Gate News message, April 16 — Amazon (AMZN.US) sellers are facing mounting pressure from new platform policies, prompting hundreds of large merchants to launch a 24-hour advertising boycott on Wednesday. The Million Dollar Sellers (MDS) community, comprising over 700 members with combined annual revenue of approximately $14 billion, organized the protest against recent policy changes that sellers say are squeezing already thin profit margins.
Amazon recently modified how it pays sellers and collects advertising fees, and announced a 3.5% fuel surcharge effective April 17 to offset rising energy costs from geopolitical tensions. Additionally, the company changed payment terms in March, requiring sellers to wait seven days after delivery before receiving funds, compared to the previous seven-day post-shipment payment schedule. The company also announced automatic deduction of advertising fees from seller revenue, though this change has been delayed to August 1, 2026, following seller feedback.
Michael Parton, who operates an eight-figure Amazon business, stated “our profit is nearly gone,” while MDS co-founder Eugene Cayman noted the situation feels different this time: “It’s no longer just frustrating—it’s direct cash extraction.” Sellers worry the policies will freeze cash flow, preventing them from paying employees and suppliers. Many small business owners rely on credit card rewards from advertising spending, which they say Amazon has effectively eliminated.
Amazon’s third-party marketplace, launched in 2000, now generates over $528 billion in annual seller services revenue (up 11% year-over-year in Q4), accounting for 42% of the company’s total sales. According to Marketplace Pulse research, Amazon’s average take per transaction exceeded 50% for the first time in 2022. The U.S. Federal Trade Commission filed an antitrust lawsuit against Amazon in September 2023, alleging anticompetitive practices; trial is scheduled for 2027. Amazon maintains its policies support seller success and cost less than alternatives.
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