Amazon's Updated Bundling Policy & Deactivations

If you're an Amazon seller, you already know one thing for certain: change is constant.

I've spent the last decade as both a seller and vendor on Amazon, watching strategies transform overnight. Today, I want to share some important platform updates that could affect your business.

The Updated Bundling Policy: Latest Changes

Creating custom bundles of consumable products used to be a proven strategy. Sellers across the platform used this approach to build semi-private-label listings and grow their businesses.

Now, Amazon has updated this policy. Under the new rules, you can only offer bundles that are created by the original manufacturer.

Yes, this is significant news for many sellers.

But here's something interesting: word in the seller community suggests Amazon might reverse this policy after Q4. So while this avenue is closed for now, it might not be permanent.

Section 3 Account Deactivations Are Increasing

Account deactivations aren't new, but they're becoming more frequent. We're seeing more Section 3 account deactivations now as Q4 approaches.

Our research shows smaller sellers are facing the most challenges. The reason?

Many newer or smaller sellers aren't fully aware of what can trigger these deactivations. When you combine this with Amazon's increased monitoring, it creates serious risks for unprepared sellers.

The solution is straightforward: understanding these rules protects your business.

External Pressure: Regulatory Changes

There's another factor at play: Amazon faces increasing regulatory scrutiny, and it affects all sellers.

In the United States, the FTC and 17 state attorneys general have filed an antitrust lawsuit against Amazon. They claim Amazon uses anticompetitive practices—such as preventing sellers from offering better prices elsewhere and requiring them to use Amazon's fulfillment services.

In Europe, the EU is investigating Amazon under the Digital Services Act. They're examining Amazon's transparency about recommendation algorithms, advertising disclosures, and risk assessment processes. If Amazon doesn't comply, they could face large fines and have to change how their marketplace operates.

What This Means For Your Business: These regulatory challenges could lead to new policies that affect how you sell on Amazon. Amazon's increased scrutiny of sellers likely connects to this regulatory pressure, especially during Q4 when there's more attention on the platform.

We expect this heightened oversight might ease up in Q1.

Your Action Plan

Here's how to adapt to these changes:

1. Stay Informed: Check Amazon's policy updates regularly. Knowing the rules is essential in today's market.
2. Learn the Rules: Understand what causes account deactivations. Prevent problems before they happen.
3. Find New Opportunities: With bundling restrictions in place, explore different ways to stand out in the market.
4. Watch Your Metrics: Pay close attention to your account health, particularly during busy seasons when Amazon increases its oversight.

Final Thoughts: Moving Forward

The Amazon marketplace continues to evolve. But remember: changes often bring new opportunities if you're prepared.

Stay alert. Be ready to adapt. Keep moving forward. While the marketplace changes, prepared sellers will always find ways to succeed.