Every year, Amazon FBA fees increase — usually by 7-9%.
Sometimes, the changes target specific product sizes. Other times, they punish sellers for poor inventory management.
But this year, something feels different. Amazon’s new inventory placement fee is making sellers feel less like partners and more like tenants in a system where Amazon is the landlord.
Let’s break down why this change matters, how it compares to past fee increases, and what sellers should do to adapt.
The Biggest Amazon Fee Changes Over the Years
Over the past 12 years, Amazon has gradually introduced new fees that reshape how sellers operate.
Here are some of the biggest:
🔹 Switching from a pick-and-pack fee to a flat fee (which cost my business six figures).
🔹 Moving from package weight to dimensional weight pricing (raising costs for bulky products).
🔹 Introducing the Q4 storage fee, making it more expensive to hold inventory during peak season.
🔹 Constant updates to long-term storage fees, with the latest change making the 6-month threshold more expensive than ever.
Each of these changes forced sellers to adapt, but this new inventory placement fee feels different.
Why the Inventory Placement Fee Is a Game Changer
1. The Cost Increase Is Immediate
Previous Amazon fee increases affected sellers at the unit level, making it easier to absorb over time.
But the inventory placement fee hits sellers immediately—as an upfront cost—instead of a hidden profitability reduction in the backend.
For many businesses, what used to cost $500 now costs $3,000. Even at a unit level (about $0.50 per unit), this adds up fast.
2. It Forces Sellers Into Tough Decisions
Sellers now have to make impossible calculations:
- Do we pay the placement fee?
- Do we absorb higher inbound freight costs?
- Do we take on the extra labor to split shipments in our own warehouse?
It’s a lose-lose situation. And unlike past fee increases, this one is unavoidable and in your face every time you ship inventory into Amazon.
Why Didn’t Amazon Just Raise FBA Fees Like Usual?
Amazon uses fees to change seller behavior. This year, their goal is to optimize the fulfillment network and reduce transshipping costs.
On paper, this makes sense:
📦 If sellers pre-optimize shipments, Amazon’s system runs smoother.
📦 Lower transshipping = lower long-term costs.
📦 Sellers who help Amazon’s logistics network run efficiently get lower fees.
But here’s the problem:
❌ 99% of Amazon sellers CAN’T help Amazon optimize its network.
❌ 99% of sellers DON’T have multiple warehouses across the U.S.
❌ Most sellers CAN’T pre-position inventory to avoid these fees.
That means sellers are forced to pay a placement fee "tax" on every shipment.
How Amazon Sellers Will React
Most sellers will pass this cost onto consumers, just like previous FBA fee increases.
But this time, they’ll feel like they’re getting squeezed harder.
For high-volume professional sellers, this fee is something they’ll deal with multiple times a week—a constant reminder of Amazon’s increasing costs.
What Should Amazon Sellers Do?
🔹 Monitor Amazon’s response – The backlash has been strong, and Amazon may adjust.
🔹 Update your profitability models – Factor this new fee into your pricing strategy.
🔹 Adjust your prices accordingly – If necessary, increase your prices to maintain margins.
🔹 Evaluate fulfillment alternatives – For some, third-party fulfillment might now make more sense.
It’s frustrating, but Amazon sellers have no choice but to adapt.
Final Thoughts: Amazon Is Still the Best Logistics Network
Every year, Amazon sellers rage about fee increases. And every year, sellers adjust their pricing, absorb the costs, and keep selling.
Why? Because Amazon’s FBA network is still the best logistics system in the world.
Even with this new placement fee, using FBA is still far cheaper than FedEx or UPS for next-day delivery nationwide.
Could Amazon raise fees by 50%? Yes.
Would sellers still use FBA? Probably.
Would sellers complain? Absolutely.
But at the end of the day, Amazon is still the dominant marketplace, and sellers who adapt will continue to thrive.
