Important Amazon Weekly News #2

In Q2 2025, Amazon’s advertising business generated $15.69 billion, accounting for a record 9.36% of total company revenue. For comparison, in 2021 ads made up just 5.88%. With a growth rate of 22% quarter-over-quarter, Amazon’s ad share could surpass 10% by the end of the year.

How Amazon Achieved This  

Amazon has effectively turned nearly every corner of its ecosystem into a paid ad space. Search ads remain the core driver, but the company has expanded reach aggressively across Prime Video, Twitch, Fire TV, live sports streaming, and partnerships with Roku and Disney. Today, Amazon ads touch more than 300 million U.S. users.

Why It Matters for Amazon  

Advertising is now Amazon’s fastest-growing and most profitable division. Without ad revenue, Amazon’s retail operations would look far less profitable. By 2025, the ad business is on track to exceed $60 billion annually, placing Amazon alongside the world’s largest media companies.

What This Means for Sellers  

Product visibility increasingly depends on ad spend. For many sellers, Amazon’s total fees (including ads, commissions, and fulfillment) already surpass 50% of gross revenue. Search results are becoming more “pay-to-play,” meaning that without ads, the chance of being discovered is shrinking rapidly.

What Sellers Should Do Now  

• Treat ad budgets as a mandatory cost of doing business on Amazon.

• Explore formats beyond search — including CTV, partner sites, and video ads.

• Closely monitor ROI to ensure that rising ad spend doesn’t erode margins.

Amazon has updated its promotions policy: Prime Exclusive Deals can now be offered at any time of year, not just during major events like Prime Day or Cyber Monday. This flexibility gives sellers more control over when and how to run discounts.

Why Amazon Made This Change  

Prime members are Amazon’s most engaged shoppers. They buy more frequently, return for repeat purchases, and respond strongly to promotions. By keeping Prime-exclusive discounts available year-round, Amazon aims to boost loyalty and drive more purchases from its core customer base.

How It Works  

• Prime Exclusive Deals are visible only to Prime subscribers; other shoppers see the regular price.

• These deals receive premium placement: highlighted on the deals page, Amazon’s homepage, search results, and even email campaigns.

• Outside of peak events like Prime Day or Black Friday, no fees are charged for running a Prime Exclusive Deal.

Impact on Sellers  

The ability to schedule promotions year-round gives sellers new flexibility. They can align discounts with seasonal demand spikes, inventory clearances, or product launches, targeting Amazon’s most loyal audience without waiting for major shopping events.

What Sellers Should Do  

• Check product eligibility in Seller Central under Promotions → Eligible Audiences → Prime Members.

• Plan Prime Exclusive Deals strategically, ensuring they fit within profit margins.

• Use deals not only to move inventory but also to boost visibility and discoverability for new products.

On August 1, 2025, new import tariffs took effect, reshaping duty rates across multiple countries.

Why This Matters  

Tariffs directly impact cost of goods sold (COGS), pricing, and margins. For sellers relying heavily on Chinese suppliers, miscalculating costs before peak season could mean serious losses.

What Sellers Should Do Now  

• Audit your top 20 revenue-driving products to identify exposure to countries with new tariffs.

• Model multiple scenarios, including potential rate shifts for China.

• Apply the Keep–Kill–Cuddle strategy:

• Keep: Best-selling, high-margin items that must remain in stock.

• Cuddle (Develop): Products with good margins but low sales — invest in ads, adjust pricing, or renegotiate sourcing.

• Kill: Low-margin, slow-moving SKUs — liquidate, bundle, or replace them.

• Line up backup suppliers in lower-tariff countries to reduce risk.

• Recalculate pricing and profitability ahead of Q4 to protect margins.

By taking these steps, sellers can stay ahead of cost changes and avoid margin erosion during the busiest quarter of the year.

Amazon is scaling up its “Amazon Haul” storefront, first launched in beta in the U.S. in November 2024. The program is now available not only in the mobile app but also on desktop, and it has rolled out to select international markets.

The section features products priced at $20 or less — most under $10 — with 1–2 week delivery and protection under Amazon’s A-to-z Guarantee. Categories include clothing, home goods, electronics, and accessories.

How It Works  

• Haul has its own search, cart, and checkout flow.

• Accessible via the keyword “Haul” in Amazon search or directly at amazon.com/haul.

• Extra savings: 5% off orders over $50 and 10% off orders over $75.

• Free shipping starts at $25.

• Returns are allowed within 15 days for items over $3, available at more than 8,000 drop-off locations.

Why Amazon Is Doing This  

Haul targets demand for ultra-low-cost products where shoppers are willing to trade faster shipping for lower prices. By offering extended delivery times, Amazon can expand its assortment with sellers ready to compete on affordability.

Impact on Sellers  

For sellers, Haul offers an entry point to test budget-focused products and capture price-sensitive customers. However, it requires careful margin management and accurate volume planning to ensure profitability despite lower price points and longer logistics.

Starting August 29, 2025, every international shipment to the U.S. is now subject to customs duties based on the country of origin — regardless of value. Until now, the de minimis rule allowed imports worth up to $800 duty-free and without complex customs paperwork.

In May, this exemption was lifted for China — which accounted for over 60% of all shipments — and has now been revoked worldwide by presidential order, two years earlier than planned under the One Big Beautiful Bill Act.

Why This Matters  

President Trump stated that the loophole was used to bypass tariffs and import unsafe goods, including synthetic opioids, as well as cheap products that hurt U.S. manufacturers.

For many D2C shipments, flat duties of $80–$200 per item will now apply until new trade agreements are negotiated with individual countries. Travelers can still bring in up to $200 in personal items and receive gifts up to $100 duty-free.

Impact on Sellers and Shoppers  

• Higher prices for low-cost imports are inevitable. After the May change for China, retailers like Temu and Shein already raised prices — Shein by an average of 23% across hundreds of products.

• Dropshippers and small parcel shippers will be hit hardest, especially in low-ticket categories.

• U.S.-based sellers may benefit from slightly more balanced competition with overseas retailers.

What Sellers Should Do  

• Reevaluate sourcing channels and consider U.S. warehousing solutions.

• Optimize product assortments by reducing reliance on small-parcel imports.

• Proactively communicate pricing and shipping changes to customers to manage expectations.

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