Amazon announces new policies for its online marketplace

Recently, Amazon has been making some bold moves, rolling out two new policies one after another, leaving many cross-border sellers both nervous and excited. One moment they announce that they'll completely stop Google shopping ads, and the next they reveal that starting from August, buyers will only need to give star ratings without writing any comments. What's really behind all this? Is it good or bad for us sellers?

Policy 1: Stop spending on Google Shopping Ads

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Core Policy Details

According to the data, starting from July 21, Amazon's Google Shopping ad display share in key markets like the US, UK, and Germany has plummeted from 60%, 55%, and 38% respectively to 0%.

This covers Amazon's ads in eight major global markets. This means that consumers will no longer see Amazon’s product images and price comparison ads when they search for products on Google.

It's important to note that this shutdown only applies to Google Shopping ads (ads primarily featuring images and prices). Amazon will still continue running Google text search ads.

This dramatic split is no coincidence. Amazon’s ad revenue has been growing at over 30% annually for the past five years, with 2024 ad revenue expected to surpass $60 billion. Its self-built advertising ecosystem has fully matured. There are two main deeper considerations behind the shutdown of Google ads:

Online Traffic Sovereignty: Amazon aims to prevent key data—such as category trends and user search behavior—from being exposed to competitors. This strengthens Amazon’s own algorithmic advantage.

Cost-Efficiency Restructuring: The Cost Per Click (CPC) for Google Shopping ads has been steadily rising in recent years, while the Return on Investment (ROI) for Amazon's on-site ads has already reached 1:5 or higher. By shutting down external ads, Amazon can redirect its budget to its own platform.

Impact on Sellers

Natural Traffic Decline: With the shutdown of Google ads, traffic that once came through Google to Amazon will significantly drop. As a result, sellers are seeing fewer visitors to their stores, and with lower traffic, sales are being impacted. Many sellers have reported a year-over-year decline in sales.

Advertising Challenges: While ad costs are high, conversion rates are poor. Frequent adjustments to on-site ads can affect a store's ratings, weight, and ranking. This can lead to reduced product exposure and declining sales.

Increased On-Site Competition: As sellers become more reliant on Amazon's internal ads, competition for ad space intensifies. Larger sellers will capture more traffic, putting more pressure on small and medium-sized sellers to stay competitive.

Policy 2: Star Ratings Take the Lead, Harder to Delete Negative Feedback but Easier to Prevent It

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Core Policy Details

Amazon recently released an important update regarding store Feedback: Starting from August 4, 2025, the platform will adjust its Feedback mechanism. Written feedback will become optional, meaning buyers can submit their feedback with only a star rating—no written comment required!

Buyers can now give only a star rating, and written feedback is no longer mandatory.

However, feedback that only contains a star rating cannot be disputed using the "Feedback Manager." In other words, some sellers will no longer be able to delete negative reviews!

If sellers feel that feedback with only a star rating violates policies, they can report it for violation to request an additional review.

It’s worth noting that buyers can leave a one-star rating without providing any reasons, and this will still impact the seller's feedback percentage, order defect rate, shopping cart eligibility, and performance score.

Impact on Sellers

Increased Malicious Behavior: There is likely to be a rise in extortion and competitor sabotage, as buyers can simply leave a one-star rating with no explanation, potentially damaging a seller's metrics (feedback percentage, order defect rate, etc.).

Difficulties with FBA Issues: If a buyer leaves negative feedback due to FBA-related issues like delayed shipments, lost packages, or damaged parcels, and only provides a star rating (without a written reason), the seller will have no way of knowing the exact cause of the complaint. This could result in unfair blame being placed on the seller.

Harder to Differentiate Feedback from Reviews: Buyers often confuse feedback with product reviews. With the new rule in place, it will be even harder for sellers to differentiate between product reviews and feedback, making it more difficult to address issues appropriately.

Limited Appeal Channels: Sellers can no longer use the regular appeal channels to delete one-star feedback that only contains a star rating and no text. Instead, they must use the “Report Violation” option to request platform intervention for a reevaluation. However, this process is not part of the usual deletion mechanism and relies on Amazon’s assessment of whether there has been a policy violation.