Amazon's Merchant Uprising Meets an $11.6 Billion Space Gambit

Amazon contends with a coordinated merchant protest over new fees as it invests $11.6 billion to acquire Globalstar and challenge SpaceX's Starlink with Project Kuiper.

A coordinated merchant revolt and a massive satellite acquisition are defining a pivotal moment for Amazon. The e-commerce giant faces internal friction from its third-party sellers while making a bold, $11.6 billion move to challenge SpaceX in orbit by acquiring satellite operator Globalstar.

The merchant conflict escalated this week as a new 3.5 percent fuel surcharge on U.S. and Canadian fulfillment fees took effect on April 17. This charge, averaging 17 cents per shipped unit, comes as sellers already grapple with import tariffs and high energy costs. It was one of three policy changes that sparked a rare, organized protest. The other two involved shifting advertising payments to automatic account debits and delaying seller revenue payouts to seven days after delivery instead of shipment, a move that ties up crucial working capital.

In response, hundreds of major sellers boycotted Amazon's advertising platform for 24 hours on Wednesday. The action was organized by "Million Dollar Sellers," a community of over 700 members generating a combined $14 billion in sales. Amazon offered a partial concession, delaying the advertising payment change until August 1, 2026, and compensating affected sellers with $12,500 each in click credits over five months. However, the company is holding firm on the fuel surcharge, which several sellers have stated they will pass on to consumers. Industry observers doubt the charge will be temporary, noting Amazon introduced a similar surcharge in 2022 and kept it permanently.

Simultaneously, Amazon is making a colossal strategic bet beyond Earth's atmosphere. Its agreement to acquire Globalstar for approximately $11.6 billion, offering shareholders $90 per share in cash or 0.3210 Amazon shares, is a direct assault on SpaceX's Starlink. The deal aims to merge Globalstar's existing satellite infrastructure with Amazon's resources to accelerate its Project Kuiper broadband network. With over 200 satellites already launched and plans for roughly 3,200 by 2029, Amazon is under regulatory pressure to have about half of its constellation operational by mid-2026—a timeline Globalstar's licenses could help meet.

The market reacted favorably to the satellite news, with Globalstar shares jumping over 9% in pre-market trading. Amazon's stock also saw a modest gain, recently trading at around 211 euros. This price sits comfortably above its 200-day moving average and represents a 39 percent recovery from its April 2025 52-week low.

Both developments underscore Amazon's immense capital deployment. CEO Andy Jassy recently reaffirmed plans to invest roughly $200 billion in infrastructure this year, a sharp increase from $131 billion the prior year, with AI data centers and satellite logistics as key focuses. The health of its third-party ecosystem is critical to funding this ambition; these sellers account for 60 percent of Amazon's marketplace volume, and its advertising business, which grew 23% to $21.3 billion in Q4 2025, relies heavily on them.

All eyes are now on April 29, 2026, when Amazon reports its first-quarter earnings. The results will reveal whether the merchant conflict is leaving a mark on fulfillment and advertising revenue and if the company's aggressive investment strategy is beginning to show returns or simply pressuring margins further.