Cross-border e-commerce sellers already grappling with rising logistics costs, raw material prices, and intense market competition now face another challenge—Amazon's newly implemented advertising management fee. This additional cost further squeezes profit margins for sellers who increasingly rely on advertising to drive traffic and orders.
The new fee primarily targets sellers advertising on Amazon's Canadian marketplace, as well as those whose U.S. marketplace ads receive clicks from Canadian buyers. More concerning, the fee structure extends to several European countries including France, Italy, Spain, the UK, Austria, and Turkey. Any ad click originating from these regions—regardless of the seller's operating marketplace—may trigger the additional charge.
This development introduces greater uncertainty in advertising costs, forcing sellers to reconsider their marketing budgets. Many sellers have expressed frustration with Amazon's escalating fees, but complaints alone won't solve the problem. Faced with these challenges, sellers must explore alternative strategies as traditional approaches—particularly heavy reliance on paid advertising—become less viable.
New Strategies for Amazon Success
Forward-thinking sellers are developing innovative approaches to succeed under Amazon's evolving rules. Several promising strategies have emerged:
- Rapid Listing Potential Assessment: After product launch, use automated ads to quickly identify a listing's potential by analyzing which keywords and audiences show interest.
- Seed Listings for Quality Reviews: Select strategic listings to rapidly accumulate authentic, positive reviews that boost credibility and conversion rates.
- Keyword Ranking Optimization: Once sufficient reviews are collected, utilize specialized tools to improve search result rankings and increase organic traffic.
- Extended Best Deal Strategies: Implement continuous promotional deals to maximize product visibility and sales velocity.
This approach proves particularly effective for standardized products priced between $25-$60. Some sellers have successfully combined seed listings with ranking optimization tools and strategic order placement to rapidly accumulate tens of thousands of reviews while pushing core keywords to the first three pages of organic search results—all with minimal external promotion or paid advertising.
While these methods carry inherent risks and require careful implementation, they demonstrate that success on Amazon remains possible through innovation and adaptation. As marketplace dynamics continue to evolve, sellers who embrace creative solutions will maintain their competitive edge.