Amazon vs Instant Delivery – New 1-Hour Shipping Challenges DoorDash and Instacart

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 Expands AI Analysis Tools in Seller Central

💬 Amazon Adds AI Campaign Summaries to Ads Console

‼️ Amazon Tightens Barcodes – FNSKU Now Required for Resellers

🚛 Amazon Expands 1-Hour and 3-Hour Delivery Options in the U.S.

🤖 Amazon’s $50B AI Move – What the OpenAI Partnership Means for Sellers

🖥 Amazon Expands “Shop Direct” With External Catalog Integrations

💲 Amazon Moves AI Prompts Ads to Paid Model

📊 Amazon Expands AI Analysis Tools in Seller Central

Amazon is launching AI tools in Seller Central, including the Seller Assistant Canvas, which helps sellers analyze account performance through prompts or chat, streamlining the process and reducing the need for manual report navigation.

Key features of Seller Assistant Canvas include:

• Prompt-based analysis: Get insights without manual reporting.

• Auto-generated dashboards: Visualize performance metrics easily.

• Trend detection: Spot patterns across ASINs.

• Faster reporting workflows: Save time switching between reports.

This shift towards "chat-based analytics" enables sellers managing large catalogs or multiple accounts to access insights on demand as Amazon further integrates AI into Seller Central.

💬 Amazon Adds AI Campaign Summaries to Ads Console

Amazon has launched an AI Summary feature for advertising campaigns that offers quick insights into performance and suggested actions. It analyzes keyword performance, placement data, visibility, and return metrics to provide explanations and recommendations based on campaign trends.

What the AI summary currently analyzes:

• Keywords and placements: Reviews performance across targets and placements

• Visibility trends: Identifies changes in impressions and exposure

• Return signals: Evaluates metrics such as ROAS to detect trends

• Suggested actions: Provides recommendations based on observed performance patterns

The insights reveal trends but lack causal analysis. Recommendations focus on raising bids rather than providing nuanced strategies. Metrics like ROAS serve as directional signals, not detailed evaluations. AI summaries offer quick snapshots, but deeper analysis still needs manual investigation by advertisers.

‼️ Amazon Tightens Barcodes – FNSKU Now Required for Resellers

Amazon will require all FBA sellers to use Amazon barcodes (FNSKU) for their inventory starting March 31, 2026. Brand-registered owners can still use manufacturer barcodes without labeling, but this exemption does not apply to resellers.

Key points:

• FNSKU required for resellers, ending the acceptance of UPC/EAN.

• Brand owners can still use manufacturer barcodes.

• Enhanced inventory tracking will reduce commingled inventory.

• Existing FBA inventory is unaffected, but new shipments must comply.

Resellers will need to adjust inventory management and label all products accordingly. This change aims to improve inventory separation and reduce issues with shared barcodes.

🚛 Amazon Expands 1-Hour and 3-Hour Delivery Options in the U.S.

Amazon is launching faster delivery options in the U.S. with select items available within 1-hour or 3-hour windows. Prime members pay $9.99 for a 1-hour delivery and $4.99 for a 3-hour delivery, while non-members pay $19.99 and $14.99, respectively. Prime members can also access free same-day delivery where available.

Key updates:

• Ultra-fast delivery: 1-hour and 3-hour options now available on thousands of products

• Wide rollout: 1-hour delivery in hundreds of cities, 3-hour delivery in 2,000+ locations

• Prime pricing advantage: Discounted fees for Prime members

• Dedicated storefront: Easier access to fast-delivery eligible items

Amazon’s same-day service, launched in 2015 and now covering over 9,000 U.S. cities, enhances its competitiveness against rapid delivery platforms like DoorDash and Instacart, emphasizing speed as a key shopping differentiator.

🤖 Amazon’s $50B AI Move – What the OpenAI Partnership Means for Sellers

Amazon is expanding its partnership with OpenAI, reportedly investing $50 billion in AI infrastructure and cloud services. OpenAI is expected to utilize around $100 billion in AWS services, enhancing Amazon's role in AI and boosting product discovery, shopping assistants, and recommendations on its commerce platform.

Implications for sellers include:

• Smarter product discovery with better understanding of natural language and complex comparisons.

• Higher optimization standards require complete product data, strong images, and detailed descriptions for better visibility.

• Growth in conversational commerce with AI assistants guiding recommendations.

• More AI-powered seller tools, including enhanced listing generators and ad optimization features.

As Amazon strengthens its AI infrastructure and shopping assistants, discovery may rely less on traditional keyword matching and more on AI evaluation of listing quality and product relevance. Sellers with structured, complete, and well-positioned listings will be better positioned as AI-driven shopping experiences continue to evolve.

🖥 Amazon Expands “Shop Direct” With External Catalog Integrations

Amazon is enhancing its Shop Direct initiative, allowing merchants to sync product catalogs without being traditional sellers. Shoppers can view out-of-stock items and either visit the merchant's site or use Amazon’s “Buy for Me” AI to place orders.

Key updates:

• External catalog sync: Merchants can integrate existing product feeds with real-time pricing and inventory updates

• Dual purchase options: “Shop Direct” (redirect) or “Buy for Me” (AI completes checkout)

• Expanded product access: 100M+ products from 400K+ merchants, with millions already available via AI purchasing

• Integrated discovery: Products appear in standard search results and within Rufus AI interactions

This positions Amazon as more than a traditional marketplace, evolving into a universal shopping layer that links discovery, decision-making, and checkout across both on-platform and off-platform inventory.

💲 Amazon Moves AI Prompts Ads to Paid Model

Amazon will launch Sponsored Products and Sponsored Brands prompts in the U.S. on March 25, 2026. These AI-driven prompts will recommend products using a standard CPC model.

Key updates:

• Auto-enrollment: All existing and new SP and SB campaigns will be included by default.

• Paid CPC activation: Prompts will shift from free to a cost-per-click pricing model.

• AI-generated questions: Prompts are created using PDP content, Brand Stores, and campaign data.

• Discovery layer: Ads will appear in AI conversations, not just in traditional search results.

This change emphasizes ad visibility using AI-driven discovery, highlighting the importance of optimized product content for better exposure and performance in conversational shopping.

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