l key updates, including Long-Term Sales (LTS) tracking for ads, return rate and star rating visibility on the seller dashboard, image compliance notifications, and AI-powered tools within the A+ Content Manager.
- Long-Term Sales (LTS) Tracking for Ads (January 4, 2025)
Amazon launches new Long-Term Sales (LTS) and LTS ROAS (Return on Ad Spend) metrics for Sponsored Brand (SB) and Sponsored Display (SD) ads. This update will enable measurement of ad performance over time. This allows advertisers to make more informed decisions on campaign effectiveness. Customers who haven’t made a purchase from your brand in the past year are “new-to-brand” customers. Key engagement stages that are tracked include: - Viewing a product page
- Searching for your brand
- Adding an item to the cart
- Making a purchase
Return Rate and Star Rating Added to Seller Dashboard (January 4, 2025)
Amazon uses the Voice of the Customer dashboard by adding Return Rate and Star Rating metrics. These new features allow sellers to track customer satisfaction more effectively:
- Return Rate: Tracks the percentage of returns initiated in the last 12 months, helping sellers identify products with higher returns and take corrective action.
Star Rating: Displays products’ star ratings as shown on their detail pages, giving sellers the ability to assess and address product performance quickly.
Image Compliance Notifications for Sellers (January 4, 2025)
Amazon improves its image compliance notification system by providing sellers with detailed alerts about image violations and clear guidance on how to resolve issues. This update aims to save time and improve the image management process, rolling out in phases throughout 2025. Sellers can check for updates in Catalog > Upload Images > Submission Status > Content compliance issues.
Sponsored Ads on Rufus AI Assistant (January 4, 2025)Amazon integrates Sponsored Ads into placements within the Rufus AI assistant, which provides personalized recommendations to shoppers. This integration offers an opportunity for targeted advertising through conversation-based interactions, enabling sellers to engage with customers at early stages of the shopping journey. However, campaign reports specific to Rufus-related ads are not yet available for performance optimization.AI-Powered Tools in A+ Content Manager (January 4, 2025)
Amazon introduces generative AI tools for brand-registered sellers in the U.S. through the A+ Content Manager. These tools help sellers create, update, and optimize their A+ content more efficiently, improving customer engagement. Sellers can refresh their product listings regularly, leveraging AI for creative suggestions and enhancing product descriptions.
Amazon Bans Keyword-Stuffed Titles (January 5, 2025)
Effective from January 21, 2025, Amazon will ban long, keyword-stuffed titles. New rules limit titles to 200 characters, remove special characters, and eliminate repetitive keywords. This shift focuses on brand quality and clear product features rather than SEO manipulation, aiming for a cleaner, more customer-friendly shopping experience.
Amazon enforces stricter listing guidelines by banning keyword-stuffed titles, while AI search tools are reshaping customer behavior, and the Big Spring Sale for 2025 is announced.
AI Search Tools Impacting Customer Behavior (January 5, 2025)
Artificial intelligence search capabilities enhanced by ChatGPT and Perplexity platforms, are fundamentally restructuring e-commerce search patterns. Marketplace analytics and social listening indicate a projected surge in AI-mediated referral engagement, with anticipated growth from current 1% penetration to 20% market share within a twelve-month period. This transformation needs a strategic adaptation from Amazon marketplace participants, particularly in content optimization protocols incorporating enhanced contextual frameworks and verified consumer validation metrics.
QuickBooks integration with Seller Central is launched, making it easier for sellers to manage their finances directly within Amazon’s platform.
Amazon’s Big Spring Sale 2025 (January 5, 2025)
Amazon announces the second annual Big Spring Sale, scheduled from March 25-31, 2025. Participating merchants operating within designated priority sectors – encompassing Home, Fashion, Beauty, Outdoors, and Sports verticals – must submit promotional proposals by March 17, 2025, for consideration in the initiative. The commercial framework includes dedicated digital infrastructure deployment and strategic promotional positioning across Amazon’s integrated platform architecture.
QuickBooks Integration with Seller Central (January 6, 2025)
Starting in 2025, Amazon will integrate QuickBooks into Seller Central, offering financial tracking, AI-powered insights, and QuickBooks Capital financing. This integration allows Amazon sellers to manage cash flow, profitability, and taxes in one unified dashboard while gaining access to capital financing based on their Amazon data. Some sellers also explore solutions such as a moneylender debt consolidation loan to consolidate multiple debts and simplify financial management.
AI-Powered SQL Generator for Amazon Marketing Cloud (January 13, 2025)
- Automatically generates SQL queries from natural lanuage. For example, instead of writing a manual query, a user can simply input: “Customers who’ve seen my STV ads, visited my product page, but haven’t made a purchase in 30 days,” and the tool will create the SQL query.
- Provides insights across Amazon’s ad ecosystem, enhancing targeting and budget allocation. This feature bridges the gap for those with limited SQL knowledge.
- Available in early 2025.
Amazon Marketing Cloud (AMC) sees updates with the introduction of an AI-powered SQL generator, alongside advanced tracking features for both vendors and B2B sellers.
Amazon’s AI Tool ‘Rufus’ Changes Product Discovery (January 13, 2025)
Shifts focus from keyword-based ranking to customer preference and product quality. Rufus goes beyond the traditional searches, which rely on keywords and pricing; Rufus focuses on why customers are searching. Rufus is now prominently displayed above the fold on the desktop and has been moved higher on product pages, making AI-optimized listings even more crucial. Additionally, Amazon has launched sponsored ads in Rufus-related placements,
Vendor Central Adds Advanced Performance Tracking (January 13, 2025)
- Performance data is now segmented by ASIN, brand, category, and location.
- Ultimately, the feature aims to improve campaign performance by enabling more targeted ad placements.
- This extends brands’ reach beyond Amazon’s marketplace.
Vendor Central & B2B Updates (January 13, 2025)
Vendor Central Adds Granular Performance Tracking (January 13, 2025)
- Vendors can now analyze performance at a detailed level, including ASIN, brand, category, location, and fulfillment type.
- This provides better insights for inventory planning and sales optimization.
New Business Placements for Sponsored Ads (B2B Focus) (January 13, 2025)
- Amazon introduced Business Placements, enhancing Sponsored Products and Sponsored Brands ads for B2B customers.
- Brands selling in bulk or targeting business buyers now have better ad placement control to improve campaign effectiveness.
Conversion Path Report Released for All Sellers (January 13, 2025)
- Initially available only to select advertisers, the Conversion Path Report is now open to all sellers.
This report offers insights into customer journeys across Sponsored Products, Sponsored Display, and Amazon DSP ads.
Amazon retires 360° product images, expands its ad reach beyond its own platform, and launches a new analytics dashboard to track the customer journey.
Amazon is retiring 360° product images (January 20, 2025)
- The feature is being replaced with advanced 3D and Augmented Reality (AR) features.
- Customers can rotate and zoom in on detailed 3D product models.
- View in Your Room—Shoppers can place furniture and home decor items in their actual space using AR.
- Virtual Try-On—Fashion shoppers can see how shoes, glasses, or accessories look before purchasing.
- For Sellers: This shift enhances customer confidence, reducing returns and boosting conversions. If you sell home goods, furniture, or fashion, now is the time to optimize listings with 3D models.
- For Customers: Shopping becomes more interactive, leading to better purchasing decisions.
New Place for Rufus (January 20, 2025)
- Amazon’s AI-powered assistant, Rufus, now appears above the fold on desktop and mobile, playing a bigger role in product discovery and search results.
- AI-Optimized Search: Rufus influences which products shoppers see first. Sellers must ensure product listings are optimized for AI-driven search queries.
- More Personalized Recommendations: More Personalized Recommendations: Rufus improves product visibility for those who align their listings with Amazon’s AI preferences.
Amazon Expands Sponsored Product Ads Beyond Its Platform (January 20, 2025)
- Brands can now display Sponsored Product ads on external retailer websites/third-party websites.
- Shoppers can purchase directly from those retailers.
- For Brands: Greater exposure to shoppers who may not be browsing Amazon.
- For Advertisers: More opportunities to reach relevant audiences across the web.
- For Customers: A seamless buying experience from trusted retailers.
Amazon Enhances Ad Budget Rules (January 20, 2025)
- Amazon has significantly improved campaign budget rules.
- Budgets will now automatically adjust to various metrics like ROAS (Return on Ad Spend), ACOS (Advertising Cost of Sale), CTR (Click-Through Rate), and CVR (Conversion Rate).
- For Sellers: Automated ad spend ensures better budget allocation and ad performance without constant oversight.
- For Advertisers: Enables real-time adjustments to capitalize on peak performance hours.
Customer Journey Analytics Dashboard Launched (January 20, 2025)
- New-to-Brand (NTB) tracking will allow sellers to see how many customers are purchasing your products for the first time.
- Category Search Performance will allow sellers to see how your products perform in search results and adjust their strategy accordingly.
- Campaign Optimization will use the data to optimize campaigns like Sponsored Brands (SB) and Sponsored Display (SD) and create new campaigns targeting repeat customers.
- Brands will enhance the shopping experience by tailoring offers and content to new customers and those who are more likely to repeat purchases.
SKU Economics Report (January 20, 2025)
- Amazon has rolled out the SKU Economics report. It will offer a comprehensive breakdown of performance and profitability per SKU.
- Sales and Fees Data will track sales performance, including detailed fees across various categories.
- Advertising Data will review your Sponsored Products advertising costs (SB and SD ads are currently not included).
Amazon added 900,000 new sellers in 2024. (January 20, 2025)
- This is despite Amazon’s increasing fees.
Amazon Releases DSP Campaign and Creative APIs (January 20, 2025)
- With the new update, sellers can automate the creation, reading, and updates of DSP campaigns, ad groups, and creatives.
- Sellers can now easily integrate DSP into your current tech stack, enabling campaign management within your existing tools.
- Campaign optimizations will automatically adjust bids, budgets, and targeting to maximize performance.
Amazon Shifts Responsibility for Sharp Item Prep to Sellers (January 20, 2025)
- Amazon will no longer offer prep services for sharp products, effective April 14, 2025.
- No Prep Services
- Sellers must package sharp products in puncture-resistant materials (e.g., blister packs, hardened plastic).
- Bubble wrap or cardboard is no longer acceptable for sharp items.
- Items that do not meet the packaging requirements will be disposed of at the seller’s expense.
- This change places the full responsibility on sellers to ensure their products are compliant with Amazon’s new prep standards.
Budget Rules Now Available Through Bulk Sheets (January 20, 2025)
- Bulk Management will allow the creation and management of budget rules for all campaigns in a single action.
- Optimization rules can be customized for specific days or campaigns, improving efficiency.
- This addition can reduce the time required for daily budget adjustments.
Amazon Adds Cart Abandonment Tracking (January 20, 2025)
- Track cart abandonment and wish list activity.
- Use Amazon Marketing Cloud (AMC) to create custom audiences based on this data and retarget warm leads.
- This feature provides a direct opportunity to retarget shoppers who showed interest in your products but did not convert.
Amazon rolls out several important updates, including scheduled bid rules for ads, expanded audience targeting for Sponsored Brands, and a new inventory management portal for sellers.
Amazon introduced Scheduled Bid Rules (January 27, 2025)
- Set bids ahead of time based on high-traffic periods.
- Adjust bids for peak shopping seasons to maximize ROI and minimize wasted ad spend.
- Sellers would find this feature useful during Valentine’s Day and Spring Sales.
- Sellers can even use past event data to predict the best times for bid adjustments.
Amazon Expands AMC Audience Bid Adjustments to Sponsored Brands (January 27, 2025)
- This will allow sellers to target high-value customers with customized bids and tailored messaging.
- Sponsored Display ads may be the next to benefit from this targeting feature.
Amazon Introduces COSMO (January 27, 2025)
- COSMO (Common Sense Knowledge Generation) is an AI system that allows product searches using traditional keyword matching to understand customer intent.
- This system is designed to allow for targeting consumer intent than than just keywords.
- So sellers would now need to ensure titles, descriptions, and backend attributes align with the reason customers search.
- Sellers would need to move on from volume-based keywords to intent-driven targeting for ads.
Amazon API Feature for AMC Audience Reporting (January 27, 2025)
- Amazon added AMC Audience performance reporting for Sponsored Products (SP) and Sponsored Brands (SB) to the Ads API.
- It simplifies performance tracking compared to previous manual methods.
Amazon Launches Brand Name Generator Tool (January 27, 2025)
- This is to help sellers create brand names based on product descriptions and target audiences.
- Sellers can quickly generate brand names based on their product and audience descriptions.
- The tool does not have checks for trademark/domain availability.
Amazon Embedded Apps (January 27, 2025)
- Amazon Embedded Apps have functionality beyond basic notifications. It now provides actionable alerts.
- This should help sellers deal with day-to-day challenges.
Amazon Marketing Cloud (AMC) Access Now Available (January 27, 2025)
- Amazon advertisers can now access AMC reporting via new enhanced dashboard.
- Removes access barriers to AMC.
- Provides real-time hourly metrics and unique customer avatars.
- Enables audience building for sponsored ads and DSP campaigns.
Amazon Launches New IDR Portal for Inventory Management (January 27, 2025)
- The Inventory Defect and Reimbursement (IDR) Portal centralizes warehouse losses, damages, and customer returns tracking for sellers.
- It now has a single dashboard for claims and defect tracking with clear claim statuses (Eligible for Claim, In Progress, Resolved).
- This should lead to faster reimbursement filing without duplicate claims.
What’s Next
As Amazon’s marketplace infrastructure evolves through Q1 2025, sellers must strategically adapt to AI-driven search patterns while enhancing analytics capabilities and automated optimization tools. The combination of advanced tracking metrics, intelligent campaign management, and customer journey analysis presents both opportunities and imperatives for marketplace participants. Success will depend on use to these technological advancements while maintaining agile operational frameworks in this rapidly evolving digital commerce landscape.
Another big news in the world of e-commerce is the imposition of tariffs by Trump. Here is a Blog on Trump tariffs to get you updated.
Arishekar N is a Vice President (VP) of Marketing at AMZ Prep, specializing in ecommerce fulfillment and Amazon logistics strategies with a proven track record of driving growth for e-commerce businesses. He is a strategic leader with extensive expertise in marketing, e-commerce operations, SEO & advertising, and branding.
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