Amazon’s business strategy in 2018 focused on growth at scale — aggressive expansion of private label products, lightning-speed Prime delivery rollouts, and a sharp push into ad monetization. Fast-forward to 2025, and the landscape has evolved dramatically.
For sellers who’ve been on the platform since then (or those studying Amazon’s past to prepare for its future), understanding this shift is key to staying ahead. Here’s a breakdown of what Amazon prioritized in 2018, how things have changed, and what it means for your business now.
2018: The Year Amazon Turned Sellers into Advertisers
By 2018, Amazon had already moved beyond just being a marketplace. The major strategic focus that year was the full rollout of its self-serve advertising tools — turning Seller Central users into ad buyers almost overnight.
- Sponsored Products and Sponsored Brands became central to visibility
- Amazon DSP began gaining ground, especially with vendors
- Early adopters gained massive share of voice at low CPCs
The goal was clear: shift reliance away from organic rankings and make visibility a paid play. Ad spend on Amazon surpassed $10 billion in 2018, and that number hasn’t slowed down since.
2025: Ad Saturation, Smarter Targeting, and Higher Expectations
Today, Amazon ads are table stakes. What’s changed is how they’re run and who succeeds.
- CPCs are significantly higher, especially in competitive categories
- Ad data is richer, but requires interpretation through tools like Brand Analytics, Helium 10, and Data Dive
- Success now depends on product-market fit, not just bid strategy
If you’re still applying a 2018 playbook to your 2025 campaigns — automated campaigns, generic keywords, no LTV targeting — you’re losing money. Top sellers now build ad strategies that integrate with pricing, inventory planning, and customer lifetime value.
2018: Private Label Gold Rush
The years leading up to 2018 were dominated by private label sellers looking to ride the FBA wave. The strategy was simple:
- Source from Alibaba
- Bundle for differentiation
- Keyword-stuff listings to rank
- Win the Buy Box by underpricing
It worked — until everyone started doing it.
2025: Brand-Building Is the Barrier to Entry
Now, Amazon wants brands — not just listings. Today’s winning strategy centers on:
- Building branded storefronts
- Using Brand Analytics for repeat-purchase data
- Driving external traffic via social or influencers
- Leveraging Subscribe & Save to build retention
Amazon’s strategy shifted from “any seller with inventory” to “brands that can scale sustainably.” If you’re not using the Amazon Brand Registry and treating your store like a real DTC brand, you’re being left behind.
2018: International Expansion and the FBA Land Grab
In 2018, Amazon pushed aggressively into international markets, encouraging U.S.-based sellers to expand into Canada, the EU, and Asia through FBA Global Export.
FBA warehousing was still relatively low-cost, and restock limits weren’t yet a seller’s nightmare. The strategy: expand footprint fast and dominate fulfillment.
2025: Supply Chain Discipline Is the Competitive Edge
Now, sellers have to be inventory tacticians. Overstocks hurt storage fees, understocks kill momentum. Amazon’s FBA strategy has shifted to:
- Smarter restock limits
- IPI score enforcement
- Long-term storage penalties
- Inbound shipping delays and capacity throttling
The winners in 2025 are the ones who build integrated systems across forecasting, logistics, and ad performance — not the ones who simply send more inventory and hope.
The Takeaway: What Today’s Sellers Must Learn from Amazon’s 2018 Strategy
Amazon’s business strategy in 2018 was about growth. Its 2025 strategy is about control — over seller performance, customer experience, and the supply chain.
What worked in 2018:
- Keyword-stuffed listings
- Lowest-price wins
- Ads as a nice-to-have
What works now:
- Content that converts
- Strategic pricing tied to LTV
- Ads that integrate with brand positioning
- Performance-driven inventory and logistics
Want to Stay Ahead of the Next Amazon Shift?
At Space Command, we’ve been helping brands navigate Amazon since before the algorithm updates, fee changes, and restock limits. We don’t just optimize — we prepare sellers for what’s coming next.
If you’re serious about staying competitive in 2025 and beyond, connect with Space Command today.
FAQ
What was Amazon’s main business strategy in 2018?
Amazon focused heavily on expanding its advertising platform, promoting private label growth, and scaling its FBA and international reach.
How has Amazon changed since 2018 for sellers?
In 2025, sellers face tighter inventory controls, higher ad competition, and a shift toward brand-driven growth over product-driven tactics.
Do old Amazon selling strategies still work?
Some foundational ideas remain, but most 2018 tactics — like keyword stuffing or purely price-based competition — are now ineffective or penalized.
What should sellers focus on in 2025?
Branding, LTV-driven pricing, smarter ad targeting, and supply chain discipline. It’s about building systems, not just listings.
How can I adapt my Amazon business strategy to today’s landscape?
Work with experts who track platform changes in real time, leverage data across tools, and integrate all parts of your business into a cohesive growth strategy.