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AI Innovations in E-Commerce: Win Amazon, Thrive Everywhere

Picture of Peter Sims
Peter Sims

Podcast Host, Sales Executive &
Brand Evangelist at Velocity Sellers.

Amazon’s Changing the Rules — But AI Innovations in E-Commerce Are Changing the Game.

Sellers are getting crushed by rising fees, surprise tariffs, and an algorithm that feels more like a gatekeeper than a partner. But the smartest brands aren’t backing down — they’re leveling up. Thanks to bold AI innovations in e-commerce, sellers are outsmarting Amazon, expanding beyond it, and building empires that thrive everywhere. Here’s how they’re doing it — and how you can too.

Key Takeaways

  • Amazon’s rising fees and tariffs are disproportionately impacting small sellers.
  • A solid omnichannel strategy is no longer optional – it’s a necessity for long-term viability.
  • AI innovations in e-commerce are driving smarter decisions, especially in advertising and revenue recovery.
  • Carbon 6’s expansion, including Target partnerships, reflects the future of diversified platform presence.
  • Sellers must learn to control what they can and prepare for what they can’t.

Amazon’s Fee Hikes and Tariffs: A Barrier to Entry

Amazon’s recent fee increases and evolving tariff regulations are more than a mere nuisance – they’re a fundamental threat to small and mid-sized sellers. Those reliant on international shipping, particularly from China, are facing cost hikes that shrink margins or crush profitability altogether.

Many sellers report containers stranded due to unaffordable costs, while others are cutting corners on logistics or marketing just to stay afloat. According to internal figures shared during the discussion, Amazon’s fee increases are disproportionately affecting those earning under $150K annually, pushing some to the brink.

Omnichannel Strategy: More Baskets, Less Risk

Relying on Amazon alone is risky business. With fee structures changing at will and platforms like Amazon controlling the customer relationship, smart sellers are spreading their bets.

Target, Walmart, CVS, Kroger, and even Shopify are noTarget, Walmart, CVS, Kroger, and even Shopify are now part of a future-forward seller playbook — a clear case for diversifying beyond Amazon. Carbon 6’s recent recognition as one of just 12 preferred Target agency partners is evidence of the growing importance of spreading brand presence across platforms.

You don’t want to put all your eggs in one basket. Especially not when that basket can double your fees overnight.

Jordyn Levine

Enterprise Account Executive at Carbon6

A seller with $60M in revenue recently had their entire Amazon business shut down. That’s the risk of single-channel dependency. Target and Walmart, though more exclusive, represent emerging opportunities for brands that qualify. Walmart alone now represents 25% of some sellers’ online sales and is growing aggressively.

AI Innovations in E-Commerce: From Buzzword to Bottom Line

AI isn’t the future of e-commerce. It’s the present.

Carbon 6 is quietly developing advanced AI tools to aid sellers in ad spend optimization, keyword research, and product listing enhancement. One standout tool already making waves is Rufus, Amazon’s own generative AI assistant. Rufus allows shoppers to ask questions directly on listings and is helping sellers get fast feedback on what matters most to customers.

“Rufus is a game-changer. You can ask about product flaws, summarize reviews, and understand customer sentiment in seconds.”

Peter Sims

Sales Executive & Brand Evangelist

Beyond Amazon, sellers are using generative AI like ChatGPT for surprisingly powerful tasks, such as identifying negative keywords to reduce wasted ad spend. These small tweaks often translate into big performance gains over time.

Revenue Recovery: A New Growth Frontier

With profitability under pressure, growing organic sales, and cutting ad costs is now a critical component of success. Carbon 6’s integration into SPS Commerce has opened the door to expanded recovery services across Walgreens, Target, CVS, Kroger, and Home Depot – not just Amazon.

This shift aligns with the broader trend of enabling sellers to reclaim revenue they might otherwise leave on the table due to inefficiencies, lost inventory, or improper charges. Their new Target-focused revenue recovery solution is already helping sellers plug financial leaks and maintain healthier margins.

Seller Strategies for a Shifting Ecosystem

Every seller’s situation is different, but the fundamentals remain the same: control what you can, adapt where you must, and be prepared to pivot.

Sellers are testing strategies such as:

  • Using Amazon Warehousing & Distribution (AWD) to lower fulfillment costs.
  • Switching to FBM (Fulfilled by Merchant), where margins are tighter.
  • Launching Shopify storefronts to earn more per unit and escape Amazon’s fees.
  • Investing in tariff calculators to forecast container costs and build smarter logistics plans.

Carbon 6 offers a free Section 301 Tariff Calculator, helping sellers input product costs and instantly see how tariffs will affect profitability by country.

AI Tools Are Leveling the Playing Field

What used to require entire teams is now possible with a few smart tools. Sellers with limited staff leverage AI to make data-driven decisions, manage ads, update listings, and optimize performance with minimal effort.

This democratization of e-commerce operations means more people can enter the space, but they must be smart, nimble, and tech-savvy.

While Amazon is tightening the rules of the game, other platforms are loosening theirs. Walmart’s seller marketplace is growing rapidly, though account approval remains time-consuming. The advice from seasoned pros: apply now, not when you need it.

Sellers should also pay attention to ongoing 1P vs. 3P transitions. Amazon has been quietly phasing out vendor accounts, forcing sellers to regain control and pivot to 3P models. Agencies like Velocity Sellers are already seeing waves of new clients who must now manage what Amazon used to handle.

Final Thoughts: Control What You Can, Diversify Where You Must

Sellers who win in this new era won’t be the ones who panic. They’ll be the ones who plan. Rising tariffs and unpredictable fees are real, but so are the tools and strategies that can overcome them. AI innovations in e-commerce empower sellers to act smarter, faster, and leaner than ever.

So what’s the winning formula? Go Omni-Channel. Lean into AI. Forecast for the unexpected. And above all, keep building a brand that doesn’t depend on one platform to survive.

“Control what you can. Prepare for what you can’t. The sellers who do both are the ones who scale.”

Jordyn Levine

Enterprise Account Executive at Carbon6

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