Amazon's recent fee changes and increasing tariffs are creating a challenging landscape for e-commerce sellers, particularly those with smaller operations. After previously stating they wouldn't raise fees in 2025, Amazon's sudden policy shift has left many sellers scrambling to adjust their financial planning and wondering about the platform's long-term strategy.
Jordyn from Carbon 6 shares a telling anecdote that highlights the disparity in how these changes affect different sellers. When speaking with a business doing $150 million in annual revenue, the owner barely flinched at the tariff news. However, a seller doing $150,000 annually feared these changes could completely destroy their business. This stark contrast suggests Amazon may be deliberately raising entry barriers, favoring established brands over smaller entrepreneurs.
The podcast explores several strategies to weather these challenges. Diversification emerges as the critical lifeline, with both hosts emphasizing the importance of expanding beyond Amazon to platforms like Walmart and Target. Velocity Sellers' recent partnership with Target Plus (making them one of only 12 agencies in the program) highlights the growing importance of these alternative channels. Meanwhile, Carbon 6's acquisition by SPS Commerce has expanded their revenue recovery capabilities across multiple retailers beyond Amazon.
For sellers struggling with tariffs, options include exploring manufacturing outside China, using Carbon 6's free tariff calculator for better forecasting, and optimizing operations through AI tools. The conversation touches on how both companies are developing AI solutions to help sellers navigate the increasingly complex e-commerce landscape, from finding negative keywords to optimizing listings.
Despite the challenges, there's an underlying message of resilience. As Jordyn notes, what's most surprising about Amazon sellers is their ability to master multiple aspects of business without formal training. This adaptability may be what ultimately determines which sellers successfully navigate these changes.
Looking to protect your business from Amazon's unpredictability? Contact us to discuss how an omnichannel strategy can provide stability and growth opportunities even as the e-commerce landscape continues to evolve.
