Amazon is making some big changes in 2025, and if you’re not ready, they could hit your bottom line hard. From a new reimbursement policy that could cut into your profits to updated product title requirements, Amazon is tightening the rules. And while they’ve promised no new fees, we’re not convinced it’s all good news.

Here’s what you need to know and what you can do to prepare.

1. New Reimbursement Policy: Say Goodbye to Full Retail Value

Starting in March 2025, Amazon will only refund sellers for the manufacturing cost of lost or damaged products, not the full retail value. This is a huge shift considering how often Amazon loses or damages inventory. Sellers now have two options for getting reimbursed:

1. Let Amazon estimate the manufacturing cost based on similar products.
2. Provide Amazon with your own manufacturing data to hopefully get a more accurate payout.

Letting Amazon decide sounds easy, but don’t count on them being generous. Their estimates will likely be low, which means less money in your pocket.

What You Should Do

• Gather your own manufacturing data now: Don’t leave it up to Amazon to guess your costs. Start pulling together invoices, receipts, and any proof you have of what it costs to produce your products.
• Prepare to appeal low reimbursements: With Amazon’s track record, it’s likely you’ll need to fight back against lowball estimates. Having detailed manufacturing data on hand will help you build a case.
• Review your fulfillment strategy: If Amazon keeps losing or damaging inventory, consider diversifying your fulfillment methods or using third-party logistics (3PL) providers for at least part of your inventory.

This change is going to hurt sellers who rely on reimbursements to cover their losses. Planning now will help soften the blow.

2. New Product Title Requirements: No More Keyword Stuffing

Starting January 21, 2025, Amazon is rolling out a new policy that bans using the same word more than twice in product titles. The goal here is to improve the shopping experience with more straightforward titles—but for sellers, it’s another hoop to jump through.

What You Should Do

• Audit your product titles now: Go through every product title to find keywords that are listed 3+ times. Use this as a chance to refresh and optimize your listings.
• Substitute with related keywords: Instead of using the same word repetitively, swap in relevant terms that still capture search intent. Focus on keywords where you already perform well.
• Check Amazon’s suggestions after January 21st: Amazon will gradually start providing title suggestions in your account. Keep an eye on these to ensure you didn’t miss anything and to see if their recommendations can actually help your rankings.

This update is annoying but manageable if you start early. A cleaner product title can also help improve click-through rates and give you the opportunity to swap in other relevant terms to help you rank better, so consider this an opportunity to upgrade your listings.

3. No New Fees in 2025? Don’t Get Too Excited

In November, Amazon’s VP  announced that there will be no new fee types or increases to referral or FBA fees in 2025. In fact, they even promised to reduce some fees and add new benefits to support sellers. Sounds great, right? Well, not so fast.

We’re not buying it. Amazon has a history of giving with one hand and taking with the other. Just look at the new reimbursement policy: it’s a sneaky way of clawing back money from sellers without technically introducing a new fee.

What You Should Do

• Stay skeptical and plan conservatively: Don’t start adjusting your budget just yet. Keep some buffer room for unexpected costs that Amazon might slip in through new policies or “adjustments.”
• Focus on optimizing costs elsewhere: Use this time to review your fulfillment, storage, and advertising costs. The less you’re spending, the less impact any surprise fees will have.
• Track policy updates closely: Make sure you’re monitoring Amazon announcements and seller forums. New policies can drop without much warning, and the fine print matters.

For now, it’s smart to play it safe. If Amazon really does hold back on new fees, great. But if not, you’ll be ready.

Don’t Wait to Get Prepared

Amazon’s 2025 updates have the potential to shake things up for sellers in a big way. Whether it’s gathering your manufacturing data, cleaning up product titles, or staying sharp for hidden costs, a little prep now can save you a lot of trouble later.

Need help navigating these changes? Let’s chat. We’ll help you build a plan that keeps your Amazon strategy on track and your profits protected.