Overview

Jungle Scout’s 2025 State of the Amazon Seller report, built on responses from roughly 1,500 sellers, brands and businesses, shows that escalating shipping fees, higher product‑cost inputs and swelling ad budgets are now the dominant worries for Amazon merchants. The data also highlights a rapid swing toward U.S.‑based sourcing, a shift that could reshape supply‑chain strategies for sellers aiming to protect margins in the coming year.

Key Points

• Shipping expenses dominate concerns — 38 % of respondents named rising freight and carrier surcharges as their top challenge for 2025, with many citing a 12‑15 % jump in FBA inbound fees over the past twelve months.
• Product‑cost inflation follows closely — 34 % flagged increasing cost of goods, pointing to raw‑material price hikes of up to 10 % and currency swings that have pushed unit costs higher across categories such as toys and home décor.
• Advertising budgets under strain — 32 % indicated that Amazon PPC costs are eroding profitability, noting that average cost‑per‑click in competitive niches has risen from $0.45 to $0.78 in the last year.
• Domestic sourcing nearly doubles — The share of sellers sourcing at least 25 % of their inventory from U.S. manufacturers has risen from 12 % in 2023 to 22 % in 2025, reflecting a near‑100 % increase in domestic procurement activity.
• Brand‑vs‑3P tension intensifies — Established brands reported a growing unease about third‑party sellers encroaching on their listings, with 28 % saying they plan to allocate additional resources to brand‑registry and anti‑counterfeit programs.
• Margin compression drives strategic pivots — 41 % of surveyed sellers said they are actively revising pricing, renegotiating supplier contracts or dropping low‑margin SKUs to offset the combined cost pressures.

What’s Changing

1. Freight cost escalation — Sellers now see carrier rate hikes translate into an extra $0.30 per pound for a 10‑lb kitchen‑gadget shipment, prompting many to switch from standard to regional fulfillment centers to shave days off delivery times.