February 7, 2025
by Lesley Hensell, co-founder, Riverbend Consulting
RED BANK, N.J. – It’s the perfect time to re-calibrate for 2025. Amazon enforcement changed dramatically in 2024. In my decade-plus of helping sellers with Amazon challenges, I’ve never seen a year like this one. Here’s what we expect in 2025.
No More “Everything Store”
Under Jeff Bezos, Amazon believed selection was important. It was a key corporate value. Buyers should be able to find anything and everything on the Amazon platform. In fact, broad selection was a motivator for creating the third-party Marketplace. Only via a wide network of sellers could Amazon be the Everything Store that Jeff envisioned. Under Andy Jassy, this ethos has changed. We see it in enforcement actions, programs, interactions with sellers, choices about the vendor program, and more. Upper management at Amazon is willing to sacrifice selection.
More Zero Tolerance, Fewer Second Chances
Amazon has always been the land of second chances for sellers and vendors. In the past, the company knew it had to allow for mistakes to be made—as long as the sellers involved were willing to learn what went wrong, correct their errors, and move forward following the rules. In 2024, some suspension types changed. Rather than allowing for second chances and course corrections, Amazon Seller Performance began demanding that sellers prove they never broke the rules in the first place. Front-line Seller Performance team members will simply not reinstate under these circumstances. Only aggressive executive escalations have any hope of overcoming these suspensions.
Squeezing More Dollars Out Of Sellers
Fees skyrocketed for sellers in 2024. In the past, Amazon would introduce maybe one new fee in a calendar year, hoping to not upset the delicate seller ecosystem. This year was different. Amazon put fees in place that are painful. But that’s not all. Amazon also dramatically shrunk the window for reimbursement requests. In the past, sellers had 18 months to ask for a refund when Amazon lost or damaged their inventory. That fell to just 60 days this fall. The carrot? Amazon claims it will provide reimbursements automatically.
What Do We Think Will Happen In 2025?
First it was layoffs in 2023. Amazon laid off more than 27,000 employees. Then, in February 2024, Amazon announced its Return to Office (RTO) initiatives, which would begin in May. Why does this matter? More Amazonians will choose to leave their jobs rather than move so they can return to an office. Expect thousands more experienced people to flee, leaving Amazon even more ill-equipped to solve sellers’ problems.
More USA sellers Adding Walmart And TikTok Shops
Walmart and TikTok Shops are working hard to lure sellers. Both are investing heavily in their own versions of FBA. Both are advertising and marketing like crazy to draw in buyers. We are already seeing a strong uptick in clients who have diversified by adding these platforms alongside their Amazon businesses. This provides some much-needed diversification, as well as opportunities for brands to proactively market to new audiences.
FTC lawsuit? Fewer Regs Under Trump Administration?
Enforcement at Amazon swings like a pendulum. Sometimes, Seller Performance backs off and lets sellers sell. Then suddenly, there will be a rash of enforcement, gatings, and more. This has been a trend for years upon years. Which begs the question – after a 2024 that was extreme in terms of enforcements, will the pendulum swing toward a more free-wheeling platform under the Trump Administration?
The real wild card would be the antitrust lawsuit against Amazon. I would bet a favorable settlement will be in the offing sooner rather than later. In some ways, Amazon is the greatest small business incubator in the world with unparalleled opportunity. It is also a land of landmines that require a steady pace, clear direction, and absolute compliance. It can be tough going it alone. Our best advice is for sellers to seek and share with mentors and colleagues—and yes—consulting agencies. There is quality, trustworthy support all around. Have a successful Q1, and we’ll see you at Prosper Show.
Lesley Hensell is co-founder and co-owner of Riverbend Consulting, which solves Amazon problems for third-party sellers and vendors. Lesley has personally helped hundreds of third-party sellers get their accounts and ASINs back up and running. She has been an Amazon seller for more than a decade, thanks to her two boys who do most of the heavy lifting.
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