ChatGPT’s checking out... Amazon’s playbook ✍️ [MDSR #57]

Hot Off The Presses 📰

If our last poll was any indicator, sellers were split heading into Prime Big Deal Days — half expecting profits to beat last year, half bracing for the opposite. Turns out, both camps were right.

Amazon’s October Prime Day fizzled compared with July’s event, with cautious shoppers chasing practical deals and smaller baskets. Analysts say it’s a pre-holiday warning shot as inflation, cost of living, and tariffs uncertainties reshape consumer psychology faster than sellers can discount their way out.

At the macro level, the picture’s just as split. Consumers are still spending freely, but we’ll see if that lasts when the bulk of companies hit by tariffs raise their prices within the next 6 months. Funnily enough, Trump’s tariff revenues — once touted as a budget fix — aren’t even keeping the lights on in Washington, as a third week of government shutdown drama threatens to spook already-weary shoppers.

Amazon’s own strategy suggests it’s bracing for turbulence. Perhaps you’ve noticed the new single-tap “add to delivery” feature to make impulse buys frictionless — or that Amazon’s started charging sales tax on ads as of October 1st. 

They’ve also rolled out a Partial Refunds & Returns Dashboard that could save money — or spark disputes. Behind the scenes, its business AI tool Q was reportedly lagging rivals in its first year, a rare misfire as OpenAI, Meta, and TikTok double-down on smarter ad engines and automation.

Competitors smell blood. ChatGPT's new Instant Checkout is turning the app into a frictionless storefront — erasing billions in market value from competitors, and leaving us to wonder if OpenAI is in fact the new Amazon.  

Still, opportunity isn’t dead. As one 8-figure seller told Business Insider, launching a viable brand on Amazon “has never been easier” — if you know how to read the room.

This edition’s poll 🗳️

Million Dollar Advice 💸 

Cash flow isn’t just about survival — it’s your growth engine. Mastering working capital means making every dollar work harder, from inventory turns to ad spend. 

The sellers who forecast smart, negotiate better terms, and reinvest strategically are the ones scaling sustainably while everyone else scrambles for liquidity.

Control your cash, and you control your growth.

👉 How to optimize working capital for ecommerce success

Don’t sleep on referral fees in Q4 💤

Amazon’s referral fee might sound like fine print, but it’s one of the biggest silent killers of Q4 margins. The fee applies to every sale — usually a percentage of the item’s total price (including shipping) or a flat minimum, whichever’s higher.

Here’s what to keep in mind:

• Rates vary widely. Most categories hover around 15%, but some — like certain accessories — climb north of 40%. One wrong category can quietly erase your margin.
  

• Shipping isn’t exempt. Amazon takes a cut of delivery and gift-wrap charges, so build those into your pricing model.
  

• Refunds sting twice. When buyers return an item, Amazon keeps a “refund administration” fee (the lesser of $5 or 20% of the referral).
  

• Minimum fees add up. Even if your product sells for just a few dollars, you’ll still pay the per-item floor — often $0.30.

Why this matters now:

• High volume amplifies mistakes. Thousands of units × small miscalculations = big margin drain.
  

• Holiday discounts squeeze profits. You can’t afford to guess on fees when pricing promos.
  

• Accurate category mapping = easy wins. Audit your listings before peak season hits.

Bottom line: treat referral fees like a fixed tax, not an afterthought. Knowing your true costs lets you discount strategically — and stay profitable while others race to the bottom.

👉 See the full breakdown of category rates and optimization tips here.

Think this is helpful?

Shipping surcharges roll in for 2025’s peak season 📈

Holiday surcharges are officially live across major carriers — and sellers should expect steeper rates than last year according to Supply Chain Dive.

We summarized the need-to-know info into the table below ⤵️

In short: factor rising delivery costs into every holiday campaign — and don’t forget to adjust pricing and shipping thresholds before your next promo goes live.

Tap into Intellivy’s MDS-exclusive offers 🔑

Looking to sharpen your Q4 strategy? Intellivy — the market research platform trusted by top Amazon brands — just rolled out a suite of exclusive offers for Million Dollar Sellers members.

Whether you’re hands-on with your data or ready to outsource it entirely, these member-only perks are built to help you optimize faster and convert smarter:

• 💼 80% off the Intellivy Business Plan — includes lowest poll pricing, 25% off segmentation, a dedicated account manager, and all Pro-tier features. Claim your 80% off Business Plan.
  

• 🧠 Free Intellivy Lab Poll + Expert Feedback — get live insights from Intellivy’s research pros, in person at Amazon Innovate 2025 or virtually. Book your Free Lab. 
  

• 👥 Free Team Training Sessions — help your team run unbiased polls, analyze results, and action insights for better conversions. Reserve your team’s spot.
  

• 🤝 White Glove+ Market Research — done-for-you audits, research, and strategy — built for sellers who want speed and precision. Apply for White Glove.

📍These offers are exclusive to active Million Dollar Sellers members — so if you’re not yet part of the community, now’s the time. 

Join the #1 private community of 7-to-9 figure eCom founders

Real talk, real strategy, real results 💬

Growth doesn’t happen in isolation. The strongest sellers are the ones comparing notes, testing ideas, and learning from each other face to face. 

That’s exactly what MDS events are built for — real conversations that spark smarter plays (and lasting partnerships).

🤝 Ecompreneur Socials

Casual settings. Serious takeaways.

• October 17 — Cyprus Ecom Founder Social

• October 29 — Austin Ecom Founder Social

• October 30 — Miami Ecom Founder Social

• October 30 — Houston Ecom Founder Social

• October 31— Singapore Ecom Founder Social

• November 20 — Boston Ecom Founder Social

• November 21 — Mexico City Ecom Founder Social

🤝 MDS Connects

Anchored to the industry’s biggest stages.

• October 21 — MDS Connect: Ecom Founders Social at Innovate 2025

• October 27 — MDS Ecom Founder Social at Supply Side West

Spots fill fast. Don’t miss your chance to connect IRL: 👉 All Event Links

Did you see that post 📲

Amazon’s recent $2.5 billion settlement with the FTC might sound significant…

But its actual impact is up for debate 🧐

Until next time ✌️

As always, thanks for sticking with us until the end. 

If you’d care to share your thoughts on this newsletter, we’re all ears. Just hit reply to sound off. 

See you next time with more of the latest and greatest content you need to succeed this year 🔥

Sincerely, 

Looking for a mastermind community?

Million Dollar Sellers (MDS) is an exclusive community of 650+ like-minded Amazon and DTC sellers from all over the world. Collectively, our members generate more than 8 billion in annual sales and dominate some of the biggest categories on Amazon. MDS offers world-class events, chapters, industry discounts, resource libraries full of SOPs, templates, and video recordings of private trainings, workshops, events and so much more.

If you are looking for a business professional community made for ecom entrepreneurs, then consider applying today. 

*To qualify, you must be a full-time seller or brand owner and do at least 1 million in verified annual revenue. Will Amazon’s Returnless Resolutions solve the returns debacle? [MDSR #30]