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SellerBites Branding

Amazon is no longer penalizing sellers for raising prices

By SellerBites
April 28, 2025


Last week, we asked our readers whether you’re buying your “luxury” goods from legitimate retailers or you’re getting them from Taobao and DHGate.

The results?

73% are buying from DHGate and Taobao while the rest are getting them directly in stores! Surprising? Not so!

  • Amazon is NO longer penalizing its sellers for raising prices 🫂
  • How a small business turned into a business making 8 figures 🤑
  • Is it an end of an era for ultra cheap shopping? 🥹
  • Temu and Shein app downloads are declining 📉
  • Fur-parents are ready to buy! Are you ready to sell? 🐶

AMAZON NEWS

Some good news first.

A recent Fortune article reported that Amazon will no longer penalize sellers for raising prices!

📦 The Buy Box review

As we all know Amazon likes to feature the best (cheapest) prices. Amazon can remove the “buy now” or “add to cart” buttons. When product listings are removed from being the Featured Offer (a.k.a Buy Box) this is called “losing the buy box” or “buy box suppression.”

💰 Penalties for raising the price

Recently, sellers had to raise their prices in response to the tariffs. Despite the price matching the sellers’ websites and competitors, Amazon still removed the buttons.

Amazon gave no reason for the penalty. But sellers assumed it was because the price increase was more than normal.

◀️ Reversing the penalties

This week, many sellers report getting their Buy Boxes back even with 20–25% price hikes!

Sellers speculate Fortune’s reporting influenced Amazon’s change. But, there’s no way to be sure. 

Amazon did say that pricing policies remain unchanged. They said sellers set their prices, and the Featured Offer highlights “great prices.”

🔑 Key takeaway

Amazon CEO Andy Jassy acknowledged sellers might pass tariff costs to customers. And he understands if they did. For now, price increases appear tolerated on Amazon.

TOGETHER WITH WALMART MARKETPLACE

The Perfume Spot sees high-tier success selling low-cost perfumes on Walmart Marketplace

When The Perfume Spot started selling on Walmart Marketplace, they knew they were working with the platform that puts them first. 

Now, 8 years later, they’ve seen massive growth, going from a small storefront on Staten Island to an e-commerce juggernaut with 25 employees and 8-figure sales—in part due to their partnership with Walmart Marketplace.  

With Walmart Marketplace, The Perfume Spot got access to: 

  • A network of millions of customers 
  • Innovative programs that helped them scale 
  • Walmart’s omnichannel advantage  

Join Marketplace

Get the same advantages as The Perfume Spot today by signing up for Walmart Marketplace today. It only takes minutes.

BITES OF THE WEEK

TRENDING TOPIC

Is it the end of an era for ultra cheap shopping?

ICYDK, the de minimis loophole is closing.

So previously, packages worth less than $800 would not be taxed. But this will soon end on May 2, 2025, when the de minimis exemption is removed.

There will now be a $100 tax per postal item or a 120% tariff (it depends on the goods and their declared value). 

According to Rest of World, U.S. buyers and Chinese sellers are preparing for the end of ultra cheap shopping.

What’s currently happening 👀

  • U.S. shoppers are stockpiling. It’s a mad buying rush before the new tariffs hit. Consumers all over the country are stockpiling electronics, home goods, and essentials ahead of the May 2 tariff deadline, in the hopes of getting them for cheaper prices. 🛍️
  • Chinese sellers are adapting. Sellers have several different strategies lined up.
    • Storing inventory in U.S. warehouses.
    • Rerouting shipments through other countries.
    • Exploring other markets.
    • Temu and Shein announced price hikes starting April 25.
    • Platforms, like Temu and Shein, encourage bulk shipping to the U.S. to minimize costs.
  • Platforms are setting up a new era.
    • They are now offering subsidies and waiving commissions for sellers who choose to ship in bulk.
    • Platforms are also aggressively buying warehouse space across the U.S.
    • They may end up like Amazon—higher prices, smaller product selection

The sad news is…

The price hikes don’t end there. On June 1, the per postal item fee will be $200. Additional tariffs may apply depending on the product category.

How are you preparing for these hikes? Answer our poll below!

HOT TOPIC

Temu and Shein are losing their spots in the U.S. app store

Temu and Shein are losing their spots in the U.S. app store.

According to Marketplace Pulse, Temu fell from #3 to #85 and Shein dropped from #7 to #80. This was in just 2 weeks!

🧠 A strategic retreat

Both Shein and Temu are pulling back. Their strategic concession includes:

  • Cutting back on ad spend. Temu’s U.S. ad spend dropped 31% in early April; Shein cut back 19%.
  • Increasing prices. Both companies announced price hikes starting April 25. Yikes!
  • Adjusting values. Shein received U.K. regulatory approval for a London IPO. A $66B was the initial value. It has now been adjusted to ~$50B.

⚔️ The challenge for U.S. sellers

The end of de minimis will level the playing field. Chinese sellers will have to pay taxes like U.S. sellers. However, American sellers may still struggle. Why?

  • Tariff costs. Sellers who source from other countries still have new tariffs to pay.
  • Stockouts. Some are delaying inventory orders until tariffs are stable. But that means they can run out of goods.
  • New competition. Temu and Shein may be down (for now), but other Chinese apps are on the rise. DHGate and Taobao are gaining attention thanks to the viral luxury brand exposé on TikTok.  

Bottom line: There’s a new available market share as Temu and Shein retreat. But American sellers may not be able to capture it in time. 💔

ACTIONABLE ADVICE

Pet parents are ready to spend—are you ready to sell?

Amazon’s Pet Day (May 13–14) is almost here—and if you’re not prepping deals, you’re basically leaving treats on the table. 

🐶 What’s Pet Day again?

Amazon kicked off Pet Day in 2022 to celebrate National Pet Month! And it’s been a tail-wagging shopping frenzy ever since, packed with exclusive deals and must-have pet products.

Pet owners are primed to splurge. 🦴 Whether you’re selling kibble, collars, or cat trees, now’s the time to pounce on the opportunity. You can roll out deals, promos, coupons—whatever gets tails wagging and carts filling.

Here’s how:

  • Check if you have eligible ASINs. They’re automatically displayed in the Deals dashboard.
  • In the Deals dashboard, select “Create a new deal.”
  • Choose a product in your inventory and click Select.
  • Select an eligible Amazon store to run your Deal.
  • Enter your desired schedule and duration.
  • Configure and check all fields then submit.

Now, you’re all set for some PAW-some sales! 🐾

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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