Amazon is rolling out a new AI-powered video feature that could reshape how product listings appear—but not necessarily in a way shoppers will enjoy. While this update may help third-party sellers create slicker ad content, it’s also likely to make the customer experience more cluttered.
📦 From Books to Billions: Amazon’s Ever-Changing Platform
Amazon’s rise from a 1994 online bookstore to a $3.2 trillion retail juggernaut is nothing short of legendary. In Q1 2025, Amazon even outpaced Walmart, posting $187.8 billion in revenue versus Walmart’s $180.5 billion.
But with growth comes experimentation—and not all changes are popular with users.
Despite Amazon’s agility, the platform has received over 57,000 complaints through the Better Business Bureau, many of them tied to refunds and delivery issues. Now, the company is introducing a new twist: AI-generated video ads embedded into product listings.
🤖 The AI Invasion: Ad Video Generator Gets an Upgrade
Originally launched in 2024, Amazon’s Ad Video Generator allows sellers to produce video ads in under 5 minutes using artificial intelligence. It’s free and simplifies the ad creation process—no expensive video editors or agencies needed.
The latest update, however, brings this tool into product listings for shoppers to see.
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Currently available for North American sellers in select categories
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Supports those with Sponsored Brands access
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Expected to expand platform-wide soon
That means more videos will start appearing throughout your Amazon shopping experience—even when you didn’t ask for them.
📉 Shoppers Face a More Cluttered Interface
What does this mean for everyday users? More scrolling. More autoplay. More distractions. If you’re just trying to buy a phone case or a bag of coffee, prepare to wade through promotional videos trying to grab your attention.
This aligns with a broader trend in tech: injecting AI and video content into every corner of the web, from social media feeds to search results.
📈 Sellers Get a Boost, but Challenges Remain
For third-party sellers, the timing is both promising and difficult.
While the new feature offers a competitive edge in ad quality, many sellers import goods from China, where the 55% total tariff is cutting into profit margins. Some small business owners are already questioning the sustainability of their Amazon operations.
Even as Walmart and Target raise prices to offset tariff-related costs, Amazon claims it has seen no major slowdown in demand. CEO Andy Jassy credits the company’s large and diverse marketplace for keeping shoppers engaged.
🔚 Bottom Line: Sellers Win, Shoppers Scroll
Amazon’s latest feature may help sellers showcase their products better—but it comes at the expense of user experience. With videos soon to be everywhere on product pages, casual shoppers could feel overwhelmed by the shift from clean listings to ad-stuffed interfaces.
Whether this move improves conversion rates or drives customers away remains to be seen.