Understanding the Amazon NOVA Act: A Game-Changer for Sellers

In 2025, Amazon introduced the NOVA Act (New Opportunities for Vendors and Associates Act), a significant policy shift designed to create a fairer and more transparent marketplace for third-party sellers. This legislation aims to address long-standing concerns about competition, fees, and seller rights on the platform.

If you're an Amazon seller, understanding the NOVA Act is crucial for adapting your business strategy and maximizing opportunities. Here’s what you need to know.

What Is the Amazon NOVA Act?

The NOVA Act is a regulatory framework introduced to:

Increase transparency in Amazon’s fee structures and algorithm changes.
Prevent unfair competition between Amazon’s private-label products and third-party sellers.
Enhance seller protections against sudden account suspensions and policy violations.
Encourage small business growth by reducing barriers to entry.

This act follows increasing scrutiny from regulators worldwide, ensuring Amazon operates more like an open marketplace rather than a gatekeeper.

Key Changes Under the NOVA Act

1. Clearer Fee Breakdowns

Amazon must now provide detailed explanations of all seller fees (referral, fulfillment, storage, etc.).
Sellers can dispute unexpected charges through a new independent appeals process.

2. Restrictions on Amazon’s Private Labels

Amazon can no longer prioritize its own brands in search rankings over third-party sellers.
Sellers can now compete more fairly against AmazonBasics and other in-house products.

3. Improved Suspension and Appeal Process

Sellers receive advance warnings before account suspensions (except for fraud cases).
A neutral third-party mediator will handle disputes, reducing biased decisions.

4. Better Access to Buy Box Opportunities

The algorithm now rewards competitive pricing and customer service rather than favoring FBA (Fulfillment by Amazon) sellers exclusively.
Sellers using Seller-Fulfilled Prime (SFP) have equal chances to win the Buy Box.

5. Data Privacy & Anti-Monopoly Measures

Amazon can no longer use seller data to launch competing products.
The company must allow sellers to integrate alternative payment and logistics providers without penalties.

How Sellers Can Adapt & Thrive

✅ Audit Your Fee Structure

Use Amazon’s new fee transparency dashboard to identify cost-saving opportunities.
Consider alternative fulfillment methods (SFP, third-party logistics) if FBA fees are too high.

✅ Optimize Listings for Fair Competition

Since Amazon’s private labels no longer get preferential treatment, focus on SEO, high-quality images, and competitive pricing.
Use A+ Content and video ads to stand out.

✅ Leverage the New Appeals System

If suspended, use the independent mediation process rather than relying solely on Amazon’s Seller Support.
Keep detailed records of inventory, invoices, and customer communications for disputes.

✅ Explore Multi-Channel Selling

With Amazon’s reduced dominance, expand to Walmart Marketplace, eBay, or Shopify to diversify revenue.

The Future of Amazon Selling Under NOVA

The NOVA Act marks a turning point for e-commerce fairness, giving small and medium-sized sellers a better chance to compete. While Amazon remains a dominant platform, the new rules encourage innovation, transparency, and healthy competition.

Sellers who adapt quickly—by optimizing costs, improving listings, and leveraging new protections—will gain a long-term competitive edge.

Amazon NOVA Act