Why Selling on Amazon Is Harder Than Ever

Selling on Amazon once felt like an open road. You listed your product, turned on ads, and started to see sales. But that is no longer the reality for most sellers.

Today, the platform is more crowded, more complex, and less forgiving than ever before. Between rising fees, policy changes, and increased competition, many brands are feeling the squeeze.

This is not about panic. It is about understanding what has changed and what you can do to stay ahead.

More Sellers, Less Visibility

One of the biggest Amazon challenges today is saturation. There are millions of active sellers and tens of thousands joining each month. That means more competition for every keyword, every category, and every ad placement.

Even if your product is great, it might never be seen unless you spend heavily on ads or rank high organically. And getting there takes time, money, and strategy.

Fees Keep Going Up

Amazon has raised FBA fees, referral fees, storage fees, and other hidden costs over the last few years. These changes eat into your margins and force you to rethink pricing, packaging, and inventory planning.

In 2024 and 2025, fee structures have become more complex. Peak season surcharges, low-inventory fees, and storage limits all create friction. You are not just selling a product anymore, you are managing a tight margin puzzle that changes quarter by quarter.

Stricter Policy Enforcement

Amazon has always had rules, but enforcement used to be inconsistent. Now it is automated, fast, and unforgiving. One missed shipment or listing error can trigger a warning, suspension, or account health downgrade.

This is one of the biggest problems on Amazon today. Sellers are being flagged for things like incorrect claims, variation misuse, and delayed shipments, sometimes even when they follow the rules. Appealing is possible, but it takes time and usually costs sales in the meantime.

More Sophisticated Shoppers

Buyers on Amazon are more informed than they used to be. They compare listings, check reviews, and often know the difference between a real brand and a generic private label product.

If your content is thin, your images are low-quality, or your reviews are weak, they will skip your product. Winning on Amazon now requires a full brand experience: A+ Content, video, branded storefronts, and strong reviews.

Increased Ad Spend and Lower ROI

Ad costs are rising across the board. Sponsored Products, once an affordable way to gain traction, now require serious budget planning. Click prices are up. Conversion rates are down.

That means many sellers are spending more and seeing less return. Without clear strategy and daily optimization, Amazon ads can quickly become a black hole for your budget. And because organic ranking is tied to ad performance, poor ad results can hurt your long-term visibility.

Inventory and Supply Chain Pressure

Amazon’s inventory system has become harder to navigate. Storage limits, restock restrictions, and slow check-in times all create risk. If you send too much inventory, you pay extra fees. If you send too little, you stock out and lose rank.

Managing this balance is one of the most difficult parts of selling today, especially for seasonal brands or products with long lead times.

Review Manipulation and Black Hat Tactics

Unfortunately, Amazon difficulties include dealing with bad actors. Some sellers use black hat tactics like fake reviews, keyword abuse, or ASIN hijacking to gain an unfair edge.

Amazon has improved detection, but these tactics still cause problems for honest sellers. It is not uncommon to lose Buy Box placement or visibility to a competitor using shady methods.

Harder Launches for New Products

Launching a new product is more difficult than ever. It takes more reviews, better content, and a stronger ad push just to compete. Ranking takes longer, and there is less room for error.

Amazon no longer rewards speed over quality. That means if you launch without a polished listing, strong photos, and clear differentiation, your product might never take off.

What to Do About It

These Amazon challenges are real, but they are not impossible to overcome. Brands that grow in this environment tend to do a few key things well:

• Invest in great content: Listings need to be better than just functional. Use high-quality photos, A+ Content, and clear bullet points that focus on value.
• Focus on margin: If fees keep rising, your product needs to be priced with room to absorb them.
• Build off-Amazon traffic: Brands that build their own email lists or drive outside traffic have more control and higher lifetime value.
• Avoid shortcuts: Stay away from review manipulation, grey-market tactics, or other tricks. They may work short term but almost always cause long-term damage.

Final Thoughts

Amazon is still the world’s largest product search engine. It still drives billions in revenue for sellers each year. But it is not the same marketplace it was five years ago.

The rules have changed. The risks are higher. The playbook is more advanced.

If you understand the current landscape and adapt accordingly, you can still win. But sellers who rely on old strategies will find out quickly why selling on Amazon is harder than ever.