping models.
While duty-free status remains temporarily, the government plans to revoke it for all countries once systems are in place to handle the new tax structure. Amazon sellers should prepare for increased supply chain costs and slower delivery timelines, as well as potential shifts in consumer spending due to rising prices.
Amazon CEO Andy Jassy told CNBC that as tariffs on imports rise, many sellers will likely pass those costs on to customers—putting added pressure on pricing across the platform. While Amazon is working to mitigate the impact through forward buying and renegotiating supplier terms, Jassy acknowledged the risk of broader economic fallout like inflation and reduced consumer demand.
For Amazon sellers, this means tighter margins, potential pricing shifts, and more competitive pressure to maintain sales while covering increased costs. Jassy also noted slight signs of stockpiling behavior among consumers, hinting that sellers should watch trends and inventory levels closely as tariff tensions unfold.
Sellers on platforms like eBay and Amazon are split on how tariffs will impact their business—some see a boost in demand for used or domestic goods, while others expect consumers to cut back on spending. A few Amazon sellers raised concerns about pricing limitations, asking whether they’ll be allowed to raise prices enough to stay profitable under Amazon’s pricing cap rules.
Others highlighted risks like rising supply costs and potential return fraud as consumers look for ways to save. Sellers are advised to look for domestic sourcing opportunities or used/refurbished niches to adapt profitably in a shifting market landscape.
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