Q4 preparation has officially begun.
Following Prime Day, Amazon introduced a series of updates that will shape how brands prepare for Q4.
From listing structure changes and AI-powered shopping experiences to holiday planning and stronger competition, the message is consistent: preparation starts now.
The second half of the year doesn’t begin in October. The decisions brands make over the next few weeks, including inventory planning, listing optimization, and promotional strategy, will have a direct impact on Q4 performance.
This month’s newsletter includes the key Amazon updates from July and the most relevant insights for brands preparing for the second half of the year.
Marketplace Trends
1. Amazon reports strong Q2 growth across retail, advertising and AI shopping
Amazon reported $200.6 billion in Q2 net sales, up 20% year over year. North America sales increased 16%, international sales grew 15%, and advertising revenue increased 26%.
Amazon also delivered 40% more items through same-day or overnight delivery, whileinteractions with Alexa for Shopping grew more than 5x year over year.
Why it matters:
Amazon’s results show continued growth across its retail and advertising businesses, alongside faster delivery and increased adoption of AI-powered shopping. For brands, visibility, competitive pricing and inventory availability remain central to growth on the platform.
Read more:
Amazon’s Q2 2026 financial results
Andy Jassy’s update on Stores, delivery and AI shopping.
2. Prime Day reaches $26.4B while average order value declines
Adobe Analytics reported that consumers spent $26.4 billion online during the four-day Prime Day event, an increase of 9.3% compared to last year. At the same time, the average order value declined from $53.34 to $47.66, indicating that shoppers placed more orders while spending less per transaction.
Why it matters:
Prime Day continues to deliver strong demand, but shopper behavior is evolving. Consumers remain willing to spend, while placing greater emphasis on value and promotional pricing.
Read more:
CNBC – Amazon Prime Day pulls in $26.4 billion over four days
3. Chinese sellers continue to expand their presence on Amazon
Marketplace Pulse reports that Chinese sellers now represent 55.9% of Amazon’s top 10,000 sellers, up from 42.5% in 2020. Over the same period, the share of U.S. sellers declined from 53.7% to 40.5%. Despite this shift, U.S. sellers still generate 65.3% of the GMV within this group, largely due to their strong presence among the top 100 sellers.
Key takeaway:
Competition on Amazon continues to increase, particularly across private label categories. Standing out through strong branding, content and advertising is becoming increasingly important.
Read more:
Marketplace Pulse – China Won Amazon’s Top 10,000. America Kept Its Top 100
Operations
1. Amazon kicks off Q4 planning
Amazon published their recommended inventory arrival dates for the upcoming Q4 events.
Amazon inventory deadlines
-Prime Big Deal Days
- AWD shipments: September 2
- FBA shipments with Minimal Shipment Splits: September 9
- FBA shipments with Amazon-Optimized Shipment Splits: September 16
-Black Friday Week and Cyber Monday
- AWD shipments: October 14
- FBA shipments with Minimal Shipment Splits: October 21
- FBA shipments with Amazon-Optimized Shipment Splits: October 28
Amazon also confirmed that Holiday Peak Fulfillment Fees will apply from October 15, 2026, through January 14, 2027.
Our approach:
We are currently completing inventory planning through the end of the year and will review the plans with each client during our upcoming meetings. We have also submitted all available Q4 deals for the accounts we manage.
2. Amazon introduces a new title structure
Amazon has issued new title guidelines, reducing the Item Name to 75 characters and adding a separate 125-character Item Highlights field. Amazon also confirmed that both fields remain indexed for search.
Our approach:
We completed the updates across all our managed accounts before the rollout.
Read more:
Amazon Seller Central – New product title requirements
Advertising
1. Amazon launches Brand Gallery for Sponsored Brands
Amazon has launched Brand Gallery, a new creative format for Sponsored Brands campaigns using Reserved Share of Voice. The format combines a lifestyle image with links to multiple Brand Store collections, allowing brands to showcase a broader product range directly within the search results.
What this means:
Brand Gallery gives advertisers another way to use Sponsored Brands for brand discovery, rather than promoting a single product. It also increases the importance of having a well-structured Brand Store and strong creative assets.
Read more:
Amazon Ads – Sponsored Brands Brand Gallery
AI Updates
1. Amazon’s AI recommendations do not follow traditional search rankings
Marketplace Pulse analyzed 1,963 shopping queries and found that 63.9% of products recommended by Amazon’s AI appeared outside the organic top 10 search results. In addition, 40.9% of recommended products did not appear on the first page of search results at all.
What we’re watching:
AI-powered product discovery is still evolving, but the findings suggest that visibility in Amazon’s AI shopping experience may rely on factors beyond traditional search rankings.Read more:
Marketplace Pulse – Amazon’s AI Doesn’t Read the Rankings
2. Amazon expands AI-powered Seller Assistant
Amazon announced a major update to Seller Assistant, its AI-powered assistant in Seller Central. In addition to answering seller questions and providing business insights, Seller Assistant can now proactively perform selected tasks with the seller’s approval, including resolving some policy violations, optimizing FBA surcharges and creating promotions.
Why it matters:
Seller Assistant is evolving from a support tool into an AI assistant that can help sellers complete operational tasks inside Seller Central. While the rollout is gradual, it reflects Amazon’s continued investment in automating routine seller workflows.
Read more:
Amazon Seller Central – Major Updates for Seller Assistant
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Thank you for reading this month’s newsletter.
The weeks ahead will be an important planning period for Q4. We’ll continue monitoring marketplace updates, reviewing client accounts and sharing the changes that matter most, so you’re always one step ahead.
If you know someone who would find these updates valuable, feel free to forward this newsletter.
Have a great month,
Meirav
