Amazon Cleans Up Vendor Central: Small Sellers Face Termination

Welcome to our weekly newsletter, Hunter's Insights!

In this special edition, we bring you essential Amazon updates and industry insights to keep you ahead in the fast-paced world of e-commerce:

👥 Amazon Introduces Deep Dive Segments in Business Reports

⭐️ Amazon Removes Key Review Features, Shifting Focus to AI-Driven Ratings

📱 Amazon Resumes Advertising on X: What It Means for Sellers

🆕 Amazon Introduces "New Finds" Section to Showcase New Products

🔚 Amazon Cleans Up Vendor Central: Small Sellers Face Termination

📦 Amazon Introduces Automatic Minimum Thresholds for Order Handling Capacity

🤖 Amazon Rolls Out AI-Driven Title Updates – No Opt-Out Available

👥 Amazon Introduces Deep Dive Segments in Business Reports

Amazon has introduced a new feature called Deep Dive Segments in the Business Reports section, making it easier for sellers to analyze their product performance.

The updated Sales Dashboard now includes three key tabs:

• Products with Declining Sales – Identify items losing traction and take action.

• Products with Increasing Sales – Monitor top-performing products and optimize strategies.

• Declining Traffic Products – Spot traffic drops and adjust marketing efforts accordingly.

A key improvement is the introduction of a deep dive window for any Child ASIN. This window presents daily performance charts over selected time frames, allowing sellers to gain better insights into product trends without relying on third-party tools.

⭐️ Amazon Removes Key Review Features, Shifting Focus to AI-Driven Ratings

Amazon has recently removed the "New" sort button, which previously allowed users to view the most recent reviews first. This change follows the earlier elimination of Q&A sections, indicating a shift toward AI-driven ratings and automated review summaries. 

Key changes: 

• Removal of the "New" sort button: Customers can no longer sort reviews by the most recent ones.

• Elimination of Q&A sections: Buyers can no longer ask or answer questions on product pages.

• Focus on AI summaries and star ratings: Amazon prioritizes automated insights over manual navigation of reviews.

For sellers, it is now more critical than ever to maintain strong star ratings and optimize their listings. These changes demonstrate Amazon's transition to a more automated review system, requiring sellers to adapt their strategies accordingly.

📱 Amazon Resumes Advertising on X: What It Means for Sellers

Amazon has made a significant move by returning to advertising on X (formerly Twitter), marking a potential shift in the platform's relevance for brands. While overall ad spending on X remains below pre-Musk Twitter levels, Amazon’s decision to ramp up its ad budget could signal a renewed opportunity for sellers to explore the platform.

What sellers should know:

• Amazon’s Increased Ad Spend: Amazon is boosting its advertising investment on X, which may encourage other brands to follow suit.

• Diverse Ad Formats: X offers video, image, and text ad options, providing flexibility for various marketing strategies.

• Potential for Reach: With Amazon leading the charge, X could become a more viable platform for reaching targeted audiences.

For Amazon sellers, this development is worth monitoring. While the platform’s effectiveness may vary, Amazon's commitment suggests potential opportunities for those willing to experiment with X’s advertising tools.

🆕 Amazon Introduces "New Finds" Section to Showcase New Products

Amazon is testing a new feature called "New Finds," highlighting trending and interesting products. This section could provide sellers with greater visibility, but its effectiveness will largely depend on how Amazon chooses and promotes these items.

What Sellers Should Know:

• Increased Exposure: New products may gain more visibility through this feature.

• Opportunities for Small Brands: This could be beneficial for emerging sellers, helping them to compete.

• Algorithm Concerns: Amazon's algorithm may still favor bestsellers over genuinely new finds.

For smaller brands, "New Finds" could be a valuable way to attract customers. However, if Amazon prioritizes already popular products, the impact on new sellers might be minimal. Tracking the development of "New Finds" will be crucial in understanding its true effect.

🔚 Amazon Cleans Up Vendor Central: Small Sellers Face Termination

Amazon is implementing significant changes to Vendor Central, particularly by eliminating vendors that do not meet profitability targets. The focus is now on corporate brands that generate over $10 million in profitable sales, while smaller vendors with low revenue and growth are being removed.

Criteria for Termination:

• Low or No Sales Growth: Vendors with stagnant or declining sales do not meet Amazon’s performance expectations.

• Single-Digit Profit Margins: Low profitability makes it costly for Amazon to maintain these accounts.

• Annual Revenue Under $5 Million: Amazon is prioritizing vendors that make substantial contributions to its bottom line.

• No Dedicated Vendor Manager: Brands without a direct Amazon representative receive less support and are more likely to be cut.

• No Investment in Amazon Vendor Services: Vendors that do not invest in paid Amazon programs are not considered a priority.

While Vendor Central is not shutting down, it is becoming less accessible to small businesses. Brands affected by these changes should consider transitioning to Seller Central, optimizing their advertising strategies, and adjusting their business models to remain competitive.

📦 Amazon Introduces Automatic Minimum Thresholds for Order Handling Capacity

Starting February 24, 2025, Amazon will implement a new feature in Seller Central to help sellers manage order volume more effectively. The update is designed to ensure realistic delivery estimates and reduce late shipments.

Key Changes:

• Minimum Order Handling Capacity – Amazon will set a threshold based on your average daily orders over the past 30 days. This will be recalculated weekly to reflect changes in order volume. If your capacity drops below this threshold, Amazon will adjust it accordingly. Sellers can manually set a higher limit if needed.

• Order Handling Capacity Limit – If a seller reaches this limit, their product listings will display a delivery date that’s one day longer. This gives sellers more time to process and ship orders, preventing delays.

This update applies only to Standard and Free Economy shipping, not Premium Shipping or Seller Fulfilled Prime. By automating capacity management, Amazon aims to improve customer delivery accuracy while helping sellers avoid penalties for late shipments.

🤖 Amazon Rolls Out AI-Driven Title Updates – No Opt-Out Available

Amazon has introduced an AI-driven system that automatically updates product titles unless sellers take action. Sellers are now receiving emails with title recommendations, including an Excel file that outlines key details such as ASIN, attribute name, current and recommended values, listing quality issues, and feedback reasons.

What You Need to Know:

• Amazon gives you three response options: Agree, Fix Myself, or Product is Not Part of Our Catalog.

• If you don’t review and respond by the deadline, Amazon will automatically change your product title.

• Disagreeing with a change? You must provide a reason and submit an updated file via Review Listing Updates in Seller Central.

• You cannot opt out of this feature.

To avoid unwanted changes, check “Review Listing Updates” regularly in Explore Brand Selection. Amazon’s AI is making decisions for your listings—make sure they align with your brand before it’s too late!

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