Walmart Officially Allows Amazon Multi-Channel Fulfillment (MCF)
In this article
3 minutes
Big news for multichannel sellers: Walmart now officially allows Amazon Multi-Channel Fulfillment (MCF). Yes, you read that right. The retail giant has updated its policies, enabling sellers to use Amazon’s fulfillment network for Walmart orders, provided specific conditions are met.
What’s Changed?
Previously, Walmart prohibited the use of Amazon MCF for order fulfillment. However, as of May 15, 2025, Walmart’s updated Shipping & Fulfillment policy states:
“You may use Multi-Channel Fulfillment as long as you ship in neutral packaging using unbranded delivery vehicles, which means neither can display any logos, trademarks, or branding of the other retailer.”
This policy shift allows sellers to leverage Amazon’s robust fulfillment network to process Walmart orders, provided they adhere to the neutral packaging and carrier requirements (they don’t want Amazon logos on packaging, tape, trucks, driver uniforms, etc.).
Why Now?
Walmart’s decision reflects the evolving landscape of ecommerce, where flexibility and efficiency are paramount. By permitting Amazon MCF, Walmart acknowledges the need for sellers to streamline operations across multiple platforms. This move aligns with broader trends in retail logistics, emphasizing interoperability and seller convenience.
What It Means for Sellers
Pro Tips for Sellers
1. Inventory Management: Maintain accurate inventory levels in Amazon’s fulfillment centers to prevent stockouts on Walmart orders.
2. Carrier Settings: Configure your Amazon MCF settings to block Amazon Logistics for Walmart orders, complying with Walmart’s delivery requirements.
3. Packaging Compliance: Ensure all shipments to Walmart customers are in neutral packaging, devoid of any Amazon branding.
4. Cost Analysis: Regularly assess the cost-effectiveness of using Amazon MCF for Walmart orders, considering the additional surcharges and fees.
5. Monitor Performance: Keep an eye on delivery times and customer feedback to ensure the fulfillment process meets Walmart’s standards.
Final Thoughts
Walmart’s policy update to allow Amazon MCF is a significant development for multichannel sellers. It offers an opportunity to streamline operations, reduce some overhead expenses, and enhance customer satisfaction with potentially faster delivery from distributed fulfillment. However, it’s crucial to navigate the associated requirements carefully to fully leverage the benefits of this new fulfillment option. And fulfillment costs will need to be monitored closely to make sure that it makes sense to use MCF. If not, it might make more sense to outsource Walmart fulfillment to another distributed fulfillment provider such as Cahoot.

Turn Returns Into New Revenue

New 2025 UPS Surcharges to Impact Large Bulky Packages, Fuel Fees, and More
Brace yourselves, ecommerce pros: UPS is rolling out a fresh batch of surcharges in 2025 that could make your shipping invoices feel like a game of financial Jenga. From fuel fees to oversized package penalties, here’s the lowdown on what’s changing and how you can navigate the storm without capsizing your margins.
The Surcharge Symphony: What’s New?
1. Fuel Surcharge Hike
Starting May 26, 2025, UPS increased its fuel surcharge calculations for ground, air, and Ground Saver packages. This means that as fuel prices fluctuate, so will your shipping costs, adding a layer of unpredictability to your logistics budget. Supply Chain Dive
2. Delivery Area Surcharge (DAS) Expansion
Effective June 1, 2025, UPS updated the list of ZIP codes subject to Delivery Area Surcharges. If you’re shipping to newly added areas, expect additional fees per package. Supply Chain Dive
3. Remote Area Surcharge for Ground Saver Deliveries
From June 2, 2025, Ground Saver deliveries to ZIP codes deemed as remote areas in the contiguous U.S. will incur additional fees. Supply Chain Dive
4. Additional Handling and Large Package Surcharges
Also starting June 2, 2025, higher fees for shipments in Zone 7 and above have been implemented. If you’re shipping large or heavy items over long distances, these surcharges could significantly impact your costs. Supply Chain Dive
5. Redefinition of Large Package and Additional Handling Charges
Effective August 17, 2025, UPS is changing how it calculates these surcharges. Instead of using length plus girth, the new criteria are:
- Large Package Surcharge: Applies to packages weighing over 110 pounds or with a size greater than 17,280 cubic inches.
- Additional Handling Charge: Applies to packages with a size greater than 8,640 cubic inches.
6. International Collect on Delivery (ICOD) Fee
- As of June 2, 2025, a new $12 fee applies to U.S. consignees receiving international shipments where duties and taxes aren’t prepaid or billed to a UPS account. Pre-paying duties and taxes electronically before delivery can help you avoid this fee. Supply Chain Dive
Real-World Impacts: What This Means for You
Ecommerce Retailers
If you’re selling bulky items like furniture or gym equipment, these changes could hit hard. The new dimensional thresholds mean that even if your package isn’t heavy, its size alone could trigger hefty surcharges.
SMBs (Small and Medium-sized Businesses)
With tighter margins, SMBs may feel the pinch more acutely. The expanded DAS and remote area surcharges could make shipping to certain customers less profitable, potentially forcing tough decisions about service areas.
International Shippers
The new ICOD fee adds another layer of cost to international shipments. Ensuring duties and taxes are prepaid or billed to a UPS account can help avoid this fee, but it requires diligent coordination.
Strategies to Mitigate the Impact
1. Optimize Packaging
Review your packaging to ensure it’s as compact as possible without compromising product safety. Reducing package size can help you stay below the new dimensional thresholds and avoid additional surcharges.
2. Audit Shipping Zones
Analyze your shipping destinations to identify if the updated DAS and remote area surcharges affect your common delivery areas. Consider alternative carriers or fulfillment centers closer to these zones to reduce costs. Diversifying your shipping partners can provide more flexibility and cost savings.
3. Distribute Inventory Strategically
Consider spreading your inventory across multiple fulfillment centers or 3PLs closer to where your customers live. This approach isn’t just about faster delivery, it’s about shrinking the distance a package travels in the final mile, which mitigates the impact of several of these new surcharges. Plus, you’ll be better positioned to offer faster, cheaper shipping options to your customers: win-win!
Compare rates with other carriers, especially for shipments that now incur higher UPS surcharges. Diversifying your shipping partners can provide more flexibility and cost savings.
4. Prepay Duties and Taxes
For international shipments, prepaying duties and taxes or billing them to a UPS account can help you avoid the $12 ICOD fee. Implement processes to ensure this is done consistently.
5. Leverage Technology
Use shipping software to automatically calculate the most cost-effective shipping options based on package size, weight, and destination. This can help you make informed decisions quickly.
Looking Ahead
UPS’s 2025 mid-year surcharge updates reflect the company’s response to rising operational costs and the need to manage delivery complexities. While these changes present challenges, proactive planning and strategic adjustments can help mitigate their impact. Stay informed, adapt your shipping strategies, and consider consulting with logistics experts to navigate this evolving landscape effectively.
Note: For the most current information on UPS surcharges and fees, please refer to the official UPS website or consult with your UPS account representative.

Turn Returns Into New Revenue

How 3PLs Can Register for FDA-Approved Warehouse Status
In this article
7 minutes
Imagine a spotless warehouse stacked with pallets of potato chips or cases of juice. That’s what people imagine when they think of what “food-grade warehousing” often means: strict cleaning protocols, temperature controls, and temperature-controlled environments for sensitive products, plus intensive audits by certifiers to prove it. Quality control, monitoring, and tracking are indeed essential for maintaining standards in these facilities. But here’s the catch: there’s no official “FDA food-grade certificate.” In other words, no inspector from the FDA comes by and stamps a “food-grade” label on your door. Instead, the FDA regulates facilities by simply requiring them to register if they handle food.
Having food-grade certification is a voluntary, industry-driven quality label. FDA Food Facility Registration, however, is a mandatory legal listing for any business that manufactures, processes, packs, or holds food (including dietary supplements and animal feed) for U.S. consumption. To clarify, an FDA-certified warehouse goes through a more rigorous process of demonstrating a higher level of compliance with FDA regulations, which is voluntary. “Registration,” on the other hand, is a basic requirement for all facilities handling food, essentially notifying the agency about their activities.
In short, having SQF or “organic” or even SQF Level 3 qualification is great for customers and safety, and also supports brand reputation and benefits ecommerce businesses, but it doesn’t exempt you from the law. If your 3PL warehouse stores consumer foods, drinks, pet snacks, or supplements, it must be entered in the FDA’s facility registry, regardless of how clean or certified it is. Companies in various industries, such as food, beverage, and supplements, need to comply with these requirements. An FDA spokesperson bluntly reminds us: any facility holding food for U.S. humans or animals must register, unless a specific exemption applies. This is essential for public health and health protection. For example, proper registration allows for the tracking of an E. coli outbreak back through all the facilities where it was held to identify the source.
If your warehouse or fulfillment center stores food, you must register. The supply chain, logistics, and fulfillment services provided by 3PLs are all impacted by these requirements. The FDA’s own FAQ reminds us, under the act (such as the Food Safety Modernization Act) and drug administration oversight, that registration is not optional.
If you’re a manufacturer, you must register. Appropriate storage conditions and maintained standards are required to ensure compliance. If your core business is storage, the products are stored, and inventory management practices must meet regulatory expectations. If you only ship (no storage), you’re probably exempt. However, management systems and control of inventory are still important for compliance.
Different 3PLs have warehouses that offer a range of services and solutions, and choosing the right partner is important for helping you ship FDA-regulated products efficiently.
When Does a 3PL Warehouse Need to Register?
As soon as your warehouse is holding regulated food or feed for sale in the U.S., it falls under the FDA’s food facility rule. That means if your 3PL stores any packaged foods, beverages, snacks, dietary supplements, or animal feeds (even pet chews) destined for U.S. consumers, you must register with the FDA. Dietary supplements count as “foods” under the law, so a vitamin or protein powder you warehouse still triggers FFR. Same if you handle pet treats or livestock feed, animal feeds can be considered food (or drugs), and holding them for distribution requires registration. In practice, virtually all 3PLs storing consumer food or supplement products will need to register. There’s no minimum volume or frequency, even short-term “holding” qualifies. FDA guidance clarifies: “There is no timeframe associated with holding… a facility that holds food… is not exempt.”
Exemptions: The law does carve out a few narrow exceptions, but they usually don’t apply to commercial 3PLs. Common carrier transportation is exempt (trucks, ships, planes) because vehicles are not considered “facilities”. A Post Office or courier sorting center with packages is likewise viewed as transit, not as a holding facility. Retail grocery outlets and restaurants are also exempt (they’re “retail food establishments”), but an independent warehouse that isn’t part of a store chain doesn’t qualify. Importantly, storage of non-food items (like empty bottles, labels, or packaging materials) is exempt too, since the FDA defines “food” as excluding food-contact materials. In short, if your 3PL’s core business is storage of packaged food/beverage/supplement products, you’re in, otherwise, you’re probably out.
- Must register: Facilities manufacturing/processing, packing, or holding food or animal food for U.S. distribution. This includes dietary supplements, snacks, drinks, pet food, feed supplements, etc.
- Does not need to register: Pure carriers/transport trucks (no holding activity); retail stores or restaurants; farms holding their own produce; and facilities storing only packaging or non-food items.
Product Triggers: What Counts as “Food”?
The FDA’s definition of food is very broad, and it explicitly includes dietary supplements and many pet products. In practical terms, any finished food or beverage product triggers registration. That means snacks, cereals, bottled water, sodas, juice, nut butters, supplements, infant formula, spices, etc., all count. A helpful FDA Q&A spells it out: “A dietary supplement and a component of a dietary supplement are ‘foods.’ Accordingly, a facility that … holds a dietary supplement … is required to register as a food facility.” Likewise, pet foods and chews must be registered, they’re considered animal food. By contrast, cosmetics, drugs, medical devices, or chemicals do not fall under the food registration rule (they’re regulated by other FDA centers). So, if your warehouse does mixed storage, only the racks holding food/work trigger FFR.
It’s worth double-checking borderline cases. For example, a facility storing bulk sugar or starch used for food probably needs to register, because those ingredients are food. But if a warehouse only holds bottles, jars, or foam peanuts (food-contact materials), that is not “food,” and you wouldn’t register for those alone. Whenever in doubt, recall this rule of thumb: if it can be eaten (or fed to animals), the warehouse holding it likely needs to register.
How to Register (Step-by-Step)
Registering is straightforward and free. Start by getting an FDA Industry Systems (FIS) account at access (FDA calls this portal “FURLS”). Once logged in, choose the Food Facility Registration Module (FFRM) and hit “Register a Food Facility.” The online system will guide you through sections for facility info, contact data, and product categories. A handy user guide on the FDA’s site walks you through each page.
All domestic and foreign registrants must use the electronic system (paper is only allowed by rare waiver). If you do need a paper backup (e.g., in an emergency or with a waiver), the FDA provides Form FDA 3537. This form is available on the FDA’s website and can be mailed or faxed to the FDA’s registration office. However, 99% of businesses just use the online portal; it’s faster and automatically gives you a confirmation.
Information You Must Provide
The registration form (online or 3537) asks for basic data about your facility and operations. In short, be ready with facility identity and contact info, product categories and activities, and key attestations. Specifically, FDA requires: name, address, phone (and emergency contact phone) of the facility; mailing address (if different); any parent company name; all trade names used at the facility. It also needs the name, address, and phone of the owner/operator/agent in charge, plus their email address (unless FDA granted a waiver).
You must also list which types of foods you handle. FDA provides a menu of “food product categories” (36 choices), just check all that apply (e.g., “beverages,” “bakery goods,” “dairy products,” “supplements,” etc.). For each category, indicate whether you manufacture/process, pack, or hold that product. If you hold multiple categories (snacks, drinks, supplements, etc.), you must list them all.
Importantly, you must also include a Unique Facility Identifier (UFI) that FDA recognizes. Currently, the FDA accepts the D-U-N-S (DUNS) number as the UFI. If you have a DUNS number for your company, include it (if not, getting a DUNS is free via Dun & Bradstreet). Just make sure it’s correct; the FDA will verify that the address matches.
Finally, the form includes a couple of statements and signature fields. You must certify that FDA may inspect the facility per law, and that all provided info is true and accurate. The owner/operator (or an authorized representative) signs off on this. If you file electronically, the system will still record your submission and display your unique registration number (FEI) and PIN on screen. In other words, once you click submit, you instantly get your FDA registration number.
(Foreign facilities note: U.S. law requires a U.S.-based agent as well. Foreign registrants must provide the name, address, phone, and email of their U.S. agent contact.)
No Fees or Fancy Licenses
Here’s a relief for ecommerce brands: The FDA does not charge any fee for food facility registration. Domestic facilities pay nothing. (Foreign facilities must hire a U.S. agent, but that’s an independent business service fee, not an FDA fee.) There’s no formal inspection or license process tied to the registration itself; you don’t need an FDA “permit.” The registration simply identifies you in the FDA’s database.
Minimum qualifications: You don’t need a food degree to register. Any business that legitimately handles food (and isn’t otherwise exempt) can register. The key requirements are simple: have a real physical facility or address, designate who the owner/operator is, and be ready to let FDA inspectors in if there’s a problem (FDA will ask for an inspection assurance on the form). Beyond that, you should follow good hygiene/CGMP practices (FDA’s Title 21 CFR Part 117), but those standards aren’t part of the registration. In short, if your 3PL warehouse fits the description above, you can (and must) register; the process doesn’t require extra credentials beyond normal business paperwork.
Timeline: Registration, Renewal, and Expiration
The registration process itself is quick. In practice, if you have all the information ready, you can complete an online registration in less than 20 minutes. Once submitted, the FDA site immediately assigns you a registration number (FEI) and PIN, which appear on-screen. There’s no waiting for mail or manual review. You can email or print your registration form right away. As soon as you’re done, your facility is officially in the system.
But don’t forget renewals! The FDA requires a biennial renewal cycle. That means every two years, you must update or resubmit your registration. In practice, the FDA opens the renewal window from October 1 through December 31 of every even-numbered year (e.g., 2026, 2028, etc.). During that period, you log back into FIS, review your info, make any changes (new address, products, contacts, etc.), and resubmit. After Dec 31, any facility that hasn’t renewed is considered expired.
So mark your calendar: the next renewal window opens October 1 of the next even year. If you register for the first time in an odd-numbered year (say June 2025), you must renew by Dec 31, 2026, to avoid lapsing. FDA will normally send reminders, but it’s best to track this yourself. (And remember: renewals are free too.) If your business goes out of scope or closes, you should also cancel your registration in FIS to avoid future reminders.
Key Requirements & Timelines: At a Glance
- Who must register: Any facility manufacturing/processing, packing, or holding food or animal feed for U.S. distribution (snacks, beverages, supplements, pet food).
- Who is exempt: Pure carriers (trucks, ships) in transit; retail stores and restaurants; farms holding their own produce; facilities storing only non-food items.
- How to register: Online via FDA’s FIS portal (FURLS Food Facility Registration Module); paper only by FDA waiver.
- Information needed: Facility/contact details; food categories and activities; Unique Facility Identifier; attestations and signature.
- Timeline: Instant registration upon online submission; biennial renewal October 1 – December 31 of even years; expiration if not renewed.
- Fees: There is no FDA fee for domestic registration or renewal. (Foreign firms only pay for their required U.S. agent service.)
- Duration: Each registration lasts until the next biennial renewal period (essentially 2 years). After renewing, you’ll receive a new registration confirmation for the next period.
Staying on top of these rules ensures your 3PL warehouse is legally compliant with the FDA’s food regulations and avoids nasty surprises like cancelled imports or penalties. When in doubt, consult the FDA’s resources (see citations below) or call their FURLS help desk. Safe storing!
Frequently Asked Questions
Do 3PL warehouses need an FDA “food-grade” certificate to store food?
No. There is no official FDA “food-grade” certificate. However, any facility that stores food products must register with the FDA as a food facility. Voluntary certifications (SQF, BRCGS) support trust and safety but do not replace the legal registration requirement.
What products trigger the need for FDA registration?
Any facility storing food, beverages, dietary supplements, or animal feed intended for U.S. consumption must register. This includes snacks, bottled drinks, pet treats, and vitamins. Even temporary “holding” triggers registration.
How does a 3PL warehouse register with the FDA?
Warehouses register through the FDA Industry Systems portal (FURLS) using the Food Facility Registration Module. Registration is free and requires facility details, product handling categories, and a Unique Facility Identifier (e.g., DUNS number).
Are there exemptions to the FDA registration rule?
Yes. Pure carriers in transit, retail stores and restaurants, farms holding their own produce, and facilities storing only packaging materials do not need to register. Most commercial 3PL warehouses handling food must register.
How often must FDA food facility registration be renewed?
Every two years during the October 1 – December 31 window of even-numbered years (2026, 2028, etc.). Registrations expire if not renewed by December 31.
Citations
- Argos Software: 7 Quick Q&As for FDA Food Facility Registration
- FDA: Food Facility Registration User Guide: Registration of Food Facilities, Step-by-Step Instructions
- FDA: Online Registration of Food Facilities
- FDA: Questions & Answers Regarding Food Facility Registration (7th Ed.)
- FDA: Registration of Food Facilities & Other Submissions
- FDA: Reminder: Food Facilities Register/Renew Registration
- Smart Warehousing: Getting Certified as a Food-Grade Warehouse
- Smart Warehousing: The Role of Food-Grade Warehousing in Meeting Regulatory Requirements for Food Storage

Turn Returns Into New Revenue

Amazon Limits How Sellers Can Message Buyers
In this article
3 minutes
Amazon’s Buyer-Seller Messaging tool lets you reach out to customers when there’s a hiccup with an order or when they have questions: think missing details, address clarifications, or service follow-ups. It’s never been a billboard for promos or marketing; it’s strictly a support channel. Starting now, Amazon is tightening things up even further to protect buyer preferences and ensure you only send messages that truly matter.
How It Worked Before
Until recently, you could mark a subject line with “[Important]” to push your message past a buyer’s opt-out settings. In other words, even if a buyer said, “No thanks, I don’t want seller emails,” you could override that if you slapped “[Important]” on the subject. Amazon trusted sellers to use that sparingly, only for truly critical updates like “Your customized widget is delayed” or “Need help with your order return.” But, let’s be honest, there was room for misuse (even if accidental).
The New Changes
Amazon has removed the ability to add “[Important]” and override buyer opt-outs. If a buyer has opted out of seller communications, your message won’t get through, unless it’s genuinely critical to completing the order. In practice, that means:
- No More Subject-Line Overrides: You can’t flag any message as “[Important]” manually.
- Opt-Out Respect: If a buyer has chosen not to receive non-essential messages, your message gets blocked, unless it’s a truly order-critical update.
- Critical Messages Still Go Through: If you’re contacting someone to confirm a custom size, fix a shipping address, or resolve a payment hiccup, Amazon will deliver your message even if the buyer opted out.
What Sellers Should Do Next
- Rethink Your Subject Lines
- Don’t worry about manually tagging “[Important]” anymore; Amazon handles critical identification on its end. Keep your subject lines clear and concise—“Issue with Your Order #123-4567890” is fine.
- Use Amazon’s Message Templates
- These templates auto-insert the order ID, translate into the buyer’s language of preference, and automatically flag truly critical content. They’re a time-saver and help ensure Amazon recognizes your message as essential.
- Focus on Truly Critical Communication
- Ask yourself: “Is this message truly necessary to complete the order?” If you need to verify a shipping address, correct a payment method, or address an out-of-stock situation, go ahead. If it’s a follow-up—“Hey! Buy my new product!”—save it for social media or your own email newsletter.
- Stay Organized & Document Everything
- Because Amazon now filters more messages, keep detailed records of when and why you contacted buyers. If a buyer reaches out later asking why they didn’t get your message, you’ll know exactly what happened.
Why These Changes Matter
At the end of the day, Amazon is aiming to keep buyer inboxes free of clutter. You want your truly essential messages (like “Your order requires more info” or “Your refund is processed”) to land easily in your buyer’s inbox, not buried under promotional noise. By removing the “[Important]” override, Amazon ensures that only messages genuinely vital to order completion break through.
For sellers, it’s a quick pivot: lean into Amazon’s templates, keep communication laser-focused on order fulfillment, and respect buyer opt-outs. That way, you maintain trust, avoid blocked messages, and keep your operations running smoothly, one critical message at a time.

Turn Returns Into New Revenue

New 2025 Amazon Premium Shipping Requirements
Amazon’s Premium Shipping program has always driven better conversion rates, improved Buy Box share, and happier customers. But come June 29, 2025, Amazon is rolling out sweeping changes to Premium Shipping performance requirements, and they’re not kidding around. If you’re an ecommerce pro, brand operator, logistics expert, or retail strategist, buckle up. Here’s everything you need to know, served in a conversational style, with a dash of candor, and a sprinkle of “keep-your-cool” honesty.
From Monthly Roll-Ups to Weekly Check-Ins
Let’s cut to the chase: under the old system, you needed a 97% on-time delivery rate (OTDR) over a rolling 30-day window to keep that Premium Shipping eligibility. Amazon looked at your performance once a month, sent one warning if OTDR dipped below 97%, and gave you until the next month to fix it. Easy enough—if you had a random bad week, you could smooth it out with stellar performance the rest of the month.
Starting June 29, though, those monthly buffers disappear. Amazon will track OTDR on a weekly basis, from Sunday through Saturday, and drop any Seller Fulfilled Prime (SFP) orders from that calculation. If your OTDR for Premium Shipping falls below the new minimum, 93.5%, you’ll get your first email warning. Do it again next week, and you’ll receive a second warning. Miss the same threshold three times within four consecutive weeks, and you’re out of Premium Shipping until you earn it back.
Why 93.5%? Amazon’s rationale is that they want customers to experience the same reliability they’ve come to expect from the Prime program. Dropping the requirement from 97% to 93.5% might seem like a concession, but trust me, hitting 93.5% every single week is not easy when you’re dealing with carriers that are out of your direct control.
Why This Matters (and Why It’s Tougher Than It Sounds)
No More “Average” Weeks
Under the old model, you could have one sloppy week at, say, 94%, and then three spectacular weeks at 99%, and your overall 30-day OTDR would still be above 97%. Now, if that first week is below 93.5%, you’ll get dinged immediately. A single underperforming week can trigger a warning, and you can’t “erase” it with future weeks once that four-week window closes.
Carriers Need to Be in Your Back Pocket
Amazon explicitly calls out approved carriers like UPS, FedEx, USPS, and OnTrac. If a carrier misses scans, delays pickups, or delivers late, you’re on the hook. The OTDR calculation counts the percentage of orders that arrived on or before the promised “Deliver by” date. If your package is scanned late, or not scanned at all, Amazon assumes it’s going to be late unless an on-time delivery scan is received later. That’s why it’s more important than ever to monitor each carrier’s performance, review their “Last-Mile Delivery” scorecards, and swap out underperformers.
Shipping Settings Automation & OTDR-Protected Labels
Good news: Amazon is offering tools to help you hit your weekly targets. Shipping Settings Automation (SSA) will calculate transit times automatically so your “Deliver by” promises match real-world carrier performance. You still need to set accurate handling times, but SSA can help avoid accidentally over-promising.
Then there’s OTDR protection: if you enable SSA and purchase an OTDR-Protected label through Amazon Buy Shipping, Amazon won’t penalize you for late deliveries as long as the delay is due to factors outside your control. It’s essentially a safety net—except it only applies if you do everything else right (set your handling time properly, buy the right label, and ship on time).
What Sellers Must Do Right Now
1. Audit Your Carriers
- Pull up your Carrier Scorecard in Seller Central each Monday morning.
- Look for patterns: Who’s got the slowest last-mile scans?
- Drop carriers that regularly clock in under 95% weekly on-time scans, because once you hit 93.5%, there’s zero wiggle room.
2. Enable SSA on Every Shipping Template
- Navigate to Shipping Settings → Edit Template → Toggle on Shipping Settings Automation.
- Let Amazon calculate transit times based on carrier data. If you don’t do this, you’re basically flying blind and promising delivery dates you can’t reliably meet.
3. Purchase OTDR-Protected Labels
- Go to Manage Orders → Buy Shipping and look for the shield icon indicating “OTDR Protected.”
- If you use an external tool like Cahoot, make sure it’s integrated and configured to buy the correct labels.
4. Track Your OTDR Like a Hawk
- Check your Account Health → Shipping Performance → On-Time Delivery Rate view, filtered to the “Last 7 Days.”
- Log it in a simple spreadsheet or dashboard; if you’re at 95% on Thursday but have a big FedEx hiccup on Friday, you might dip under 93.5% by Saturday.
5. Prepare an Appeal Template
- If you get that dreaded second warning email, you have two weeks to appeal.
- Your appeal should include:
- Specific orders that caused the miss (order IDs, promised vs. actual dates).
- Evidence that you used SSA and OTDR-Protected labels (screenshots help).
- Steps you’re taking to prevent a repeat (e.g., switching carriers, adjusting handling times).
The Ripple Effects on Your Business
Margin Compression vs. Service Reliability
Yes, spending more on premium carriers or buying OTDR-protected labels adds cost. But losing Premium Shipping can crater your conversion rate, tank your Buy Box percentage, and even affect organic search ranking. You have to run the numbers: maybe offering fewer SKUs with Premium Shipping is cheaper in the long run than risking weekly OTDR failures that affect your sales on your highest-performing SKUs (by being kicked out of the program).
Operations & Inventory Juggling Acts
Keeping enough stock in the “right” warehouses, so carriers aren’t shipping from the opposite coast, matters more than ever. If you sell nationally, you may need multiple fulfillment locations (a 3PL or micro-fulfillment center network). Staggering your replenishment orders (especially around holidays) can prevent stockouts that force you to oversell and then ship late.
Small Sellers vs. Big Sellers
Large brands with multi-warehouse setups and teams dedicated to carrier management can adjust more fluidly. If you’re a one-person operation fulfilling out of your garage, you’ll need to be extra strategic—maybe select just two to three proven carriers and ship as many orders as possible the same day you pick them. The bar is higher now, and patience for shipping errors is slim.
A Few FAQs to Keep You Sane
Q: What happens if a hurricane or blizzard slows down my carrier?
A: If Amazon deems it a “major disruption event,” late deliveries in that region won’t count against your OTDR. But you still need SSA + OTDR-protected labels before the delay. Don’t wait for your messages to start flooding; enable those tools now.
Q: Will this affect Seller Fulfilled Prime?
A: Sort of. SFP has its own stricter OTDR requirements, also on a weekly cadence, but it’s evaluated separately. Just remember, your SFP and Premium Shipping OTDRs are on parallel tracks; a slip in one doesn’t automatically tank the other, but it’s best to nail both.
Q: Can I regain Premium Shipping status after removal?
A: Yes, but you must meet all OTDR requirements for four consecutive weeks after your third infraction (without another miss). It’s basically a “clean slate” window: stay above 93.5% each week for four weeks, and Amazon resets your eligibility for that specific requirement.
Final Thoughts: Embrace the Change (or Get Left Behind)
Amazon’s shift from a 30-day OTDR roll-up to a 7-day weekly check is a clear message: if you want to hang with Prime-level sellers, you need rock-solid operational consistency and carrier partnerships. There’s no “coasting” on the back of a stellar month anymore; you have to nail every single week.
Yes, the change feels daunting. Your margins may squeeze, and your team (even if it’s a team of one) will need to revamp processes. But savvy ecommerce pros know adversity breeds opportunity. Rethink your shipping playbook:
- Lean into SSA and OTDR-protected labels.
- Cultivate trusted carrier relationships (and ditch underperformers ASAP).
- Monitor your weekly OTDR like your P&L depends on it (spoiler: it does).
- Build redundancy, FBA hybrid, multi-warehouse, or strategic 3PL partnerships.
Master these moves, and you won’t merely survive—you’ll thrive. Happy selling, and may your weekly OTDR always stay north of 93.5%.
Citations
- Amazon Seller Central – Upcoming changes to Premium Shipping
- Amazon Seller Central – Frequently asked questions about on-time delivery rate (OTDR)

Turn Returns Into New Revenue

Fewer Sellers, Bigger Gains: Seizing Amazon’s Shrinking Competition in 2025
Amazon used to feel like a never-ending battlefield: millions of sellers duking it out for every eyeball. Fast-forward to 2025, and things have quietly shifted. Yes, a ton of new sellers keep signing up—roughly a million a year—but the number of active sellers (those getting at least one review in the past year) has actually fallen from about 2.4 million in 2021 to under 1.9 million in 2025. That’s a 20% drop, and it means there’s more traffic up for grabs per seller. In plain English, the average Amazon seller now gets nearly 31% more visits than four years ago. Cue the confetti for anyone still standing, and some serious sticker shock for those just starting out.
Why the Dip in Active Sellers Matters
Let’s unpack that number: Amazon’s overall traffic has stayed roughly level since 2021, clocking in at around 5 billion visits per month across its global network. But active sellers declined from 2.4 million to 1.9 million between 2021 and 2025. Divide the same or slightly higher traffic by fewer storefronts, and voilà, monthly visits per seller climbed from 2,162 to 2,837. In other words, if you’re still in the game, you’ve got about 31% more potential buyer eyeballs on your listings than your counterparts did a few years back.
That traffic bump isn’t just academic. With Amazon’s revenue surging 36% (from $470 billion in 2021 to $638 billion in 2024), it’s clear the pie is growing even as some sellers fall out. Third‐party sellers, who already sold 56% of units in Q4 2021, pushed their share up to 62% by Q4 2024. Translation: More of a bigger pie is yours for the taking if you can navigate the challenges.
Why Sellers Are Fading Out
Okay, so why are fewer “active sellers” sticking around? A few big reasons: rising fees, logistical headaches, and cutthroat price wars.
- Amazon’s Fees Have Ballooned
- In some categories, referral, FBA pick‐and‐pack, and storage fees now gobble up over 50% of a product’s list price.
- Monthly or seasonal storage surcharges and random “reclassification fees” can make it feel like Amazon’s charging you just for breathing.
- The result? Margin erosion that many newcomers can’t stomach.
- Inventory & Case-Management Headaches
- FBA is a blessing until your inventory gets stranded, buried under storage‐fee surcharges, or stuck in removal limbo. Solving these requires hours of back-and-forth with Seller Support.
- Switching to FBM (Fulfilled by Merchant) isn’t a slam dunk either; sourcing reliable carriers, managing returns, and weathering holiday shipping bottlenecks add a new layer of complexity.
- Regulatory & Tariff Unknowns
- Tariff rates have been fluctuating unpredictably, particularly for goods from China or certain apparel categories. A 10% hike overnight can wreck your COGS (cost of goods sold) if you’re unprepared.
- Sales tax laws and cross-border customs rules shift every few quarters. Small sellers risk penalties if they slip up.
- Chinese Seller Dominance
- Chinese merchants make up over half of the top-performing Amazon accounts, often undercutting U.S. sellers with razor-thin margins. It’s tough to compete on price when factory-direct sellers list at rock-bottom rates.
Put those together, and it explains why many hopeful sellers register, list a few products… and then disappear. In fact, more than 60% of the top 10,000 Amazon sellers launched before 2019, proving that experience and staying power are huge advantages.
Why the U.S. Marketplace Still Reigns Supreme
If you’re deciding where to list, the U.S. marketplace is still the gold standard. Sure, places like Saudi Arabia boast 8,228 visits per seller, and South Africa is close behind at 8,065. But those markets simply don’t have the total volume or category breadth of Amazon.com. In the U.S., a niche term like “sourdough starter jar” gets roughly 26,766 monthly searches, compared to 179 in Australia or zero in Saudi Arabia. In other words, niches thrive stateside in a way they can’t elsewhere.
Even better: 73% of U.S. sellers who joined in the past year hit their first sale within 12 months. That’s substantially higher than Germany (38%), the U.K. (32%), or Canada (16%). For new sellers looking for quick validation, the U.S. simply offers the best odds.
Challenges to Confront Head-On
More traffic is great, but it doesn’t magically overcome the hurdles. Here’s what you’ll face if you jump into Amazon today:
- Margin Erosion: Even with extra visits, if your fees and COGS leave you with negligible profit per unit, those extra eyeballs won’t matter. Carve out a robust pricing model, know your true landed cost—including tariffs, shipping, Amazon fees, and PPC.
- Inventory Planning: Sell-through rates matter. Overstocking triggers costly storage fees; understocking loses you the Buy Box and lets competitors swoop in. Sophisticated 3PL integrations or tools like Forecastly can help you thread the needle.
- Competitive Pricing & Buy Box Battles: Repricers can help, but they’re not magic. When Chinese sellers aggressively undercut, you risk starting a race to the bottom. Focus on unique value propositions, bundling, subscription offers, or enhanced branding to stand out.
- Regulatory Compliance: Keep up with tariff updates. For instance, electronics gear imported from Asia might incur new duties under a 2025 trade ruling—know it before it blindsides your margin.
- Account Health Vigilance: A single A-to-Z claim or policy violation can drop your seller rating. If you rely on Amazon for 80% of your sales, a suspension can be devastating. Build redundancies: own a Shopify store or diversify into Walmart Marketplace.
How to Capture Your Piece of the (Growing) Pie
1. Lean Into Niche Categories: If you’re selling something ultra-specialized—think artisan beard balm, eco-friendly pet toys, or limited-edition kitchen gadgets—your “competition” pool is smaller. Use tools like Helium 10 to spot emerging micro-niches before they catch fire.
2. Optimize Listings with SEO & Enhanced Content: Keywords matter, but so does conversion. High-res images, 360-degree product videos, and A+ content can take your listing from meh to must-buy. When you’ve got 30% more visits, conversion-rate improvement is pure gold.
3. Strategic PPC & DSP Budgets: With that extra traffic cushion, you might discover that CPCs (cost per click) in your niche are actually lower now due to lighter competition. Run a lean Sponsored Products campaign; if your listing’s solid, you can turn that paid traffic into organic momentum.
4. Leverage Prime & Subscription Models: Products eligible for Prime enjoy a higher click-through rate. If the margin allows, consider bundling or small subscription programs to lock in recurring revenue rather than one-off purchases.
5. Diversify Fulfillment Options: FBA is convenient, but a 3PL (third-party logistics company) hybrid or FBM can be more cost-effective once you hit a certain volume. Free two-day shipping is table stakes; just make sure your margins survive the shipping fees.
6. Plan for International Growth, But Don’t Rush: The data shows 69% of sellers stay confined to one marketplace. If you nail the U.S., expanding later to Canada or Mexico can be a logical next step. But don’t spread inventory too thin across 22+ marketplaces when your U.S. business still has growth levers to pull.
The Road Ahead
As Amazon’s marketplace matures, the landscape will keep shifting—new fees might pop up, algorithm tweaks could rearrange SERP rankings, and global trade winds will bring fresh tariff puzzles. But right now, a rare alignment exists: fewer active sellers, steady or growing buyer traffic, and a rising slice of third-party volume. For brands with grit, this means more opportunity if you’re willing to do the heavy lifting.
The parting advice? Amazon’s game has always been about endurance. Weather the headwinds, optimize your listings, master your costs, and don’t be afraid to lean into niche categories—and you might just ride this 30% traffic bump into the kind of scale that felt impossible a few years ago.
Is it crowded? Sure. Is it still worth it? For those who can adapt, absolutely.
Citations
- Marketplace Pulse: Amazon Is Less Competitive Than Four Years Ago
- Marketplace Pulse: U.S. Is Amazon’s Most Beginner-Friendly Marketplace
- Marketplace Pulse: 69% of Amazon Sellers Sell in Just One Marketplace

Turn Returns Into New Revenue

TikTok Shop’s 2024–25 Shift: From Free Viral Reach to Pay-to-Play
TikTok Shop’s U.S. launch (Sept 2023) initially promised easy viral exposure on the For You Feed. In 2024, TikTok lured merchants with low fees and promotional subsidies (free shipping, discounts) to jump-start its marketplace. However, by late 2024/early 2025, this “freebie” era faded. Industry reports and insiders confirm that TikTok is pulling back organic traffic; brands now generally must pay for views that once came for free. For example, TikTok’s U.S. launch helped sellers of quirky products (e.g., “Taco Blanket” and “Claw-Toe Socks”) rack up millions of views without ad spend, but today, unpaid view counts are “few and far between,” and small merchants report steep drops in sales.
Decline of Free Organic Reach
- Honeymoon Over. Business Insider and industry sources say TikTok Shop spent 2023 supplying free feed traffic to early U.S. sellers. That helped small brands go viral overnight, but those days are gone. “The era of free traffic on TikTok is fading,” one report bluntly states.
- Small Sellers Squeezed. Merchants who called TikTok a “cheat code” to reach customers cheaply now struggle. One case: Cell Phone Seat’s Scott McIntosh saw organic sales drop almost 95%, from ~$1,000/day to just ~$50/day, after the free-traffic era ended. Agencies note that brands once relying on lucky viral hits must now rethink strategy. Influencer marketers agree that “organic reach becomes increasingly difficult” on TikTok, forcing a shift toward deliberate paid promotion.
- Battle for Discoverability. TikTok still touts its “discovery ecommerce” model (personalized in-feed shopping), but sellers find their products no longer pop up organically unless paid. Many report having to post hundreds of videos (often via affiliates) just to get noticed. In short, viral organic drops and bonus order surges are now extremely rare.
Rise of Paid, Performance Ads
- Pay-to-Play Pivot. Multiple sources confirm that TikTok Shop has shifted to a paywall model. “TikTok is shifting away from sending traffic … for free. Instead, businesses will need to pay for TikTok ads” to get the views they previously enjoyed. TikTok partners advise brands to build as if on an ad-driven marketplace; without ad spend, “you’re destined to falter,” says Orca CEO Max Benator. In other words, paid ads are now the default way to attract buyers.
- New Ad Tools. Reflecting this strategy, TikTok is rolling out sophisticated ad products. In mid-2024 it unveiled the Smart+ AI suite for automated campaign bidding and optimization. This push toward advertising tech underscores that TikTok is focusing on advertiser ROI rather than free virality. (Embedding AI-driven performance tools into its platform is a clear signal that TikTok expects sellers to pay for reach.)
- Influencers & Creators. Because organic feed placement is harder, many sellers rely on paid influencer campaigns and TikTok’s affiliate programs. TikTok Shop merchants “typically use ads and sponsored ‘influencers’ to market their products to TikTok’s 170 million U.S. users.” Even mid-tier creators can earn commissions promoting products, but their videos now often require paid boosts or ads behind them. In practice, most sellers say they must spend steadily on Spark Ads or Shop Ads to stay visible.
Rising Costs and Competition
- Higher Fees and Shrinking Subsidies. TikTok has quietly slashed its seller subsidies. In 2023 it charged a 2% commission and paid much of sellers’ shipping costs; by April 2024 it raised the cut to 6% (then scheduled to 8% in mid-2024). Paid shipping promotions and first-order coupons also began disappearing. As one small seller notes, losing TikTok-paid shipping on a $29 item (with $5 freight) would obliterate his margins. These fee hikes mirror TikTok’s move away from “too good to be true” launch incentives.
- Ad Costs and Fatigue. Advertisers warn that running ads on TikTok is getting pricier and less efficient. TikTok ads “fatigue much faster than on other platforms”: a campaign on TikTok may deliver for only 3–4 weeks, versus months on Facebook/Instagram. In practice, sellers say they must refresh creatives frequently and pump money into ads just to hold reach. With more competitors joining TikTok Shop (Data.ai reports ~240K U.S. sellers on TikTok Shop as of 2024), bidding for FYP space is more intense and costly.
- Price-Sensitive Shoppers. The fee increases have potential side effects. TikTok’s audience skews Gen Z, who are very price-conscious; they can easily compare prices on other channels. Experts warn that passing higher costs to consumers (via slightly higher prices or new fees) could erode loyalty. In short, small brands face a squeeze: rising TikTok fees plus unbundled advertising costs are eating into margins.
Agency and Expert Reactions
- Social Commerce Pros Sound the Alarm. TikTok-focused agencies and retail analysts describe the shift as an inflection point. Orca CEO Benator (also co-host of the SoCom social commerce conference) urges clients to adopt an “ad-driven marketplace” model. William August of Outlandish agrees that moving to paid is “a sign the platform is maturing.” Retail analysts (Forrester’s Mary Pilecki) note merchants will have to absorb or pass on new fees, likely weakening consumer loyalty. One commenter wryly observes, “When TikTok gets closer to being like Amazon … the less I’m going to focus on TikTok.”
- Brands Feeling the Pinch. Some brand leaders confirm the impact: a beauty retailer told Veeqo that TikTok Shop accounted for about 23% of its DTC sales. Such companies must now consider that ¼ of revenue channel could require ads or disappear. Others (like McIntosh’s gadget business) say they may shift budgets back to Amazon or their own sites if TikTok continues winding down freebies. As RetailBoss CEO Jeanel Alvarado puts it, brands deeply invested in TikTok’s ecosystem risk losing “entire social commerce infrastructure” if they have to suddenly pivot away.
- Agency Playbook Adjusted. Marketing experts advise adapting to the new reality. Influencer strategists suggest focusing on well-targeted, purchase-ready audiences rather than broad reach. They also note user fatigue: TikTok feeds now contain so much Shop content that viewers can feel “overwhelmed by constant promotional content,” which could blunt the impact. Agencies emphasize building robust paid strategies alongside organic content: for instance, Front Row Group’s Yuriy Boykiv calculates that selling on TikTok often requires giving away 50–60% of the product’s price to ads, influencer commissions, and logistics. In practice, many merchants now send thousands of free samples to affiliates and run continual ad campaigns, essentially treating TikTok like a performance channel rather than a free showcase.
TikTok’s Ongoing Incentives & Boosts
- Selective Support Remains. TikTok hasn’t removed every perk. It still foots shipping on orders over $20, offers first-time buyer coupons, and runs frequent sale events (especially around holidays). These programs can help dampen the blow of higher fees. Internally, TikTok staff tell BI that some Shop content is still boosted organically in special cases: brands in TikTok’s strategic categories or promotional campaigns, or sellers entering new markets, can get extra exposure. Account managers also have discretionary “boosts” they can apply for clients. In short, rather than universal free reach, TikTok is now “juicing” the visibility of selected products that align with its priorities.
- New Market Focus. TikTok is actively pushing TikTok Shop in non-U.S. markets, and U.S. sellers are taking note. For example, TikTok has expanded ecommerce incentives to Mexico and Brazil, and sellers tell BI they’re exploring those markets where TikTok is still subsidizing growth. This suggests TikTok is reallocating promotional weight to regions where it can still rapidly grow its shop business.
- Live and Affiliate Programs. TikTok continues to promote its live shopping feature and creator affiliate tools as well. Live-streams remain a priority—U.S. live sessions have nearly tripled year-over-year—and TikTok offers new affiliate commissions to creators with as few as 1,000 followers. While these are organic (non-paid) avenues for discovery, sellers report that even live videos often need ad support to reach broad audiences now.
Strategic Takeaways
- Business Model Maturing. The overall signal is clear: TikTok is pivoting its U.S. shop from a growth-at-all-costs play to a more traditional commerce model that relies on advertising revenue. As one insider notes, TikTok ultimately wants its shop to look more like China’s Douyin or Amazon—platforms that make their money from paid promotion. Layoffs and cost cuts in the ecommerce team reinforce that TikTok is tightening its belt and looking for efficiency.
- Looking Ahead. For TikTok’s evolving strategy, this shift likely has multiple drivers. With a U.S. ban looming, ByteDance appears less willing to subsidize TikTok Shop long-term; forcing merchants to pay may help preserve profits if the app’s reach shrinks. The higher commissions and ad emphasis also suggest TikTok is testing how sticky its sellers truly are once incentives vanish. This may set the stage for focusing on larger brands that can afford ads, even as some smaller merchants exit or move elsewhere.
- Message to Sellers. In practical terms, U.S. Shopify brands and DTC sellers should treat TikTok Shop as a paid channel. Viral luck alone is no longer reliable. Brands must either invest substantially in TikTok ads and creative campaigns or risk being drowned out by bigger spenders. As BI concludes, companies that benefited from TikTok’s early freebies now “can’t sustain it without an ad program.” This reality check signals that TikTok is maturing into a self-sustaining marketplace, one where visibility costs money, and those costs are rising.
Citations
- Adweek: TikTok Debuts AI-Powered Smart+ Performance Tools
- Business Insider: TikTok Plays Hardball With Sellers
- Business Insider: TikTok Shop’s Era of Free Views Is Fading Fast for Sellers
- Econsultancy: TikTok Shop and social commerce trends for 2025: We ask the experts
- Modern Retail: Brands on TikTok Shop face increased fees & an uncertain future
- Newsroom – TikTok: Introducing TikTok Shop
- Reuters: U.S. spending on TikTok Shop gains as TikTok faces threat of ban, data shows
- Tubefilter: TikTok wants to turn millions of Americans into paid shopping influencers

Turn Returns Into New Revenue

Seller Fulfilled Prime (SFP) & Premium Shipping Requirements Are Changing June 29, 2025: A Side-by-Side Deep Dive
In this article
7 minutes
- Trial Enrollment & Graduation Windows for Seller Fulfilled Prime
- Monthly Volume & Enrollment Requirements
- Size-Tier Misclassification & Network Disruptions
- Appeals Process Overhaul
- OTDR Protection via Amazon-Managed Shipping Tools
- Premium Shipping Changes
- Putting It All Together: A Seller’s Checklist
- Final Thoughts
Starting June 29, 2025, Amazon is rolling out tighter performance guardrails for two of its marquee shipping programs: Seller Fulfilled Prime (SFP) and Premium Shipping. Seller Fulfilled Prime work refers to the process by which eligible third-party Sellers can fulfill Prime orders directly from their own warehouses, provided they meet Amazon’s strict performance requirements. For Sellers, these changes aren’t mere tweaks; they reshape how you qualify, stay in, and recover from hiccups in these programs. Below, we’ll walk through each key requirement as it stands today versus what you’ll need to hit after the effective date, with real-world examples to illustrate exactly what’s at stake. For a rundown of all program requirements, see the full Seller Fulfilled Prime Program and Premium Shipping policies.
Trial Enrollment & Graduation Windows for Seller Fulfilled Prime
Today:
- You can request a 30-day SFP trial any time.
- The SFP trial period lasts for 30 days and includes specific performance metrics that must be achieved to qualify for official enrollment in the program.
- Graduation from trial depends solely on meeting performance metrics during those 30 days.
After June 29:
- Three Trials Max per Year: You’ll be capped at 3 trial attempts in each calendar year. Any trial that begins before June 29, 2025 doesn’t count toward this limit.
- Quiet Periods Around Major Events: If your 30-day trial spans the 30 days leading up to Prime Days, Black Friday through Christmas, etc., you cannot graduate. This ensures Sellers are battle-tested before the busiest season.
Sellers must successfully complete the trial period by meeting specific performance requirements to gain access to Prime branding.
Why This Matters: Imagine you enroll in an SFP trial mid-October, aiming to graduate in time for Black Friday. Under the new rule, even flawless performance won’t earn you Prime status, you’ll have to re-enroll after the holidays. Plan your trials for quieter times (e.g., late January) to avoid losing a precious attempt.
Monthly Volume & Enrollment Requirements
Today:
- There’s no fixed minimum monthly SFP volume.
- If you miss on-time metrics, Amazon sends warning emails, but your enrollment status remains until metrics severely degrade.
After June 29:
- Minimum 100 SFP Shipments/Month: You must deliver at least 100 Prime-eligible packages each calendar month, spread reasonably across weeks, to maintain the Prime badge.
- Dynamic Order Limits: Fall below 100 (or cluster all shipments in one week), and Amazon will impose a reduced daily Prime order limit until you return to consistent volume.
- Exemption for Fix-Ups: If you get a second warning for missing any metric, you can pause Prime (no shipments) for a week to get your house in order, and that period won’t count against your enrollment.
Practical Example: You shipped 15 Prime packages in the first 3 weeks of May, then scrambled to ship 90+ in the final week. In June, you’ll wake up to find your Prime orders capped at a fraction of normal volume. Better to target 25–30 SFP orders per week and build in some slack.
Size-Tier Misclassification & Network Disruptions
Today:
- Listing ASINs in the wrong size tier might trigger warning emails, but rarely leads to immediate suspension. Misclassification can also result in higher storage fees, impacting overall profitability.
- Late deliveries during huge storms or carrier outages may or may not be excluded automatically.
After June 29:
- Strict Misclassification Guardrails: Repeatedly offering a product under the wrong size-tier can lead to blocking of SFP offers or Prime status suspension/revocation for those ASINs.
- Automatic OTDR Exclusions for Major Disruptions: Clearer language confirms that any late deliveries from Amazon-identified large-scale carrier or weather events are excluded from your OTDR automatically.
Scenario: You classify a product as having larger dimensions to qualify for the less strict performance requirements that apply to a larger size tier. After three such mistakes, Amazon silently blocks Prime on that ASIN. You’ll need to correct the tier and appeal to restore it—costly downtime.
Appeals Process Overhaul
Today:
- You have a sliding window to dispute removals, but timelines and submission limits are vague.
After June 29:
- 14-Day Filing Window: From the date you receive a notice (e.g., “Your SFP status is paused due to low OTDR”), you have 14 calendar days to open an appeal.
- 4-Day Response to Requests: If Amazon asks for more details, you have 4 days to reply, or your appeal is closed.
- Limit of 3 Appeals/Quarter: You can file up to 3 appeals per quarter (overturned appeals don’t count). Appeals require supporting data (order IDs, tracking numbers, ZIP codes, proof of carrier delays).
Why It’s Tougher: Say your OTDR dips because a regional carrier hub froze over two days. You’ll need to create a case including tracking scans, carrier advisories, and order logs quickly, or forfeit that appeal.
OTDR Protection via Amazon-Managed Shipping Tools
Today:
- If you use Amazon Buy Shipping and meet delivery cut-offs, late deliveries often still count against you unless you separately request exclusions.
After June 29:
- “OTDR Protected” Labels: If you enable Shipping Settings Automation in your Prime templates and purchase “OTDR Protected” labels through Amazon Buy Shipping, any late deliveries on Standard (for SFP) or Premium shipping won’t hurt your OTDR.
- Continued Exclusion of Major Disruptions: Same carve-out for large-scale network events.
Bottom Line: Automate shipping profiles and purchase labels using Buy Shipping API, and you effectively get “insurance” against minor late-delivery slips.
Premium Shipping Changes
Amazon’s Premium Shipping program (items promised in 1–3 business days) gets its own tightening:
Requirement
|
Today
|
After June 29
|
---|---|---|
OTDR Threshold
|
97%
|
93.5%
|
Measurement Window
|
Rolling 30-day period
|
Weekly (Sun–Sat)
|
Enforcement Steps
|
Removal upon sustained dip
|
3-strike system:
1st miss – warning email 2nd miss – warning email 3rd miss in 4 consecutive weeks – removal |
Warning Reset
|
None
|
4 consecutive perfect weeks clears prior infraction
|
Key Impact: Under the new cadence, a single bad week can put you on notice, and three such weeks in a month spells immediate removal from Premium Shipping. You’ll need more consistent performance throughout each month, not just a healthy 30-day aggregate. Sellers must successfully complete the new performance metrics to maintain their status in the Premium Shipping program.
Putting It All Together: A Seller’s Checklist
- Schedule Your SFP Trial Smartly: Avoid major sale seasons; plan for Q1.
- Lock Down 100+ Prime Shipments/Month: Automate your SFP orders to spread volume evenly across weeks.
- Clean Up Your ASIN Tiering: Audit listings for correct size tiers and package profiles.
- Enable Shipping Automation + Protected Labels: In Seller Central > Fulfillment Settings, turn on SFP/Premium templates and default to OTDR-protected labels.
- Monitor Weekly OTDR: Invest in an operations dashboard that can track your OTDR by week for both SFP and Premium orders.
- Prepare an Appeals Kit: Create a template for submitting an appeal with sections for order logs, tracking scans, and carrier advisories so you can file within 14 days. Cases created after 14 calendar days will not be considered.
- Build in Buffer for Disruptions: If a regional snowstorm hits, pre-notify Amazon to be considered for exemption from performance defects proactively. Consider outsourcing your SFP fulfillment to a distributed fulfillment network that organically solves for carrier network disruptions and ensures the highest performance metrics for continued program eligibility and enrollment.
- Understand SFP Program Requirements: Familiarize yourself with the stringent requirements of the SFP program and adapt to changing Amazon policies to maintain your SFP status.
Final Thoughts
These new Seller Fulfilled Prime (SFP) and Premium Shipping requirements underscore Amazon’s push for ultra-reliable, ultra-consistent delivery, a win for customers, and a heavier lift for Sellers. But by meeting these new standards, (whether independently or with the help of a distributed fulfillment network), Sellers can maintain access to Prime branding and the substantial customer base of Amazon Prime members, mitigating the risk to the sales opportunities afforded by the Amazon Seller Fulfilled Prime Program.
By understanding the before-and-after, planning trial timing, automating wherever possible (especially Prime shipping options), and building a rapid-response appeals process, you can not only stay enrolled in SFP and Premium Shipping programs but thrive in them.
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Turn Returns Into New Revenue

Sustainable Returns: Eco-Friendly Strategies for Ecommerce Stores
In this article
10 minutes
As the world increasingly prioritizes environmental sustainability, ecommerce businesses are under growing pressure to reduce their environmental footprint. While online shopping offers convenience, it also comes with a significant environmental impact, especially in the ecommerce returns process. Returns are inevitable in ecommerce, but the way businesses manage them can make a huge difference. In fact, adopting sustainable returns practices is no longer just a nice-to-have; it’s a must-have for companies looking to build long-term loyalty, reduce carbon emissions, and meet the demands of environmentally conscious consumers. Additionally, integrating corporate social responsibility into business practices is a necessary part of meeting consumer expectations and encouraging brand loyalty.
In this article, we’ll explore how ecommerce businesses can implement sustainable returns strategies to reduce their carbon footprint, cut costs, and create a more sustainable future for their operations. Whether you’re looking to optimize your reverse logistics, reduce packaging waste, or improve your returns management system, we’ll guide you through actionable steps to implement eco-friendly solutions that benefit both the environment and your bottom line.
The Environmental Impact of Returns in Ecommerce
The retail industry has seen tremendous growth, particularly in ecommerce, where online purchases are now a major part of the market. However, this growth comes with a hidden cost: returns, which pose a significant financial burden on brands. In 2024, U.S. returns in retail totaled nearly $900 billion, with the fashion industry alone contributing to a substantial portion of those returns. While returns are an integral part of the ecommerce returns process, they also contribute significantly to carbon emissions due to transportation (shipping). In fact, the carbon footprint of processing returns, including shipping, packaging, and restocking, is estimated to be around 15 million metric tons of CO2 annually. And the significant costs associated with returns extend beyond financial implications, impacting both profitability and environmental sustainability.
The environmental costs don’t stop at transportation. Many returned items are either disposed of or end up in landfill waste, especially when they can’t be resold or refurbished. Unsold items often get sent back to warehouses where they are either recycled, discarded, or thrown away, adding to the growing issue of packaging waste.
The Need for Sustainable Returns Practices
As ecommerce businesses face increasing scrutiny from both consumers and environmental groups, adopting sustainable practices for managing returns with a focus on cost management becomes a critical step. The good news is that implementing eco-friendly returns solutions not only reduces environmental impact but can also result in significant cost savings and increased customer satisfaction. However, it’s important not to forget that minimizing returns altogether goes a long way towards long-term customer retention.
Consumer Expectations for Sustainability
Environmentally conscious consumers are more discerning about the brands they support. According to recent studies, conscious consumers are willing to pay more for products and services from brands that prioritize environmental sustainability. Brands that align their sustainability efforts with consumer values, like offering free return shipping, eco-friendly packaging, and transparent returns policies, are better positioned to enhance customer satisfaction, retain loyal customers, and build lasting relationships. Addressing environmental concerns can also lead to increased customer affinity for your brand.
Key Strategies for Implementing Sustainable Returns
There are some key sustainable returns strategies that online retailers can adopt to improve the returns process while minimizing their environmental impact. By offering instant store credit and various exchange options, for example, retailers can incentivize customer exchanges instead of refunds, which reduces returns and improves average order value. Let’s look at several strategies that can boost sales and improve overall business performance:
1. Offering Store Credit Instead of Refunds
One effective way to reduce the environmental impact of returns and achieve potential cost savings is by offering store credit instead of cash refunds. This not only keeps the returned items in circulation but also encourages future purchases and builds customer loyalty. When a customer chooses store credit, the returns management system can process the return without the need for excessive transportation or the risk of sending the product to landfill waste.
Why it works:
Offering store credit promotes sustainable consumption by encouraging customers to purchase again. This reduces unnecessary returns shipping and helps businesses optimize their inventory management. Plus, customers appreciate the flexibility of store credit, making them more likely to shop again.
2. Streamlining Reverse Logistics
Reverse logistics involves the management of product returns from the customer back to the business. Optimizing reverse logistics operations and enhancing return management are necessary for reducing the carbon emissions associated with returns. By consolidating returns into regional hubs or offering drop-off points, businesses can minimize long-distance shipping and transportation-related emissions. Furthermore, using more efficient transportation routes can help reduce transportation costs and improve operational efficiency.
Why it works:
Optimizing the reverse logistics process helps reduce waste and unnecessary emissions. Businesses that integrate returns management software with their supply chain management systems can track returns in real time, making the process more efficient and eco-friendly. Additionally, offering regional drop-off points can decrease the distance products travel, reducing fuel consumption and carbon emissions. And peer-to-peer returns, where customers forward their returns to the next purchasing customer rather than back to a warehouse, reduce the environmental impact of returns more than any other solution. Bottom line: Optimized supply chains are essential for achieving eco-friendly results, from raw material acquisition to final delivery, ensuring transparency and traceability throughout the process.
Pro Tip: Consider partnering with sustainable shipping companies that use eco-friendly methods, such as electric vehicles or carbon-neutral shipping.
3. Using Eco-Friendly Packaging
Packaging is a major source of waste in the returns process. Using eco-friendly packaging options, such as recyclable or biodegradable materials, can significantly reduce the environmental footprint of returns by reducing landfill waste. This includes using reusable packaging that can be sent back with returned items, which not only cuts down on waste but also promotes sustainable behavior among customers.
Why it works:
Switching to sustainable packaging reduces the amount of packaging waste generated by the returns process. Reusable packaging helps ensure that returned products are shipped back without additional waste, and customers will appreciate the brand’s commitment to eco-friendly packaging.
Pro Tip: Invest in sustainable packaging that’s both practical and recyclable. Avoid using materials that contribute to landfill waste and instead opt for recycled paper or biodegradable bags.
4. Leveraging Data Analytics to Reduce Returns
One of the most powerful tools ecommerce businesses have at their disposal to reduce returns is data analytics. By analyzing returns data and sustainability metrics, businesses can identify trends and root causes behind returns, such as incorrect sizing, product quality issues, or shipping problems. This information can help businesses adjust their inventory management strategies and improve product offerings to reduce unnecessary returns. Additionally, data analytics can help in improving customer satisfaction by addressing product issues before they lead to returns, unburdening the returns process.
Why it works:
With insights from data analytics, businesses can minimize returns by offering more accurate sizing guides, improving product descriptions, or addressing quality issues before they become problems. By reducing the volume of returns, businesses lower the transportation-related emissions and packaging waste associated with those returns.
Pro Tip: Use returns management software to track reasons for returns, providing insights that can help optimize your returns process and improve overall business operations.
5. Encouraging the Circular Economy
The circular economy model focuses on keeping products in circulation for as long as possible, reducing the need for new products to be manufactured, and minimizing landfill waste. Ecommerce stores can integrate the circular economy approach into their returns process by adopting sustainable return practices such as refurbishing or reselling returned items. For example, fashion retailers can partner with secondhand or resale platforms to sell gently used products, reducing waste and promoting sustainability. Adopting such practices help businesses establish themselves as sustainable brands, taking their environmental responsibility seriously.
Why it works:
By adopting a circular economy model, businesses can reduce the environmental impact of returns by keeping products out of landfills and reintroducing them into the marketplace. This not only reduces waste but also creates potential resale value, offering an additional revenue stream.
Pro Tip: Set up a secondhand program or partner with existing platforms to resell returned items at a discount, making products available to a new group of customers.
Real-Life Examples of Sustainable Returns in Ecommerce
Patagonia
Patagonia has long been a leader in sustainability. Their Worn Wear program encourages customers to return used items for repair, reuse, or resale, which significantly reduces waste. This approach aligns with their circular economy principles, helping minimize the environmental impact of returns.
IKEA
IKEA focuses on reverse logistics and eco-friendly packaging for returns, ensuring that products are sent back through the most efficient and environmentally friendly processes possible. Their commitment to sustainability extends to their returns process, making it easy for customers to make eco-conscious choices.
Educational and Engagement Platforms
Educational and engagement platforms can play a significant role in promoting sustainable ecommerce practices. By providing customers with information and resources about sustainable ecommerce, online retailers can educate and engage their customers about the importance of environmental responsibility and social consciousness.
Creating blog posts or social media content about sustainable ecommerce practices is an effective way to raise awareness and share valuable insights. Offering webinars or workshops on sustainable ecommerce can also help customers understand the impact of their purchasing decisions and encourage them to make more eco-friendly choices. Additionally, implementing customer loyalty programs that reward customers for participating in sustainable practices can foster a sense of community and promote long-term engagement.
Online retailers can also partner with environmental organizations or influencers to promote sustainable ecommerce practices and raise awareness about the importance of environmental responsibility. By building trust with their customers and demonstrating a commitment to sustainability, online retailers can enhance customer loyalty and retention, ultimately contributing to a more sustainable future for their business and the planet.
Conclusion: Building a More Sustainable Future with Ecommerce Returns
The sustainable returns ecommerce movement is gaining momentum, and businesses that adopt sustainable business practices are well-positioned to improve their environmental footprint while enhancing customer satisfaction. By implementing strategies like offering store credit, optimizing reverse logistics, using eco-friendly packaging, and promoting a circular economy, ecommerce stores can significantly reduce their carbon emissions and create a sustainable future for their operations.
Adopting sustainable returns practices not only benefits the planet but also improves customer retention, reduces operational costs, and strengthens your brand’s reputation as a sustainable and responsible business.
Frequently Asked Questions
How can ecommerce stores reduce the environmental impact of returns?
By offering free returns, using eco-friendly packaging, optimizing reverse logistics, and adopting circular economy practices like reselling or upcycling returned items.
What is the circular economy approach in ecommerce?
The circular economy approach focuses on reusing, recycling, and reselling returned products, thus reducing waste and extending the lifecycle of products.
Why should ecommerce businesses offer store credit for returns?
Offering store credit instead of refunds keeps customers engaged with the brand, promotes future purchases, and reduces the environmental cost of product disposal.
How can data analytics help reduce returns?
By using data analytics to track returns patterns, businesses can better understand customer preferences and optimize product offerings to reduce unnecessary returns.
What are the benefits of adopting sustainable returns practices?
Adopting sustainable returns practices can help reduce waste, lower carbon emissions, improve customer satisfaction, and increase customer loyalty.
How does free return shipping enhance customer satisfaction and loyalty?
Free return shipping plays a crucial role in enhancing customer satisfaction and loyalty. It provides customers with a hassle-free way to return products, which can significantly improve their shopping experience. While some retailers are moving away from this practice due to rising costs, many still see it as a vital component in maintaining a positive customer relationship and encouraging repeat business.

Turn Returns Into New Revenue

Amazon Pulls the Plug on Thousands of Vendors
In this article
2 minutes
Receive a big check every month for selling your products directly to Amazon wholesale? Get ready to change the way you do business with the e-commerce behemoth. If you own a small business that currently moves less than $10 million in sales volume through Amazon, or Amazon has not paired your company with an assigned vendor manager, the company will now require you to sell your products through its third-party marketplace by default.
Receive a big check every month for selling your products directly to Amazon wholesale? Get ready to change the way you do business with the e-commerce behemoth. If you own a small business that currently moves less than $10 million in sales volume through Amazon, or Amazon has not paired your company with an assigned vendor manager, the company will now require you to sell your products through its third-party marketplace by default.
Moving smaller vendors to its third-party platform allows Amazon to eliminate costs associated with directly supporting smaller companies that bring in less revenue. Once a business is on the third-party platform, Amazon also has the ability to charge for additional services, such as Fulfilled by Amazon and account management.
Amazon’s first-party business will focus on maintaining relationships with high value brands and companies involved in the production of Amazon’s private-label products.
The change is expected prove difficult for smaller, first-party vendors that lack the existing systems and infrastructure to support competitive third-party marketplace sales and distribution.

Turn Returns Into New Revenue
