Amazon Fullfillment

On November 24, 2025, Amazon made a statement that drowned out every other headline in tech: A $50 billion commitment to expand its AI and supercomputing infrastructure. While the immediate beneficiaries are U.S. government agencies (via AWS GovCloud), limiting your view to the public sector misses the point. This is a signal event. It is Amazon declaring, with its wallet, that AI is the permanent infrastructure of its future. What Does $50 Billion Buy? It buys the physical reality of the “AI Revolution.” 1.3 Gigawatts of Power: Enough to power a major city, dedicated solely to compute. Custom Silicon: These centers will be powered by Amazon’s proprietary Trainium and Inferentia chips. This is crucial. By building its own chips, Amazon avoids the “Nvidia Tax,” allowing it to run massive AI models (like Nova and Rufus) at a fraction of the cost of its competitors. The “Spillover” Effect for Sellers  How does a government data center help a private label seller? Economies of Scale. The technology developed and deployed here—massively parallel processing, agentic model training, and low-latency inference—will become the backbone of Amazon.com. Rufus Becomes an Agent Current AI tools are limited by “inference costs” (the cost to generate an answer). With this massive capacity coming online, those costs drop. This allows Amazon to unleash “Agentic Capabilities” for Rufus. Today: Rufus answers, “What is a good coffee maker?” Tomorrow: Rufus says, “I see you buy dark roast. I’ve found the best machine for that, checked the price history, and added it to your cart.” This level of autonomy requires the infrastructure Amazon is building right now. The Shift from SEO to AEO We have been warning about this for months. “Search Engine Optimization” (matching keywords) is dying. “Agent Engine Optimization” (matching data) is living. This $50B investment is the engine that will power the Agent. If your product data isn’t structured in a way that an AI can natively understand (clean attributes, precise specs), you will be invisible to the machine that is doing the shopping. Where Big Internet Ecommerce Fits In We read the signal, not just the noise. AEO Audits: We are already transitioning our clients to “Agent-Ready” listings. We audit your backend for the structured data that Rufus and other agents rely on. Strategic Forecasting: We use the same “unit economics” focus that an AI agent uses. We model your business to look attractive to an algorithm that prioritizes value and reliability. Future-Proofing: We help you diversify traffic, ensuring you aren’t solely dependent on a single “Search Bar” that is rapidly being replaced by an “Answer Engine.” $50 billion is a lot of chips. Make sure your brand is ready to play. Book a call to get your migration roadmap today. Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

If you sell products with variations (size, color, style), you have been benefiting from an implicit benefit. For the past year, Amazon calculated its Low-Inventory-Level Fee at the Parent ASIN level. This meant that your overstocked slow-movers often “shielded” your understocked fast-movers from penalties. That subsidy ends on January 15, 2026. Amazon has confirmed that the fee calculation is moving to the Seller-FNSKU level. This is a fundamental shift in how you must manage your supply chain. The New Math: Granularity = Liability Amazon’s goal is distribution efficiency. They cannot distribute a “Parent ASIN.” They can only distribute a physical SKU (FNSKU). If you are out of stock on Medium, having plenty of Large helps no one. The Trigger: If an individual FNSKU’s historical days of supply (short-term AND long-term) drops below 28 days, the fee applies to that specific SKU. The Cost: Fees range from $0.32 to over $1.11 per unit for standard items. For a low-margin variation, this fee can easily turn a net profit into a net loss. * The Expansion: This now applies to Small Bulky and Large Bulky items as well. Furniture and appliance sellers are no longer exempt. * actual fee depends on the size/weight of the unit and how far below the 28-day threshold the supply is. The “Runner” Problem The cruel irony of this fee is that it punishes your winners. Your “Hero SKUs”—the ones with the highest velocity—are the hardest to keep in stock. They are the ones most likely to dip below the 28-day threshold. In 2026, if you let your Hero SKU run lean to manage cash flow, Amazon will tax every unit you sell during that lean period. You are effectively paying a penalty for being too successful at selling, if your logistics can’t keep up. Your Playbook: Precision Supply Chain You need to move from “Aggregate Forecasting” to “Granular Forecasting.” FNSKU-Level “Min/Max” Logic You can no longer restock based on the “product line.” You should set individual Reorder Points for every FNSKU. Old Way: “Order 5,000 shirts, mixed sizes.” New Way: “Order 1,200 Mediums (Air Freight), 800 Smalls (Ocean), 3,000 Larges (Hold at 3PL).” The AWD Buffer Amazon Warehousing & Distribution (AWD) is your best defense. By keeping a bulk reserve in AWD and enabling Auto-Replenishment, you ensure a steady drip-feed of inventory into FBA. This helps smooth out the “Days of Supply” metric and protects you from the volatility that triggers fees. Prune the Dead Weight Variations that don’t pull their own weight are now liabilities. They can no longer “boost the average” of the parent. If a variation has low margin and high supply chain complexity, kill it. Focus your capital on keeping the Hero FNSKUs above 28 days. Where Big Internet Ecommerce Fits In We build supply chains that are “Fee-Proof.” FNSKU Forecasting Models: We implement advanced forecasting tools that track velocity at the child level, not the parent level. Unit Economics Lab: We calculate the impact of the new fee on your margins. We tell you exactly how much “Safety Stock” you can afford to hold versus the cost of the fee. AWD Integration: We set up your AWD upstream storage to act as the perfect buffer, automating your compliance with the 28-day rule. The average is almost gone. Precision is the only path forward. Book a call to get your migration roadmap today. Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

The era of “Let Amazon handle it” is over. Amazon has officially announced that, effective January 1, 2026, it will permanently discontinue all in-house FBA Prep and Labeling Services for US sellers. This affects every inbound channel: direct FBA shipments, Amazon Warehousing & Distribution (AWD), and Amazon Global Logistics (AGL). What Is Ending?  Amazon will no longer perform the following tasks, even for a fee: Applying FNSKU barcodes. Poly-bagging products. Bubble-wrapping fragile items. Taping or opaque bagging. The “No Reimbursement” Trap  This is the most critical detail buried in the policy. If a shipment created after Jan 1, 2026, arrives without proper prep, Amazon reserves the right to reject it or dispose of it. More importantly, these units are ineligible for reimbursement if lost or damaged. You are essentially shipping “at your own risk” if you are non-compliant. Why Is Amazon Doing This?  Throughput. Amazon’s fulfillment centers are moving toward full automation with robotics. Human “prep” stations create bottlenecks. Amazon has decided that its warehouses are for fulfillment (moving boxes out), not preparation (fixing boxes coming in). They are pushing the labor cost and complexity upstream to you. Your Transition Playbook: Move Labor Upstream You have until December 31, 2025, to rebuild your inbound workflow. The Manufacturer Pivot (Best Margins) The most profitable move is to eliminate the need for “prep” entirely. Action: Redesign your product packaging to include the FNSKU barcode printed directly on the box. Result: You pay $0.00 for labeling. You eliminate the risk of stickers falling off. You bypass the 3PL cost. The 3PL Partner (Best Flexibility) If your factory can’t do it, you need a US-based prep partner. Action: Secure a 3PL contract now. Do not wait until Q4. Focus: Look for “FBA Prep” specialists who understand Amazon’s specific poly-bag warnings and suffocation labels. The Seller Central Audit Action: Run your “FBA Operational Report.” Filter by “Who Preps?”. Fix: Any SKU listed as “Amazon” must be switched to “Merchant” before you create your first shipment of 2026. Where Big Internet Ecommerce (BIE) Fits In We build supply chains that withstand policy shocks. Prep Dependency Audit: We identify every SKU in your catalog that is currently dependent on Amazon’s labor. Factory SOP Design: We create the visual standard operating procedures (SOPs) for your suppliers to ensure every unit leaves China (or Vietnam/USA) fully Amazon-compliant. Unit Economics Update: We remodel your margins to reflect the shift from Amazon fees to 3PL/Factory costs, often finding you hidden profit in the process. The warehouse is closing. Let’s get your supply chain ready. Book a call to get your migration roadmap today. Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

Every Amazon seller has been there: Your best-selling product is flagged for a “Policy Violation” (usually by a bot). You submit the correct invoice. You get a rejection email 20 minutes later. You submit again. Rejection. It’s the “Appeal Loop of Death.” Amazon has handed you a way to break that loop. It’s called the Seller Challenge Benefit. This isn’t just another “Contact Us” form. It is a high-priority dispute resolution path that guarantees a human review within 48 hours. But it comes with strict limits that require a completely new strategy. What Is the Seller Challenge?  The Seller Challenge allows you to formally dispute a failed appeal on a listing-level enforcement. Speed: A dedicated team reviews the case and decides within 48 hours. Finality: This is designed to be the “final word.” If you lose the Challenge, you cannot challenge again for that issue. The “3 Strikes” Rule  Here is the catch: You are limited to three (3) challenges every 180 days. This scarcity is intentional. Amazon recommends using this only for clear errors related to critical issues. If you burn your 3 slots on low-value items in January, and your #1 Best Seller gets flagged in March, you are out of luck. Who Is Eligible? (The AHA Gatekeeper)  This benefit is not for everyone. It is exclusively for sellers enrolled in Account Health Assurance (AHA). To qualify, you must: Maintain an Account Health Rating (AHR) of 250+ for at least 6 months. Have a valid emergency contact number on file. Have no unaddressed policy violations. If your AHR drops to 240, you don’t just lose a badge—you lose your ability to fight back. The Strategic Playbook: When to Use a Challenge You must treat these 3 slots like “Silver Bullets.” Do not fire them at random targets. The “Hero ASIN” Rule Never use a Challenge on a SKU that contributes less than 5% of your revenue. The risk of losing a slot is too high. Save them for your “Whales”—the products that carry your business. The “False Positive” Rule Use a Challenge when the error is objectively obvious to a human but confusing to a bot. Example: A bot flags your “Pesticide Free” T-shirt as a “Pesticide Product.” Action: Use the Challenge. A human will see the error in 10 seconds and reinstate you. The “Perfect Proof” Rule Do not use a Challenge if your documentation is “gray.” If you have a retail receipt instead of a commercial invoice, or if your supplier address doesn’t match 100%, do not burn a slot. You will likely lose. Only Challenge when your evidence is bulletproof. Where Big Internet Ecommerce (BIE) Fits In We manage “Account Health as a Strategy.” AHR Defense: We monitor your metrics daily to ensure you never drop below the 250 threshold, preserving your Challenge eligibility. Challenge Triage: When an appeal fails, we audit the case. We tell you, “Don’t use a slot on this,” or “Yes, fire the silver bullet.” We manage the scarcity for you. The “Challenge Packet”: We prepare the legal-grade documentation needed for that 48-hour review, ensuring that when we do use a slot, it results in a win. You have 3 shots. Let’s make them count. Book a 20-min session with Big Internet Ecommerce today! Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

For two decades, e-commerce has been defined by a single rectangle: the Search Bar. You type a keyword, you get a list, you click. That era ended in October 2025. In a coordinated move, Walmart and Etsy announced partnerships with OpenAI to integrate “Instant Checkout” directly into ChatGPT. This isn’t just a chatbot integration; it is a fundamental shift to Agentic Commerce. What is Agentic Commerce? It removes the “browsing” layer entirely. Old Way: User searches “camping stove,” then “camping food,” then “tent.” Agentic Way: User tells ChatGPT, “Plan a weekend camping trip for two people who love cooking.” The Result: The AI Agent acts as the shopper. It selects the stove, the gourmet freeze-dried meals, and the tent from Etsy, Walmart, or Shopify inventories and presents a “Buy Now” cart. Amazon’s “Walled Garden” vs. The Open Web  Right now, Amazon is the odd man out. To protect its $50B+ ad business, Amazon is actively blocking many third-party AI agents. They want you to use their agent, Rufus. But Walmart and Shopify are betting on the open web. They are opening their catalogs to the 200M+ weekly users of ChatGPT. The BIE Playbook: How to Win the “Agent” Era Whether the agent is ChatGPT (for Walmart) or Rufus (for Amazon), the rules of engagement have changed. You cannot “bid” your way into an AI’s recommendation in the same way. You have to data your way in. Channel Diversification is an AI Strategy: If you are exclusively on Amazon, you are walling yourself off from the “Open AI” traffic. The Move: Launch your catalog on Shopify or Walmart Marketplace immediately. This is your “hedge” to ensure your products are visible to ChatGPT’s Instant Checkout. Structured Data is the New Creative: An AI agent ignores your “fluffy” marketing adjectives. It craves Structured Data. The Move: Audit your backend attributes. Does your coffee maker explicitly state “Capacity: 12 Cups” in the specific attribute field? Or is it just buried in a bullet point? If it’s not in the field, the Agent can’t filter for it. “Solution Bundles” Win the Prompt: AI users prompt for solutions, not products. The Move: Create virtual or physical bundles that answer specific intents. Prompt: “Starter kit for sourdough baking.” Your Product: A bundle containing a banneton, scraper, and lame. Why: The AI prefers to recommend a single SKU that solves 100% of the prompt rather than stitching together three separate items. Where Big Internet Ecommerce Fits In We are transitioning our clients from SEO (Human Search) to AEO (Agent Search). AEO Data Audit: We scour your listing’s backend to ensure every possible attribute is filled with machine-readable data. Multichannel Expansion: We duplicate your Amazon catalog to Walmart and Shopify to unlock the OpenAI traffic stream. Intent Modeling: We analyze common AI prompts in your niche and build the “Solution Bundles” that answer them perfectly. The AI is the shopper. Let’s make sure it picks you. Book a 20-min session with Big Internet Ecommerce today! Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

Amazon has always been obsessed with removing friction. First, they removed the friction of buying (1-Click). Now, they’ve removed the friction of returning. Amazon has launched Doorstep Returns. By integrating with USPS, Amazon now allows customers to simply schedule a pickup, box the item, and leave it on their porch. No driving to the UPS Store. No standing in line at Whole Foods. For the consumer, this is convenience. For the Amazon seller, this is a profitability threat. The ‘Friction Buffer’ is Shifted: While ‘Label-Free’ drop-offs captured the commuter, Doorstep Returns captures the homebody. By removing the need to drive, Amazon has unlocked returns for the demographic that previously found the trip to UPS too hassle-some. Even though they have to box it, the convenience of ‘set it and forget it’ creates a new vulnerability for your margins. The Double Penalty: Fees + Lost Sales: This launch coincides with the tightening of Amazon’s Return Policies. The ‘High Return Rate’ fee introduced in 2024 is now in full effect, and 2025 thresholds are stricter than ever. Processing Fees: If your product’s return rate exceeds the category threshold, Amazon now charges a specific “High Return Rate” processing fee. Inventory Churn: Returned items are often marked “Unsellable” or require refurbishment, meaning you lose the unit and the ad spend you used to acquire the customer. Your Defense Strategy: The “Return-Proof” Listing You cannot change Amazon’s policy. You can only change your product’s presentation. Aggressive Expectation Setting Your Product Detail Page (PDP) must shift from “Marketing Mode” to “Accuracy Mode.” Sizing: Don’t just use a chart. Use text: “Fits small. Order one size up.” Put this in the main image if you have to. Materials: Be brutally honest. If it’s plastic, don’t call it “resin-like.” Call it “durable, lightweight plastic.” Disappointment causes returns; honesty prevents them. The “Returnless” Math You must audit your unit economics. For low-value items (sub-$15), the cost of a Doorstep Return (Reverse Shipping + Processing Fee + Disposal) is often higher than the product’s value. The Move: Enable Returnless Resolutions for these specific SKUs. It hurts to give a refund without getting the item back, but it hurts less than paying Amazon to ship trash back to a warehouse. Voice of Customer (VOC) Sprints Download your “Voice of Customer” report today. Look for the specific keyword patterns in return reasons (e.g., “Fabric too thin,” “Hard to install”). The Move: Add an installation video to your image block. Add a close-up photo of the fabric texture. Answer the objection before they buy. Where Big Internet Ecommerce Fits In We build businesses that survive high-friction environments. Unit Economics Lab: We model your “Return-Adjusted Profit.” We tell you exactly which SKUs are bleeding money due to returns and should be killed or bundled. Return Rate Sprints: We audit your listings and deploy “defensive content”—better charts, clearer videos, and honest copy—to drive your return rate below the fee threshold. Rule Configuration: We set up the automated rules in Seller Central (Returnless Refunds, Liquidation) to protect your cash flow automatically. The “easy return” is here to stay. Let’s make sure your profit stays too. Book a 20-min session with Big Internet Ecommerce today! Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.