Amazon Seller Updates: Rising Ad Placements, TV Tools, and Robotics Investment

Top Amazon Seller Updates This Week 

This week’s news roundup covers major updates impacting the marketplace:

• Amazon Search Ads Dominate Results – A new consumer research study reveals that approximately half of Amazon’s search results are now paid ads, making it harder for shoppers to find top-rated or best-value products.
• Amazon Expands TV Advertising – The company is launching Complete TV, an automated tool within Amazon DSP, to help advertisers manage TV ad buys across streaming and linear channels, competing with Google and The Trade Desk.
• $25 Billion Robotics Investment – Amazon is making a major push into AI-driven warehouse operations, expecting to save $10 billion annually through advanced robotics.

Keep on reading for deeper insights on these Amazon updates and what they mean for your business.

Paid Ads Taking Over Amazon Search

Amazon’s search results have become increasingly dominated by paid advertisements, a shift that’s changing how customers find products and how sellers compete for visibility.

How Amazon’s Search is Changing

• A study by Consumers’ Checkbook found that, on average, 54% of the first 25 products shown in Amazon search results are paid placements.
• Even when customers search for specific brands, sponsored listings still make up about 44% of results, sometimes pushing the desired brand further down.
• Amazon’s “Overall Pick”, an algorithmically chosen best option, often appears lower in the results—sometimes beyond the first 10 listings—because of ad placements.
• On mobile searches, sponsored listings continue to dominate, making it difficult for shoppers to distinguish between paid and organic search results.

“Instead of searching for ‘sweatshirt,’ we searched for ‘Adidas sweatshirt,’ about half of what it showed us were ads,” Kevin Brasler, Executive Editor at Consumers’ Checkbook, told King5 News. “Being more specific didn’t cut down on all the sponsor listings we were shown.”

The Rise of “Bizarro Brands”

One particularly striking finding was the prevalence of unfamiliar brand names dominating certain product categories.

When researchers searched for “sunglasses,” the first page of results featured brands like STORYCOAST, DANAMY, FEIDUSUN, and WOWSUN—commenting that some of the brand names “look like typos caused by a cat running across the keyboard.”

These so-called “bizarro brands” are primarily Chinese manufacturers who have mastered Amazon’s advertising system. They register these unusual trademarks to quickly get listed in Amazon’s Brand Registry, then leverage paid placements to gain visibility despite having little to no brand recognition.

 Opportunities and Limitations for Sellers

• Greater competition for visibility: With so many Amazon paid ads occupying prime real estate, organic rankings are less influential than before. Brands must now pay more to ensure their products appear prominently in search results.
• The rise of unknown brands: Many lesser-known brands, often from China, are leveraging Amazon’s ad system to gain visibility, pushing out established names and making it harder for trusted brands to stand out.
• Potential impact on trust and conversion rates: As consumers become more aware of the heavy ad presence, they may become skeptical of search results, potentially leading to lower trust in advertised products.
• Increased costs for sellers: With higher competition for ad placements, cost-per-click (CPC) rates are likely to continue rising, meaning sellers will have to spend more to maintain visibility.

Despite Amazon’s claims about helping customers discover relevant products, the surge in sponsored listings highlights the ongoing shift in marketplace dynamics. Both sellers and shoppers now face a new reality where paid visibility increasingly determines what products get seen and purchased.

Amazon Complete TV: A Game-Changer for Streaming Ad Buyers?

Amazon Ads is making a bold move in the TV advertising space with the introduction of Complete TV, a new AI-powered tool within Amazon DSP. This feature is designed to tackle common inefficiencies in TV advertising, such as fragmented spending (budget is spread across several ad platforms), wasted ad impressions, and difficulties in meeting pre-negotiated upfront commitments. 

As Amazon continues to expand its influence in digital advertising, this tool positions it as a serious competitor to Google and The Trade Desk, both of which are vying for dominance in the growing programmatic TV ad market. But what does this mean for advertisers, and how will it reshape the industry?

How Complete TV Works

• AI-Powered Budget Allocation: Advertisers input their TV campaign details and audience data, and Complete TV uses real-time insights to distribute their ad spend across Prime Video and premium streaming publishers.
• Optimized Reach & Frequency: The tool eliminates media waste by preventing duplicate targeting, a major issue that has led to 55% of TV budgets being wasted on repeat impressions, according to Kelly MacLean, VP of Amazon DSP.
• Seamless Integration: Advertisers can either use Complete TV’s built-in tools or integrate with their existing agency software or Amazon Marketing Cloud through Amazon’s privacy-safe API. This integration provides brands with deeper analytics on ad performance, brand lift, and audience reach. This level of transparency could make Amazon a more attractive platform for advertisers who want to understand their TV ad impact beyond traditional reach and frequency metrics.
• Cost Savings & Transparency: Amazon is incentivizing advertisers by offering 0% fees on programmatic guaranteed (PG) deals on Amazon properties and a low 1% fee on PG deals with other premium streaming publishers.

With these features, Amazon isn’t just offering a better way to buy TV ads—it’s strengthening its grip on the digital advertising ecosystem. Unlike competitors who rely on third-party data, Amazon has access to first-party shopping, browsing, and streaming data, allowing it to offer advertisers unmatched insights into consumer behavior.

Considerations for Advertisers

While Complete TV offers clear benefits, it also raises questions about how much control advertisers are willing to hand over to Amazon. Some concerns include:

• Is Amazon truly acting as a neutral facilitator, or is it steering ad spend toward its own properties?
• Will advertisers be able to maintain flexibility, or will they be locked into Amazon’s ecosystem?
• Can brands trust AI-driven placements to meet their specific marketing goals?

In sum, Amazon’s move with Complete TV is part of a larger trend—TV advertising is shifting to programmatic automation. As traditional linear TV declines and streaming gains dominance, tools like Complete TV represent the future of ad buying. While some advertisers may be hesitant to rely on Amazon’s algorithms, the ability to optimize spending in real time, minimize waste, and track true ROI is an undeniable advantage.

Amazon’s $25 Billion Robotics Bet is Paying Off

Amazon is doubling down on automation, investing $25 billion to revolutionize its warehouse operations with AI-driven robotics. As competition heats up from budget-friendly ecomm rivals like Temu, TikTok Shop, and Shein, Amazon aims to cut costs, speed up delivery, and reshape the future of logistics. What does this mean for sellers?

Amazon AI Warehouses

Amazon’s robotic transformation isn’t just about reducing costs; it’s about creating an ultra-efficient, AI-powered fulfillment network. The retailer has already deployed over 750,000 robots across its warehouses, from autonomous drive units to robotic arms that sort and pack items with precision.

• Massive Cost Savings: By 2030, automation is projected to save Amazon up to $10 billion annually by streamlining operations and reducing labor expenses.
• Faster Deliveries: AI-powered logistics hubs, such as Amazon’s new Shreveport, Louisiana fulfillment center, process orders 25% faster and at a 25% lower cost than traditional warehouses.
• Enhanced Safety & Productivity: Amazon robots in warehouses handle repetitive and strenuous tasks, reducing workplace injuries while allowing workers to take on higher-value roles, such as overseeing and programming machines.

How AI is Supercharging Amazon’s Robotics

Amazon is leveraging generative AI to make its robotic systems smarter and more adaptive.

• Smarter Robotics: AI-powered arms can now determine the best way to pick up irregularly shaped items, improving handling efficiency.
• Warehouse Simulations: In partnership with Nvidia, Amazon is developing digital replicas of its fulfillment centers to test robotic performance in simulated environments before deploying them in real-world operations.
• Traffic Control & Damage Detection: AI is being used to manage robot movement on warehouse floors and identify damaged goods more efficiently, further reducing operational bottlenecks.

What Sellers Stand to Gain

• Faster Order Fulfillment: Improved warehouse efficiency means quicker delivery times, keeping customers satisfied and boosting seller ratings.
• Lower Fulfillment Costs: As Amazon reduces its logistics expenses, sellers using FBA could benefit from potential cost reductions in storage and shipping fees.
• Enhanced Inventory Management: AI-driven warehouses ensure better inventory placement and faster restocking, reducing out-of-stock scenarios.

Potential Challenges

• Stricter Compliance & Fees: As Amazon optimizes its logistics, sellers may face stricter inventory requirements and increased penalties for inefficiencies, such as overstocking or incorrect labeling.
• Shifting Labor Dynamics: Amazon is reallocating human roles to tech-focused jobs. While this enhances efficiency, sellers relying on third-party fulfillment centers may need to upgrade their operations to stay competitive with delivery expectations.

Overall, Amazon’s massive bet on robotics and AI is already yielding dividends, cutting costs, and delivering faster, more reliable service. Sellers who embrace AI-driven logistics and optimize their inventory placement strategies will be best positioned to maximize the benefits of Amazon’s sophisticated distribution network.

Other Amazon Seller Updates This Week 

1. Ships in Product Packaging Program Enhancements 

Sellers can now certify multiple product variations at once based on Amazon’s recommended product groupings.

2. Return Credits for Remote Fulfillment with FBA

Starting March 2025, Amazon will issue credits for return fees on Remote Fulfillment orders in Mexico and Brazil.

3. USPS Shipping Label Issue Resolved

Amazon has fixed a USPS tracking issue affecting multiple platforms and is issuing refunds and seller protections for impacted shipments.

4. DeepSeek-R1 Now Serverless in Amazon Bedrock

Amazon Web Services (AWS) has made DeepSeek-R1 available as a fully managed AI model, simplifying deployment for businesses.