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Are AI-generated ads allowed on Amazon?

Ah, Saturday. Your brain wants a nap, your coffee screams “refill me,” and suddenly your Amazon FBA “brilliant ideas” seem… suspiciously doable.

TECH MARKETING

A seller asked the forums if AI-generated video ads could risk account health or ad approvals. The consensus: yes, you can use them, but only if they stay compliant.

Amazon isn’t anti-AI. It’s anti-sloppy claims.

🍪 Quick bits

  • AI is permitted: Amazon allows AI-generated creatives, including videos made with its Creative Studio Video Generator
  • Accuracy is non-negotiable: The product shown must match what’s sold
  • No inflated claims: Avoid exaggerated results or unsupported benefits
  • Category rules apply: Supplements, beauty, and medical niches face tighter scrutiny
  • Watch your language: Prohibited phrases and unverified statements can trigger rejections

💬 SellerBites’ take

AI video lowers the barrier to entry, faster, cheaper, polished ads without a team. But it doesn’t expand creative freedom; it increases exposure. 

When everyone can produce studio-level content, enforcement tightens and differentiation shrinks. Automation catches what exaggeration used to hide. 

Use AI to move faster, not to embellish.

Lavazza partnership with Walmart Marketplace & WFS brews rapid growth

Lavazza, a coffee brand, saw more than 200% growth in Walmart Marketplace sales within 18 months of leveraging Walmart Fulfillment Services (WFS).*  

*Data provided by Lavazza.  

Since joining WFS, Lavazza has: 

  • Improved efficiency 
  • Improved on-time delivery to customers 
  • Reinvested in marketing and advertising

Let WFS do the heavy lifting while you focus on scaling your way

Join Marketplace

BITES OF THE WEEK

Margin pressure is the real tariff story

If you source internationally, 2025 likely felt more expensive than expected. 

Despite all the rhetoric, most tariff costs didn’t land on foreign exporters, they landed on U.S. businesses and consumers. For sellers, this wasn’t a policy debate; it was margin pressure.

🍪 Quick bits

  • Who paid? A Federal Reserve Bank of New York study found 94% of tariff costs hit U.S. firms and consumers through August 2025 (86% by November)
  • Household impact: ~$1,000 per household in 2025; projected ~$1,300 in 2026
  • Inflation bump: Estimated +0.7 percentage points
  • Pricing behavior: Exporters largely held prices steady, leaving importers to absorb added costs
  • Bottom line: The burden stayed domestic
  • Seller impact:
    • Higher landed costs: Imported goods became more expensive overnight
    • Tighter margins: Sellers absorbed costs where price hikes weren’t viable
    • Conversion pressure: Inflation makes buyers more price-sensitive
    • Category squeeze: Home goods, furniture, and household items saw notable increases

💬 SellerBites’ take

Tariffs aren’t just headlines, they cut margins. Costs rise, choices shrink, and political debates don’t boost profit. 

The real question: protect margins or conversions? Smarter sourcing, SKU adjustments, and pricing tweaks often decide whether you survive inflation or lose profits.

Does being under 30 hurt your FBA chances?

A seller sparked debate in the forums with a bold claim: if you’re under 30, Amazon FBA probably isn’t for you. Not because of age alone, but because the platform punishes inexperience fast.

Behind the hot take was a simple point: Amazon isn’t easy money. It’s capital strain, supplier headaches, price pressure, and policy risk all at once.

🍪 Quick bits

  • Capital reality: $5K disappears quickly when inventory misfires
  • Most first launches lose: Early products often fail before one sticks
  • It’s a portfolio game: Multiple SKUs increase odds, but also risk
  • Cash flow is king: Scaling too early or holding losers too long drains runway
  • No overnight wins: Some sellers report years of trial, error, and tight margins before stability
  • Age vs. execution: Younger sellers pushed back, saying maturity comes from experience, not birthdays
    • Starter paths: Many begin with retail arbitrage or wholesale before moving to private label
    • Discipline > age: Execution and consistency determine survival

💬 SellerBites’ take

The real barrier isn’t age, it’s underestimating the game. Amazon rewards those who manage risk, control cash flow, and think long term. 

Shortcuts don’t scale; success comes to sellers who treat FBA as a business, not a side hustle.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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