Amazon's annual fee announcements for 2026 point in two directions. In Europe, Amazon described its update as one of its largest-ever fee reductions: lower FBA parcel fees in the UK, Germany, France, Italy and Spain from 15 December 2025, and lower referral fees in several categories, including Home products priced at or below £20/€20, from 5 January 2026. In the United States, referral fees are unchanged, while FBA fees rise by an average of about $0.08 per unit from 15 January 2026.
Why the averages are not your number
An average per-unit change is a portfolio figure. For any single product, the effect depends on its size tier, weight, price band and category. A low-priced, light item can move into a cheaper bracket; a bulky item can move the other way. Europe is also not uniform: Amazon paired its reductions with selective increases in storage, returns and liquidation fees, and with small fulfilment-fee increases in the Netherlands, Sweden, Belgium, Ireland and Poland.
How we are rebuilding the model
- Per product, per market. We recalculate contribution margin for every active product in every marketplace, using the new rate cards rather than last year's averages.
- Price bands first. Where a referral rate now changes at £20/€20, we check which products sit just above the threshold and whether a small price change moves them into a better band.
- Advertising limits follow margin. Break-even advertising cost is derived from the new margin, so bid ceilings change when fees change.
- Storage and returns. Lower fulfilment fees can be cancelled out by higher storage or returns costs. Slow sellers get the closest look.
What it means for brands we work with
For most of our packaging range, Europe's changes improve unit economics, which gives room to invest in advertising and range breadth there. In the US, the increase is modest, but it arrives in a year when landed costs are also moving, so we treat it as one input to a wider pricing review rather than a reason to raise prices on its own.