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SellerBites Branding

Amazon accused of forcing higher prices

By SellerBites
February 26, 2026


Everyone wants scale. Almost no one is prepared for what comes with it.

Markets are tightening. Cash is more expensive. Platforms are under regulatory pressure. And operators are being forced to choose between growth and control.

This week alone:

  • Your smartest selling investment in 2026 🤔
  • Regulators are circling Amazon over pricing power 💸
  • One beauty brand quietly posted a $445K week 💰️
  • Other sellers say frozen payouts are putting them at risk ❌

Different stories. Same theme: control..

Control of pricing.
Control of cash flow.
Control of systems.

The sellers who win this year won’t be the loudest. They’ll be the most disciplined.

Let’s break it down.

AMAZON NEWS

Quick Summary: The California Attorney General has asked a court to block Amazon from allegedly pressuring sellers to keep prices high—a major escalation in a long-running antitrust battle. If granted, the injunction could force Amazon to change how it governs its marketplace while the case continues toward trial in 2027.

📌 What happened

California AG Rob Bonta filed a preliminary injunction motion in state court this week, asking a judge to stop Amazon from engaging in certain marketplace practices it says suppress price competition.

👉 The state claims Amazon has put pressure on third-party sellers to avoid offering lower prices on other sites— like eBay, Target, and Walmart — and even threatened those who do with loss of prime placement on Amazon’s platform.

Why it matters: the Buy Box leverage

A central point of the complaint is Amazon’s control of the Buy Box — the “Add to Cart / Buy Now” box that drives the majority of sales on its site.

According to the filing:

  • Sellers who don’t meet Amazon’s pricing expectations risk losing Buy Box access.
  • Losing the Buy Box often leads to plummeting sales, discouraging sellers from offering lower prices elsewhere.

What California is asking the court to do

The preliminary injunction, if granted, would:

  • Prevent Amazon from continuing alleged anticompetitive conduct during litigation.
  • Require Amazon to operate under supervision from an independent monitor.

This isn’t a final ruling — but it would be a significant constraint on Amazon’s marketplace policies for years if resistance fails.

👀  Amazon’s position

Amazon denies that they’re wrong. In other antitrust contexts (e.g., the FTC and 17-state lawsuit), the company has argued its practices are pro-competitive and benefit consumers, asserting it offers competitive pricing and choice.

What’s next?

  • The larger antitrust lawsuit began years ago and is scheduled to go to trial in January 2027.
  • This injunction motion accelerates tension and could force changes long before trial.

Why sellers care:

  • Sellers could see fewer opportunities to compete on price outside Amazon.
  • Marketplaces with pricing control can limit seller autonomy.
  • Contract terms tied to Buy Box access can distort competition.

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BITES OF THE WEEK

How one beauty brand hit nearly $450k in weekly Amazon sales

Snapshot: In a recent Reddit post, an Amazon FBA operator shared a real-world growth case from a private label beauty & personal care brand that generated $445,000 in sales in a single week, projecting roughly $1.78M+ in monthly revenue based on that run rate.

Key Metrics

  • Category: Beauty & Personal Care
  • Time in Market: ~2.5 years since onboarding
  • Weekly Sales: ~$445K
  • Projected Monthly Sales: ~$1.78M–$1.9M
  • SKUs: ~40+ total, with 10–15 “hero products” driving ~70% of sales
  • TACOS (Total Advertising Cost of Sales): 8.5–9%
  • Net Profit (in comments): ~19%

Growth Playbook Highlights

  • Hero Product Focus: Not hundreds of products, just a handful that drive most revenue. 
  • Disciplined PPC Scaling: Ads scaled strategically, keeping TACOS robust despite rapid growth. 
  • Listing Optimization Rhythm: Full audits every 60–90 days with enhanced content and fresh visuals. 
  • Review & Trust System: A structured review acquisition approach built credibility and conversion. 
  • Smart Coupon Strategy: Targeted coupons drove ~$9.6K in revenue without slashing margins
  • Operations First: Inventory forecasting and FBA readiness prevented stockouts during growth surges.

What this means for sellers like you

You don’t need an endless catalog to build real revenue. A focused portfolio anchored by a handful of strong hero SKUs can drive the majority of your sales if executed well. Scale does not have to destroy profitability either. 

When metrics like TACOS are managed with discipline, growth and margin can move together instead of against each other. At this level, it is not hype or hacks that win. It is systems. 

Tight PPC structure, consistent review generation, continuous listing optimization, and clean operational execution will outperform chaotic growth at all costs every time.

Amazon sellers say cash holds are crushing their business

An eye-opening Yahoo Finance analysis reports that a growing number of Amazon third-party sellers are feeling squeezed — to the point where some say their businesses could be on the brink of collapse.

At the heart of the complaint? Sellers allege Amazon has withheld payouts on delivered orders, effectively tying up cash flow and tying up the working capital many rely on to operate and scale.

Here’s how this scenario is playing out for sellers:

  • Funds stuck after delivery: Amazon sometimes holds seller payouts even after products are delivered, limiting liquidity just when merchants need it most. 
  • Cash flow risk for inventory restocking: With money frozen, sellers struggle to restock fast-moving inventory or cover operational costs.
  • Profits under pressure: Combined with rising fees and competitive pricing pressure, some sellers say margins are tightening to dangerous levels.

This isn’t an isolated frustration—other recent reporting has highlighted broader concerns from merchants that selling on Amazon is becoming less sustainable due to shifting fees, variable fulfillment costs, and pricing competition that eats into profits.

Why this matters to sellers

  • This highlights the growing importance of cash-flow management, diversified sales channels, and tools that help predict or bridge payout timing.
  • Liquidity crunches kill small businesses faster than poor sales ever will.
  • When platforms control both payment timing and fee structures, sellers can be caught between rising costs and delayed revenue.

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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