All the attention right now is on Prime Day, but Amazon is shaking things up in several other big ways—and these changes will affect employees, vendors, and shoppers. The e-commerce platform is fighting to stay relevant amid generative AI advances and shifts in consumer-buying habits due to rising inflation and tariffs. From increased rural delivery services to stricter U.S. seller policies, here are four major changes coming to Amazon.
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1. Amazon is axing its free streaming TV service Freevee.
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The Freevee app will permanently shut down this August, according to a CNBC report. All content will now be housed on Prime Video, which will still be available for viewing at no charge—or in this case, without a Prime membership.
“To deliver a simpler viewing experience for customers, we have decided to phase out Freevee branding. There will be no change to the content available for Prime members, and a vast offering of free streaming content will still be accessible for non-Prime members, including select originals from Amazon MGM Studios, a variety of licensed movies and series, and a broad library of FAST channels—all available on Prime Video,” an Amazon spokesperson told Variety.
2. Amazon is bringing same- and next-day delivery to 13,000 rural zip codes.
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In an April press release, Amazon unveiled its $4 billion rural delivery network plan, which will “bring even faster delivery to our many millions of customers in less densely populated areas” by the end of 2026.
It’s estimated that the project will launch over 200 delivery stations in small-town communities and create over 100,000 new jobs. This will allow Amazon to deliver “over a billion more packages each year to customers living in over 13,000 zip codes spanning 1,200,000 square miles”—that’s triple the size of Amazon’s current rural delivery network.
“At a time where many logistics providers are backing away from serving rural customers because of cost to serve, we are stepping up our investment to make their lives easier and better,” wrote the company.
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3. Amazon launched three new AI-powered tools for both employees and customers.
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Amazon is using AI to enhance the lives of its employees and the overall shopping experience for customers. The company recently announced three new AI-powered advancements:
- Wellspring, an AI mapping technology that “helps drivers better navigate complex and varied environments—like multi-building apartment complexes or brand-new neighborhoods that don’t yet appear on navigation apps—so they’re able to deliver packages to customers where they want them.”
- A new AI forecasting model that analyzes “regional differences—like sunscreen sales in Cape Cod, Massachusetts, in the summer months, or ski goggles in Boulder, Colorado, during peak ski season—…to accurately and efficiently cater to the different needs of communities.”
- Agentic AI to further advance the capabilities of autonomous mobile robots, which aid Amazon workers.
“While these systems work behind the scenes, customers will certainly experience their benefits: more accurate delivery locations, faster shipping options, and improved availability of the products they want, when they want them,” says a press release.
4. Amazon is making it harder for U.S. sellers to qualify for Premium Shipping.
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Amazon is cracking down on its U.S. Seller Fulfilled Prime and Premium Shipping program policies.
Previously, out-of-network sellers had to keep up a 97 percent on-time delivery rate to earn Amazon’s Premium Shipping endorsement badge. Eligibility was monitored on a rolling 30-day period.
But now, the rules have changed. New guidelines state that sellers need to uphold a 93.5 percent on-time delivery rate to qualify for Premium Shipping. Eligibility will now be measured weekly. After three strikes, the seller will lose all Premium Shipping perks and endorsements.
Moreover, Seller Fulfilled Prime sellers will also have to meet a minimum shipment requirement of 100 monthly purchases. Failure to do so will activate a daily Prime order volume limit—impacting a shop’s sales as well as customer accessibility/convenience.
The updated policy took effect on June 29.
“We have observed sellers are best equipped to meet these requirements when they are frequently fulfilling Seller Fulfilled Prime orders, and as such we expect you to consistently demonstrate that you can meet all Seller Fulfilled Prime program requirements regularly,” said Amazon.
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