October 2025 Amazon Seller Alert: Fall Sales Slump, Black Friday Starts Early, Tariffs & Fees Surge

2025-10-13

Attention Amazon sellers: October 2025 brings underperforming fall sales, early Temu Black Friday promotions, new tariffs on China, and rising peak season fees. Essential insights and strategies to optimize your Q4 performance.

Introduction

The cross-border e-commerce landscape is moving faster than ever, and October 2025 brings major updates for Amazon sellers. Fall sales are underperforming, Temu launches a record-breaking 51-day Black Friday campaign, peak-season fees are rising, and geopolitical developments, including U.S. tariffs and EU/Russia tax policies, are prompting sellers to rethink strategies. In this article, we break down the latest developments and provide actionable insights to help Amazon sellers optimize operations, manage costs, and stay competitive in Q4. Whether you are selling home goods, electronics, or niche products, understanding the interplay between platform updates, tariffs, and promotional strategies is key to protecting margins and maintaining growth.

Policies & Macro Environment: Tariffs and Tax Updates

Anker Innovations Investigated by the U.S.

Bipartisan U.S. lawmakers have requested that the Department of Commerce investigate Anker Innovations, citing product misclassification and illegal transshipment through Southeast Asia to evade tariffs. The company reportedly received $12 million in Chinese subsidies in 2023, raising concerns about market fairness.
Seller Insight: For Amazon sellers importing similar electronics, ensure your HS codes are accurate, maintain proper customs documentation, and avoid routing shipments through third countries without appropriate compliance. Failure to do so could result in fines or delayed shipments.

Trump Plans 100% Tariff on China

Starting November 1, 2025, Trump announced an additional 100% tariff on Chinese imports and simultaneous software export controls. This move is expected to impact cross-border sellers relying on China-sourced inventory significantly.
Seller Insight: Consider diversifying suppliers outside China or increasing inventory in U.S. warehouses to mitigate sudden cost spikes. For high-volume sellers, adjusting pricing strategies in advance is crucial to maintain margins.

New U.S. Tariffs on Multiple Product Categories

  • Kitchen cabinets & bathroom vanities: 50%
  • Furniture: 30%
  • Patent-protected pharmaceuticals: 100%
Case Example: Sellers importing small furniture items for the U.S. market may face margin compression of 15–25% due to new tariffs and FBA peak-season fees. Early planning for alternative sourcing or localized production can be a lifesaver.

Russia & EU Cross-Border Tax Updates

  • Russia: Starting in 2027, phased VAT for cross-border e-commerce will reach 20%; duty-free thresholds will gradually drop to €50
  • EU: Considering additional tariffs on small parcels from Temu and Shein to limit low-value exports
Seller Insight: For sellers exploring European or Russian markets, evaluating the total landed cost, including VAT, tariffs, and shipping, is essential. Pricing recalibration may be required.

China Cross-Border Tax Compliance

From October 1, sellers on AliExpress and Shein must report all-channel taxable revenue. First reporting covers July–September; subsequent quarterly reports are mandatory. Platforms like Amazon are expected to comply as well.
Seller Tip: Keep detailed sales and revenue records to ensure compliance. Accounting software that supports multi-platform tax reporting can save hours of manual reconciliation.

Amazon Platform Updates: Peak Season & Feature Upgrades

Fall Sale Underperformance

Many sellers report weaker-than-expected sales during Amazon's fall promotion, resulting in higher ACOS and lower margins. Factors include top sellers monopolizing internal traffic, competition with Temu and Walmart campaigns, and U.S. inflation, which is reducing consumer purchasing power.
Seller Advice: Focus on targeted PPC campaigns with refined keyword strategies. Consider bundling products or leveraging FBA promotions to improve visibility without overspending on advertising.

Peak Season Surcharge (Oct 26, 2025 – Jan 17, 2026)

Seller Action: Analyze SKU sizes and profitability. Large or overweight items may require shipping adjustments or temporary price increases to absorb fees. Plan early to avoid last-minute surcharges.

FBA Inbound Feature Upgrade

  • Inbound Options List View shows warehouse capacity and cost.
  • Calendar view capacity labels launching in October
  • Unified 7-day delivery windows; on-time shipments enjoy priority booking
Seller Tip: Use the new list view to plan shipments efficiently, avoid overstocking, and maximize warehouse availability during the holiday rush.

Mandatory Product Country of Origin (COO)

Amazon US requires the COO info based on the location of the last substantial transformation. Non-compliance may result in listing removal or account restrictions.
Seller Action: Audit your listings immediately to ensure COO data is accurate, and update SKU templates where necessary.

Advertising Tax Enforcement

From October, WA-registered businesses face a 9–10.35% consumption tax on Amazon ads, applied to global sales revenue.
Seller Strategy: Evaluate ad spend and ROI carefully. Reducing bids on underperforming campaigns or shifting budget to higher-margin SKUs can offset the new tax.

AI Review & Product Support Features

  • Mobile AI review summary adds keyword tags for quick navigation.
  • Product Support enables external communication via WhatsApp, phone, or website, ideal for furniture and electronics.
Seller Benefit: Use these features to enhance customer experience, reduce negative feedback, and boost ranking and conversions.

Seller Risk & Legal Events

  • Walker Edison filed for bankruptcy, owing millions to suppliers.
  • Amazon settles $2.5B Prime subscription fraud case, including a $1B fine and $1.5B in refunds, and commits to subscription process improvements.
Seller Insight: Protect cash flow and maintain supplier relationships carefully. Monitoring competitor risks can help anticipate market shifts.

Global Expansion

  • Abu Dhabi's automated fulfillment center supports same-day delivery, an innovation lab, and a 93% success rate.
  • Assam, India: delivery volume doubles
  • Belgium: planned €1B+ investment
  • Brazil: warehouse and delivery fees waived until Dec 3
Seller Opportunity: Global expansion and fee waivers offer sellers a chance to test new markets at lower operational costs. Assess the feasibility of top-selling SKUs.

Other Platforms & Promotions

Temu Black Friday 51-Day Promotion

  • Preheat: Oct 9 to Nov 1
  • Main Event: Oct 31 to Nov 29
  • Discounts: 20%–15%, 2-stage campaign
Seller Tip: Plan Temu inventory and campaigns early. Extended Black Friday periods require staggered marketing efforts to sustain sales velocity.

TikTok Shop & Regional Updates

  • Europe POP: third-party experience optional
  • Indonesia: temporary suspension of operating license
  • TikTokTober Halloween event runs Oct 1–31
Seller Action: Evaluate TikTok Shop as a supplementary channel for seasonal campaigns. Holiday-themed promotions can attract additional traffic.

Thailand Platform Fee Increase

Shopee, Lazada, and TikTok Shop raise commission and service fees, squeezing seller margins.
Seller Strategy: Adjust pricing or shift focus to higher-margin SKUs to maintain profitability.

eBay & Walmart Updates

  • eBay UK: enhanced INR claim protection
  • Walmart: October Deals, one-week promotion mirrors Amazon Prime Day
Seller Opportunity: Use cross-platform promotions to diversify sales and reduce dependency on Amazon traffic.

Industry Trends & Seller Recommendations

  • Compliance & Tax Transparency are mandatory.
  • Peak Season Costs Rising: surcharge and ad tax pressure margins.
  • Multi-Platform Diversification: Temu, Walmart, TikTok Shop gain traction
  • AI Tools Boost Operations: review summaries, search insights improve conversion
  • Global Policy Uncertainty: Trump tariffs, EU taxes require a proactive supply chain strategy

Actionable Q4 Checklist for Amazon Sellers

  • Audit the COO and listing compliance immediately
  • Recalculate SKU profitability, including peak-season surcharges and ad taxes
  • Reassess inventory levels and FBA warehouse allocations.
  • Diversify the supply chain to mitigate tariff risk.
  • Plan multi-platform marketing for Black Friday and holiday promotions.
  • Leverage AI review and product support tools to enhance customer satisfaction.

Summary

Q4 2025 marks a multi-dimensional cross-border e-commerce battlefield. Amazon sellers must leverage data-driven inventory, promotion, and multi-platform strategies to capture opportunities while mitigating regulatory and cost risks. Early planning, proactive compliance, and adaptive marketing are key to sustaining margins and growing market share. SellerSprite continues to track global e-commerce trends, providing actionable insights and data-driven strategies for sellers worldwide.
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