Amazon bets on raising selling fees due to rising seller revenues

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Is TikTok Shop the new overachiever of the ecommerce industry?

Recent news revealed how the platform snatched market share from its older competitors, Shein and Temu, despite looming existential threats.

It’s still far from the achievement of U.S. giants, plus it’s unclear if it will have the chance to measure up to them… but what do you think?

• Higher revenue, higher fees 📈
• Economic blackout 🏴
• Maximize your ecommerce earnings 💰
• Social media de-influencing ⏪
• Competitive ecommerce trends 💪

BIG IDEA

Did you know that third-party (3P) sellers are responsible for 62% of units sold on Amazon in Q4 2024? That’s a new record, BTW.

Marketplace Pulse speculated that this shift isn’t due to sellers’ dominance—but Amazon’s strategic direction. We’re talking about some aggressive streamlining moves.

🔑 Key highlights

• Seller fees reached record high.
  • One-fourth of Amazon's revenue now comes from third-party seller fees.
  • Revenue from these services hit $156.1 billion in 2024.
• Amazon shifted its strategy (big time!).
  • Amazon is moving away from first-party retail, favoring a marketplace model that reduces risk and maximizes profit from seller fees and advertising revenue.
  • This shift includes terminating vendor agreements, pushing sellers to use the marketplace model.
• Advertising has grown.
  • Advertising revenue hit $56.2 billion in 2024. 📈
• UPS cut ties.
  • UPS plans to reduce Amazon shipping volume by 50% by 2026.

Amazon’s bet

Amazon is confident it can continue increasing seller fees while maintaining its appeal through market access and innovation. With the rise of 3P seller market share, the retailer believes its strategy is paying off.

Do you think so? 🤔

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HOT TOPIC

Consumer boycotts are coming

With its unofficial ‘plan’ to raise seller fees, merchants’ rants shouldn’t be Amazon’s only concern. According to USA TODAY, consumers plan an economic blackout this February 28. And then a second economic blackout aimed at Amazon on March 7–14. ⚫

Several stores are being targeted by the upcoming boycotts. If you’re selling in these marketplaces, here’s what you need to know to prepare:

🔊 What is it?

• Consumers are urged not to spend money in stores or online on February 28. 
• For emergencies or essentials, they should support local small businesses.

🔊 Why is it happening?

• Instagram group The People’s Union USA and its founder, known as "TheOneCalledJai” are protesting companies retreating from Diversity, Equity, and Inclusion (DEI) initiatives.

🔊 What is the blackout’s goal?

• The protest aims to raise awareness and gather momentum for a larger, organized effort to challenge corporate policies and actions that are seen as harming DEI progress.

🚫 Wait, there’s more

This isn’t the only retail boycott happening.

• The Target boycott is currently ongoing.
• The Latino community has a boycotting movement with #LatinoFreeze.
• Comedian and actress Leslie Jones also called for boycotts and encouraged purchases directly from Black-owned businesses.
• Even a senior pastor of New Birth Missionary Baptist Church in Georgia, Pastor Jamal-Harrison Bryant is promoting Target fast starting March 5.

Know where your business stands

David Primo, professor of political science and business administration at the University of Rochester in New York, says companies will face this common dilemma. Instead of being swayed by political winds, companies should “figure out what they will take positions on, what they won’t take positions on, and then stand firm.”

SOCIAL PULSE

3 tricks to survive Gen Zer’s social media de-influencing

Aside from boycotts, there’s another thing brands should be wary of: de-influencing. A recent article from Salon reports that Gen Zers are no longer buying the influencer hype. 🙅

This young consumer generation is now discouraging their followers from buying unnecessary products.

🔩 De-influencing in a nutshell

• De-influencing is a social media trend where influencers discourage unnecessary purchases.
• Gen Z, in particular, is using de-influencing to challenge hyper-consumerism and promote authenticity in spending.

This movement focuses on quality and authenticity over quantity and hype. Fortunately, there are ways to stay relevant:

• Position your product as a cost-effective alternative. You don’t need to start a brand war like Coca-Cola and Pepsi did. You just have to put your best budget-friendly product forward.
• Respond to feedback with poise and humor. If your brand is the subject of de-influencing, don’t panic. Look at it as an opportunity to engage your audience with empathy, accountability, and humor.
  • Tip: Acknowledge concerns and apologize. Then, offer solutions or accept suggestions for improvements.
• Emphasize your product’s value. Highlight why your product stands out by leveraging UGC and focusing on its unique benefits.

📍 In conclusion: With the right mix of humility, openness, and creativity, you won’t have to worry about de-influencing. Simply incorporate the strategies above to stay ahead in today’s ever-changing digital landscape.

TACTIC TALKS

Key ecommerce trends to leverage this 2025

2025 is set to be another game-changing year in ecommerce, and staying ahead of trends is key to gaining a competitive edge. Ecommerce Fastlane dives into the top ecommerce trends you need to know and how to leverage them to succeed in an increasingly digital marketplace.

👀 Key ecommerce trends to watch for in 2025

1. AI-powered personalization. Personalization isn’t just a luxury anymore—it’s a must-have. AI-driven personalization helps retailers tailor shopping experiences to individual preferences.

💡 Brands that invest in AI-powered tools will drive engagement, conversions, and customer loyalty.

2. Mobile commerce is booming. Mobile shopping is on the rise, with U.S. mobile commerce sales projected to surpass $856 billion by 2027.

💡 Prioritize mobile optimization to deliver seamless, fast, and easy shopping experiences across devices.

3. Social commerce is taking over. Shoppable social platforms like Instagram, Facebook, and TikTok are revolutionizing the sales funnel.

💡 Invest in influencer marketing and UGC to build trust and drive conversions on social media.

4. First-party data is more valuable than ever. With third-party cookies disappearing, first-party customer data is essential for personalized marketing strategies.

💡 Collect behavioral data by encouraging customers to create accounts, share preferences, and engage with personalized experiences.

5. AI-driven merchandising. Optimizing product displays and promotions with AI tools can increase revenue and improve customer satisfaction.

💡 Use AI to show the most relevant products to your shoppers based on real-time data.

👣 Next steps for ecommerce success

To win the ecommerce scene this 2025, you should embrace these trends and invest in AI, mobile optimization, social commerce, and data-driven personalization. We suggest that you start building resilient, adaptable ecommerce operations today by leveraging these cutting-edge strategies.