Amazon Seller Fees In 2026, What They Are And How We Help You Keep More Margin

/ Product Fulfillment Solutions Resources / By

Author: Jason Martin
Reviewed by: Ecommerce Operations Lead
Last updated: January 1, 2026

Executive TLDR

  • Fees stack fast, referral, fulfillment, storage, returns, and penalties from packaging or label misses.

  • Control the bench, right size every box, scan at pick and at pack, and rate shop daily.

  • Centralize inventory in Cincinnati for 1 to 3 day ground with fewer transfers.

  • Track five numbers daily, sell through days, storage days, return rate, billable vs actual weight, cost per order.

  • Pilot changes on 10 to 20 SKUs, then scale what works.

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We speak plainly and act fast. Here is the exact plan we run with brands like yours.

Table of contents

  • The fee stack in plain English

  • What pushes fees up

  • What pushes fees down

  • Our 7 step fee control playbook

  • Quick checklists you can copy

  • Small examples and edge cases

  • Why Product Fulfillment Solutions

  • FAQ

A quick story from the floor

A beauty brand in Ohio used a previous 3PL to ship about 450 orders a day. During peak, costs jumped and returns climbed. Boxes were oversized, labels printed before the final scan, and look alike shades swapped at pick. Aged storage fees grew because slow movers sat behind winners.

They moved to PFS. In week one we finished the product master for the top 60 SKUs, posted a packaging matrix at every bench, and turned on scan at pick and scan at pack. We shifted three items from cartons to padded mailers, rate shopped every label, and set one daily cut off. In 14 days, accuracy hit 99.7 percent. In 30 days, cost per order fell 8 percent and billable vs actual weight lined up. From our Cincinnati hub, 93 percent of orders arrived in three days or less by ground. The floor calmed, rework dropped, and customer tickets slowed.

The fee stack in plain English

You will see a mix of fees on each order or month.

  • Referral fee
    A percent of the selling price by category.

  • Fulfillment fee
    Charged per unit by size tier and weight. Oversize costs more.

  • Storage fee
    Monthly charges that grow with volume and days on hand. Aged inventory can add surcharges.

  • Returns handling
    Charged when goods come back. Swaps and damage make this worse.

  • Penalties
    For bad barcodes, missing warnings, wrong labeling, or messy cartons.

  • Ads
    Not a line item fee, but a real cost tied to conversion and returns.

You cannot change the marketplace rulebook. You can control how often you land in the worst tiers.

What pushes fees up

  • Oversized packaging that flips a SKU into a higher tier.

  • DIM creep where billable weight beats actual weight.

  • Bad barcodes or weak ASNs that force rework at receiving.

  • Slow sell through that triggers aged storage surcharges.

  • High returns from look alike swaps or poor protection.

  • Too many nodes that add transfers and storage without a speed gain.

What pushes fees down

Our 7 step fee control playbook

1) Lock your product master

Outcome: one source of truth.
Do now: title, barcode type and value, dimensions, weight, case and inner, hazard flags, set rules.
Target: top 50 SKUs complete in 7 days.

2) Write the packaging matrix

Outcome: fewer oversize hits and less damage.
Do now: default mailer or box by family, minimal protective steps, clear insert rules. Post on screen and at each bench.
Target: 90 percent of orders follow the matrix in 2 weeks.

3) Turn on scan at pick and pack

Outcome: fewer swaps, fewer mislabeled boxes, lower returns.
Do now: scan at pick, scan at pack, print the label after the final scan.
Target: 99.7 percent order accuracy.

4) Rate shop every label

Outcome: cheapest service that still lands on time.
Do now: blend nationals and regionals, pick by zone and promise day, monitor billable vs actual weight.
Target: reduce cost per order by 5 to 10 percent in 30 days. See discounted shipping rates.

5) Centralize first, add nodes only when the math says so

Outcome: fast ground, fewer transfers and lower storage.
Do now: ship from Cincinnati for 1 to 3 day ground to most buyers. Add a node only when delivery improves without raising unit cost.
Target: 95 percent delivered in 3 days by ground.

6) Chase sell through

Outcome: lower storage and fewer surcharges.
Do now: track weeks on hand by SKU, pre build bundles with kitting assembly services to move slow items, tune reorder points.
Target: keep top movers inside 4 to 8 weeks on hand.

7) Pilot on 10 to 20 SKUs, then scale

Outcome: proof before broad change.
Do now: run the new packaging, scans, and rate rules for 2 weeks.
Target: improve cost per order, return rate, and storage days. Then roll to the catalog.

Quick checklists you can copy

Receiving checklist

  • ASN lists PO, SKUs, counts by carton and pallet, dimensions, weights.

  • Carton and pallet labels match the ASN.

  • Booked dock time and an OS and D lane.

  • Dock to stock posted daily, target 1 to 3 days.
    Need space, consider warehousing and storage solutions.

Pack bench checklist

  • Packaging matrix posted and visible.

  • Scanner at each bench, label prints only after final scan.

  • Mailers and right sized cartons within reach, void fill measured.

  • One daily cut off, queue cleared before cut off.

Daily metrics

  • Order accuracy percent.

  • On time ship rate.

  • Billable vs actual weight.

  • Cost per order.

  • Sell through days and storage days.

Small examples and edge cases

Example, size tier control

A 12 oz bottle shipped in 10 x 8 x 6 hit a higher tier. We moved to a padded mailer with a kraft wrap per the matrix. Billable weight dropped. Tier dropped. Margin held.

Example, return rate reduction

Four shades of a cosmetic looked alike. We separated slots, turned on scan at pick, and added a second scan at pack. Return rate fell from 6 percent to 2 percent on those SKUs.

Edge case 1, bundle gets split

We cover component barcodes and apply one sellable barcode per set with Sold as a set, do not separate. Scans at pack close the loop. See kitting assembly services.

Edge case 2, seasonal packaging creep

Holiday sleeves required larger mailers. We added a seasonal row in the matrix with one bigger size and a cap on void fill. DIM stays in check.

Edge case 3, slow movers and aged storage

Weeks on hand passed 16. We pre built two bundle variations, tightened reorder points, and routed more orders to fast ground lanes. Storage fees eased in the next cycle.

Why Product Fulfillment Solutions

  • Central U.S. hub in Cincinnati for 1 to 3 day ground to most buyers.

  • Barcode first receiving with clean ASNs for predictable dock to stock speed.

  • Pick and pack standards with a posted packaging matrix and labels printed after the final scan.

  • Parcel optimization with daily rate shopping and billable vs actual tracking.

  • FEFO and lot or expiry controls for supplements, vitamins, cosmetics, and wellness.

  • Retail and marketplace readiness via EDI solutions and connections and FBA prep services.

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FAQ

Which fees should we tackle first
Start with fulfillment tier and DIM weight. Right size packaging and monitor billable vs actual daily.

Do we need multiple warehouses to lower fees
No. Begin centralized. A Midwest hub reaches most buyers by ground. Add nodes only when speed improves without raising unit cost.

How do we reduce returns that add costs
Scan at pick and pack, separate look alike SKUs, and post the packaging matrix. Returns fall when swaps and damage fall.

How often should we rate shop
Every day. Lanes and surcharges shift. Pick the cheapest service that still hits the promise day.

What daily report should leadership see
Five lines, accuracy, on time ship rate, billable vs actual weight, cost per order, storage days for top SKUs.

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