Last Newsletter of 2025 + Top 10 Videos | 80/20 of Ecom [12/26/25]

AI is no longer optional—it's actually driving ecommerce sales this year. AI agents are doubling ecommerce sales growth, and AI influenced at least 22% of all sales.

As we close out 2025, we're seeing some key pivots in how AI is affecting ecommerce, another record-breaking holiday season of strong, robust growth, but consumers are becoming more deliberate—researching more before they buy.

Some key changes hit in 2026: Amazon's FBM refund policy shifts, and Amazon is killing FBA prep and labeling services, so you may need to get the right 3PL lined up now.

In this final 2025 edition of 80/20 of Ecom, let's dive right in.

Here's what's inside this week:

→  Record-breaking $1 trillion holiday ecommerce season—what changed
→ AI agents driving 22% of sales and doubling growth rates
→ Amazon FBM refund policy change (effective January 26, 2026)
→ Amazon ending FBA prep and labeling services in 2026
→ Top 10 videos of 2025 + why rest isn't weakness

Let's get into it.

Global holiday ecommerce sales topped $1.033 trillion between November 1 and December 15—a 7% year-over-year increase.

But here's what matters: consumers spent 35% more time on ecommerce sites (U.S.) and 28% more globally. They're not just browsing—they're researching harder before buying.

What This Means: The days of impulse buys are fading. Shoppers are deliberate. They're comparing prices, reading reviews, and making informed decisions due to economic pressures.

Takeaway for Amazon Sellers: Optimize for longer research cycles. Your product detail pages need to answer every question a buyer might have. Comprehensive listings with detailed images, robust A+ content, and strong reviews will win. Mobile is critical—mobile sales captured the majority of growth.

Source: Digital Commerce 360

AI agents and generative AI tools influenced 22% of global ecommerce sales and 18% of U.S. online sales during the holiday season (Nov 1 - Dec 15).

Retailers using AI shopping agents grew sales 7.2% year-over-year. Retailers without AI? Only 3.6% growth—half the rate.

Amazon's Rufus AI saw an 805% usage surge during Black Friday alone. Shoppers used it for price cross-referencing and review analysis.

What This Means: AI isn't experimental anymore. It's driving double the growth. If you're not optimizing for AI discovery, you're falling behind.

Takeaway for Amazon Sellers: Ensure your product data is machine-readable and comprehensive. AI agents pull from titles, bullet points, A+ content, and reviews. The more complete your listing, the more likely AI recommends your product when customers ask questions.

Source: Digital Commerce 360

Amazon is tightening the screws on FBM (Fulfilled by Merchant) sellers. Starting January 26, 2026, you have 4 calendar days to process refunds—not 2 business days.

If you don't process refunds within 4 days, you lose eligibility for SAFE-T claim reimbursements (except for lost-in-transit or incorrect delivery confirmation cases that aren't your fault).

What This Means: The old strategy of letting Amazon auto-refund and then filing SAFE-T claims is dead. You must manually inspect and process returns within 4 days or forfeit fraud protection.

Takeaway for Amazon Sellers: Set up return inspection workflows immediately. Create alerts for returns requiring action within the 4-day window. Document all return condition issues thoroughly to preserve your SAFE-T claim eligibility. This policy makes return fraud protection dependent on rapid seller response.

Source: Ecommercebytes

Amazon is eliminating FBA prep services and FNSKU label application in 2026. No more polybagging, bubble wrapping, or labeling help from Amazon.

What Changes:

Consequences of Non-Compliance: Rejected shipments, delayed check-in, additional fees, or complete return to sender.

Takeaway for Amazon Sellers: Develop internal prep capabilities or partner with 3PL prep centers now. Budget for increased prep costs. Audit your current shipment compliance rates. Amazon's safety net for prep errors is gone—non-compliant inventory will be rejected outright. Start prepping for this change today.

Source: FulfillMe

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.

But billionaires have long diversified a slice of their portfolios with one asset class that is poised to rebound.

It’s post war and contemporary art.

Sounds crazy, but over 70,000 investors have followed suit since 2019—with Masterworks.

You can invest in shares of artworks featuring Banksy, Basquiat, Picasso, and more.

24 exits later, results speak for themselves: net annualized returns like 14.6%, 17.6%, and 17.8%.*

My subscribers can skip the waitlist.

Skip waitlist

_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

As we close out the year as ecommerce entrepreneurs, a lot of us have been grinding and driving hard the whole year.

At the same time, it's important that we rest and recharge. It's not a sign of weakness—it actually allows your brain to reset, to connect different ideas, to become more creative.

As you spend time with your partner, have quiet time for reflection, or play with your kid (as I will do this week), meanwhile, as a gift to you, I'd like to share the top 10 trainings we created this year. These were the ones most watched by you.

If you do watch them, hit reply and tell me what was the number one takeaway.

THE VITAL FEW (In Case You Missed It)

Happy holidays and have a safe new year! 

Gary

P.S. Taking a vacation this week? Read this