Amazon Ads in the Hot Seat, FBA Fees Rise & Walmart Gets Tough copertina

Amazon Ads in the Hot Seat, FBA Fees Rise & Walmart Gets Tough

Amazon Ads in the Hot Seat, FBA Fees Rise & Walmart Gets Tough

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 Send us Fan MailAmazon's advertising auctions are under fire, new FBA fees threaten seller margins, and Walmart is tightening its marketplace rules just ahead of Black Friday 2026.In this November 9 episode of Selling on Giants, host Will Haire breaks down the biggest Amazon and Walmart marketplace developments affecting eCommerce brands, including FTC allegations about Amazon advertising costs, Amazon's 2027 fulfillment fee increases, Walmart's new advertising tools, and the next wave of AI-powered shopping.The message for sellers is simple: Revenue growth means very little if marketplace fees, advertising costs, and operational inefficiencies consume your profits.Are Amazon's advertising auctions inflating seller costs?The Federal Trade Commission and 22 states have released allegations that Amazon charged advertisers up to 50% above auction results on ordinary days and as much as 250% during major shopping events.The complaint also alleges that Amazon's practices increased average cost per click by 20% during the 2021 holiday season. These remain allegations, not established findings, and Amazon disputes them.Will examines what this means for Amazon PPC advertisers, the limits of auction transparency, and why brands need to measure advertising performance against conversion rates, ROAS, and contribution margins instead of simply increasing budgets.How will Amazon's 2027 FBA fee increases affect sellers?Beginning January 15, 2027, Amazon's FBA fulfillment fees increase by an average of $0.19 per unit. Additional changes to storage fees and inventory management take effect in February.The impact depends on product size, price, inventory age, and sales velocity. Low-priced products and already thin-margin SKUs deserve particular attention.Will explains why sellers should model profitability at the individual SKU level before committing to more inventory or advertising spend.Is Amazon making more money from sellers than from selling products?Marketplace Pulse reports that Amazon generated approximately $66.1 billion from third-party seller services and advertising during the third quarter, compared with $68.5 billion in first-party online retail sales.That raises an important question: Is Amazon becoming more valuable as a platform that sells access to customers than as a retailer selling products?For brands, this makes understanding the total cost of selling on Amazon more important than ever.What's changing at Walmart Marketplace before Black Friday?Walmart's first Black Friday event begins November 12, and several marketplace updates deserve attention.Walmart is introducing Target ROAS bidding, conversion value optimization, and automatic budget increases for Search Engine Marketing campaigns. Eligible seller-fulfilled products also gain gift messaging and digital gift receipts.Beginning in January 2027, Walmart plans to enforce seller-accountable return rates at the individual item level, creating additional listing compliance risks.Will discusses why automation requires financial guardrails and how operational problems during the holidays can affect marketplace performance after the shopping season ends.How are Amazon Shop Direct and Alexa changing product discovery?Amazon's Shop Direct Merchant Workspace allows eligible outside retailers to make products discoverable through Amazon without listing them directly on its marketplace.Amazon is also introducing conversational shopping through Alexa text messages, giving customers another way to discover, compare, and purchase products.These developments point toward a future where AI shopping assistants influence which products customers see.For brands, accurate product attributes, structured catalog data, strong differentiation, and marketplace SEO are becoming increasingly important.What should Amazon and Walmart sellers prioritize right now?With Black Friday and Cyber Monday approaching, Will recommends focusing on profitable products, clear advertising budgets, accurate inventory planning, strong listing quality, and contribution margin.The goal isn't simply generating more marketplace sales. It's building a healthier, more profitable eCommerce business.Selling on Giants delivers weekly operator-level analysis of Amazon, Walmart, retail media, marketplace strategy, artificial intelligence, and the trends shaping online retail.Follow Selling on Giants for weekly operator-level coverage of Amazon, Walmart, AI commerce, retail media, and marketplace strategy.Subscribe to Selling on Giants for insights that go beyond the headlines and focus on what actually impacts your business.Support the show
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