top of page

The Recap: News for Amazon Sellers | Edition 22

  • Cameron Meneer
  • Oct 3
  • 3 min read

ree

Amazon never stands still — and as a seller, neither can you. From AI tools to policy shifts, recent changes are reshaping how sellers manage their businesses. Staying informed is the first step; knowing what to do about it is where you gain an edge.


Here’s your recap of the top 5 updates shaping the Amazon landscape right now — and how to navigate them with confidence.


1. Amazon’s AI-Powered Product Performance Spotlight

What’s new: Amazon is rolling out an AI-driven tool to monitor product launches and benchmark performance. It flags issues like low inventory or underperforming ads so sellers can react quickly.


Why it matters: New products are fragile. Missing a signal during launch can mean missed sales or wasted ad spend. Amazon’s tool is a step forward, but like many Amazon features, it keeps you inside their ecosystem.


How Sellozo helps: Sellozo goes further with ProductVu and Financial Reports — giving you visibility into profitability, not just surface-level performance. Pair Amazon’s alerts with Sellozo’s deeper reporting, and you’ll know exactly where to adjust to stay profitable.



2. Algorithm Shifts Favor Auto & Broad Match

What’s new: Reports show that Amazon’s algorithm is giving more impression share to Auto campaigns and Broad match keywords, while Exact and Phrase are seeing less reach.


Why it matters: If your strategy relies heavily on Exact match, you may already be seeing fewer impressions and higher CPCs. Sellers need to diversify targeting to keep pace with where Amazon is directing traffic.


How Sellozo helps: With Optimizer and Campaign Studio, you can test Broad and Auto campaigns without losing control. Filters make it easy to spot wasted spend, and automation ensures you’re not overspending as you adjust.



3. Reimbursement Policy Changes: Manufacturing Cost

What’s new: Amazon now reimburses sellers for lost or damaged inventory before an order is placed based on the product’s manufacturing cost, not the retail price.


Why it matters: For high-value products, this means you’ll receive far less back than before. Margins are tighter, and sellers need to know the true impact on profitability.


How Sellozo helps: With Financial Reports, you can track profitability at the product level — making it easier to identify which SKUs are most affected and adjust ad budgets accordingly.



4. Stricter Account Health & Compliance Rules + Project Rainier

What’s new: Amazon is tightening enforcement on Account Health Ratings (AHR), compliance, and eligibility for deals. Meanwhile, its “Project Rainier” initiative signals even more reliance on AI and data-driven enforcement.


Why it matters: Sellers close to compliance thresholds risk penalties or suppression. More automation in enforcement means less room for error — and less flexibility if you fall behind.


How Sellozo helps: By aligning ads with inventory and product performance, Sellozo helps reduce wasted spend and keep your account metrics steady. For Managed Service partners, dedicated account managers add a second layer of oversight to catch issues early.



5. FBA Capacity Tightened: Storage Limits Cut

What’s new: Amazon reduced storage allowances for many sellers, in some cases cutting capacity by as much as 75%. Forecasting windows are also shorter (around 5 months instead of 6).


Why it matters: Overstocking can lead to penalties, while understocking risks lost sales. With capacity this tight, every unit counts — and ad strategies must match available inventory.


How Sellozo helps: By combining ad data with profitability reporting, Sellozo helps you avoid promoting SKUs you can’t actually fulfill. This alignment ensures your ad dollars drive results instead of creating stockout headaches.



Key Takeaways for Sellers

  • AI is here to stay — use Amazon’s new tools, but rely on independent reporting like Sellozo’s for true profitability insights.

  • Flex your targeting — test Auto and Broad campaigns while monitoring ROI carefully.

  • Margins are under pressure — reimbursement and rising CPCs mean you need to track profitability closer than ever.

  • Compliance is non-negotiable — account health rules are tightening; stay vigilant.

  • Inventory and ads must align — with tighter storage, don’t waste ad spend on SKUs you can’t keep in stock.



✅ Want to stay ahead of Amazon’s changes — not just react to them? Book a demo with Sellozo.

bottom of page