Every year, Amazon announces updates to its fulfillment fees, a topic that often leaves sellers anxious about rising costs. For 2025, however, Amazon has surprised its community of sellers with a rare and welcome announcement: there will be no increase in US referral and Fulfillment by Amazon (FBA) fees. In fact, some fees will be reduced, and Amazon is introducing new benefits aimed at supporting seller growth and encouraging product diversity.
This development brings a sense of stability and predictability for Amazon sellers, allowing them to plan their strategies without worrying about sudden cost increases. With the introduction of reduced fees and enhanced incentives, Amazon appears committed to fostering a positive ecosystem for its sellers. Let’s explore these updates in detail.
FBA Fee Freeze and Reductions: A Break from the Norm
In past years, sellers have often faced incremental fee hikes, putting pressure on their profit margins. But for 2025, Amazon is breaking this pattern by freezing US referral and FBA fees, a decision that will significantly benefit sellers by preserving their operational costs.
Moreover, Amazon is introducing specific fee reductions designed to lower the financial burden on sellers handling bulky products or launching new items. For instance, starting January 15, 2025, inbound placement service fees for bulky products will drop by an average of $0.58 per unit, minimizing the cost of shipment splits.
Another standout benefit is for those leveraging the FBA New Selection Program. Sellers launching new products under this program will be eligible to ship up to 100 qualifying units without paying inbound placement fees. This initiative not only reduces upfront costs but also encourages sellers to experiment with new products, an essential strategy for scaling their businesses in a competitive marketplace.
These fee reductions signal Amazon’s intent to create an ecosystem that promotes growth and experimentation, especially for small and medium-sized sellers.
Enhanced Incentives: Encouraging Product Diversity and Growth
Amazon’s updates for 2025 also include enhancements to its incentive programs, particularly the FBA New Selection Program, which has been supercharged to benefit sellers introducing products in high-demand yet underrepresented categories. From December 1, 2024, through March 31, 2025, sellers will enjoy waived inbound placement fees for up to 100 units of new parent ASINs, giving them a significant edge when testing new products.
Additionally, starting January 15, 2025, Amazon will roll out targeted fee discounts for underserved markets, providing a win-win scenario for both sellers and consumers. This focus on underrepresented categories opens doors for sellers to tap into new markets with reduced financial risks.
Improved Tools and Transparency: Empowering Seller Decisions
Another key update for 2025 is Amazon’s commitment to providing better tools and increased transparency to its sellers. Managing fulfillment costs and inventory can be complex, but Amazon is taking steps to simplify this process.
Enhanced fee calculators will allow sellers to estimate their costs more accurately, giving them the insights they need to price their products competitively. Improved inbounding features will also streamline supply chain management by providing transportation cost estimates and shipping recommendations, helping sellers optimize their logistics.
By prioritizing transparency, Amazon is addressing a long-standing seller concern: the unpredictability of fees and charges. With these new tools, sellers can plan their operations with greater confidence and precision.
Updates for Multi-Channel Fulfillment and Supply Chain Services
Amazon’s focus on improving its Multi-Channel Fulfillment (MCF) and Supply Chain by Amazon (SCA) services brings another layer of value to its 2025 updates. MCF, which allows sellers to fulfill orders from other sales channels using Amazon’s logistics network, will see a 40% improvement in standard delivery speed, reducing shipping times to just three days.
However, this comes with a slight cost adjustment: MCF fees will increase by an average of 3.5%. Despite this rise, the service remains competitive compared to other carriers, especially given its speed and reliability.
On the supply chain front, Amazon is introducing Smart Storage Discounts through its Amazon Warehousing and Distribution (AWD) program. Sellers maintaining adequate inventory levels will receive a 10% discount, incentivizing better inventory planning.
These updates demonstrate Amazon’s balanced approach: enhancing services while keeping costs manageable for sellers. By speeding up deliveries and offering discounts, Amazon is helping sellers meet customer expectations without sacrificing profitability.
International Fee Updates: What Sellers Should Know
While Amazon’s domestic fee updates for the US are favorable, international sellers also benefit from certain adjustments. For example, referral fees for specific categories in European marketplaces have been reduced, making it easier for sellers to expand their footprint globally.
One of the most significant updates comes for Cross-Border Fulfillment by Amazon (FBA) services. Sellers shipping items across borders will now have access to lower fulfillment fees for lightweight and standard-sized items.
Amazon is also rolling out new currency conversion tools to streamline payments for international sellers, helping them better manage exchange rate fluctuations. Sellers operating in multiple marketplaces, such as Canada and Mexico, will benefit from these improvements as they reduce the risks and uncertainties associated with cross-border transactions.
These international fee updates emphasize Amazon’s commitment to fostering a global seller community by reducing barriers to entry for smaller sellers seeking to scale internationally.
Buy with Prime: Key Changes for 2025
Amazon’s Buy with Prime program, which enables sellers to offer Prime benefits like fast shipping on their own websites, has also seen updates. While the program remains a premium service, Amazon has introduced tiered pricing structures for sellers with lower order volumes, making it more accessible to smaller businesses.
For sellers, this is a golden opportunity to leverage the Prime badge and build customer trust outside of Amazon’s marketplace.
Additionally, fulfillment rates for Buy with Prime orders have been reduced by up to 5% for categories like electronics and home goods. This reduction lowers the operational cost for sellers while ensuring a seamless customer experience.
By improving accessibility and affordability, Amazon is positioning Buy with Prime as a strategic tool for sellers aiming to diversify their sales channels while retaining the logistical advantages of the Amazon ecosystem.
How Sellers Can Maximize Benefits from These Updates
Sellers who want to make the most of these updates should focus on aligning their strategies with Amazon’s new incentives and tools. To start, leveraging the FBA New Selection Program can significantly lower costs when launching new products. Sellers should analyze their inventory and identify potential opportunities for introducing new lines, especially in underserved categories where fee discounts apply.
Additionally, sellers using Multi-Channel Fulfillment (MCF) can integrate their operations with Amazon’s improved tools to streamline processes.
By staying informed and adaptable, sellers can not only cut costs but also explore new growth avenues within Amazon’s ecosystem.
Key Takeaways for 2025
The updates to Amazon’s fulfillment fees and programs for 2025 provide sellers with much-needed cost stability, new growth opportunities, and improved tools for managing their businesses. By freezing domestic fees, reducing costs in specific areas, and enhancing incentive programs, Amazon is creating an environment where sellers can thrive.
For international sellers, lower cross-border fees and improved currency tools open up new possibilities for scaling globally. Meanwhile, Buy with Prime offers a way to expand sales channels without losing the logistical advantages of Amazon’s network.
Sellers who take full advantage of these updates can expect not only cost savings but also improved operational efficiency and opportunities to innovate with new products.