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On April 2, some Amazon sellers received an email signaling a change to how advertising costs would be collected. Beginning April 15, Amazon said it would deduct advertising costs from sellers’ retail proceeds first, using a credit or debit card only as a backup if proceeds were insufficient. For sellers already dealing with delayed payouts and additional fees, the shift was widely viewed as another tightening of cash flow.
Under the prior setup, sellers could pay for advertising using a credit card, potentially earning points and benefiting from the time delay before the card bill was due. Under the new approach, ad costs would be taken from retail proceeds first, reducing available float and making cash flow more constrained.
Amazon later said it would delay the change to ad payments until August 1, 2026. The company also offered sellers a $2,500 promotional ad credit, according to Eugene Khayman, founder of Million Dollar Sellers (MDS).
“We are committed to supporting the success of selling partners in our store and continue to help them achieve record sales year after year. We invest heavily in powerful tools, services, and programs to enable their business growth at a cost that is typically lower than alternatives. The recent changes to advertising payment methods and reserve settings align a small subset of sellers with standard practices already used by an overwhelming majority of our selling partners.”
Khayman said the April email spread quickly through the MDS community because it followed several other changes in a short period. He described the situation as the “fourth change” in about a month and said sellers were frustrated by the cumulative effect.
Among the most consequential recent changes he cited were Amazon delaying when sellers receive their money, a 3.5% fuel and logistics-related surcharge, and the advertising payment change.
One specific policy highlighted by sellers is Amazon’s DD+7 payment approach, which holds seller payments for seven days after an order is delivered. Aaron Biner, founder of Little Jupiter, said the delay forces sellers to think twice before launching new products or expanding product lines because they need reliable cash flow to support inventory and variety.
Biner said he tracked 16 fee increases, added fees, or lost perks between 2021 and the period leading up to the August 2026 ad-payment change. He said that during the same time frame there were 10 smaller positive changes, which he characterized as “give-backs” intended to soften the negative impacts.
Another seller, Alex Yale of Uncle Todd’s, said the pressure does not come from a single source. Instead, he described it as a “continuous” margin squeeze driven by multiple policies and fees compounding over time.
The frustration culminated in an April 15 ad boycott, in which some sellers paused Amazon advertising for a day to draw attention to the changes.
Sellers interviewed said the answer to tighter margins is not straightforward. Yale said raising prices to offset cost increases can create downstream problems on Amazon, including reduced conversion rates, slower sales velocity, and potential ranking declines.
Biner provided an example from his own product line: a plush toy that sold for roughly $16.99 to $17.99 in 2019 now sells for $23.49, but he said the higher price has not solved the underlying profitability issue. He said sales volume fell and overall earnings declined.
Some sellers are trying to reduce dependence on Amazon. Rich Tesoriero, who has sold on the platform since 2008 and sells floral handbags, said Amazon has become exhausting to manage because problems appear to be replaced by new ones.
Tesoriero said he is increasingly focused on building outside Amazon. He reported that about 20% of his revenue came from Shopify last year, rising to 35% in the first quarter of 2026. Biner also said some sellers are experimenting with channels such as TikTok.
While sellers criticized the latest changes, they said they are not anti-Amazon. Tesoriero described Amazon as a “frenemy,” saying his greatest successes and frustrations come from the platform.
For sellers who can adapt, Tesoriero said the tougher environment could create opportunity if the number of sellers declines. He said he remains optimistic.
Biner added that communities such as MDS help sellers share knowledge and coordinate responses. He said the group provides a “collective brain” and described it as the closest thing they have to a group voice.
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