The peak season on Amazon continues to present a bittersweet experience for sellers. While many prepare for anticipated sales surges, recent platform policy changes have cast uncertainty over their expectations. Following last week's announcement of increased FBA fulfillment fees, Black Friday promotions have brought additional complications, leaving numerous sellers expressing frustration.
Mixed Results: The Black Friday Divide
Discussions within cross-border seller communities reveal starkly different Black Friday outcomes this year. While some celebrate record sales, others report disappointing performance - with certain sellers experiencing up to 50% sales declines during what should be their most profitable period.
Deal Disruptions: Widespread Cancellations Raise Concerns
Multiple sellers report last-minute cancellations of Black Friday and Cyber Monday lightning deals, including both service-assisted submissions and standard applications. The situation has created significant unrest:
- Many pre-approved promotions were unexpectedly canceled days before activation
- Some active deals were terminated mid-campaign
- Standard submissions faced similar cancellations, suggesting broader platform scrutiny
Industry observers note that some third-party providers exploit system vulnerabilities to secure deal placements, often resulting in suboptimal performance or subsequent penalties. Even canceled deals remain subject to Amazon's standard fees, creating substantial financial losses for affected sellers.
The platform appears to be intensifying compliance checks, with reports indicating Amazon began investigating irregular deal submissions as early as October. Experts recommend sellers focus on organic ranking improvements rather than pursuing questionable submission methods.
Brand Authorization Reversal: Significant Impacts Emerge
Amazon's abrupt termination of its third-party brand authorization program has created additional challenges. The policy change affects sellers participating in the brand licensing initiative, while leaving non-participants unaffected.
Notification emails confirm the program's discontinuation, allowing existing inventory sales through March 31, 2023. The decision impacts numerous established sellers across multiple categories:
- Home goods and furnishings
- Apparel and accessories
- Consumer electronics
- Sports and outdoor equipment
- Pet supplies
Financial repercussions vary significantly, with individual seller losses ranging from thousands to millions of dollars. Some manufacturers report producing substantial inventory based on Amazon commitments, now facing potential obsolescence.
Understanding the Authorization Program
The now-discontinued program allowed qualified sellers to utilize Amazon-owned brands (Umi, Eono, Hikaro, and Find) across approved product categories. Participants maintained production and operational control while benefiting from platform marketing support.
The rigorous approval process typically required six to twelve months, including factory inspections, product testing, and comprehensive compliance reviews.
Potential Motivations Behind the Policy Change
While Amazon cites routine operational evaluations as the reason for discontinuation, industry analysts suggest alternative factors:
- Ongoing antitrust scrutiny regarding platform favoritism
- Quality concerns surrounding Amazon-branded products
- Desire to rebalance marketplace dynamics
The European Commission previously raised concerns about Amazon potentially leveraging marketplace data to advantage its proprietary offerings.
Looking Ahead: Compliance as the Foundation
These developments underscore the importance of sustainable, policy-compliant operations on Amazon's platform. While peak season opportunities remain valuable, long-term success requires adherence to evolving marketplace standards and avoidance of high-risk shortcuts.