Seller News This Week

Amazon has released a few critical updates ahead of the holidays, including changes to Seller Fulfilled Prime (SFP) enrollment and delivery settings, plus new tools for returns and account health management. Here’s what you need to know and what sellers are saying.

• Updates to Seller Fulfilled Prime: Amazon’s refining SFP eligibility by assessing performance separately for each size tier, so issues in one won’t affect others. You’ll also get on-time delivery rate protection for Prime orders when using Shipping Settings Automation with “OTDR Protected” labels, though many sellers still want Regional Prime Shipping to make nationwide 2-day coverage more manageable for small businesses.
• Fix issues and monitor account health: With peak season here, Amazon urges sellers to monitor their Deals dashboard, fix pricing errors, and review A-to-Z claims daily. Keep your Account Health Rating above 100 to avoid deactivation.
• Manage returns more easily with this new dashboard: The new Returns and Recovery dashboard centralizes metrics, trends, and recovery actions, including ASIN-level insights, return reasons, Grade and Resell performance, and a resource center, all in one place.

This week’s Amazon retail news reveals a change toward more transparent, data-driven fulfillment, but there’s more beneath the surface worth exploring as peak season hits.

Amazon Adjusts Seller Fulfilled Prime Requirements

Amazon is overhauling SFP with stricter performance requirements but new flexibility for managing different product types, effective November 2025. While this could help brands with varied inventory, smaller sellers may struggle with tougher nationwide delivery expectations.

New: Size-Tier-Based Performance Evaluation

Amazon now evaluates SFP eligibility separately by size tier: standard, oversize, and extra-large. Performance in one tier won’t affect others, so a late oversized shipment won’t jeopardize standard-size Prime eligibility. Sellers can enroll in multiple tiers based on warehouse and carrier capabilities, with trial periods aligned to weekly tracking (Sunday-Saturday) for clearer feedback.

For sellers with diverse inventory, this separation helps. “This is good news and a step in the right direction,” one seller noted. “But what we really need is Regional Prime Shipping. We can serve the East Coast efficiently, but the nationwide 2-day rule shuts us out of the Prime badge.”

Updated Performance Metrics: Stricter, More Transparent

The revamped program measures performance weekly against higher benchmarks:

• On-time delivery rate: ≥ 93.5%
• Valid tracking rate: ≥ 99%
• Cancellation rate: ≤ 0.5%
• Minimum shipment volume: 100 Prime packages per month
• Delivery speed:
  • Standard size – ≥30% delivered within 1 day, ≥70% within 2 days
  • Oversize – ≥10% within 1 day, ≥45% within 2 days
  • Extra-large – ≥15% within 2 days

Two failures trigger Prime offer suspension; three revoke eligibility entirely. Sellers can appeal or requalify (maximum three attempts yearly). The improved SFP Performance Dashboard now provides ASIN-level defect and speed reports, pinpointing late deliveries or invalid tracking.

Delivery Date Precision and Amazon On Time Delivery Rate Protection

The ecommerce giant is also improving how delivery dates are displayed and calculated. With Shipping Settings Automation (SSA) enabled, buyers now see specific delivery dates (e.g., “Arrives Wednesday”) instead of vague ranges. This change is designed to increase conversion rates and improve customer trust.

In addition, Amazon introduced On-Time Delivery Rate (OTDR) protection for sellers who:

• Enable SSA in Prime templates
• Use “OTDR Protected” labels via Amazon Buy Shipping or Veeqo
• Ship orders on time

If you meet these criteria, late deliveries caused by a major disruption event won’t count against your OTDR, a safeguard many sellers have requested for years.

Customer Service, Returns, and Weekend Operations Still Required

Despite these new efficiencies, core Amazon seller Prime obligations remain demanding. 

Sellers must maintain zero-day handling for same/one/two-day orders, set cutoff times no earlier than 2pm weekdays and 10:30am weekends, operate one weekend day, and offer free standard shipping for all Prime customers across the contiguous US. Amazon will continue to handle all post-order customer service and returns for Prime orders, and sellers must process returns within two business days.

Tighter Compliance, But Smarter Safeguards

The new rules bring clearer, fairer expectations but little margin for error. Misclassifying size tiers can pause eligibility, while consistent underperformance risks removal. An “exemption period” after a second warning allows fixes before disqualification.

For adaptable sellers, these changes mean more consistent eligibility. But regional operations still face challenges with nationwide delivery requirements, making data discipline essential for keeping the Prime badge.

SFP sellers have long faced an uphill battle balancing Amazon’s high Prime standards with the cost of fulfillment independence. The new rules make expectations clearer, and, in some cases, fairer, but also leave little margin for error.

Misclassifying size tiers can pause eligibility, for example, while consistent underperformance risks removal. An “exemption period” after a second warning allows fixes before disqualification.

For adaptable sellers, these changes mean more consistent eligibility. But regional operations still face challenges with nationwide delivery requirements, making data discipline essential for keeping the Prime badge.

Amazon Issues Holiday Readiness Alert to Sellers

With major shopping events approaching, Amazon is urging sellers to focus on operational accuracy and maintain a healthy Account Health Rating (AHR) to avoid costly disruptions.

Key actions to take:

• Check for deal suppression: Review the Deals dashboard for “Needs attention” alerts and correct pricing or quantity errors.
• Resolve coupon and pricing issues: Use Amazon’s troubleshooting tools and fix spreadsheet upload errors promptly.
• Manage order capacity: Adjust handling limits to match expected volume and prevent late shipments.
• Stay on top of service metrics: Monitor A-to-Z claims and customer feedback daily to protect your Buy Box eligibility.
• Protect your AHR: Keep your score above 100 by resolving violations quickly, ensuring listing accuracy, and running quality checks.

Manage Amazon Returns with the New Returns and Recovery Dashboard

Amazon has launched a Returns and Recovery dashboard that consolidates return data into one central hub for FBA and FBM sellers. The tool helps sellers track, reduce returns, and reclaim value from unsellable inventory, which is critical as holiday returns spike.

A Single Dashboard for Returns Management

The dashboard includes three main tabs:

Return Insights displays ASIN-level data, top return reasons, and trends. Sellers can filter by date, marketplace, or fulfillment type and get recommendations to update listings or fix product issues.

Recovery (FBA only) tracks returned items at fulfillment centers, separating sellable from unsellable inventory. It shows Grade and Resell performance and recovered value.

Resource Center offers training videos, downloadable reports, and policy settings.

After years of unclear return data, Amazon now offers transparency. Electronics sellers can identify “item not as described” issues and adjust listings, while apparel brands can spot sizing problems. By analyzing trends, sellers reduce unnecessary returns and optimize recovery to offset costs.

Other Retail News This Week

1. Amazon Vendor News: Manage Your Brands Now Available

The new Manage Your Brands tool lets vendors easily view, organize, and add brands in one place. You can track pending brand applications and quickly update your brand portfolio without switching tabs. It’s a simple way to stay organized as your catalog grows, making it ideal for vendors managing multiple brands or markets.

2. Amazon Lending Partners with QuickBooks for Smarter Funding

Amazon Lending has teamed up with QuickBooks to give sellers faster access to tailored funding. Through QuickBooks Capital, you can apply for loans from $1,500 to $200,000 with flexible terms of up to 24 months. It’s a smart new way to manage cash flow or stock up for peak seasons.

3. FBM Ship+ Launches in Europe

The new FBM Ship+ program helps sellers to efficiently ship products from China to key markets like the UK, France, Germany, Italy, Spain, and Japan, with discounted carrier rates, cashback rewards, and more accurate delivery times. Sellers using Yun Express via Amazon Buy Shipping can enjoy extra protection and perks when they ship within one working day.