Amazon Sellers Launch 24-Hour Advertising Boycott Over New Fees and Policy Changes
Amazon sellers, who represent over 60% of goods sold on the massive online marketplace, are reportedly staging a significant protest to voice their deep concerns regarding the company's latest policy revisions. According to a detailed CNBC report, hundreds of sellers from the influential Million Dollar Sellers (MDS) community are actively participating in a coordinated 24-hour boycott of Amazon's advertising platform. These sellers have alleged that the e-commerce giant's new policies concerning advertising payments and additional fees are severely impacting their business operations and financial stability.
Policy Changes Sparking Seller Outrage
This protest movement comes directly after Amazon implemented several controversial changes, including revising how it disburses seller earnings and collects advertising charges. Most notably, the company introduced a 3.5% fuel surcharge explicitly linked to rising global oil prices amid ongoing conflicts in West Asia. Eugene Khayman, the co-founder of the MDS community, explained the heightened frustration to CNBC, stating, "Sellers have complained for years, but this feels different. The reason is simple: this is no longer just about irritation. It is about cash extraction."
The report further claims that numerous sellers assert these policy modifications are placing additional strain on their businesses during an already challenging period. Many are simultaneously grappling with the impact of import tariffs previously introduced by former US President Donald Trump, coupled with persistently higher energy costs. The combined financial pressures are reportedly forcing merchants into a difficult position: either raise consumer prices or absorb the additional costs themselves, squeezing their already thin profit margins.
Seller Testimonies and Amazon's Response
In a statement provided to CNBC, Amazon seller Michael Patrón expressed the dire situation many face: "We're running out of margin. I think that's why it keeps getting more and more frustrating." In response to the growing discontent, Amazon issued a statement clarifying that the changes affect only a "small subset of sellers" and align with standard industry practices. The company also defended the fuel surcharge as a necessary measure to offset escalating oil and logistics expenses.
However, sellers remain unconvinced, arguing that these changes could severely hinder their ability to access cash. Specific concerns include worries about potential price increases for customers and difficulties in meeting payroll for employees or payments to suppliers. A particularly contentious change involves Amazon's decision to deduct advertising costs directly from seller earnings, a move initially scheduled for immediate implementation but later postponed to August 1 following seller feedback. While Amazon claims this adjustment would ultimately assist sellers, many argue it will critically damage "cash flow management."
Additional Policy Shifts and Industry Reaction
Eugene Khayman highlighted another significant loss for sellers, noting, "The majority of sellers... get 3% cash back on their ad spend... and they're taking away that ability," emphasizing how many relied on credit card rewards tied to their advertising expenditures.
Beyond the advertising and surcharge issues, Amazon's new seller policies also include delaying payout disbursements until seven days after product delivery, rather than at the time of shipment. Amazon justified this change by stating most sellers have operated under similar payout timelines since 2016 and that the policy allows adequate time for processing returns and customer claims.
The industry reaction has been swift and critical. In a LinkedIn post addressing Amazon's new policies, Adam Runquist, founder of Heist Labs—a company specializing in acquiring e-commerce brands—wrote, "Combined with the payout delays, this creates MAJOR cash flow crunch." This sentiment echoes the broader fear among the seller community that these cumulative changes could destabilize their operations in an increasingly competitive digital marketplace.
