Amazon sellers say they're fed up with policy and fee changes: 'It's like death by a thousand cuts'

Amazon sellers are pushing back against a string of recent policy and fee changes that are tightening cash flow and squeezing margins. Key moves — a switch to deduct ad costs from retail proceeds first, a DD+7 payout hold, and a 3.5% fuel/logistics surcharge — prompted an April 15 ad boycott and drove some sellers to diversify to Shopify and social channels like TikTok. Amazon has delayed the ad-payment change to August 1, 2026 and offered a $2,500 promotional ad credit. Market implications include potential reductions in Amazon ad spend, slower new-product launches by cash-strapped sellers, and reduced seller participation/assortment that could pressure Amazon’s marketplace dynamics and ad revenue; conversely, better-capitalized sellers may gain share.