Amazon 2026 Fee & Policy Update: What Sellers Must Know and How to Prepare

Oct 17

Amazon will end FBA prep and labeling services in the U.S. on January 1, 2026, and modestly raise fulfillment fees. Here’s what’s confirmed, what’s still emerging, and how every Amazon seller can get ready in time.

Table of Contents

Confirmed Amazon 2026 fee Changes by Category
Emerging Trends & Unconfirmed Shifts
Step-by-Step Seller Game Plan
API and Automation Changes
Vendor & 3PL Strategy
Cost Modeling and Margin Impact
Risk & Dispute Handling
FAQ for Amazon Sellers
Amazon 2026 FBA Prep & Fees Readiness Checklist

Every year Amazon adjusts its fee structure, but 2026 marks one of the biggest operational shifts sellers have seen in years. For the first time, Amazon will no longer step in to label, poly-bag, or bundle your inventory.

That means every unit you ship must be FBA-ready before it reaches an Amazon fulfillment center. For some brands, that’s just a small workflow change. For others—especially those who relied on Amazon’s in-house prep—it’s a complete supply-chain redesign.

If you sell on Amazon, this guide will help you:

Understand what’s confirmed and what’s still developing in the 2026 policy landscape.
Learn exactly how to adapt your inbound and packaging processes.
Avoid hidden costs, rejected shipments, and last-minute chaos.

Let’s unpack everything clearly and step by step.

Confirmed Amazon 2026 Fee Changes by Category

Starting January 1 2026, Amazon will end all U.S. FBA prep and labeling services.
This means:

You (or your prep partner) must perform all labeling, bagging, and bundling.
In the API world, prepOwner = AMAZON and labelOwner = AMAZON will no longer be valid fields.
The rule covers inventory routed through AWD, AGL, Amazon SEND, and Supply Chain Portal—not just classic FBA shipments.

Why it’s happening: Amazon says it’s streamlining operations and expanding automation in fulfillment centers. In practice, this passes more control—and responsibility—to sellers.

Modest Fee Adjustment

Amazon’s 2026 announcement also adds an average $0.08 per-unit increase to U.S. FBA fulfillment fees. Referral fees remain unchanged.

Holiday Peak Fees Continue

Expect holiday peak surcharges from Oct 15 2025 → Jan 14 2026.
Rates mirror last year’s schedule. Build this into your Q4 margin forecasts.

Amazon Fee Changes by Category

Fulfillment & FBA

Modest average increase (+$0.08/unit) but cumulative across SKUs and surcharges.
Light products see smallest bumps; heavy or oversized items face multiple layered fees.

New & Secondary Fees

Inbound Defect Fees up to $1.74 standard / $5.72 bulky — major risk area for labeling or routing errors.
Low-Inventory-Level Fees (LIL): new, data-driven fee per SKU, $0.32–$2.09.
Overmax Handling: +$17–$25 per oversized unit, often overlooked.

Storage & Logistics

AWD Storage (West Region) up 19%; transportation +20–22%.
Both inbound/outbound box fees add $0.05 each per box.
Leverage Smart Storage/Managed Storage discounts to offset.

Multi-Channel / Prime / Returns

MCF: +$0.30/unit.
Buy with Prime: +$0.24/unit but minimum fee drops to $0.30 (was $1).
Returns Fee: newly introduced for high return categories.

Master Summary at One Glance

      
        
            Category
            2025 Rate
            2026 Rate / Change
            Difference / % Change
            Notes / Source
          

        
            Average FBA Fulfillment Fee
            —
            + $0.08 per unit (avg.)
            ~ +1–3%
            Across standard sizes
          

            Small Standard (≤16 oz)
            $3.15
            $3.42
            + $0.27
            2026 fee table
          

            Large Standard (1 lb)
            $4.99
            $5.04
            + $0.05
            Standard-size $10–$50
          

            Large Standard (2 lb)
            $5.77
            $6.08
            + $0.31
            Heavier tier
          

            Products < $10
            —
            + $0.05 per unit
            —
            Low-Price FBA discount now $0.86
          

            Products > $50
            —
            + $0.31 per unit
            —
            Handling/returns
          

            Overmax Handling Fee (Extra Large)
            New
            0–50 lb: +$17; 50–70 lb: +$21; 70–150 lb: +$25
            —
            Oversized items
          

            Low-Inventory-Level (LIL) Fee
            N/A
            $0.32–$2.09 per unit
            New
            Now per FNSKU (<28 days)
          

            Inbound Defect Fee
            $0.02–$0.07
            $0.32–$1.74
            + $0.25 to + $1.67
            Unified defect fee
          

            Inbound Defect (bulky)
            —
            Up to $5.72
            —
            Largest tier
          

            FBA Removal / Disposal / Liquidation
            2025 rates
            Rise in 2026
            —
            Orders before Jan 15 follow 2025
          

            Returns Processing Fee
            —
            New fee
            —
            —
          

      
    

What’s Still Evolving (Keep an Eye On)

Not every rumor is official policy yet. Some changes are emerging trends, not firm rules—so treat them with healthy caution.

Performance based deal fees: Analysts and sellers report Amazon is tying Lightning Deals and coupons to performance metrics rather than flat rates.
→ Likely true in part, but Amazon hasn’t published universal documentation.
Reimbursement calculations: Some sellers report Amazon increasingly referencing manufacturing cost when processing reimbursement claims for lost or damaged units.
→ Again, treat this as a developing practice; confirm what applies to your category in Seller Central.
Carry over rule: Secondary sources say shipments created before Jan 1 2026 may still be processed under the old prep model.
→ This is probable but not guaranteed. Assume no grace period to stay safe.

How to Prepare: A Step by Step Game Plan

Whether you’re a solo private label seller or a large brand, the path to compliance follows the same logic: audit, plan, pilot, scale, and monitor.

Step 1. Audit Your Inventory & Prep Dependence

Start simple: list every SKU and note what Amazon currently handles for you: labels, bubble wrap, bundling, suffocation warnings, etc.
Mark which SKUs are “clean” (already FBA ready) versus those needing intervention.

This helps you understand where your risk lies.

Step 2. Map Out Prep Requirements per SKU

For each item, specify:

Packaging type and materials
Barcode placement and orientation
Polybag thickness / warning labels (for textiles)
Fragility protection needs
Bundling rules (kits, multipacks)

Creating a SKU by SKU “prep spec sheet” avoids future mistakes and disputes.

Step 3. Decide Where Prep Will Happen

You have three options:

Prep Models: Pros / Cons / Best For
      
            Model
            Pros
            Cons
            Best for
          
            In-house
            Full control, fast turnaround
            Labor, space, training required
            Medium–large brands with warehouse staff
          
            3PL / Prep Center
            Expertise, scalable SLAs
            Per-unit cost, surge pricing risk
            Sellers without internal logistics
          
            At Origin (Factory)
            Lowest unit cost
            QC risk, communication complexity
            Brands with reliable manufacturing partners

Step 4. Strengthen Your QC & SOPs

Create photo checklists for each SKU showing:

Correct label location
Packaging appearance
Any warnings or bundle markings

Log errors and Amazon rejections; feedback those lessons to your prep team or vendor. Keep timestamped photos and carton labels. They’re essential evidence if Amazon disputes arise.

Step 5. Address Edge Cases Early

Some product types need extra attention:

Bundles & kits: ensure the outer barcode is dominant and scannable.
Fragile goods: define drop test or packaging standards (e.g., corner protection).
Textiles / soft goods: ensure required suffocation warnings.
Hazmat items: pre-verify compliance before shipping.

The Tech Side: API and Automation Adjustments

If you or your software connects to Amazon’s Fulfillment Inbound API, you’ll need to update your workflows.

Checklist for developers or integrators:

Remove AMAZON from prepOwner / labelOwner in U.S. shipments.
Validate your inbound plans—missing prep data may now trigger API errors.
Test endpoints like listInboundPlanItems and listInboundPlanBoxes to ensure correct metadata.
Add pre-flight validation to block shipments without prep details.

This avoids broken automations or silent rejections once the policy activates.

Vendor & 3PL Strategy: Avoid the Capacity Crunch

Because tens of thousands of sellers will scramble for prep capacity by late 2025, it’s smart to book early.

When evaluating a prep partner, look for:

Proven Amazon FBA expertise (error/reject rate < 1%)
Geographic proximity to major fulfillment centers
Transparent per-unit pricing (no hidden rework fees)
API or portal integration for tracking
Ability to scale volume during Q4

Pilot before you commit.
Send a small batch first, review acceptance rate, cycle time, and cost. Then scale up.

Model the Costs Before They Surprise You

Even small changes add up across thousands of units.
Here’s a sample framework:

Cost Component

    Unit Cost Components: 2025 (old) vs 2026 (new)
    
          Cost Component
          2025 (old)
          2026 (new)
        
      Amazon prep$0.40—
3PL prep + label—$0.65
QC / rework buffer—$0.05

          FBA fulfillment
          $3.00
          $3.08 + $0.08 avg increase
        
Other costs (ads, returns)$1.50$1.50

          Total cost / unit$4.90$5.28 +7.8%

Margins shrink quickly when combined with peak surcharges and potential reject losses. Build sensitivity tables for:

0.5 % reject rate
+10 % vendor cost
1–2 day shipping delays

Risk, Rejection, and Dispute Management

If Amazon receives unprepped units after the cutoff:

Expect rejection or disposal fees.
Build a return-to-vendor or rework contingency.
Keep comprehensive documentation (photos, invoices, tracking IDs).
For reimbursements, attach manufacturing invoices and photo evidence within the claim window.

Also maintain safety stock outside FBA in early 2026 to protect against launch hiccups.

Quick FAQ for Sellers

Q1. Will Amazon still fix mistakes?
No. After Jan 1 2026, Amazon will not perform any prep or labeling on U.S. inbound shipments.

Q2. Can I sneak in shipments created in December?
Some sources suggest they’ll be accepted, but Amazon hasn’t confirmed it. Treat it as possible but unsafe—finish transition before year-end.

Q3. How much higher are 2026 fees?
Average + $0.08 per unit, depending on size tier.

Q4. What about deal or coupon fees?
Amazon appears to be testing performance-based structures. Confirm terms in each deal console before launching.

Q5. What if my prep vendor makes a mistake?
You’re responsible for compliance. Track reject codes, and negotiate SLAs or reimbursement clauses with your vendor.