BUSINESS
25.8.25
5min reading time

The truth: Why so many Amazon FBA sellers are struggling right now - and how you can still be successful

At the moment, many Amazon sellers are wondering what is actually going on. You can read more and more online that Amazon FBA is supposedly "dead". Perhaps you have similar concerns - the number of sales is stagnating, costs are rising and the competition is tougher than ever. In this article, we'll set the record straight: What's behind the current problems? How are experienced retailers reacting and what really matters now? Here you can read about what is changing in the market, what risks and opportunities are arising and how you can prepare for the next Amazon wave. Whether you are a beginner or a professional - you will find approaches here that you can implement immediately.

https://www.youtube.com/watch?v=T4GcusEkLdk

What is currently going on in the Amazon FBA market?

The mood among many traders is tense. Quite a few are even considering getting out completely. The same questions are regularly asked in the forums: Is it still worth it? Do I have to completely change my strategy?

Several issues are currently causing uncertainty:

  • Helium 10 stops influencer deals: Many affiliates no longer receive commissions. This shows that even big tools have to watch their money.
  • Rating cards and reviews: Constant ups and downs. Amazon is increasingly restricting the methods used by retailers to collect reviews. Rumors are circulating about extensive bans - but it often remains isolated cases.
  • Brand sales & exits: Some are giving up and selling their stores at significantly lower prices than before. The time of the former "exit fantasies" is over, valuations are often only 1.5 times the annual profit.
  • Advertising costs & competition: The costs per click are rising, the price war is getting tougher.

The market is growing up: what does that mean for you?

The extreme growth years on Amazon are over. In the past, it was often enough to package any product nicely and list it cleverly. Today, that is no longer enough. Amazon continues to grow, but at a slower pace, and many markets are saturated.

Important: Panic is useless. Every market development goes through cycles. It is precisely in this phase of upheaval that new opportunities arise.

Where do sellers stand today? Three groups

Experience shows: Retailers can be roughly divided into three groups:

GroupTypical featuresCurrent situation
Hobby sellerSmall brands, little capital, hardly any strategyOften get out, exits
Solid medium-sized sellerTurnover 5 to 6 figures/month, first systems, smaller teamsNeed to sharpen processes
Professionals and major brandsTurnover in the millions, high budget, professional teamsBuy weaker brands

Many of those who only sell "on the side" do not last. This creates space for ambitious newcomers or larger sellers - with good strategies, market shares can now be gained.

The most important change: niches, not masses

Anyone who launches the umpteenth standard product in saturated markets almost always fails. You need genuine niche products that offer a recognizable additional benefit. Looking through, copying and "nice-to-have" won't get you far these days.

What used to work:

  • Buy standard product on Alibaba,
  • with minimal improvement (mostly packaging) on Amazon,
  • The sales started coming in.

What counts today:

  • Genuine differentiation, unique offer,
  • professional listings and convincing images,
  • clear brand message and permanent optimization in marketing.

Practical experience: solutions for sellers

Despite a tense environment, there are ways in which you can assert yourself - regardless of your start-up capital.

Are you already big? Buying in can make sense now

Many larger retailers with stable cash flow are taking advantage of the current mood. They are now buying other brands or products at bargain prices. If you have clear structures, you can efficiently expand your portfolio.

Still just starting out? How to find your chance

Smaller sellers should also become active. Many "old hands" are no longer profitable, give up or get into difficulties. With clever improvements in quality, listing and value for money, niches can be conquered in which large competitors are weakening.

It takes effort - but it's worth it. If you keep at it now, you can soon benefit from empty segments.

Five levers for sustainable success on Amazon FBA

What specifically should you do now to get through uncertain times as an Amazon Seller? There are a few points that are particularly important:

1. building a strong brand

Without a clear brand image, you will have a hard time as an interchangeable "no name" product. Invest in an unmistakable brand message, logo and design - this creates trust and increases resilience against price wars.

2. conversion optimization in the entire funnel

Constantly optimize your conversion rate, i.e. look at every step your customers take - from search to checkout. Check your listing, images, keywords, A+ content and make sure that everything fits together perfectly.

3. make data-based decisions

Gut feeling alone is no longer enough. Analyze your KPIs regularly:

  • Which products are the most profitable?
  • Where are there distribution problems?
  • Which measures actually increase the conversion rate?

Example: Does the click-through rate show that the cover image isn't pulling? Then you need to adjust it!

4. consistently optimize supply chain & purchasing

Purchase prices and logistics are one of the most important levers for profit.

  • Negotiate with suppliers, explain the market situation to them,
  • optimize your warehousing,
  • strictly control the delivery costs.

Every euro saved counts double in this phase.

5. maintain compliance and product safety

Amazon checks rigorously these days. Little things that used to get through now quickly lead to listing blocks and warnings. Comply with all regulations and, if in doubt, have your products checked more than too little - this will protect you from trouble.

Opportunities arise when others give up

Many sellers are filing for bankruptcy or giving up because the general conditions have become tougher. This leaves markets "free". Those who are prepared can fill these niches and grow significantly over the next two years.

Particularly in times of uncertainty, those who really think and work for the long term prove themselves. It is not the fastest who win, but those who react flexibly, know their processes and constantly work on improvements.

Practical implementation: How to actively use the new phase

This is a simple action plan that you can implement:

  1. Choose target niches that you want to serve sustainably.
  2. Check specifically where existing providers are giving up or weakening.
  3. Clearly differentiate your brand and your offer.
  4. Continuously optimize products, images and texts.
  5. Monitor your figures and immediately adjust advertising and purchasing costs to the market.

Those who take these steps systematically will remain profitable and take full advantage of the next growth phase.

Conclusion: Amazon FBA is no longer quick gold - but far from the end

The days of simply making money "overnight" are over. But if you keep a cool head now, work strategically and make the right adjustments, there are still plenty of opportunities.

Your mindset is crucial: Keep at it, learn from the experiences of others, network and also take advantage of specialized services such as professional product photography or listing consulting. The tougher times make the market players better - and in the end, those who persevere will have more of the cake left over.

Fancy more insights and pro tips? Take a look at our YouTube channel, connect on Instagram and get inspiration for successful listings. Want to sell smarter? Find out more about our bestseller listing offer here.

If you have any questions or want to share your own experiences, write them in the comments! Here's to the next successful years - take care and stay tuned.

Luca Igel
Managing Director
25.8.25
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