From 15% to 5%: The Shocking Impact of Amazon’s ‘Frequently Returned’ Warning

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 Tests New “Frequently Returned” Badge

📃 Amazon Clarifies Vine Policy on Review Aggregation and Limits

🚫 Alt Text Removal in A+ Content: Temporary Bug or Long-Term Shift?

📲 Amazon Updates Counterfeit Policy: ASIN-Level Takedown Now Required

🔍 New in Amazon Ad Console: Portfolio Search Bar

🆕 Amazon DSP Rolls Out Bid Adjustments for Real-Time Optimization

💲 Amazon Announces FBA Fee Reductions for Fashion Categories

‼️ Amazon Tests New “Frequently Returned” Badge

Amazon has quietly rolled out a new “Frequently Returned” badge, which is placed above the fold and is one of the first things a customer sees on your listing.

Why This Matters:

• Impact on Sales: Sellers report conversion rates dropping from 15% to below 5% when this badge is present, as it deters buyers.

• Variation Specific: The badge targets certain product variations; consider pausing PPC campaigns for flagged ASINs to save ad spend.

• In Testing Phase: Currently applied to select third-party sellers, but its future is uncertain and can have an immediate impact.

What You Can Do Now:

• Audit Listings: Focus on reviews and product clarity.

• Reduce Returns: Ensure images accurately reflect the product to minimize confusion.

• Address Problem Variations: Remove or adjust products with high return rates.

Sellers must prioritize managing return rates and improving product representation to align with Amazon's focus on customer satisfaction.

📃 Amazon Clarifies Vine Policy on Review Aggregation and Limits

Amazon has recently issued an important update regarding how Vine reviews are aggregated and retained—information that, while not entirely new for some, is essential for sellers aiming to stay ahead of the curve.

Key Points:

• Reviews are aggregated at the parent ASIN level, so enrolling related variations together for effective sharing is important.

Review retention varies by enrollment tier:

• Top Tier (11–30 units): Allows up to 30 reviews

• Middle Tier (3–10 units): Allows up to 10 reviews

• Free Tier (1–2 units): Allows up to 2 reviews

When merging ASINs, the review cap of only the highest tier applies; the maximum review limit is based on that tier only.

Strategic Implications:

Sellers should carefully plan their ASIN structures and enroll variations to prevent losing reviews. Avoiding last-minute merges is crucial for maintaining the visibility of Vine reviews, which can enhance return on investment during product launches.

🚫 Alt Text Removal in A+ Content: Temporary Bug or Long-Term Shift?

Amazon has quietly removed the ability to index alt text within Enhanced Brand Content (EBC) comparison charts. While this change appears limited for now, it could indicate a shift in how Amazon manages image-based SEO.

Key Details:

• Alt Text Removal: This issue currently affects EBC comparison charts. Fields may still be filled out on the back end, but they appear blank on the front end.

• Future Plans: Amazon holds a patent that suggests it may rely on image recognition instead of alt text in the future.

• Uncertainty About Permanence: It is unclear whether this change is permanent. It may be a test, a transitional phase, or a temporary bug.

• Importance of Crawlable Text: Currently, text within EBC still contributes more to SEO than images alone.

For now, continue optimizing alt text and EBC content, even if indexing seems limited. Amazon's SEO landscape is evolving, and these early changes may influence how sellers approach content in 2025 and beyond.

📲 Amazon Updates Counterfeit Policy: ASIN-Level Takedown Required

Amazon has officially changed how brand owners must report counterfeit activity—and it could significantly impact how you protect your listings:

• New Rule: If your trademark is infringed by a counterfeit product, you must now report the entire ASIN, rather than just individual sellers.

• Impact: This change forces brand owners to either tolerate counterfeit resellers on their listings or remove the listing completely, which can result in lost sales.

• Amazon’s Gain: The new policy pressures brands to enroll in Amazon Transparency, a paid program that costs $0.01 to $0.05 per unit, potentially leading to higher fees.

• Your Move: Begin evaluating Amazon Transparency, tighten control over resellers, and proactively monitor your listings to prevent counterfeit takeovers.

This is a pivotal moment for brand control on Amazon—one that rewards proactive sellers and penalizes those who wait until it’s too late.

🔍 New in Amazon Ad Console: Portfolio Search Bar

Amazon has introduced a simple yet valuable update in the Ad Console: a search bar for portfolios. While this may not be a major feature release, it is a welcomed quality-of-life improvement, especially for sellers and agencies managing numerous campaigns.

Why It Matters:

• Faster Navigation: Skip the endless scrolling by typing and selecting.

• Enhanced Workflow: This feature is ideal for sellers with seasonal, branded/non-branded, or international portfolios.

• Time Saver for Agencies: Quickly locate client portfolios without delays.

• Reduced Friction: Any user interface enhancement in the Ad Console is a step in the right direction. 

Although it’s a small change, this update will help streamline your work if you spend time in the Ad Console daily.

🆕 Amazon DSP Rolls Out Bid Adjustments for Real-Time Optimization

Amazon has introduced bid adjustments in its Demand-Side Platform (DSP), allowing advertisers to implement customized bidding strategies within a single line item. This innovation reduces complexity and enhances performance.

Key Highlights:

• Custom Bidding Within One Line Item: Advertisers can now use both single- and multi-dimensional bid logic, leveraging first-party data and aligning with their business goals, eliminating the need to create multiple line items.

• New Reporting and Bulk Tools: Adjustments can be monitored through the Reporting API and applied in bulk to up to 10 line items directly from the campaign table.

• More Strategic Control: Advertisers gain the ability to fine-tune bids in real time, make adjustments during high-impact events, and guide Amazon’s automated optimization process.

• Results: Some brands experienced a 28% increase in return on ad spend (ROAS) and a 36% boost in new-to-brand ROAS by utilizing this feature.

Functionality is accessible in North and South America, Europe, the Middle East, and Asia-Pacific for all self-service DSP advertisers. This launch represents a significant advancement in making Amazon DSP more customizable and performance-focused for advertisers at scale.

💲 Amazon Announces FBA Fee Reductions for Fashion Categories

In a move that could ease the pressure on sellers facing rising tariffs, Amazon has announced a reduction in FBA parcel fees for select product categories.

Starting May 15, 2025, most clothing, accessories, backpacks, and handbags will see lower fulfillment fees as Amazon shifts to a simplified pricing model based on parcel size and unit weight, eliminating dimensional weight charges.

Key Changes:

• New Fee Structure: Fees will now be based solely on parcel size and unit weight, rather than dimensional weight.

• Applies To: This change affects most clothing, accessories, backpacks, and handbags.

• Return Fee Update: Backpacks and handbags will now be exempt from high return processing fees.

• Retroactive Reimbursements: Amazon will reimburse overcharges on qualifying returns.

What It Means for Sellers:

This change could significantly lower fulfillment costs for fashion sellers and help offset the impact of tariff-related pressures. Be sure to review your SKUs in these categories and recalculate your margins under the new fee structure, especially if you’ve previously been affected by dimensional weight fees.

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