---
title: "Amazon's new policy triggers a \"cash flow crisis\" for sellers, large merchants initiate a 24-hour advertising boycott"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282934110.md"
description: "Amazon recently changed the way it pays sellers their sales proceeds and charges for advertising services, and it has begun to impose a 3.5% fuel surcharge on merchants. These new policies have triggered a \"cash flow crisis\" for sellers, leading large merchants to initiate a 24-hour advertising boycott. Sellers have stated that Amazon's policies have made it increasingly difficult to operate on the platform, with some sellers even claiming that profits have nearly disappeared. This boycott was organized by \"Million Dollar Sellers\" and reflects sellers' dissatisfaction with Amazon's policies"
datetime: "2026-04-16T03:44:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282934110.md)
  - [en](https://longbridge.com/en/news/282934110.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282934110.md)
---

# Amazon's new policy triggers a "cash flow crisis" for sellers, large merchants initiate a 24-hour advertising boycott

The Zhitong Finance APP notes that for sellers who sell more than 60% of their products on the massive e-commerce platform Amazon (AMZN.US), it is currently a difficult time regardless of the circumstances.

The high import tariffs imposed by the Trump administration have caused a year-long predicament, and the recent war in Iran has led to soaring energy costs, further forcing merchants to either raise prices for already struggling consumers or absorb the losses themselves.

As if that weren't enough, Amazon is implementing a series of new policies, with some sellers claiming that it is becoming increasingly difficult to do business on the platform.

In recent weeks, Amazon has changed the way it pays sellers their sales proceeds and charges for advertising services. Subsequently, the company announced it would begin charging merchants a 3.5% fuel surcharge to offset the spike in oil prices caused by the war in Iran.

For some sellers, these measures are another example of Amazon putting pressure on them.

Michael Patlon, a seller with an Amazon business generating eight figures in sales, stated, "Our profits are almost gone."

He also criticized the company's policies on his X account, saying, "I think that's why things are becoming increasingly frustrating."

Patlon and hundreds of large Amazon sellers united on Wednesday to boycott its advertising platform in protest of a recent series of policy changes that have squeezed their already tight profits.

This 24-hour advertising boycott was organized by "Million Dollar Sellers," a community with over 700 members and an annual total revenue of approximately $14 billion.

Eugene Kaiman, co-founder of MDS, wrote in a post on X about the boycott, "Sellers have been complaining for years, but this time it feels different," adding, "The reason is simple: it's no longer just annoying, but a direct cash extraction."

Amazon spokesperson Ashley Vanicek stated that the recent changes to the advertising payment methods and payment disbursement were made to align "a small number of sellers" with the practices already adopted by the majority of merchants on the platform.

The company stated that the introduction of the fuel surcharge is intended to partially recover the costs driven up by rising oil and logistics prices.

Launched in 2000, Amazon's third-party marketplace has now become a key pillar of its retail strategy. The marketplace has millions of sellers, ranging from small businesses operating out of garages to well-known brands, all listing their products on the site.

Seller services revenue, which includes commissions, logistics, advertising, and customer support, has surged over 400% since 2017. In the fourth quarter, this segment's revenue grew 11% year-on-year to $52.8 billion, accounting for approximately 42% of Amazon's total sales during that period.

![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260416/1776309530751629.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

**Cash Flow Crisis** Several sellers have indicated that they expect to raise prices due to a temporary fuel surcharge that will take effect on April 17. Other policy changes may freeze their cash flow, which could have more destructive consequences.

Kaiman stated that this could prevent merchants from paying employee wages or supplier payments, forcing them to take on more debt. "Most sellers are family-run businesses or have only one or two employees. They usually receive a 3% cash back from advertising spending, which may be their third-largest expense," Kaiman said in an interview. "So, they can get back a significant amount from it, and (Amazon) has stripped away that ability."

Kaiman noted that many sellers, especially small businesses, rely on the "credit card points" earned from spending on Amazon advertising to make a living.

Earlier this month, Amazon announced that it would begin automatically deducting advertising fees from the earnings of some sellers, rather than allowing them to pay with credit cards. The notice stated that if a merchant's sales revenue is insufficient to cover advertising fees, Amazon would use their existing payment method as a backup for deductions. The company also provided sellers with a $2,500 advertising credit "to help with the transition."

Amazon described this move as more favorable for sellers' "cash flow management," but merchants indicated it could have the opposite effect.

On Tuesday, after receiving feedback on the policy, Amazon announced it would delay the change in advertising payment methods until August 1.

The company wrote, "Based on the feedback we received, we are postponing this change until August 1, 2026, to give this group of advertisers more time to prepare."

**Critical Point**

In mid-March, Amazon implemented a new policy for some of its U.S. sellers, meaning it would withhold sales proceeds for a longer period. Sellers must now wait seven days after the product is delivered to the customer to receive payment. Previously, Amazon paid sellers their sales proceeds seven days after the product was shipped to the customer.

The series of policy changes has caused more anxiety for sellers.

"Combined with payment delays, this creates a significant cash flow crisis," wrote Adam Lankwist, founder of Heist Labs, which acquires e-commerce brands, in a LinkedIn post responding to the advertising policy changes. "With rising costs and increased cash flow pressure, there is a critical point—Amazon may soon discover it."

A seller who has operated an Amazon business for over twenty years, with sales reaching six figures, stated that the delayed payment policy would put immense pressure on his company, which is already struggling to cover daily operating costs.

"Amazon has taken all the money it should take," said the seller, who requested anonymity due to fear of retaliation. "What’s left is our money, and we can’t get it. Our money is delayed." Amazon stated that since 2016, most of its sellers have adopted a 7-day settlement system. The company said it has given sellers who have not yet used the system a 6-month notice period to prepare for the transition.

Amazon indicated that this policy allows customers time to receive purchased goods, initiate returns, and submit claims.

**Fee Review**

This boycott is just the latest example of Amazon being scrutinized due to the rising costs of selling on its platform.

Third-party market research firm Marketplace Pulse cited seller profit and loss statements, claiming that Amazon's average commission per transaction first exceeded 50% in 2022.

Seller fees are part of the Federal Trade Commission's antitrust lawsuit against Amazon, filed in September 2023 and set for trial in 2027, accusing the company of using anti-competitive strategies to maintain its dominance in e-commerce and suppress merchants on its platform.

Amazon has previously rebutted the FTC's allegations, stating that its practices benefit competition.

The company stated that Marketplace Pulse's findings inaccurately describe the costs of selling on the site, as they conflate fees with optional service fees that some sellers purchase from the company.

An Amazon spokesperson said in a statement, "We are committed to supporting our selling partners' success in our store and continuously helping them achieve record sales year after year. We invest heavily in powerful tools, services, and programs to support their business growth, often at lower costs than other options."

Charles Chacalo, a seller who has been with Amazon for 15 years, stated that the recent policy change amounts to shortening some sellers' cash flow from 90 days to "effectively zero."

"I think this is entirely Amazon squeezing the processing fees they pay to credit card companies," said Chacalo, who sells home and kitchen goods and runs a newsletter for Amazon sellers. "If small sellers can't afford this fee, then there's nothing they can do. There will always be other sellers trying to survive on the platform."

Amazon has been a springboard for many businesses to reach its vast customer base and has touted sellers' success stories in its annual progress reports, noting last year that independent merchants had an average annual net sales of about $290,000 in 2024. It often refers to merchants as its partners.

However, Chacalo said the latest policy change makes it feel less like a partnership with Amazon and more like merchants are merely "service providers" for the company

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