As competition rises on Amazon, SellerWizards shares strategies for sellers to adapt to AI tools, pricing wars, and Prime event opportunities.
As Amazon continues to reshape e-commerce with new AI tools, evolving advertising models, and shifting seller policies, third-party sellers face both unprecedented challenges and new opportunities. SellerWizards an AMZ DOC Company, a global firm specializing in Amazon account management, today released insights on how brands can stay profitable in this fast-changing marketplace.
Amazon now represents nearly 40% of U.S. e-commerce sales, and more than 60% of those sales come from independent sellers. But with new AI-powered features like Amazon Rufus, advertising costs reaching record highs, and constant policy updates, many sellers are struggling to protect margins and maintain visibility.
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“Amazon is no longer just a marketplace — it’s a full-scale ecosystem driven by AI, data, and consumer behaviour at an unprecedented scale,” said Hamza Khalid, General Manager of AMZ DOC Consultatns. “Our message to sellers is clear: adapt now or risk being left behind.”
Amazon’s AI Shift: Opportunity or Risk?
The recent launch of Amazon Rufus, an AI-powered shopping assistant, signals a new era where product visibility will be influenced not only by search keywords but also by conversational recommendations. For sellers, this means traditional SEO and keyword strategies may no longer be enough.
SellerWizards highlights the need for sellers to prepare content and product listings that align with AI-driven discovery — focusing on consumer intent, conversational phrasing, and trust signals such as reviews and compliance.
Amazon is changing faster than ever, and the winners will be those who embrace data, agility, and long-term brand building.”
— Hamza Khalid
The Pricing and Profitability Puzzle
One of the most pressing issues sellers face in 2025 is the squeeze between rising ad costs and aggressive pricing competition. Recent industry data shows that Sponsored Ads now account for more than 20% of Amazon’s total revenue.
Many brands chase visibility at any cost, But without a structured pricing and profitability strategy, ad spend often eats into margins. Sellers must balance aggressive visibility with sustainable growth.
To help address this, SellerWizards emphasizes strategies such as:
• Advanced pricing audits.
• Shipping and FBA reconciliation.
• Seasonal discount alignment with events like Prime Big Day, Black Friday, and Cyber Monday.
Beyond Ads: Building Long-Term Brand Assets
While advertising drives short-term visibility, SellerWizards points out that long-term success requires strong brand assets on Amazon. This includes:
• A+ and Premium A+ Content to boost conversions.
• Amazon Storefronts with shoppable experiences.
• Virtual Bundles that increase average order value.
Such assets not only improve immediate sales but also support long-term brand authority in a crowded marketplace.
The Multi-Marketplace Expansion
Another trend in 2025 is diversification. Many sellers who once relied exclusively on Amazon are now expanding to Walmart.com, eBay, and Etsy to reduce risk.
SellerWizards notes that cross-platform strategies — while complex — can protect revenue streams when Amazon introduces new policy changes or fee adjustments.
Sellers who build a presence across marketplaces are less vulnerable. Amazon will remain dominant, but the smartest brands are hedging their bets and expanding reach
Looking Ahead: The 2025 Seller Playbook
With the holiday season approaching, SellerWizards expects increased volatility in advertising costs, more AI-driven buyer behavior, and stronger competition across categories from electronics to household essentials.
The firm advises Amazon sellers to focus on three key areas in the months ahead:
1. AI-Ready Listings – Preparing content optimized for Amazon Rufus and conversational search.
2. Profit-First Advertising – Structuring campaigns with strict profitability checkpoints.
3. Brand Building Beyond Search – Leveraging posts, storefronts, and A+ content for sustainable visibility.
“Our role is not just to manage accounts but to help brands navigate uncertainty,” added Hamza. “Amazon is changing faster than ever, and the winners will be those who embrace data, agility, and long-term brand building.”
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