Amazon sellers frustrated by policy and fee changes: 'A death by a thousand cuts'

On April 2, some Amazon vendors received an email which many regarded as a tipping point.

Starting April 15, Amazon indicated, their ad expenses would be subtracted from their retail earnings first, with a credit or debit card only as a secondary option if those earnings were insufficient.

For vendors already facing postponed payouts and added fees, the change felt like the final straw.

Previously, sellers could charge advertising to a credit card, earn rewards, and enjoy the extra period before the bill was due.

With the new policy, ad expenses would be taken directly from earnings first, reducing float and squeezing cash flow.

Advertisement spend is a significant cost for many vendors, explained Eugene Khayman, founder of Million Dollar Sellers, a network of over 800 e-commerce founders generating nearly $15 billion in annual Amazon revenue.

"When you receive 4% cash back on your third-largest business expense, which is ads, you can live on that," he explained to Business Insider. "You can afford an extra employee. You can reinvest in the business."

Amazon later revealed that the adjustment to ad payments would be delayed until August 1, 2026.

The company also provided vendors with a $2,500 promotional advertising credit, Khayman noted.

In a statement to Business Insider, Amazon said:

"We are dedicated to fostering the success of our retail partners and helping them achieve record sales yearly. We make substantial investments in powerful tools, services, and programs to support their business expansion at costs typically lower than alternatives. Recent adjustments to advertising payment methods and reserve settings align a minor group of sellers with standard practices already applied by most of our partners."

Khayman commented that the April email quickly spread through the MDS community because it followed several other modifications in a short span.

"Many were severely frustrated because it's like the fourth change in just a month."

Among the most significant recent shifts, Khayman pinpointed three: Amazon postponing when sellers receive their funds, a 3.5% surcharge for fuel and logistics, and the ad payment adjustment.

Amazon's DD+7 (delivery date + 7 days) policy, which withholds seller payments for seven days post-delivery, complicates cash flow, explained Aaron Biner, founder of Little Jupiter, a kids' brand offering plush toys and crafts.

"If Amazon delays your payment, second thoughts arise before launching a new product or considering expanding styles or colors," Biner noted. "You must support each with solid cash flow."

That is merely one of several challenges sellers claim they are confronting.

Biner tracked 16 fee increments, adding fees, or reduced perks between 2021 and the 2026 change.

"During this period, there were 10 minor positive adjustments for sellers," he clarified, labeling most as "give-backs, to cushion the blow of the negative shifts."

For years, Amazon sales have seemed like "death by a thousand cuts," he remarked. He likened dodging extra fees to driving a fast car down a slim lane: "There’s almost no room for error."

Alex Yale, who heads the cleaning product brand Uncle Todd's, said pressure isn't from one source alone.

"It feels like an ongoing, almost multi-front margin squeeze rather than a single policy shift," Yale stated. Each new fee or policy change might be manageable individually, yet "if you observe the cumulative effect on these already narrow margins, it poses a risky challenge."

The growing frustration led to an ad boycott on April 15, where some vendors paused Amazon ads for a day to capture the company’s attention.

Many vendors, including Rich Tesoriero, who produces floral handbags, are striving to lessen dependence on Amazon. A seasoned Amazon seller since 2008, it has recently become taxing to manage.

"Amazon has turned into a bit of a never-ending cycle for me," he remarked. "You fix one issue, and another arises."

Tesoriero is focusing intensely on developing beyond Amazon. About 20% of his revenue stemmed from Shopify last year; in the first quarter of 2026, that number climbed to 35%.