Amazons AHA Program Faces Scrutiny As Seller Fees Rise

Amazon's AHA program aims to protect compliant seller accounts, but the associated increase in logistics and warehousing costs intensifies operational pressure. To navigate this competitive landscape, sellers need to refine operations, accelerate inventory turnover, control stock levels, and consider diversifying sales channels to adapt to Amazon's policy changes. The rising costs present a significant challenge, requiring sellers to optimize their strategies for profitability and sustainability on the Amazon platform.
Amazons AHA Program Faces Scrutiny As Seller Fees Rise

Imagine your Amazon store as a small boat in stormy seas, vulnerable to being sunk by a single email. Now, the e-commerce giant appears to be extending a lifeline with its new "Account Health Assurance (AHA)" program. But is this truly a safety net or merely a sugar-coated trap?

AHA Program: A Safety Net for Sellers?

Amazon's Account Health Assurance initiative offers sellers a glimmer of hope. Essentially, accounts that maintain compliance and demonstrate cooperation with Amazon's resolution process won't face sudden suspension. This represents a significant shift from Amazon's previous approach of abrupt account terminations.

The program establishes formal communication channels between sellers and Amazon, allowing merchants to address temporary operational issues. Even in cases of fund freezes, sellers now have extended appeal periods and potential compensation opportunities.

However, the AHA program isn't absolute protection. Amazon retains final discretion and will immediately terminate accounts involved in fraudulent or illegal activities.

Fee Increases: Tightening the Profit Noose?

Just as sellers welcomed the AHA program, Amazon quietly implemented sweeping fee increases across multiple services:

  • Fulfillment fees: Rising shipping costs directly erode seller margins
  • Monthly storage fees: Peak season inventory pressures intensify
  • Aging inventory surcharges: Long-term unsold products incur higher costs

Removal and disposal fees have nearly doubled, significantly increasing costs for liquidating stagnant inventory. While referral fees remain unchanged for now, future adjustments remain uncertain.

Amazon attributes these increases to inflation, rising fuel costs, pandemic challenges, and global economic conditions—factors that ultimately transfer operational expenses to sellers.

The AWD Advantage?

Amazon's revised storage fee structure, now more complex and expensive, appears to favor sellers using Amazon Warehousing & Distribution (AWD) services. While AWD users may mitigate some costs, most merchants face heavier financial burdens.

Growing Seller Exodus?

These policy changes arrive during peak season when storage fees peak, advertising costs escalate, and payment cycles lengthen. Meanwhile, emerging platforms like Shopify, SHEIN, and Temu continue gaining market share.

The cumulative effect has left many sellers disillusioned, with some newcomers abandoning Amazon entirely and established merchants reconsidering their platform commitment.

Navigating the New Landscape

To adapt to Amazon's evolving ecosystem, sellers should consider:

  • Precision operations: Transition from bulk listing strategies to focused product selection and conversion optimization
  • Inventory velocity: Implement tighter stock control to minimize stagnant products
  • Demand forecasting: Base inventory decisions on market analytics rather than speculation
  • Channel diversification: Reduce platform dependence by expanding to alternative marketplaces

With Amazon's policy direction remaining unpredictable, sellers who survive—and thrive—will be those who continuously refine their operational competencies in this increasingly competitive environment.