Amazon Seller Updates: AMZ to Send Direct Traffic to DTC, Shipment Updates & Fee Increase

Top Amazon Seller News Stories This Week 

This week’s Amazon FBA news roundup covers major platform updates, financial highlights, and operational changes.

• Amazon’s app to list DTC products: Amazon will soon show products in search results that it doesn’t sell directly, redirecting shoppers to brand websites for purchase.
• Partial shipment splits ending for standard-size products: Starting February 20, 2025, sellers will no longer have the option to split standard-size shipments in their plans.
• Remote Fulfillment with FBA in Mexico fee increase: Rates will rise by an average of 4% per unit on April 10, 2025.

Keep reading for full details on each update and how they may impact your business.

Amazon Takes on Google with New Search-Based Shopping Feature

In a move that mirrors Google’s search capabilities, Amazon is beta-testing a system where search results in the Amazon Shopping app may now include links to third-party DTC brand websites. While this initiative promises greater selection and convenience for customers, it raises questions about its impact on sellers and Amazon’s broader business strategy.

How the New Feature Works

• Products Amazon Doesn’t Sell Will Appear in Search Results: If a customer searches for a specific product that Amazon does not stock, they may now see a result that redirects them to the brand’s website for purchase.
• Beta Testing Phase: Currently, this feature is being tested on a subset of US customers using the Amazon Shopping app on iOS and Android. Amazon plans to expand it based on feedback.
• Pop-Up Notifications: Before leaving Amazon, shoppers will receive a notification alerting them that they are being redirected to an external website.‍
• Integration with Buy With Prime: If the external brand participates in Amazon’s ‘Buy With Prime’ program, Prime members can still enjoy benefits like fast shipping and easy returns.

What These Amazon Updates Mean for Sellers

• Increased Visibility for Direct-to-Consumer (DTC) Brands: Brands that rely on their own websites for sales can benefit from increased exposure to Amazon’s massive customer base.
• Potential Loss of Third-Party Seller Traffic: Amazon’s third-party sellers may find themselves competing with external sites for customer attention, as Amazon curates results beyond its marketplace.
• Amazon’s Data Collection Strategy: Amazon could be leveraging this feature to gather insights into customer preferences, which could inform future private-label product development.
• Competitive Strategy Against Google: Google has long been a dominant force in search-driven shopping. By allowing product searches to lead directly to brand websites, Amazon positions itself as a one-stop shop for product discovery, even if the transaction happens elsewhere.‍
• Possible Future Monetization: Although Amazon did not mention it will take a direct cut of sales from external websites, brands may compensate Amazon in other ways, such as through fixed placement fees or advertising agreements. This move strengthens its ability to position itself as a full-funnel marketing platform, driving brand awareness alongside direct sales.

Amazon’s latest move suggests a pivot toward a more open, search-driven shopping experience. However, as the new feature is still in beta, its long-term impact remains to be seen. For sellers, adaptation and strategic planning will be crucial in this new era of Amazon’s marketplace evolution.

Amazon Inbound Placement Fee Changes

Amazon is rolling out key changes to its FBA inbound placement service fees in 2025. While some sellers—particularly those handling bulky products—will benefit from reduced fees, others, especially standard-size product sellers, must rethink their inventory shipment strategies. 

Amazon expert Vanessa Hung points out that this change wasn’t clearly communicated when Amazon initially announced the 2025 fee updates. Instead, sellers first learned about it through Reddit discussions and emails sent by Amazon on January 21, 2025—three months after the official fee update.

Key Changes Coming in 2025

1. Lower Fees for Large Bulky-Size Products

Starting January 15, 2025, Amazon will reduce inbound placement fees for large bulky-size products by an average of $0.58 per unit for minimal shipment splits. This fee reduction can make a difference in profit margins for those shipping high-volume products.

2. End of Partial Shipment Splits for Standard-Size Products

As of February 20, 2025, the partial shipment splits option will no longer be available for standard-size products. Previously, sellers could send standard-size inventory to two or three fulfillment centers at a reduced fee—a middle-ground option between minimal shipment splits (single location with a fee) and Amazon-optimized shipment splits (multiple locations – usually 5 or more – no fee).

After February 20, 2025, sellers must choose between:

• Minimal Shipment Splits: Pay a fee to send inventory to the fewest possible locations.
• Amazon-Optimized Shipment Splits: Distribute inventory across multiple fulfillment centers without a placement fee, but meet strict packing requirements (e.g., five identical cartons per SKU).

3. Fee Waiver for New ASINs in FBA New Selection Program

From December 1, 2024, to March 31, 2025, sellers enrolling new parent ASINs in the FBA New Selection program can ship up to 100 units per ASIN without paying inbound placement service fees.

Fee Calculation Before and After the Change

Let’s compare how fees apply to a large standard-size product (2 lbs, 10 inches x 8 inches x 6 inches) under the old and new structures.

Under the new structure, sellers who previously used partial shipment splits to save costs must now either pay full minimal shipment fees or comply with Amazon’s strict distribution requirements.

Amazon’s 2025 FBA changes are a mix of cost-saving opportunities for some and new challenges for others. If you sell bulky products, you win. If you rely on standard-size shipments with partial splits, you need a new plan.

Jon Elder, an Amazon business consultant, notes that many small and mid-sized sellers may struggle with these changes. In a comment on Elder’s recent LinkedIn thread, Vlad Alexander, co-founder of AzonVidz video agency, shared that more than half of the 500 brands he’s worked with are no longer in business due to increasing operational challenges like these.

So, now’s the time to reassess your fulfillment approach to minimize cost increases. Sellers who adapt early will have the best chance to stay competitive. Consider Amazon Warehousing and Distribution (AWD), which allows inventory to be sent to one inbound location for further distribution at discounted rates.

Amazon Increases Remote Fulfillment with FBA Fees in Mexico

Sellers leveraging Amazon Remote Fulfillment in Mexico will soon face increased costs.

In an email sent by the Amazon Services Team, remote fulfillment fees will rise by an average of 4% per unit starting April 10, 2025. This change is said to support Amazon’s continued investments in infrastructure, technology, and fulfillment operations.

Breaking Down the Fee Hike

The updated fees will impact sellers differently based on their product size and weight. Here’s an example of how the increase will affect common Amazon remote fulfillment fees for Mexico:

• Small Standard (10+ to 12 oz): Currently MXN 149.28 → New fee: MXN 155.25 (approx. 4% increase)
• Large Standard (1+ to 1.25 lb): Currently MXN 188.25 → New fee: MXN 195.78
• Large Standard (3+ lbs to 20 lbs): Currently MXN 224.01 + MXN 1.01 per additional 4 oz → New fee: MXN 232.97 + MXN 1.05 per additional 4 oz

These increases might seem minor on a per-unit basis, but they add up quickly for high-volume sellers. This is despite Amazon’s previous statements about fulfillment costs stabilizing, this new increase butts up against those assurances.

Overall, this highlights a recurring challenge for sellers who must continually adjust their pricing strategies to remain competitive.

Other Amazon Seller Updates This Week

1. Amazon Q4 Net Sales Up 10%

The ecommerce giant reported $187.8 billion in net sales for Q4, reflecting a strong holiday season despite cautious guidance for 2025.

2. Amazon Prime Turns 20

The membership program set new records, with over 9 billion items delivered in 2024 and US members saving nearly $95 billion on shipping costs.

3. Amazon Launches Easy Ship in Poland and the Netherlands

A new fulfillment option, called Easy Ship, allows sellers to schedule pickups or drop off shipments at competitive rates.

4. Bulk Listing Improvements

Sellers can now create bulk listings using their own custom spreadsheet templates.

5. Free VAT Registration and Filing for Ireland

Amazon is offering free VAT registration and two years of filing services, valued at up to €1,900, for eligible sellers in Ireland.

6. Amazon Go Store Closures Continue

The retailer is shutting down another location in Los Angeles, bringing the total to 16 remaining stores as it scales back its cashierless convenience store model.