I’ll never forget the morning of October 22, 2025. I was sitting in my home office, scrolling through emails, when the subject line hit me like a freight train: "Update to U.S. Referral and Fulfillment by Amazon Fees for 2026."
Usually, these emails are boring corporate speak. But as I read through the bullet points, my stomach dropped. The "Inbound Placement Service" fee was increasing. The "Low-Inventory-Level" fee was getting stricter. And the kicker? Amazon was essentially firing themselves from doing my prep work.
If you are an Amazon seller, you know that amazon fba news isn't just news—it’s a weather report for your bank account. The updates rolling out in 2026 aren't just small tweaks; they are a fundamental shift in how we do business. The days of sending messy boxes to one warehouse and letting Amazon figure it out are officially over.
Here’s where it gets interesting: While everyone else is panicking about the fees, there are massive opportunities hiding in the fine print—specifically for sellers willing to embrace the new "Small Bulky" tier.
Amazon FBA News Today: The 2026 Landscape
When we look at amazon fba news today, the theme is undeniable: Efficiency. Amazon is telling us, loud and clear, that their warehouses are for fulfillment, not storage or prep.
In previous years, we could treat FBA like a giant attic. We’d send in six months of inventory, maybe unlabeled, and pay Amazon a small fee to stick barcodes on it. Amazon fba news 2026 confirms that era is dead. With the new "Inbound Defect Fees" ramping up, one wrong label or one misrouted box can cost you more than the profit on the item itself.
Opinion Statement: I believe this is actually good for professional sellers. It raises the barrier to entry. The "get rich quick" dropshippers who clog up the warehouses with junk can't survive these logistics costs. If you are organized, you have less competition.
Amazon FBA Fee Changes October 2025 News: The Holiday Hangover
To understand the current pain, we have to look back at the amazon fba fee changes october 2025 news. This was the announcement that set the stage for our current reality. From October 15, 2025, to January 14, 2026, we dealt with "Peak Fulfillment Fees."
For me, this meant an extra $0.35 per unit on my best-selling kitchen gadget. I had to make a tough call: Raise prices and risk losing the Buy Box, or eat the margin? I raised prices. My sales volume dropped 10%, but my net profit stayed stable.Lesson: Amazon shoppers are less price-sensitive during Q4 than you think. Don't be afraid to pass these fees on to the customer.
But the scary part of the amazon fba news October 2025 cycle wasn't the temporary peak fees; it was the announcement of the permanent operational changes that kicked in on January 15, 2026.
Amazon FBA News 2026: The End of FBA Prep
This is the headline that should scare you. Effective January 1, 2026, Amazon has discontinued FBA Prep and Labeling Services in the US.
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Before: I paid Amazon $0.55/unit to bubble wrap my glass tumblers.
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Now: Amazon rejects the shipment if it isn't prepped before it arrives.
This forced me to scramble. I couldn't wrap 2,000 units in my garage. I had to find a 3PL (Third-Party Logistics) partner. I called MyFBAPrep and DCL Logistics. They were slammed. Everyone was trying to get in. I eventually found a local warehouse in Texas to handle it, but my costs went from $0.55/unit (Amazon) to $0.85/unit (3PL + Shipping).
Honest Failure: I waited too long. I didn't sign a 3PL contract until December 2025. By then, my Q1 inventory was sitting at the port, and I had nowhere to send it. I missed the first two weeks of January sales because my stock was stuck in "prep purgatory." Takeaway: If you haven't secured a prep partner yet, stop reading this and do it now.
The New "Small Bulky" Tier: A Hidden Gem
It’s not all bad news. One of the best updates in amazon fba fees news is the creation of the "Small Bulky" size tier.
Previously, if you sold something like a dense yoga block or a heavy textbook, you got hammered with "Large Standard" fees. Now, items up to 50 lbs that fit specific dimensions get a discount. Savings: Roughly $2.06 per unit on average.
Here’s where it gets interesting... I have a friend who sells weighted blankets. This single change saved his business. He went from losing money on every unit to making a healthy $4 profit. If you are sourcing new products, look specifically for "Small Bulky" items. The competition hasn't caught up to this margin opportunity yet.
Inbound Placement Fees: The "Split" Dilemma
The amazon updates on Inbound Placement Service fees are tricky.
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The Rule: If you send your inventory to just one warehouse (e.g., ABE8), Amazon charges you a premium to spread it across the country.
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The Loophole: If you split the shipment yourself into 4+ locations, you pay no fee.
In 2026, the fee for the "Minimal Split" option increased by about $0.05/unit. That sounds small, but on 10,000 units, that's $500.
I use InventoryLab to build my shipments. It helps me visualize the cost. Often, the cost of shipping 5 small boxes to 5 states is higher than just paying Amazon the placement fee to take one big pallet. My Rule of Thumb: If the shipment is under 500 lbs, I pay the placement fee. If it's over 500 lbs (pallet size), I split it myself to save on freight.
FBA Sales and the "Rufus" AI Impact
We can't talk about fba sales without mentioning Rufus, Amazon's AI shopping assistant. Rufus doesn't just match keywords; it reads your reviews and answers customer questions.
Amazon fba news outlets are reporting that products with "Question-Answer" style bullet points are seeing a conversion boost. Instead of writing "100% Leather," write "Real Leather Construction: Durable enough for hiking, soft enough for daily wear." Rufus picks up on "hiking" and "daily wear" to answer customer queries.
I rewrote my bullet points in December to be more conversational. My conversion rate bumped up by 1.5% in January. It works.
Analyzing Market Shifts with Closo Demand Predictor
With fees rising, you can't afford to launch duds. You need data. I use Closo to validate demand before I even source a product.
The Closo Demand Predictor is crucial because it looks at data outside of Amazon. It shows me what is trending on Poshmark, eBay, and Mercari. Why does this matter for FBA? Because trends usually start on social commerce (Poshmark/TikTok) about 3 months before they hit Amazon mass market. If Closo shows a spike in "Checkerboard Decor," I know I have a 90-day window to get those items into FBA before the market floods.
I also use Closo to cross-list my FBA returns. Instead of paying Amazon's disposal fees, I create a removal order, get the items back, and list them on eBay using Closo. It recovers about 30% of my capital.
The Low-Inventory-Level Fee: The FNSKU Trap
This is the most dangerous update in amazon fba news 2026. The "Low-Inventory-Level Fee" penalizes you for running out of stock. If your "Historical Days of Supply" drops below 28 days, you get charged a fee on every unit you sell until you restock.
The Change: It is now calculated at the FNSKU level, not the parent ASIN level.
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Old Way: If I had plenty of Blue shirts, but Red was out of stock, the "Parent" stock level saved me.
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New Way: If Red is low, I pay the fee on Red units, even if Blue is overstocked.
This forces us to be precise. You can't just rely on your best-selling variations to carry the load. You have to manage inventory for every single color and size independently.
Amazon Updates 2026: Fee Comparison Table
Here is a quick look at how the costs have shifted for a standard 1lb item.
Common Questions I See
People always ask me... Is the Low-Inventory Fee avoidable?
Yes, but it requires "upstream storage." The fee is waived if you use Amazon Warehousing & Distribution (AWD). This is Amazon's bulk storage service that auto-replenishes FBA. It's their way of forcing you into their full supply chain ecosystem.
Common question I see... Will Amazon bring back Prep Services?
I doubt it. Amazon is automating their fulfillment centers with robotics (like the new Sequoia robots). These robots need standardized packaging before they enter the system. Loose items or items needing bubble wrap slow down the robots. This is a permanent shift toward automation.
People always ask me... How do I fight the Inbound Defect Fees?
Precision. You used to have a 5% buffer on shipment quantities. That is gone. If you say you are sending 100 units, send exactly 100. I use a digital counting scale now. Human counting errors are too expensive in 2026.
Conclusion
The headline for amazon fba news this year isn't "Growth"—it's "Discipline." The 2026 fee changes are designed to weed out the amateurs. If you are sending in random boxes of un-prepped inventory, running out of stock constantly, and ignoring your FNSKU metrics, you will lose money this year.
But if you tighten your logistics, partner with a good 3PL, and take advantage of the Small Bulky tier, you can actually increase your margins while your competitors quit.
My recommendation? Audit your inventory today. Check your "Historical Days of Supply" for every FNSKU. If you are close to 28 days, ship more stock immediately.
And if you need to offload that "Low Inventory" stock without paying fees, use the Closo Seller Hub to learn how to move it on other marketplaces.
For a broader look at the Amazon ecosystem changes, read Amazon Seller News Today
And if you are looking for new product ideas that fit these fee structures, check out Jungle Scout Review to see how to estimate sales for "Small Bulky" items.
