
The changes to referral and Fulfillment by Amazon fees on Amazon in 2027 have implications for how sellers should look at their product profitability, storage, restocking, promotions and multi-channel fulfillment.
Most changes will come into effect on the 15th January 2027. Some key changes to storage, inventory, AWD, MCD and promotion charges will come into effect on the 1st February. The new AWD storage charges based on age will also come into effect on the 1st March.
Amazon has said they expect an average increase in FBA fulfillment fees of $0.19 per item sold (or around 0.8% of the average selling price of products). However, this can be misleading. Some ASINs will have minimal changes, while higher priced small standard size products, bulky inventory and items that lose Low Price FBA eligibility could see a more significant impact to margins.
Rather than raising your prices across the board it is important to understand the changes on a product by product basis to identify where you are seeing increases, potential savings and what changes you can make to protect your margins.
The 2027 update changes fulfillment fees according to product price, dimensions, weight, and size tier.
For standard-size products priced between $10 and $50:
For standard-size products priced above $50:
For products priced below $10:
The Fuel and Logistics Surcharge will not change. Sellers will need to take into account the new base fulfillment fee and surcharge when determining true cost per order.
There could be an entirely different impact on a seller who sells large, light standard size items compared to a seller who sells small high priced items. The fees will vary based on the size of your packaging and weight of the item being shipped despite having the same selling price.
Sellers should use the Fee Change Comparison dashboard on Amazon and the Revenue Calculator to understand the new contribution margin of each ASIN. This will take into account referral fees, fulfillment costs, storage, advertising, returns, discounts and COGS.
The 2027 update is cutting down on the product categories that qualify for Low-Price FBA rates. Products in these categories will be charged the same rates as those priced between $10 and $50.
Affected categories include:
This change could place significant pressure on products operating with low selling prices and thin dollar margins.
Calculate the revised fee for every affected ASIN and determine how much profit remains after advertising and returns. Possible responses may include:
A product that generates sales but contributes little or no cash after fees is not helping the business scale. Revenue should never be confused with profit.
Amazon is replacing the existing small and large bulky classifications with four tiers: small bulky, medium bulky, large bulky, and extra-large bulky.
The extra-large structure will also be replaced with six oversize tiers:
Smaller lighter items will be cheaper to fulfill whilst larger heavier products may cost more. Amazon has also altered their pricing structure for irregular items by removing the overmax handling fee. They now charge a flat rate for the product and overhang.
Incorrect measurements can cause an ASIN to be placed into a higher priced tier and cause you to be overcharged every time you sell units. Check your measurements against those on Amazon.
Optimizing the packaging can often save money. By reducing the empty space, changing the inserts or the external carton, you could push the product into a better tier. Even small savings can add up when you have thousands of orders per year.
From February 1, 2027, Amazon will remove the storage utilization fee. There will also be a removal of the separate aged inventory fee, which will now be incorporated into the monthly storage fees with an age-based fee.
Products sold within 6 months will have a flat or reduced storage fee. Items with a longer storage period will have increased fees.
This will help reduce complexity around storage costs as you won’t have to pay three different charges (monthly, usage and aged) and work out what you should be paying.
But this doesn’t mean all sellers will pay less. If you have slow moving stock then you could be paying more. Sellers should look at how old their stock is and decide which units should be promoted, deselected, discounted or left to sell.
Fast moving brands can have more predictable planning for major events. Businesses that predict demand well and have good stock turnover will benefit most.
You want to have enough stock to not lose sales but not too much that you are left with products that are in stock for long periods of time.
The low stock charge will only apply if the product has less than 28 days of supply based on actual shipment data in the 4 weeks prior and 4 weeks after the assessment date.
Based on post-assessment sales, Amazon is able to confirm that the stock shortage was not caused by a temporary increase in sales, seasonal drop or end-of-life product but due to sustained demand.
Build replenishment plans around reliable demand forecasts rather than one short period of high sales. Sellers should:
Because the calculation includes future shipments, a fee may not be fully confirmed at the original assessment date. Maintain clear financial records and review later adjustments carefully.
From February 2027, Amazon will charge a $5 fixed fee and variable fee of 2% (up to a maximum of $2,000) for Buy X, Get Y promotions. Promotion fees will also change to a monthly billing model.
Promotions should be considered based on the additional profit generated.
Before launching an offer, account for:
A campaign that increases unit sales but reduces total contribution profit may create activity without creating business value.
The 2027 adjustments extend beyond standard FBA orders.
As of February 1, AWD will cost $1.55 per box and $1.58 per cubic foot. Amazon will also offer a single SKU pallet pricing discount of 40% on the inbound processing fee.
As of March 1, inventory stored over 12 months will be charged 2.5x the standard AWD storage fee. AWD will also be charged the current fuel and logistics surcharge from February 1.
We recommend sellers consider the single SKU pallet discount when looking at the cost of preparing pallets, shipping, storage and restocking. Consider AWD long term storage as a conscious decision and not a default option for overstock.
Standard speed MCF and Buy with Prime fulfillment rates will see an average increase of 3.5%. Express rates will be unchanged. Amazon will also be introducing Preferred pricing until 2027 so eligible companies will be able to save 25% on fulfillment costs. There will be a new charge on boxed returns, and anyone fulfilling orders on Shopify, Social Media or Marketplaces with Amazon stock should make sure they check their profitability at channel level.
Pallet loads will increase by 8% and box loads by 1.5% from February 1st. The Fuel and logistics surcharge will also be applied to MCD. You might want to consider the cost of different shipping options.
Remote Fulfillment fees will increase by an average of:
PanAmericas charges will increase by $0.13 on average for products sold from the US to Canada. This is due to the company introducing a fuel and logistics surcharge on January 15th.
International sellers will need to factor in currency differences, international fulfilment costs, duties and refunds, and advertising costs to determine if they are making a profit. Products that are selling well in the USA might not have a winning margin in another country.
Not all the changes will mean an increase in costs. Amazon is reducing referral fees for 3D printers to 12% of the first $200 of sale price and 5% thereafter. This will apply from November 5th 2026. Eligible renewed Amazon products will receive a promotional referral fee of 10% until October 18th 2027.
New Selection will give qualifying users free storage, free returns, free liquidation and promotional credits on eligible new products. Up to $600 of referral fees will be given on eligible new products.
You will need to check if your products are eligible. If you are able to make a profit from reduced costs early on you will have more opportunities for advertising, testing new products, and gaining reviews.
A practical readiness plan should include the following steps:
Start with high-volume ASINs. A small per-unit error on a bestseller can cost more than a large error on a product that rarely sells.
Understanding fee announcements can be a complex task to turn into hundreds of accurate decisions. We can help you understand how new fees will affect your business. We look at multiple factors for your products including price, category, size, sell through, advertising performance, stock age, fulfillment. This gives detailed information on how the fee will affect you.
Our team can support your business with:
The aim is to understand where you can make changes to your pricing, packaging, stock, advertising or fulfillment to maintain or improve your profitability.
Most fulfillment changes will come into effect from January 15th 2027. Major changes to storage, low stock, AWD, MCD and billing will come into effect from February 1st.
Amazon has stated that on average fees will increase by $0.19 per unit. This will depend on your product price, measurements, weight and size tier.
Yes. The surcharge will be removed on February 1st 2027. A new storage fee will be applied, based on the age of your stock.
The fee will apply when your stock falls below 28 days supply. This will be based on actual stock shipped in the 4 weeks before and after assessment.
Model your fees, check your measurements, recalculate your margins, check your stock age, update your restocking, and reassess your promotions and fulfillment.
The 2027 fee changes will not impact all products in the same way. If you’re using an average you’ll miss some of your biggest risks and cost saving opportunities.
If you start planning for the changes early you’ll have time to clean up your catalog, change your pricing, clear out old stock, change your promotions and improve your replenishment.
Don’t use the first 2027 settlement report for your impact analysis.
Request our 2027 Amazon Fee and Profitability Audit.
Understand exactly which ASINs need work done, which products are still performing well and where you can make improvements to your operations to protect your margin in the coming year.
Schedule a strategy call with our team.
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