As usual, Amazon has announced another round of fee adjustments at the end of its fiscal year. Starting in 2026, the company is revising nearly every element of FBA costs—from storage and packing to inbound defect charges and Multi-Channel Fulfillment logistics.
Fulfillment 2026: Precision Over One-Size-Fits-All
The updated FBA fulfillment fee structure is a shift toward much more granular pricing. Amazon introduces additional weight tiers and value segmentation, reducing cross-subsidizing between product types.
The average increase is about $0.08 per unit, but some brackets go up more noticeably:
• Items priced under $10 increase by around $0.12.
• Large standard-size products increase by up to $0.31.
• Extra-Large items now include a new Overmax handling fee ranging from $17 to $25.
E-commerce analysts note that Amazon is fine-tuning its internal cost model, passing the real processing load to sellers. Any manual handling, oversized movement, or additional packaging now comes at a price. The more precisely a seller manages weights, dimensions, and product preparation, the less they pay.
If you're running a Private Label brand—or planning to enter the marketplace—now is the moment to revisit your packaging and logistics setup. A refined box design or a few millimeters shaved off a dimension can generate 3–5% per-unit savings.SIPP: When Packaging Becomes a Strategic Asset
Amazon’s Ships in Product Packaging (SIPP) program turns into a competitive advantage in 2026. It now applies only to items up to 20 lb, but the discounts remain meaningful: $0.04 to $0.14 per unit.
What was once a “nice to have” is now a serious optimization lever. If Amazon can ship your product in its original packaging without re-boxing, your fulfillment costs drop—and Private Label brands with optimized packaging gain an instant bump in margin.
At the same time, large items shipped without SIPP qualification will incur a Packaging Fee of up to $4 per unit. Amazon is pushing brands to rethink their structural design: certify your packaging for SIPP and reduce overhead instead of absorbing unnecessary fees.Inbound Defect Fees: Stricter Receiving Standards
Starting in 2026, Amazon raises the stakes on receiving accuracy. Any defective or incorrectly shipped inventory now falls under a unified fee of $0.32–$1.74 per unit—10 to 15 times higher than last year.
This marks Amazon’s shift toward “zero-tolerance logistics.” The marketplace no longer wants to serve as a buffer for operational mistakes. Every mislabel, miscount, or misrouted shipment becomes a direct cost to the seller.
To avoid penalties and delays, sellers should adopt more automation: use FBA API for shipment planning, synchronize with 3PL systems, and control routing programmatically. Operational stability is no longer optional.Storage and Long-Aged Inventory: Amazon Doesn’t Want Full Warehouses
Aged Inventory Surcharge gets one of the most visible changes. Amazon sets new thresholds:
• 366–455 days: $6.90 per cubic foot or $0.30 per unit
• 456+ days: $7.90 per cubic foot or $0.35 per unit
Effectively, even year-old stock now gets penalized. Clothing and footwear remain the only exceptions with later fee activation.
Amazon sends a clear message: FBA is not a long-term storage facility. Sellers are pushed toward AWD, Outlet liquidation, or prompt removals.
Turnover remains a critical success factor. Brands that forecast demand accurately and replenish at the right pace will benefit most.Removal and Disposal Fees: Light Items Get Cheaper
A small but positive update: removing or disposing of lightweight standard-size inventory (up to 0.5 lb) now costs $0.84 instead of $1.04. This makes it cheaper to clean up dead stock and maintain a healthy assortment.
In many cases, paying $0.84 to clear out an obsolete SKU is far cheaper than a year of aged inventory fees.AWD and Multi-Channel Distribution: Flexibility Takes Center Stage
Amazon Warehousing & Distribution (AWD) is evolving into a hybrid logistics tool rather than just off-site storage. You can keep bulk inventory outside FBA and auto-replenish as needed.
AWD costs:
• Storage: $0.48 per cubic foot
• Handling: $1.35 per box
• Transportation: $1.15 per cubic foot
This setup helps sellers reduce low-inventory fees and maintain high availability without paying FBA rates for long-term stock.
Multi-Channel Distribution (MCD) now uses a distance-based model: the farther the delivery, the higher the rate—from $0.50 to $0.95 per pound. Palletized shipments remain more cost-efficient. For larger Private Label brands, this is a sign to build distributed supply chains with multiple regional nodes.MCF and Preferred Pricing: Amazon Encourages Multi-Channel Growth
MCF remains more expensive than FBA, but Amazon introduces a new incentive system—Preferred Pricing. Sellers shipping 1,200–23,000 MCF units over 12 weeks can earn:
• Up to 15% off MCF fulfillment
• A $1 FBA credit per MCF shipment (up to $50,000)
Coupons and Promotions: More Predictable Budgets
Starting November 2025, coupon costs follow a clearer structure:
• $5 to create a coupon
• 2.5% of sales, capped at $2,000
Summary of Key Changes
| Category | 2025 | 2026 |
|---|---|---|
| Inbound Defect Fees | $0.02–$0.07 | $0.32–$1.74 |
| Aged Inventory Surcharge | $6.90 or $0.15/unit | $6.90–$7.90 or $0.30–$0.35/unit |
| Removal/Disposal (0.5 lb) | $1.04 | $0.84 |
| SIPP Discount | up to $1.32 | $0.04–$0.14 |
| Packaging Fee (non-SIPP) | — | $1.5–$4 |
| Overmax Handling Fee | — | $17–$25 |
| MCF Preferred Pricing | not available | up to –15% + $1 FBA credit |
The Bottom Line: A New Economics for Amazon Sellers
Amazon is optimizing its operational costs, but sellers face a more complex cost model. The positive side: pricing becomes clearer and more predictable, and Amazon provides more tools to help brands scale. Naturally, these tools come with a price tag.
Growing fees shouldn’t be viewed as a dead end. With smart product design, improved packaging, and more efficient logistics, sellers can turn the updated rules into a competitive edge. Key focus points include:
• Optimized packaging and automation reduce operational costs.
• Smarter inventory planning ensures higher turnover and fewer penalties.
• AWD and MCF enable multi-channel expansion without losing logistical efficiency.
Book a call now…
Book a call now…
Up to 45-min duration video-call
Topics we'll discuss:
| The next steps — there are two options
|