Amazon Sellers Grapple With Review Crackdown Rising Shipping Costs

Amazon sellers face dual challenges: compliance and rising sea freight costs. The platform is strictly investigating offline postcard review requests, and gift card rebates are becoming a key risk control area. The Red Sea crisis has led to soaring sea freight prices and delayed shipping schedules. Sellers are advised to adhere to compliance regulations, strengthen risk management, optimize their supply chains, enhance product competitiveness, and consider diversifying their business operations. This will help them navigate the current challenges and maintain profitability.
Amazon Sellers Grapple With Review Crackdown Rising Shipping Costs

Many Amazon sellers have long struggled to balance compliance requirements with business growth. In 2024, the scales appear to be tipping decisively toward stricter enforcement. Recent waves of warning letters targeting "offline postcard" review solicitation practices serve as a wake-up call for sellers attempting to navigate regulatory gray areas. Simultaneously, the ongoing Red Sea crisis has triggered skyrocketing shipping costs and unprecedented supply chain disruptions, creating a perfect storm for online merchants.

1. Amazon Intensifies Crackdown on Offline Review Solicitation

Amazon has maintained a zero-tolerance policy toward fake reviews and strictly prohibits incentivized ratings. Despite this, some sellers continue exploring loopholes, with "offline postcards" emerging as a previously popular workaround. The method involves obtaining buyer addresses through various channels and mailing physical cards promising gift card rewards in exchange for positive reviews.

Since December 2023, numerous sellers have reported receiving warning emails explicitly prohibiting this practice. Amazon's enhanced detection capabilities now track gift card redemption patterns, flagging suspicious activity when multiple reviewers of the same product receive identical reward amounts shortly after posting evaluations.

Internal communications reveal Amazon's sophisticated monitoring extends beyond platform transactions, with some sellers receiving warnings specifically citing gift card-related violations. While alternative payment methods like PayPal offer temporary evasion, experts caution these represent short-term solutions at best.

The tightening enforcement signals Amazon's commitment to review integrity, compelling sellers to reassess customer feedback strategies and prioritize compliance over questionable growth tactics.

2. Shipping Costs Surge as Red Sea Crisis Escalates

Beyond platform policy changes, Amazon sellers confront mounting logistical challenges. The Red Sea shipping crisis has forced major carriers to reroute vessels around Africa's Cape of Good Hope, triggering dramatic freight cost increases across all major trade lanes.

With no immediate resolution in sight, industry analysts predict continued rate volatility. Some forwarders have announced additional January 15 price hikes ahead of Chinese New Year, with European routes anticipating $500-$600 per TEU increases and U.S. lanes facing $900 per TEU jumps.

Compounding the cost pressures, schedule reliability has deteriorated significantly. Key European services from Shenzhen's Yantian port report January vessel gaps, creating booking challenges and potential inventory shortages during peak seasons.

3. Strategic Recommendations for Navigating the Challenges

Industry experts emphasize a dual focus on compliance and risk management:

Compliance First: Strict adherence to Amazon's evolving policies remains non-negotiable. Sellers should utilize only approved review request channels and avoid any incentives that could trigger policy violations.

Supply Chain Resilience: Developing alternative logistics solutions and diversifying supplier networks can mitigate shipping disruptions. Advanced inventory planning becomes critical during periods of transit uncertainty.

Value Differentiation: Investing in product quality and customer service generates organic positive reviews, reducing reliance on solicited feedback while building sustainable competitive advantages.

Channel Diversification: Expanding beyond Amazon through direct-to-consumer channels provides stability against platform-specific policy shocks.

As marketplace dynamics grow increasingly complex, sellers who prioritize long-term compliance over short-term gains will be best positioned to weather these simultaneous challenges.