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Fraudulent "passive income" scam targeting Amazon sellers exposed

Some people have their path mapped out from day one. But if you don’t, Amazon CEO Andy Jassy says that’s more than okay—it's part of the journey.

“Don’t be afraid to fail,” he says. Nearly 30 years ago, he took his own advice, and it led him here.

Now, the real question is: What are you betting on?

  • "Passive income” Amazon scam exposed 🔍 
  • Amazon’s new deal fees shake-up 💰 
  • Why brands must unify now 📦 
  • Never miss a sale again 🔥

BLACK MARKET

The Federal Trade Commission (FTC) has taken legal action against Click Profit, accusing the company of running a multimillion-dollar Amazon automation scam.

According to CNBC, Click Profit and its co-founders, Craig Emslie and Patrick McGeoghean, allegedly lured investors into a bogus “hands-free” ecommerce business—only to leave them with empty wallets and suspended accounts. 🫤

🎭 How the scam played out

  • The pitch: Click Profit promised to build and manage Amazon, Walmart, and TikTok storefronts for customers, claiming to have expert teams and AI-driven technology to find the most profitable products.
  • The bait: Investors were told they could make tens of thousands in passive income—if they forked over an upfront investment of $45,000 to $75,000, plus additional inventory costs.
  • The illusion: Click Profit flaunted flashy screenshots of supposedly high-earning stores (one claiming $540,000 in sales per month) and name-dropped Nike, Disney, and Marvel as sourcing partners to boost credibility.

💥 Reality check

  • The FTC says those AI tools and brand partnerships never existed.
  • 95% of Click Profit’s Amazon stores were suspended or terminated.
  • Many customers never recouped their investment, with some falling into crippling debt.
  • Negative reviewers were allegedly threatened with lawsuits—one customer was even told to “F*** off.”

Seller insight: Building a business takes real work—there are no magic shortcuts. If an agency promises sky-high passive income, be skeptical. 👀

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BITES OF THE WEEK

BIG IDEA

Amazon overhauls deals & coupons with new performance-based fees

Deals and coupons are powerful tools to boost product visibility, especially with Prime Day around the corner. 

Now, Amazon is shaking things up with changes that give sellers more control, reduce upfront costs, and introduce performance-based fees.

🔑 Key changes

  • Flexible deal durations. Starting June 2, 2025, Best Deals can run for 1–14 days on any day of the week, except during Peak Events (Prime Day, Black Friday, etc.).
  • Performance-based fees. Upfront deal fees are decreasing, but a new variable fee (based on sales) is being introduced.
  • Non-peak day fee updates Effective June 2, 2025, deal and coupon fees in the Amazon US store will change as follows:
    • Best Deals & Lightning Deals: $70 per day + 1% of deal sales (capped at $2,000).
    • Coupons: $5 upfront fee per coupon + 2.5% of coupon sales.

🚨 Prime Day 2025

Amazon says Prime Day 2025 will be longer than ever, and here’s how promotional fees stack up:

  • Prime Exclusive Discounts (PEDs): Fee jumps from $50 to $100.
  • Best Deals & Lightning Deals: No change—$1,000 and $500, respectively.
  • Coupons: Same as non-peak days ($5 per coupon + 2.5% of sales).

As of now, the announcement has over 150 👎 reactions. One seller commented that these “updates” just highlight the rising cost of selling on Amazon.

📢 What’s your take on performance-based fees? 

ACTIONABLE ADVICE

Why brands need a unified strategy now

Consumers are tightening their wallets, ad costs are soaring, and platforms are changing the rules overnight. For sellers, the challenge isn’t just keeping up, it’s staying ahead.

According to Raconteur, the key to thriving in this unpredictable landscape is a unified ecommerce strategy

💡 Why it works

Brands want to be everywhere their customers are. But throwing ads across multiple platforms without cross-channel visibility is like driving blind—you won’t know what’s working and what’s wasting your budget.

A unified strategy helps by:

  • Bringing all channels together. Digital marketing, ecommerce, and retail channels work seamlessly as one.
  • Providing a complete view of consumer engagement. Brands can track the full customer journey—from awareness (e.g., an Instagram ad) to conversion (e.g., a sale on Amazon).
  • Optimizing marketing spend. With a holistic approach, brands can focus budgets on what truly drives sales instead of wasting resources on underperforming channels.

Multichannel brands should invest in unified data platforms. This would provide real-time insights into multi-channel campaign performance, helping you optimize ad spend and maximize ROI. 🤑

TECH MARKETING

How to never miss a sale again

Have you ever had a customer eager to buy—only to find out their item is out of stock? Talk about a letdown. 

According to the Home Furnishings Association, Live Inventory is one of the best ways to prevent this and keep operations running smoothly.

📦 Why do you need it?

Unlike big retailers, Small and Medium-sized Enterprises (SMEs) have less room for error when it comes to stock shortages and logistics issues. Live inventory solves this by:

  • Providing transparency. Customers see accurate stock availability, increasing trust and conversions.
  • Syncing seamlessly. Keep everything in sync, from ecommerce to in-store sales, so you always know what’s in stock and where.
  • Reducing order delays. Automatically route orders to the nearest warehouse for faster fulfillment.
  • Streamlining custom orders. Easily track materials and production schedules, ensuring on-time deliveries.

Staying ahead in retail means keeping your stock accurate, visible, and ready to sell. Live inventory makes that happen.

Many platforms make it even easier by integrating with live inventory management tools like Amazon Multi-Channel Fulfillment (MCF). ⚒️

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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