An Overview of Amazon's 2024 Seller Fee Changes

Author name

Understanding Amazon's fee changes in 2024 is like finding your way through a maze. There's a lot to figure out, but with the right knowledge, you can navigate it successfully. These changes are all about making things run smoother, being more eco-friendly, and helping sellers like you do better. Let's break down these adjustments and see how you can make the most of them in your online business journey.


 Main Updates

  • Product Size Tiers: Better Categorization
  • Referral Amazon Fees: Adjustments for Apparel
  • Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality
  • FBA Fulfillment Fees: Managing Costs Better
  • Ships in Product Packaging Program: Eco-Friendly Discounts
  • Prep Service Fees: Keeping Products Safe
  • Removal/Disposal Fees: Managing Old Inventory
  • Returns Processing Fee: Ensuring Quality
  • Conclusion: Adapting to Change


Product Size Tiers: Better Categorization

 

In 2024, Amazon has overhauled its size categorization system for FBA products, moving beyond the broad "Oversized" label to more specific tiers such as Large Bulky and Extra-Large. This nuanced classification allows for more accurate fee assessments based on a product’s dimensions and weight.

For example, a product previously categorized under a generic "Oversized" category may now be classified under "Large Bulky," potentially resulting in different fee structures. This ensures fairer fee allocation and benefits sellers with diverse product sizes and weights. By categorizing products more precisely, Amazon enhances the transparency and predictability of fees, allowing sellers to better manage their costs and pricing strategies.

 

Referral Amazon Fees: Adjustments for Apparel

 

Amazon is making targeted adjustments to referral fees for apparel items, particularly for those priced under $20. Sellers will see reduced referral fees for clothing items priced below $15 and those in the $15-$20 range.

For instance, a t-shirt priced at $18, which previously incurred a higher referral fee, will now have a lower fee, enabling sellers to price their products more competitively. This fee adjustment aims to support sellers in the highly competitive apparel market, encouraging them to offer more competitively priced items. Lower referral fees help sellers reduce costs, which can be passed on to consumers through better pricing, thus enhancing the overall shopping experience.

 

Inbound Placement Service and Defect Fees: Simplifying Inventory and Quality

 

To streamline inventory management, Amazon now offers Premium and Discounted service levels for inbound inventory placement. Sellers can choose a service level that best fits their operational needs and budget constraints. Additionally, a new fee structure has been introduced to encourage timely and accurate shipments, reflecting Amazon's commitment to high service standards.

For example, sellers opting for the Premium service might benefit from quicker processing times, while those choosing the Discounted service can keep costs lower. This change underscores the importance of accurate inventory handling and efficient shipping practices, benefiting sellers by reducing potential delays and improving customer satisfaction.

 

FBA Fulfillment Fees: Managing Costs Better

 

Amazon's adjustment of FBA fulfillment fees based on new size categories will impact sellers of various products, particularly in the apparel and dangerous goods sectors. Standard-sized items will see a reduction in fulfillment fees, while fees for larger items will be recalibrated according to their new categories. 

This realignment aims to better match fulfillment fees with the actual costs associated with handling and storing items of different sizes. Sellers of large or bulky products should review these changes to understand their cost implications. This adjustment helps ensure fair pricing across diverse product types and reflects Amazon’s efforts to optimize its fulfillment network, offering competitive rates for sellers.

 

Ships in Product Packaging Program: Eco-Friendly Discounts

 

Amazon is encouraging sellers to adopt eco-friendly packaging through its Ships in Product Packaging program, previously known as Ship in Own Container (SIOC). Sellers using sustainable packaging solutions will benefit from discounts on fulfillment costs. For example, a seller who switches to recyclable or biodegradable packaging materials may receive a discount, reducing overall fulfillment expenses. 

This initiative aligns with Amazon’s broader sustainability goals, promoting environmentally responsible practices among its sellers. By incentivizing eco-friendly packaging, Amazon aims to reduce its environmental impact while providing cost savings to sellers, supporting a more sustainable ecommerce ecosystem.

 

Prep Service Fees: Keeping Products Safe

 

Amazon has revised its prep service fees to reflect changes in packaging material costs. The price of bubble wrap has increased to ensure better protection for products during shipping, while labeling fees remain unchanged to maintain clear identification of items. 

For instance, the cost for bubble-wrapping a fragile item has risen, but this ensures that items are better protected from damage. Maintaining consistent labeling fees helps minimize shipping errors, enhancing customer satisfaction. Sellers should incorporate these changes into their budgeting and pricing strategies to ensure their products are adequately protected and accurately labeled, reducing the risk of damage and returns.


Removal/Disposal Fees: Managing Old Inventory

 

To encourage better inventory management, Amazon is updating its fees for removing or disposing of inventory. These adjustments are designed to incentivize sellers to prioritize inventory turnover and avoid the accumulation of excess or obsolete stock. 

For example, fees for removing outdated products from Amazon’s warehouses have been increased, prompting sellers to manage inventory more efficiently. By aligning removal and disposal fees with the actual costs of handling inventory, Amazon encourages proactive inventory management. 


Sellers should plan for timely removal or disposal of excess stock to minimize associated fees, improving overall operational efficiency and reducing costs.

 

Returns Processing Fee: Ensuring Quality

 

A new fee is added for handling returns in most categories, except for clothes and shoes. This encourages sellers to focus on quality to reduce returns and make customers happier. This fee adjustment incentivizes sellers to prioritize product quality and customer satisfaction, reducing the incidence of returns and improving the overall shopping experience.

 

By introducing a returns processing fee, Amazon aims to deter sellers from listing low-quality or defective products, thereby reducing the frequency of returns and associated costs. Sellers should focus on providing accurate product descriptions, high-quality images, and excellent customer service to minimize returns and mitigate the impact of this fee on their bottom line.

 

Conclusion: Adapting to Change

 

As Amazon sellers, it is crucial to understand these fee changes and adapt strategies accordingly. By managing costs better, optimizing inventory, and offering high-quality products and services, sellers can navigate the evolving landscape of ecommerce with confidence and success. 


These adjustments reflect Amazon's ongoing efforts to support sellers, enhance customer satisfaction, and promote sustainability across its platform. Staying informed and proactive in response to these changes will help sellers maintain competitiveness and achieve long-term success in the dynamic ecommerce market.

Amazon package with Prime tape and logo.
By William Fikhman February 2, 2026
From the inside, Amazon looks manageable. Listings are live. Ads are running. Sales are steady. On the surface, everything appears fine. From the outside—from an agency’s vantage point—it rarely is. That gap between perception and reality is where most Amazon growth stalls. Not because brands aren’t working hard, but because they’re too close to the machine to see where it’s leaking. Agencies don’t see Amazon the way brands do. They see patterns. Brands See Their Catalog. Agencies See the System. Most brands evaluate Amazon one SKU at a time: Is this listing converting? Is this keyword ranking? Is this campaign profitable? Agencies zoom out. They see how: One weak image suppresses an entire category One inconsistent title structure confuses AI systems One risky compliance shortcut creates long-term fragility One misaligned SKU drags down brand trust across the catalog Brands optimize pieces. Agencies optimize interactions . That difference changes everything. Brands See Performance. Agencies See Signal Quality. A brand sees: Clicks ACOS Sessions Revenue An agency asks: Why did the click happen? What signal did that click send to Amazon? Did the shopper hesitate? Did the listing reinforce intent—or dilute it? Did the ad amplify clarity—or expose confusion? Two brands can have identical metrics and wildly different futures. Because Amazon doesn’t reward activity. It rewards confidence signals . Agencies are trained to read those signals early—before performance drops show up in reports. Brands Fix Symptoms. Agencies Diagnose Structure. When sales dip, brands often react tactically: Add more keywords Increase bids Swap images Rewrite bullets Launch promos Agencies step back and ask a harder question: “What’s structurally misaligned?” Is the listing trying to serve too many use cases? Is the imagery saying one thing while the copy says another? Is the brand positioning inconsistent across SKUs? Is the catalog teaching Amazon what the brand isn’t ? Most Amazon problems don’t need more effort. They need better alignment. Brands Think Like Sellers. Agencies Think Like Amazon. This is the blind spot that matters most. Brands think: “How do I sell this product?” Agencies think: “How does Amazon decide when to show, trust, and recommend this product?” That mindset shift changes how everything is built: Titles are written for interpretation, not stuffing Images are designed for recognition, not decoration A+ content resolves doubt instead of adding features Ads reinforce positioning instead of chasing volume Agencies don’t optimize for Amazon. They optimize with Amazon’s decision logic in mind. Brands See Today. Agencies See the Compounding Effect. Small inconsistencies feel harmless in isolation. Agencies see how they compound: Slight messaging drift becomes brand confusion Minor policy risks become account fragility Inconsistent visuals weaken AI confidence Short-term wins erode long-term authority Amazon rewards brands that behave predictably over time. Agencies are paid to protect that predictability—even when it means saying no to short-term gains. Brands Focus on What’s Visible. Agencies Focus on What’s Silent. Some of the most dangerous Amazon problems don’t announce themselves. Agencies notice: When conversion friction increases before revenue drops When AI visibility softens without ranking loss When shoppers hesitate instead of bouncing When ads prop up listings that should stand on their own Silence on Amazon is rarely neutral. It’s usually a warning. Why This Perspective Gap Exists Brands live inside their product. Agencies live across hundreds of catalogs, categories, and outcomes. That exposure builds pattern recognition brands can’t develop alone—no matter how smart or experienced they are. It’s not about effort. It’s about distance. From Clicks to Conversions: Partner With Experts Who See the Whole Board At Chief Marketplace Officer , we don’t just execute tasks—we interpret systems. We see Amazon the way it actually works, not the way it appears from inside a single brand. Our team of Amazon specialists: Identifies structural issues before they show up in performance reports Aligns images, copy, ads, and A+ into one clear decision signal Designs listings for AI interpretation and human confidence Protects brand trust while scaling visibility and revenue Amazon sellers don’t fail because they don’t work hard. They stall because they can’t see what’s holding them back. That’s where we come in. Ready to Turn Browsers Into Buyers? 👉 Book Your Strategy Call with CMO Now Final Thoughts Most Amazon problems aren’t obvious. They’re systemic. And the hardest part isn’t fixing them—it’s recognizing them. Agencies don’t have better ideas because they’re smarter. They have a better perspective because they’re farther away. On Amazon, distance creates clarity. And clarity is what unlocks scale. Because the brands that win aren’t the ones doing more. They’re the ones finally seeing what’s been there all along.
Laptop screen with Amazon Seller Central logo, Account Health Auditing progress bar. Shopping bags, shopping cart.
By William Fikhman February 2, 2026
After a few Amazon audits, you start spotting mistakes. After a few dozen, you recognize trends. After hundreds, you stop looking at tactics altogether. You start seeing systems. At scale, Amazon success isn’t about clever tricks or isolated optimizations. It’s about how well a brand aligns with how Amazon evaluates , trusts , and recommends products over time. And after auditing hundreds of Amazon brands across categories, price points, and maturity levels, the lessons are surprisingly consistent. Most Brands Aren’t Broken—They’re Misaligned Very few brands we audit are “bad.” Many are talented. Well-funded. Experienced. But they’re misaligned. Their listings say one thing while their images imply another. Their ads chase keywords their listings can’t support. Their A+ content adds information but removes clarity. Their catalog grows without a unifying logic. On Amazon, misalignment doesn’t just slow growth—it quietly erodes trust. And trust is the currency Amazon cares about most. Conversion Problems Rarely Start With Copy Brands often assume low conversion is a wording issue: “We need stronger bullets.” “We need better keywords.” “We need more benefits.” But audits show something different. Conversion issues usually start before the copy: Images that don’t instantly define the product Main images that blend into the search results Visual stacks that force interpretation Use cases that aren’t obvious at a glance When shoppers hesitate visually, copy never gets a chance to work. High-performing brands don’t persuade harder—they clarify sooner. Most Listings Try to Say Too Much One of the most common audit findings is over-communication. Brands try to: Serve every use case Appeal to every audience Capture every keyword Preempt every objection The result is a listing that feels busy, vague, and exhausting. Amazon—and shoppers—reward decisiveness. Listings that win audits usually: Commit to a primary outcome Clearly define who the product is for Make tradeoffs obvious instead of hidden Remove unnecessary options Clarity isn’t restrictive. It’s liberating. Ads Expose Listing Weakness Faster Than Anything Else PPC performance is one of the fastest diagnostic tools in an audit. When ads struggle, it’s rarely because: Bids are too low Keywords are wrong Campaigns aren’t complex enough It’s because the listing can’t convert the promise the ad makes. Audits repeatedly show: High CPCs tied to unclear positioning Poor ROAS driven by visual mismatch Wasted spend propping up structurally weak listings Ads don’t fix problems. They reveal them. Brand Consistency Is the Hidden Growth Lever Across hundreds of audits, one pattern stands out clearly: Brands that scale smoothly feel predictable . Not boring—predictable. Their: Titles follow a consistent logic Images reinforce the same promise A+ content repeats—not reinvents—the story Reviews validate the same outcomes Catalog feels intentional, not accidental This predictability makes Amazon confident recommending them. Inconsistent brands don’t just confuse shoppers. They confuse the algorithm. Compliance Issues Are Usually Design Problems Most compliance risks we uncover aren’t malicious or careless. They’re structural. Claims hidden in images. Implications buried in icons. Language that feels “safe” in isolation but risky in context. Brands focus on policy rules . Audits reveal the importance of policy interpretation . Listings that feel restrained, clear, and factual convert better and survive longer. Compliance isn’t the enemy of creativity. It’s the framework that protects scale. The Best Brands Think Like Teachers After hundreds of audits, one truth becomes obvious: The strongest Amazon brands teach instead of sell. They: Explain what the product does in plain language Guide shoppers toward the right choice Reduce comparison fatigue Set expectations honestly Let confidence replace hype As Amazon leans further into AI-driven discovery and decision support, this teaching mindset becomes a competitive advantage. Amazon doesn’t promote confusion. It promotes understanding. From Clicks to Conversions: Partner With Experts Who See the Patterns At Chief Marketplace Officer , we don’t audit to generate checklists—we audit to reveal systems. Our experience across hundreds of Amazon brands allows us to see: What quietly suppresses growth What signals Amazon trusts What patterns repeat across winning catalogs What breaks long before revenue does Our team of Amazon specialists: Diagnoses structural misalignment, not surface-level issues Aligns images, copy, ads, and A+ into one cohesive decision signal Builds catalog-level consistency that scales safely Designs listings for long-term trust—not short-term spikes Amazon sellers don’t need more tactics. They need perspective earned through repetition. That’s where we come in. Ready to Turn Browsers Into Buyers? 👉 Book Your Strategy Call with CMO Now Final Thoughts Auditing hundreds of Amazon brands teaches you one thing above all else: Success isn’t accidental—and failure is rarely sudden. Most outcomes are earned quietly, through alignment, restraint, and clarity. The brands that win aren’t doing more. They’re doing fewer things better —and doing them consistently. On Amazon, experience isn’t just knowledge. It’s pattern recognition. And pattern recognition is what turns effort into scale.