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#118 - Amazon Lowers FBA Fees, INFORM Consumers Act, and more

Amazon employee sorting boxes in fulfillment center
Welcome to FBA Monthly #118, your ultimate guide to thriving on Amazon! Gain expert insights, stay ahead of trends, and optimize your listings for maximum success. Discover the power of data-driven decision-making and be inspired by success stories from fellow sellers. Let's elevate your Amazon business together!

Hot News

Amazon has spent the last two decades building warehouses and investing in fulfillment infrastructure to deliver more goods to more zip codes faster. It has trained shoppers that infinite selection combined with fast delivery is the model for online shopping. Fulfillment is not the cost center or unavoidable business unit - it is what Amazon sells.


A new U.S. law designed to protect consumers and small businesses will become effective on June 27. The Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act, known as the INFORM Consumers Act, is a federal law that requires online retailers to collect, verify, and disclose identifying information about high-volume third-party sellers.


Amazon requires new sellers to complete "live verification" to deter bad actors from selling on its marketplace - that means Amazon employees interview prospective sellers either in person or via video chat.


Good to Know

With all this talk of deals you should snatch up on Prime Day 2023 — which officially takes place from July 11 through 12 — you may be wondering what to avoid. As it turns out, not every "deal" is actually a deal. And not every deal is actually worth your money (shocker, I know).


Amazon will hold sellers’ funds starting July 7 for those who have not provided it with required information it requested to comply with the INFORM Consumers Act, which takes effect Tuesday, June 27, 2023.


FTC chair Lina Khan and agency investigators have spent months refining a complaint against the e-commerce giant, alleging that Amazon wields its power to reward third-party sellers that use its logistics services and punish those who don’t, according to a Bloomberg report.


Ahead of this year’s Prime Day sale on July 15 and 16, Amazon India has launched Sale Event Planner, a new tool to help sellers work on the preparation of upcoming and/or ongoing events on Amazon.in. The planner is available on the Amazon Seller app for sellers to become aware of the events in advance.


According to Business Insider (via Yahoo): "The lawsuit is expected to focus on the allegation that Amazon uses its power to punish third-party sellers on its online marketplace who don't use the company's logistics services, including warehousing and shipping, Bloomberg reported."


The companies sued Gary Hutton of Torrance, Calif., and his company, Huttronics LLC, in U.S. District Court in Seattle on Monday on claims of trademark infringement, false advertising, and violations of the Washington Consumer Protection Act — seeking an injunction and financial damages.


How well do you vet your suppliers when sourcing goods to sell online? Some Amazon sellers are learning a hard lesson, according to a report in CNBC, which spoke with six sellers recently suspended by Amazon.


Amazon Prime Day, the two-day members-only sales event being held from 11-12 July, is expected to reach new heights in 2023. New research within Pattern's fifth annual Marketplace Consumer Trends Report – 2023, shows 43% of Australians now have access to Amazon this year, presenting local brands with significant opportunities for revenue.


Amazon is lowering standard FBA rates for all low-price products in 2 months. While sellers who use Amazon FBA fulfillment can currently apply for lower rates for certain items through FBA “Small and Light,” Amazon will end that program on August 29 when the new pricing takes effect.


Amazon.com Inc. is ending its Small and Light Program for merchants and replacing it with what it calls Low-Price FBA rates. The move is likely to mean many merchants on Amazon will pay more for fulfillment services but customers will get faster delivery.


Requirements for Seller Fulfilled Prime include shipping more than 99% of orders on time, having nationwide delivery coverage for all standard-size products and weekend pickup and delivery. Sellers must also complete a trial period to show they are able to meet the requirements.


Prosecutors provided additional details about Ed Rosenberg’s role in the Amazon bribery scheme to which he pleaded guilty in federal court on March 30th to one count of conspiracy, when he admitted he had bribed Amazon employees.


Amazon Business Prime Duo — the lowest tier of Amazon Business account, designed specifically as an add-on to normal Prime membership for customers that also run their own company — previously cost $69 a year but will now be free. The price of other Amazon Business account tiers will remain the same.


Amazon is forcing sellers to comply with its policy governing children’s products, even in some cases where the sellers – and some manufacturers – say the products are designed to be used by adults. In order to comply, sellers must show Amazon that their products were tested for lead, cadmium, or phthalates, among other requirements.


Tips and Tricks

While Prime Day has become a staple for bringing masses of customers to Amazon for fantastic deals, Amazon sellers know that translates to more competition for them to get their deals found.


While many retailers from Target to Home Depot have recently reported up to $763 million in lost profit due to in-store theft, damage and loss – called shrink – the threat is not limited to stores. At this time of year, online retailers should be bracing for shipment shrink.


AI has enormous potential for sellers and vendors on marketplaces. By using AI to learn about customers, adjust rates, optimize pricing and manage inventory, brands can improve their competitive advantage, drive sales and increase overall profitability on online platforms.



This week’s topic is expanding to Latin America. Cecilia Meghirditchian and Belen Bauza of Nocnoc, shares an easy way to get your products into 6 different Latam countries.


In this episode, Bradley is going to show you how Chat GPT can help you start writing your listings and how you can save hours of work by having Helium 10 do it for you.