I’ll never forget the morning of January 15, 2026. I logged into Seller Central, coffee in hand, expecting a normal Tuesday. Instead, I saw a notification that made my stomach drop: my "Inbound Defect Rate" had spiked, and my "Low-Inventory-Level" fees were eating 12% of my margin on my best-selling SKU.
I thought I was prepared. I had read the emails. But seeing the actual dollars leaving my account was a different beast.
If you are an Amazon seller right now, you know the feeling. The platform isn't just a marketplace anymore; it’s a complex ecosystem of logistics penalties and efficiency rewards. The question "what are the amazon fees for selling" used to have a simple answer. Now? It depends on where you ship, how you pack, and how well you predict the future.
Here’s where it gets interesting: While most sellers are complaining about the hikes, a small group of us are actually paying less than we did in 2024. It’s not magic; it’s understanding the new rules of the game.
What Are the Amazon Fees for Selling? (The 2026 Baseline)
Before we dive into the new nightmares, let’s ground ourselves in the basics. When someone asks "what is the fee for selling on amazon," the answer is a two-part equation.
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Referral Fee: This is Amazon's commission for bringing you the customer. For most categories, it remains steady at 15%. (Though interestingly, apparel under $15 saw a reduction to 5% to compete with Shein).
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FBA Fee: This is the cost for Amazon to pick, pack, and ship your item. As of January 15, 2026, this base fee increased by an average of $0.08 per unit.
But that $0.08 isn't the story. The story is the "hidden" menu of operational fees that kick in before your product even reaches the customer.
Amazon Seller Fee Changes October 2025 News: The Warning Shot
To understand why your January statement looks so ugly, we have to look back at the amazon seller fee changes october 2025 news cycle. This was when Amazon announced the "Holiday Peak Fees" (which ran from Oct 15 - Jan 14) but also dropped the bombshell about the permanent 2026 structure.
The Big Shift: Amazon essentially told us: "We are not a storage unit. We are a distribution network." They introduced stricter penalties for:
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Sending inventory to just one warehouse (Inbound Placement).
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Running out of stock (Low Inventory).
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Asking them to label your boxes (Prep Services).
My Honest Failure: I ignored the October warnings about the Inbound Placement Service. I kept sending all my shipments to the ABE8 warehouse in New Jersey because it was convenient. When the new rates kicked in, I realized I was paying an extra $0.35 per unit just for the privilege of sending to one location. On a 5,000-unit order, I lit $1,750 on fire because I was too lazy to split the shipment.
The Inbound Placement Service Fee: Pay or Split?
This is the most controversial update. When you create a shipping plan, Amazon now gives you options:
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Minimal Split: Send everything to one place. Fee: High (Avg $0.30 - $0.60/unit).
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Partial Split: Send to 2-3 locations. Fee: Medium.
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Amazon Optimized: Send to 4+ locations. Fee: $0.00.
Now the tricky part... Splitting a shipment into 5 pieces sounds free, but your UPS shipping costs double or triple. I now use an fba fees calculator (specifically InventoryLab’s specialized tool) to do the math before I approve the shipment.My Rule: If the shipment is under 500 lbs, I pay the placement fee. The cost of LTL (Less Than Truckload) freight for 5 tiny shipments is higher than the Amazon fee.
The End of FBA Prep: A Logistics Nightmare
If you missed this in the amazon seller fee changes october 2025 news, you might be in trouble. Effective January 1, 2026, Amazon discontinued FBA Prep and Labeling Services in the US.
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Old Way: I’d send unlabeled glass jars to Amazon, pay them $0.55/unit, and they would bubble wrap and label them.
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New Way: If it arrives unlabeled or unwrapped, it is rejected. Or worse, you get hit with a massive "Inbound Defect Fee."
This forced me to hire a 3PL (Third Party Logistics) in Texas. My prep costs went from $0.55 to $0.85 per unit. However, my "Defect Rate" dropped to zero because the 3PL actually cares about my product. Amazon’s robots did not.
How Much Are Amazon Seller Fees for Low Inventory?
This is the silent killer. The Low-Inventory-Level Fee charges you if you don't keep enough stock. Specifically, if your "Historical Days of Supply" drops below 28 days.
The 2026 Twist: It is now calculated at the FNSKU level, not the Parent ASIN level.
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Scenario: You sell a T-Shirt in Red and Blue.
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2025: If Red was sold out but you had 1,000 Blue shirts, your "average" stock was high, so you paid no fee.
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2026: If Red sells out, you pay the fee on every Red shirt you sell until you restock, regardless of how many Blue ones you have.
Opinion Statement: I hate this fee. It penalizes you for being successful. If a product goes viral on TikTok and sells out, Amazon charges you extra while you scramble to restock. It feels like a "Success Tax."
What Are Selling Fees on Amazon for "Small Bulky" Items?
It’s not all doom and gloom. There is one massive winner in the 2026 updates: The Small Bulky tier.
Amazon realized that items like weighted blankets, heavy textbooks, or dense electronics were being overcharged in the "Large Standard" tier. They created "Small Bulky" for items up to 50 lbs.
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Result: Fees for these items dropped by an average of $2.06 per unit.
Anecdote: I have a friend selling cast-iron skillets. He was barely breaking even in 2025. On January 15, his fees dropped by $2.00 per unit. He didn't change his product. He didn't change his price. He just pocketed an extra $2,000 a month because he fell into the new tier. If you are looking for new products to launch, look for heavy, dense items.
FBA Fee vs. FBM: Is It Time to Switch?
With fba fees rising, many sellers are asking: "Should I just ship it myself (FBM)?"
Let's look at the math for a 1lb item selling for $25.
Verdict: FBA fee structures are still cheaper than buying your own shipping labels one by one, unless you have massive volume negotiations with UPS. Plus, FBA gets you the Prime badge. FBM kills your conversion rate. Stick with FBA, but optimize your inbound strategy.
Using an Amazon Sales Estimator to Predict Fees
You cannot rely on back-of-the-napkin math anymore. I use an amazon sales estimator (like Jungle Scout or Helium 10) combined with the official Revenue Calculator.
But here is the trick: You have to input the "Inbound" costs manually. Most calculators default the "Placement Fee" to zero. You need to toggle the "Placement Options" to "Minimal Split" to see the real worst-case scenario. If I hadn't done this last month, I would have launched a product that lost $0.20 on every sale.
Selling Item Online: Diversifying with Closo
With Amazon squeezing margins, I realized I couldn't leave my "Low Inventory" stock stranded there paying fees. I needed to move it. I use Closo to take that slow-moving Amazon inventory and cross-list it to Poshmark and eBay.
The Closo Demand predictor is invaluable here. If Amazon charges me a "Low Inventory Fee" because a product is selling too fast, I actually pull some stock out of Amazon and sell it on eBay for a higher margin. Why pay Amazon a penalty fee when I can sell it on eBay for the same price with lower fees? Closo automates this inventory balancing act, saving me about 3 hours weekly of spreadsheet headaches.
Common Questions I See
People always ask me... How much are Amazon seller fees for beginners?
If you are on the "Individual" plan, you pay $0.99 per item sold instead of the $39.99 monthly subscription. However, you still pay the 15% referral fee and the FBA fees. Realistically, expect Amazon to take about 35-40% of your revenue for a standard $25 item.
Common question I see... Can I avoid the Low-Inventory Fee?
Yes. The easiest way is to use Amazon Warehousing & Distribution (AWD). This is Amazon's bulk storage service (upstream from FBA). If you keep your bulk stock in AWD and let it auto-replenish FBA, Amazon waives the low-inventory fee because they are in control of the flow.
People always ask me... What is the fee for selling on Amazon if I do FBM?
You only pay the Referral Fee (usually 15%) and the monthly subscription ($39.99). You do not pay FBA fulfillment or storage fees. However, you pay the full cost of shipping the item to the customer, which is often higher than Amazon's negotiated FBA rates.
Conclusion
The era of "passive income" on Amazon is dead. The amazon seller fees in 2026 are designed to punish passive sellers and reward active, efficient operators. If you send in sloppy shipments, run out of stock, or pick the wrong size tier, Amazon will tax you into bankruptcy.
But if you are precise—if you split your shipments, audit your FNSKUs, and hunt for "Small Bulky" opportunities—you can make more money than ever because your lazy competitors are quitting.
My advice?
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Audit your Inbound Strategy: Are you paying placement fees you could avoid?
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Check your Size Tiers: Can you shrink your packaging by 0.5 inches to drop a tier?
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Diversify: Don't let Amazon hold 100% of your fate.
If you have stock that is getting hit with fees, move it. Use the Closo Seller Hub to learn how to liquidate that inventory on other platforms instantly.
For a specific breakdown of the news that caused this shift, read Amazon Seller News Today
And if you are dealing with lost inventory reimbursement (another way to reclaim fees), check out Amazon Reimbursement Service Guide
